Marketing Ch 1 Test
1. What is the fundamental objective of most businesses?
A. Employee empowerment, teamwork, and relationship marketing
B. Satisfied stakeholders
C. Low costs and high quality
D. Customer loyalty and retention
E. Survival, profits, and growth
2. Which of the following contains a good reason for studying marketing?
A. Marketing teaches businesses how to sell products that people do not need
B. Marketing deals with transactions – not relationships
C. Marketing has little impact on your day-to-day life
D. Marketing offers outstanding career opportunities
E. The study of marketing helps you to better understand why the job market is shrinking
3. For a market oriented organization, the primary tool used to achieve its goals is:
A. A blend of product, place, promotion, and pricing decisions
B. Price
C. Product design
D. Place (distribution)
E. Promotion
4. The manufacturer of Maine Kitchen Art bowls, spoons, and cutting boards knows marketing can make his company a success. He wants to rely solely on promotion as the technique for attracting customers. He advertises extensively in cooking magazines, offers coupons, and provides retailers who carry his product with attractive displays. From this information, you know that Maine Kitchen Art has a _______ orientation.
A. Market
B. Societal
C. Production
D. Sales
E. Product
5. The U.S. Postal Service (USPS) argues that its express service is comparable to what is offered by FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45 percent share of the express-delivery market. Which of the following statements describes this situation?
A. The USPS is perceived as offering greater customer value
B. FedEx is perceived as offering greater customer value
C. FedEx and USPS offer the same customer value
D. Customer value is not an issue in deciding which express-delivery service to use
E. The USPS should lower its prices even further to increase market share.
6. Xerox emphasizes _____________ by replacing at its own expense any dissatisfied customer’s equipment within a period of three years after purchase.
A. Management empowerment
B. Management-customer synergy
C. Customer satisfaction
D. Transactional marketing
E. Direct selling
CHRYSLER MINIVANS
In 1995, the Chrysler Corporation launched the first complete remake of its minivan category since the firm invented the vehicle category in 1984. The minivans were designed with more curves on the outside and more space on the inside. One of Chrysler’s goals for remaking the minivan was to broaden the minivan’s appeal beyond the traditional buyer base of practical families. Advertising showed minivan’s being used to cart everything from senior citizens to canoes. “A minivan for any time, any place, everyone,” was one of the promotional slogans used. To reach other customer groups, Chrysler developed a sports version and a short-wheel-base version of the upscale Town and Country model for sophisticated buyers. Chrysler hoped the $2.6 billion vehicle development cost would pay off as the market expanded. However, competitors began to offer a wider range of sophisticated models and competition became fierce. (Use the paragraph to answer # 7-11.)
7. When Chrysler first launched the minivan, the company offered only one version and was focused on generating sales volume through intensive advertising. This approach suggests the company had a ________ orientation.
A. Sales
B. Market
C. Production
D. Societal
E. Promotional
8. The minivans were developed through an extensive investment in research and development to completely redesign the minivans and provide customers with new and updated features. This effort is designed to better meet customers’ wants and needs, and suggest the company has adopted a __________ orientation.
A. Societal
B. Sales
C. Production
D. Market
E. Retail
9. By introducing sporty, value-priced, and upscale minivans, Chrysler hoped to forge a long-term relationship with customers as they replace their older minivan. Chrysler engaged in:
A. Empowerment
B. Customer valuation
C. Relationship marketing
D. Outward focus management
E. Primary goal making
10. Chrysler set up a team of special customer-service representatives who assist minivan buyers and who are authorized to solve problems immediately. These employees were given:
A. Authority training
B. Customer value giving
C. Cross-utilization
D. Teamwork
E. Empowerment
11. In an established organization like Chrysler, recognizing minivan buyer needs and wants and switching to a customer-driven corporate culture probably required:
A. Teamwork
B. Establishing long-term relationships with customers
C. An emphasis on creating customer value
D. The implementation of effective training programs
E. All of these