M Business 6th Edition By OC Ferrell – Test Bank

Chapter 11 Customer-Driven Marketing

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

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

2) At the heart of all business is the product.

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

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

Answer: FALSE
Explanation: Customer cost refers to anything a buyer must give up to obtain the benefits the product provides.
Difficulty: 1 Easy
Topic: The Evolution of Marketing
Learning Objective: 11-02 Specify the functions of marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

4) Customers derive benefits from their experiences, as well as the act of shopping and selecting products.

Answer: TRUE
Explanation: In developing marketing activities, it is important to recognize that customers receive benefits based on their experiences. Customers also derive benefits from the act of shopping and selecting products.Customer cost refers to anything a buyer must give up to obtain the benefits the product provides.
Difficulty: 1 Easy
Topic: The Marketing Mix
Learning Objective: 11-02 Specify the functions of marketing.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

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

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

6) In the production orientation of the 19th century, new technology played a key role.

Answer: TRUE
Explanation: New technologies, such as electricity, railroads, internal combustion engines, and mass-production techniques, made it possible to manufacture goods with ever increasing efficiency. Together with new management ideas and ways of using labor, products poured into the marketplace, where demand for manufactured goods was strong.
Difficulty: 1 Easy
Topic: The Evolution of Marketing
Learning Objective: 11-03 Explain the marketing concept and its implications for developing marketing strategies.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

7) One of the ways companies segment markets is on the basis of behavioristic variables.

Answer: TRUE
Explanation: Companies segment markets on the basis of demographic, geographic, psychographic, and behavioristic variables. Behavioristic characteristics involve some aspect of product use.
Difficulty: 1 Easy
Topic: Market Segmentation
Learning Objective: 11-04 Examine the development of a marketing strategy, including market segmentation and marketing mix.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

8) Everett has a clothing store in Aspen, Colorado, and he knows that his customers tend to be high earners with upscale tastes. This is a description of Everett’s target market.

Answer: TRUE
Explanation: A target market is a more specific group of consumers on whose needs and wants a company focuses its marketing efforts.
Difficulty: 2 Medium
Topic: Market Segmentation
Learning Objective: 11-04 Examine the development of a marketing strategy, including market segmentation and marketing mix.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

9) In the dual market strategy, the marketer aims its marketing efforts at two or more segments, developing a marketing strategy for each.

Answer: FALSE
Explanation: This describes the multisegment approach, In this approach to segmenting markets, the marketer aims its efforts at two or more segments, developing a marketing strategy for each.
Difficulty: 1 Easy
Topic: Market Segmentation
Learning Objective: 11-04 Examine the development of a marketing strategy, including market segmentation and marketing mix.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation

10) Tasty Beverages promoted its new soft drink to people who were very active and tended to be risk takers. In this case, Tasty Beverages was segmenting its market based on demographic variables.

Answer: FALSE
Explanation: This demonstrates psychographic segmentation, which is based on personality characteristics, motives, lifestyles.
Difficulty: 2 Medium
Topic: Market Segmentation
Learning Objective: 11-04 Examine the development of a marketing strategy, including market segmentation and marketing mix.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation