Business Foundations A Changing World 11th Edition By Ferrel – Test Bank

Chapter 11 Customer-Driven Marketing Answer Key

True / False Questions

1. Creating an innovative product that meets many users’ needs is sufficient in today’s volatile global marketplace.

FALSE
Just creating an innovative product that meets many users’ needs isn’t sufficient in today’s volatile global marketplace. Products must be conveniently available, competitively priced, and uniquely promoted.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: The Evolution of Marketing

2. The customer value of a product refers to anything a buyer must give up to obtain the benefits the product provides.

FALSE
Customer cost refers to anything a buyer must give up to obtain the benefits the product provides.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 11-02 Specify the functions of marketing.
Topic: The Evolution of Marketing

3. Trying to determine customers’ true needs is difficult because no one fully understands what motivates people to buy things.

TRUE
Trying to determine customers’ true needs is increasingly difficult because no one fully understands what motivates people to buy things. However, a business must be prepared to add to or adapt their product lines to keep pace with changing consumer needs and wants.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 11-03 Explain the marketing concept and its implications for developing marketing strategies.
Topic: The Evolution of Marketing

4. Companies segment markets on the basis of demographic, geographic, psychographic, and behavioristic variables.

TRUE
Companies segment markets on the basis of demographic, geographic, psychographic, and behavioristic variables. Demographic characteristics are often closely related to customers, product needs, and purchasing behavior; geographic characteristics influence consumer needs and product usage; psychographic characteristics relate to lifestyles and motives; and behavioristic characteristics involve some aspect of product use.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 11-04 Examine the development of a marketing strategy, including market segmentation and marketing mix.
Topic: Market Segmentation

5. Buying behavior includes the behavior of both consumers purchasing products for personal or household use as well as organizations buying products for business use.

TRUE
Buying behavior refers to the decision processes and actions of people who purchase and use products. It includes the behavior of both consumers purchasing products for personal or household use as well as organizations buying products for business use.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 11-05 Investigate how marketers conduct marketing research and study buying behavior.
Topic: Marketing Research

6. It is necessary for nonprofits, government institutions, and even people to market themselves to spread awareness and achieve desired outcomes.

TRUE
It is not just for-profit businesses that engage in marketing activities. Nonprofits, government institutions, and even people must market themselves to spread awareness and achieve desired outcomes.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 11-06 Summarize the environmental forces that influence marketing decisions.
Topic: Integrated Marketing Communications

Multiple Choice Questions

7. _____ is best described as a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas.

A. Auditing

B. Marketing

C. Recruiting

D. Bootstrapping

E. Brainstorming
A vital part of any business undertaking, marketing is a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas. These activities create value by allowing individuals and organizations to obtain what they need and want.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Bloom’s: Remember
Difficulty: 1 Easy
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: The Evolution of Marketing

8. Marketing activities best create value by

A. focusing exclusively on selling and advertising.

B. using unsystematic approaches to satisfying consumers.

C. manipulating consumers to get them to buy products they do not want.

D. allowing individuals and organizations to obtain what they need and want.

E. working independently of other functional areas of business—such as operations.
Marketing activities create value by allowing individuals and organizations to obtain what they need and want. Marketing is not manipulating consumers to get them to buy products they do not want. It is not just selling and advertising; it is a systematic approach to satisfying consumers.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Bloom’s: Understand
Difficulty: 1 Easy
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: The Evolution of Marketing

9. For the products launched by companies to succeed, it is important that

A. marketing is aggressive and alienated from other functional areas.

B. marketing endeavors are directed solely at manipulating consumers.

C. all the functional areas of the business are coordinated with marketing decisions.

D. the marketing environment changes constantly.

E. one environmental force is not interconnected with another environmental force.
Marketing is an important part of a firm’s overall strategy. Other functional areas of the business—such as operations, finance, and all areas of management—must be coordinated with marketing decisions.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Bloom’s: Understand
Difficulty: 1 Easy
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: The Evolution of Marketing

10. Nadine is the marketing manager for a company that produces innovative educational technology products. Her colleagues have created a new set of simulations that allow philosophy students to respond to ethical dilemmas. All of the following are things Nadine and her colleagues must do to ensure that this new product succeeds in the market EXCEPT

A. simply selling and advertising the product.

B. making sure the product is conveniently available.

C. competitively pricing the product.

D. uniquely promoting the product.

E. creating trust and effective relationships with customers.
To ensure that the company’s products succeed in the market, Nadine and her colleagues must create trust and effective relationships with customers. Just creating an innovative product that meets many users’ needs isn’t sufficient in today’s volatile global marketplace. Products must be conveniently available, competitively priced, and uniquely promoted. Marketing is not just selling and advertising; it is a systematic approach to satisfying consumers.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom’s: Apply
Difficulty: 3 Hard
Learning Objective: 11-01 Define marketing and describe the exchange process.
Topic: The Evolution of Marketing