Business Changing World 8th Edition By O. C. Ferrell – Test Bank

Chapter 11 Customer-Driven Marketing Answer Key
True / False Questions

1. (p. 338)Marketing creates value by allowing individuals and organizations to obtain what they want and need.
   TRUE

Marketing activities create value by allowing individuals and organizations to obtain what they need and want.

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Nature of Marketing

2. (p. 338)Marketing is just selling and advertising.
   FALSE

Marketing is not just selling and advertising; it is a systematic approach to satisfying consumers.

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Nature of Marketing

3. (p. 339)If an exchange is to occur, each participant must be willing to give up something of value to receive something the other has.
   TRUE

For an exchange to occur, each participant must be willing to give up his or her respective “something of value” to receive the “something” held by the other.

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Nature of Marketing

4. (p. 338)Marketing occurs only in large business organizations.
   FALSE

Organizations in all sizes and objectives engage in marketing activities.

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Customer-Driven Marketing: Introduction

5. (p. 339)As long as both a buyer and seller have something of value to exchange, an exchange will take place.
   FALSE

An exchange does not necessarily take place just because buyers and sellers have something of value to exchange. Each participant must be willing to give up his or her respective “something of value” to receive the “something” held by the other.

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Nature of Marketing

Multiple Choice Questions

6. (p. 338)Rick Richardson developed a new product and has found a retail store willing to sell it. He has also agreed to help promote the product’s sale. He is engaging in
   A. retailing.
   B. marketing.
   C. researching.
   D. discounting.
   E. exchanging.

Marketing involves making products conveniently available (through distribution), competitively priced, and effectively promoted.

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Nature of Marketing

7. (p. 338)Marketing creates value by
   A. increasing the price of goods.
   B. helping people obtain what they need and want.
   C. spending large amounts on advertising.
   D. informing people of new products.
   E. manipulating people into buying products they don’t want.

Marketing activities create value by allowing individuals and organizations to obtain what they need and want.

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Nature of Marketing

8. (p. 338)Marketing is not manipulating customers into buying things they do not really want, it is
   A. a systematic approach to satisfying customers.
   B. advertising.
   C. targeting a market.
   D. pushing what is produced.
   E. manipulating customers.

Marketing is not just selling and advertising; it is a systematic approach to satisfying consumers.

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Nature of Marketing

9. (p. 338-339)When a customer hands the cashier $1 and receives a loaf of bread, which of the following has occurred?
   A. Discounting
   B. Facilitating
   C. Utility
   D. Exchange
   E. Advertising

At the heart of all business is the exchange, the act of giving up one thing (money, credit, labor, goods) in return for something else (goods, services, or ideas).

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Nature of Marketing

10. (p. 338)Marketing is the facilitation of exchanges through
    A. creating, pricing, promoting, and distributing goods.
    B. market segmentation.
    C. multi-segment marketing.
    D. place and form utility.
    E. product advertising and promotion.

Marketing is a group of activities designed to facilitate transactions by creating, distributing, pricing, and promoting goods, services, and ideas.

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: Nature of Marketing