Chapter 1 Welcome To The World of Marketing: Create and Deliver Value

Marketing: Real People, Real Choices, 9e (Solomon/Marshall/Stuart)
Chapter 1 Welcome to the World of Marketing: Create and Deliver Value
1) A ________ is the ultimate user of a good or service.

A) stakeholder
B) market
C) target market
D) marketer
E) consumer
Answer: E
2) ________ is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.
A) Demand satisfaction
B) Competitive advantage building
C) Marketing
D) Total quality management
E) Value chain management
Answer: C
3) ________ consists of the tools an organization uses to create a desired response among a set of
predefined consumers.
A) Distinctive competency
B) Market position
C) Value proposition
D) Differential benefit
E) Marketing mix
Answer: E
4) The Four Ps are ________.

A) price, product, place, and promotion
B) price, profit, production, and possession
C) product, production, possession, and promotion
D) product, promotion, price, and profit
E) place, production, process, and profit
Answer: A
5) Which of the following is a true statement about the Four Ps of the marketing mix?
A) A decision about one of the Ps affects every other marketing-mix decision.
B) Price is always the most important of the Four Ps.
C) Place is typically the least important of the Four Ps.
D) The Four Ps have little effect on a product's market position.
E) The Four Ps are used to determine a product's target market.
Answer: A
6) Which of the following is part of the product element of the marketing mix?
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A) a quality discount
B) a store coupon
C) a newspaper advertisement
D) the packaging
E) publicity releases
7) A ________ is a good, service, idea, place, or person—whatever is offered for sale in the
exchange.
A) product
B) place
C) utility
D) benefit
E) demand
Answer: A
8) ________ is the assignment of a product's value, or the amount the consumer must exchange
to receive the offering.
A) Promotion
B) Price
C) Benefit
D) Need
E) Utility
Answer: B
9) The ________ element of the marketing mix informs consumers about products and
encourages them to buy these products using forms such as personal selling, advertising,
coupons, and publicity.
A) production
B) place
C) price
D) distribution
E) promotion
Answer: E
10) Marketing communication is also referred to as ________.

A) production
B) selling orientation
C) societal marketing
D) exchange
E) promotion
Answer: E
11) For an exchange to occur, ________.

A) at least two people or organizations must be willing to make a trade, and each must have
something the other wants
B) there must be one winner and one loser
C) someone must make a financial profit
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D) the item must be tangible
E) time utility must be created
Answer: A
12) Which element of the marketing mix is most closely associated with a company's channel of
distribution?
A) production
B) place
C) price
D) profit
E) promotion
Answer: B
13) ________ are intangible products that we pay for and use but never own.
A) Consumer goods
B) Services
C) Industrial goods
D) E-commerce products
E) Value products
Answer: B
14) ________ are the tangible products that individuals purchase for personal or family use.
A) Consumer services
B) Consumer goods
C) Value propositions
D) Branded content
E) Industrial goods
Answer: B
15) ________ marketing is the marketing of goods and services from one organization to
another.
A) Distributive
B) Consumer
C) Customer
D) Business-to-business
E) Target
Answer: D
16) Nongovernmental organizations are also known as ________.

A) consumer organizations
B) public organizations
C) private organizations
D) not-for-profit organizations
E) for-profit organizations
Answer: D
17) Marketers first identify consumer needs and then provide products that satisfy those needs.
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This practice is referred to as ________.
A) the stakeholder orientation
B) the marketing concept
C) total quality management
D) collaborative consumption
E) the marketing mix
Answer: B
18) When a gap exists between a consumer's actual state and some ideal or desired state, the
consumer has a ________.
A) benefit
B) demand
C) need
D) value
E) utility
Answer: C
19) A ________ is a desire for a particular product a consumer uses to satisfy a need in a specific
way that is culturally and socially influenced.
A) benefit
B) demand
C) value
D) utility
E) want
Answer: E
20) A ________ delivered by a product is the outcome that motivates a customer's buying
behavior.
A) benefit
B) demand
C) value
D) need
E) want
Answer: A
21) A customer's desire for a product coupled with the buying power or resources to obtain that
product is called ________.
A) benefit
B) demand
C) need
D) utility
E) service
Answer: B
22) To be part of the ________ for a product, consumers must share a common need that can be
satisfied by the product and have the resources, willingness, and authority to purchase the
product.
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A) demand center
B) audience
C) value proposition
D) marketplace
E) market
Answer: E
23) A glitzy shopping mall, a mail-order catalog, a television shopping network, and an e-
commerce website are all examples of ________.
A) marketing concepts
B) value chains
C) monopolies
D) marketplaces
E) strategic business units
Answer: D
24) The trend of consumers renting out their belongings when they are not in use to other
consumers who need them for a limited time is called ________.
A) e-commerce
B) virtual exchange of goods
C) the attention economy
E) user-generated content
Answer: D
25) All of the following are forms of utility created by marketing processes EXCEPT ________.
A) form utility
B) place utility
C) time utility
D) possession utility
E) price utility
Answer: E
26) ________ utility is the benefit marketing provides by transforming raw materials into
finished products, as when a dress manufacturer combines silk, thread, and a zipper to create a
bridesmaid's gown.
A) Form
B) Place
C) Time
D) Possession
E) Price
Answer: A
27) Women who rent their wedding gowns instead of buying them and wearing them only once
are taking advantage of ________ utility.
A) form
B) place
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C) time
D) possession
E) price
Answer: C
28) ________ utility is the benefit marketing provides by allowing the consumer to own, use,
and enjoy a product.
A) Form
B) Place
C) Time
D) Possession
E) Price
Answer: D
29) Buyers, sellers, investors, and community residents are all considered ________ in a
company.
A) stakeholders
B) shareholders
C) consumers
D) channel of distribution members
E) collaborative consumers
Answer: A
30) When Tony rented a loft apartment where he would live for the summer, he acted as a
________.
A) consumer
B) shareholder
C) producer
D) marketer
E) retailer
Answer: A
31) Chris just landed her dream job but realizes that her college wardrobe is not going to work
for her new professional position. In this situation, Chris has a(n) ________.
A) benefit
B) exchange
C) value
D) need
E) utility
Answer: D
32) Greg Williams now has the buying power to purchase the computer system he has wanted for
the last six months. Greg's want has become a(n) ________.
A) need
B) necessity
C) demand
D) exchange
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E) transaction
Answer: C
33) Ruth Terry is a realtor. In her ads, Terry offers the free use of a moving truck to every
customer she helps either buy or sell a house. This free use of a moving truck is an example of
________.
A) a benefit
B) a demand
C) business-to-business marketing
D) a need
E) the rentrepreneur trend
Answer: A
34) Which of the following is the best example of a consumer good?

A) the riding lawn mower purchased by the landscaping company
B) the disposable diapers purchased by the new mother for her baby
C) the paint purchased by the contractor
D) the cookies purchased for the daycare center
E) the art supplies purchased for the elementary school art center
Answer: B
35) Which of the following is the best example of a service?

A) the medical examination Jonathon had yesterday
B) the sheet music purchased by the piano teacher
C) the software Monica purchased from the website
D) the cleaning supplies purchased for the veterinarian's office
E) the t-shirt you got for running in a 5K race
36) Alex paid for a(n) ________ when he took his car to the carwash to be washed and waxed.
A) service
B) industrial product
C) consumer good
D) commercial good
E) business product
Answer: A
37) Which of the following is an example of a transaction that might occur in business-to-
business marketing?
A) Maurice buys a new razor on his way home from work.
B) The amateur gardener buys a new wheelbarrow.
C) The retail outlet buys athletic shoes to sell in its store.
D) The professional chef bakes a birthday cake for her son.
E) Robyn's mother hires a math tutor to help Robyn pass algebra. Answer: C
38) Jack provides heating and air conditioning equipment for office buildings. He sells
________.
A) distributive goods
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B) consumer services
C) consumer goods
D) industrial goods
E) intangible goods
Answer: D
39) Which of the following is an example of a not-for-profit organization that would use
marketing principles?
A) a fast-food restaurant
B) a manufacturer of bicycles
C) a software developer
D) Six Flags Amusement Park
E) the Bronx Zoo
Answer: E
40) A sign manufacturer who uses plastic, metal, and neon tubing to create a motel sign has
performed the marketing benefit of creating ________ utility.
A) form
B) place
C) possession
D) time
E) creation
Answer: A
41) Shane pulled her car into the gas station just as the fuel gauge dropped below empty. In this
example, Shane benefited from the ________ utility offered by the gas station.
A) creation
B) place
C) value
D) marketing
E) quality
Answer: B
42) Seth's mother didn't want to build a climbing wall as a permanent feature in her backyard,
but it was certainly convenient to rent one from the company that catered Seth's 12th birthday
party. The catering company created both ________ utility when it rented her the climbing wall.
A) form and place
B) place and creation
C) possession and price
D) time and place
E) creation and possession
43) A(n) ________ occurs when Kirin Albers trades Max Lynch three hours of babysitting Max's
three-year-old daughter in exchange for Max fixing the hole in his porch roof
A) differential benefit
B) promotion
C) exchange
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E) virtual trade
Answer: C
44) Two teachers purchased art supplies for their classes. One paid $103.45 for eight large boxes
of crayons. The other teacher purchased ten identical boxes for $105.55. The second teacher got
more for her money because she took advantage of a quantity discount, a reduced price for
buying ten or more boxes. Which element of the marketing mix most directly relates to these
purchases?
A) production
B) profit
C) price
D) place
E) possession
Answer: C
Diff: 2
45) Conveniently located vending machines around your college or university campus make it
easy for you to buy a soda and a snack between classes. This is an example of the ________
element of the marketing mix.
A) production
B) place
C) price
D) profit
E) promotion
Answer: B
46) Susannah owns a one-bedroom apartment in Manhattan that she posts for short-term
weekend and summer rentals on Craigslist when she plans to be out of town. This is an example
of ________.
A) not-for-profit marketing
B) institutional marketing
C) collaborative consumption
D) people marketing
E) consumer-generated marketing
Answer: C
47) The principles of marketing can apply to people, just as they apply to goods and services.
Answer: TRUE
48) The term "marketing" is synonymous with the term "advertising." Answer: FALSE
49) Marketers define a need as the difference between a consumer's actual state and some ideal
or desired state. Answer: TRUE
50) Although having something to eat or drink may be a want, the desire for a specific brand
name is referred to as a need. Answer: FALSE
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51) Very little of the online action in e-commerce is in business-to-business marketing. Answer:
FALSE
52) Many not-for-profit organizations use marketing principles. Answer: TRUE
53) The marketing mix is the marketer's strategic toolbox. Answer: TRUE
54) Business-to-business marketing represents greater total sales than business-to-consumer

marketing. Answer: TRUE
55) The elements of the marketing mix are the Four Ps. Answer: TRUE
56) The pricing element of the marketing mix always involves monetary exchanges.
Answer: FALSE
57) The promotion element of the marketing mix includes the design of the product.
Answer: FALSE
58) Within the context of the marketing mix, place refers to the availability of the product to the
customer at the desired time and location.
Answer: TRUE
59) Automobiles, haircuts, tutoring, and lighting fixtures are all examples of consumer goods.
Answer: FALSE
60) Ria, a college sophomore, writes a daily blog that typically has over 50,000 readers each
week. Ria could be described as a microcelebrity. Answer: TRUE
61) An entertainer such as Garth Brooks, a television show, and a magazine subscription are all
examples of products. Answer: TRUE
62) Discuss how the principles of marketing can be applied to people.

Answer: The principles of marketing apply to people in the same way that they apply to
products and services. People market, or "sell," themselves all of the time, whether they are
applying for a job, hoping to gain a promotion, or participating in online dating. People package
and promote themselves through the clothes and accessories they choose, the cars they drive, the
music they listen to, the books they read, and much more.
63) How would an ice cream vendor create the four types of utility?
Answer: The ice cream vendor would create form utility by combining ingredients to make a
milkshake or a sundae. Place utility would mean the ice cream is available where the customer
wants it. Time utility would mean the ice cream is available when the customer wants it.
Possession utility refers to the enjoyment consumers have eating the ice cream.
64) What does the phrase "exchange relationship" mean in relation to marketing?
Answer: An exchange occurs when something is obtained for something else in return. The
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buyer receives an object, service, or idea that satisfies a need, and the seller receives something
she feels is of equivalent value. For an exchange to occur, at least two people or organizations
must be willing to make a trade, and each must have something the other wants. Both parties
must agree on the value of the exchange and how it will be carried out. Each party also must be
free to accept or reject the other's terms for the exchange. An exchange is at the heart of every
marketing act.
65) What is the difference between consumer goods and consumer services? Give an example of
each.
Answer: Consumer goods are the tangible products that individual consumers purchase for
personal or family use. Consumer services are intangible products that consumers pay for and
use but never own. Examples will vary, but should reflect these definitions.
66) Identify the Four Ps in the following description: Rosa Alvarez markets 23 different varieties
of salsa in 8-ounce and 12-ounce bottles at supermarkets in the southwestern United States. The
8-ounce bottle sells for $5.95, and the larger size sells for $7.95. Periodically, she sets up a table
in one of the marketplaces that carries her salsa brand and offers customers a sample. She
recently received considerable publicity for being the "Hispanic Entrepreneur of the Year."
Answer: The Four Ps are product, price, place, and promotion.
Product: 23 different varieties of salsa in 8-ounce and 12-ounce bottles
Price: $5.95 for smaller size and $7.95 for larger size
Place: supermarkets in southwestern United States
Promotion: sampling and publicity
67) Provide a brief explanation of what marketing is.

Answer: Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.
68) Select one real company located in your home state. Identify at least four different types of
stakeholders in this company.
Answer: Each student will present different information in responding to this question.
Stakeholders should include the company's customers, the company's employees, investors in the
company, and residents of the community.
69) Can a consumer of a product be a stakeholder in the company that markets the product?
Briefly explain your answer.
Answer: Yes. A consumer is one type of stakeholder. A stakeholder can be a buyer, seller, or
investor in a company; a community resident; or a citizen of the nation where the company's
goods or services are made or sold. A consumer is the ultimate user of a good or service.
Therefore, a consumer could be a stakeholder who is also the ultimate consumer using the
product.
70) Briefly describe the collaborative consumption trend.

Answer: In a trend called collaborative consumption, consumers become "rentrepreneurs" by
renting out their belongings–tools, cars, homes, etc.–when they are not using them. This appeals
to many consumers, particularly younger consumers, who would prefer to rent products rather
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than purchase and own them.
71) Give three examples of modern marketplaces.

Answer: Answers will vary, but should reflect the broad range of marketplaces, from stand-alone
retailers and shopping malls to mail-order catalogs and websites.
72) Explain the concept of business-to-business marketing and give an example of a business-to-
business transaction.
Answer: Business-to-business marketing is the marketing of goods and services from one
organization to another. Examples will vary, but should reflect this definition.
73) In which kind of market would a production orientation be most successful?

A) a buyer's market in which supply exceeds demand
B) a market in which there are more sellers than buyers
C) a seller's market in which demand is greater than supply
D) a market that sells only intangible products
E) an e-commerce market
Answer: C
74) Companies that have a ________ orientation tend to be more successful at making one-time
sales than at building repeat business.
A) consumer
B) marketing
C) selling
D) societal
E) relationship
Answer: C
75) A ________ orientation is a management philosophy that focuses on ways to satisfy

customers' needs and wants.
A) consumer
B) promotion
C) selling
D) production
E) quality
Answer: A
76) The total quality management (TQM) philosophy involves all employees in ________.
A) customer relationship management
B) continuous product quality improvement
C) market positioning
D) creating sustainability
E) increasing the lifetime value of customers
Answer: B
Diff: 1
LO: 1.2: Explain the evolution of the marketing concept
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77) In general, companies that focus on a triple bottom line are most likely to place a priority on
which of the following?
A) sustainability
B) the production orientation
C) the selling orientation
D) not-for-profit marketing
E) collaborative consumption
Answer: A
78) Which of the following lists the three components of the triple bottom line orientation?
A) the financial bottom line, the social bottom line, and the environmental bottom line
B) the financial bottom line, the social bottom line, and the political bottom line
C) the financial bottom line, the cultural bottom line, and the business bottom line
D) the value bottom line, the service bottom line, and the business bottom line
E) the product bottom line, the service bottom line, and the relationship bottom line
Answer: A
79) ________ maintains that marketers must satisfy customers' needs in ways that also benefit
society and are profitable to the firm.
A) Value propositioning
B) Collaborative consumption
C) The societal marketing concept
D) A sales orientation
E) Green marketing
Answer: C
80) A company that focuses on ________ is concerned with meeting present consumer needs
without compromising the ability of future generations to meet their needs.
A) the selling orientation
B) the production orientation
C) total quality management
D) sustainability
E) return on investment
Answer: D
81) Which of the following refers to marketing strategies that support environmental stewardship
by establishing an environmentally founded differential benefit in the minds of consumers?
A) collaborative consumption
B) green marketing
C) triple-bottom-line orientation
D) societal marketing
E) corporate citizenship
Answer: B
82) The direct financial impact of a firm's expenditure on marketing activities is called the
________.
A) value chain
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B) value proposition
C) differential benefit
D) return on marketing investment (ROMI)
E) utility function
83) Which of the following is LEAST likely to be of growing importance in marketing in the
near future?
A) mobile marketing
B) corporate citizenship
C) big data
D) a selling orientation
E) user-generated content
Answer: D
84) Interacting with consumers via portable technology such as smart phones, tablets, and
wearable screens is referred to as ________.
A) mobile marketing
B) social marketing
C) societal marketing
D) user-generated marketing
E) branded marketing
85) A flour producer that identifies its mission as "the milling of fine flour in the most efficient
manner possible" most likely has a ________ orientation.
A) customer
B) marketing
C) selling
D) production
E) new era
Answer: D
86) Jolene's firm markets preplanning services for a mortician. She finds that most of her target
market wants to avoid discussing future funeral needs, so she must somehow first get their
attention. Jolene's firm most likely uses the ________.
A) production orientation
B) sustainability concept
C) selling orientation
D) consumer orientation
E) societal marketing concept
Answer: C
87) IBM manager Celia Moore coordinates IBM's long-standing "Reinventing Education"
program that involves intensive research into how educational institutions can use the fruits of
new technologies to transform what they do. In the process, the program is actually helping to
shape a market of significant interest to IBM. "We see the program very much as an investment,
rather than handing out money," says Moore. The existence of this program indicates that IBM
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has a(n) ________ orientation.
A) environmental
B) financial bottom line
C) selling
D) production
E) triple-bottom-line
Answer: E
88) Today, it's most likely that companies selling unsought goods will use a selling orientation.
Answer: TRUE
89) Green marketing and sustainability are interchangeable terms describing the same concept.
Answer: FALSE
90) The consumer orientation maintains that marketers must satisfy customers' needs in ways
that also benefit society.
Answer: FALSE
91) The acronym ROI stands for rely on instinct.

Answer: FALSE
92) Explain why and how a company would adopt a consumer orientation.
Answer: A company might adopt a consumer orientation to better identify and satisfy the needs
and wants of customers. In the competitive marketplace of today, a company has to go beyond
the selling and production orientations and consider the customer's desires. Following a
consumer orientation, marketers would conduct research to understand the needs of different
customers, tailor products to the needs of these various groups, and design marketing messages
to speak to the needs of those customers.
93) Explain the concept of corporate citizenship and why it is important for companies today.
Answer: Corporate citizenship, also called corporate social responsibility, refers to a company's
responsibility to the community in which it operates and to society in general. This concept of
doing well by doing good is of growing importance, and is likely to continue to grow in
importance, as more and more consumers reward companies who do "good" and punishing those
who are found to be irresponsible.
94) Explain why it is often difficult to measure the value of marketing activities.
Answer: Marketing objectives are sometimes stated in vague terms, such as "increase product
awareness." This lack of specificity in objectives makes it difficult to measure the impact of
marketing.
95) Who are growth hackers, and why might their work be controversial?
Answer: Growth hackers are industry experts who work on apps and sites to better hook
consumers into spending more time on the app or site. This may be controversial because of the
growing trend of young children, teens, and adults becoming screen addicts, sometimes
negatively affecting their physical and mental health.
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96) A ________ is a marketplace offering that fairly and accurately sums up the value that will
be realized if the good or service is purchased.
A) product position
B) market segment
C) mass market
D) value proposition
E) target market
Answer: D
97) The ratio of benefits to costs is one way to think of ________.

A) sustainability
B) profits
C) value
D) competitive advantage
E) distinctive competency
Answer: C
98) When companies calculate the lifetime value of a customer they look at ________.
A) how much profit they expect to make from a particular customer, including each and every
purchase she will make from them now and in the future
B) the positive word of mouth about the product that the customer can spread among her family,
friends, and acquaintances
C) the lifetime expectancy of the product the customer purchased
D) the age of the customer to see whether she is likely to live long enough to utilize the product
being sold
E) the career path of the customer to see if she may move to a different geographic area and no
longer purchase from the company
Answer: A
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99) A firm's capability that is superior to that of its competition is referred to as a(n) ________.
A) distinctive competency
B) added value
D) value chain
E) social benefit
Answer: A
100) The second step in developing a competitive advantage is to turn a distinctive competency
into a ________ that is important to customers.
A) target market
B) service
C) marketing mix
D) market position
E) differential benefit
101) A(n) ________ provides reasons for customers to pay a premium for a firm's products and
exhibit a strong brand preference.
A) exchange
B) differential benefit
C) industrial good
D) value chain
E) customer lifetime value
Answer: B
102) A ________ is a series of activities involved in designing, producing, marketing, delivering,

and supporting any product.
A) value proposition
B) production orientation
C) value chain
D) marketing concept
E) market position
Answer: C
103) In addition to marketing activities, the ________ includes business functions such as human
resource management and technology development.
A) value chain
B) marketing mix
C) utility function
D) customer relationship management process
E) market position
Answer: A
104) The main activities of value chain members include all of the following EXCEPT
________.
A) bringing in materials to make the product
B) converting the materials into the final product
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C) providing unbiased information about the product to consumers
D) shipping out the final product
E) servicing the product after purchase
Answer: C
105) The value chain activity of ________ refers to converting materials into a final product for
consumers.
A) inbound logistics
B) outbound logistics
C) operations
D) marketing
E) service
Answer: C
106) The phenomenon of ________ includes consumers creating their own ads and buying and
selling products on eBay.
A) production orientation
B) the triple-bottom-line orientation
C) consumer-generated value
D) socially responsible marketing
E) the marketing concept
Answer: C
107) Social networking is an integral part of which of the following?

A) the triple-bottom-line orientation
B) lifetime value of a customer
C) the value chain
D) Web 2.0
E) Web 1.0
Answer: D
Diff: 2
LO: 1.3: Understand value from the perspectives of customers, producers, and society
AACSB: Information Technology
108) Which of the following is true of Web 2.0?

A) It categorized entries according to a strict taxonomy.
B) It offered two-way communication between marketers and consumers.
C) It was based on the open source model.
D) It was based on the wisdom of crowds model.
E) It improved as the number of users decreased.
Answer: B
Diff: 2
AACSB: Information Technology
109) Which of the following is NOT characteristic of Web 3.0?

A) Consumers create value through social media.
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B) Web participation is a necessity for brands.
C) Websites are created to accomplish one specific function.
D) Marketers can track consumers' browser behavior.
E) Consumers and marketers can have real-time instant communication.
Answer: C
110) According to the theory of the wisdom of crowds, under the right circumstances ________.
A) a mass market approach is favorable to a target market approach
B) a target market approach is favorable to a mass market approach
C) groups are smarter than the smartest people in them
D) companies can make money by giving their products away for free
E) consumers can generate value
Answer: C
111) ________ is a network of servers, all having different functions, providing an almost
infinite amount of storage space.
A) A social networking platform
B) The Cloud
C) The value chain
D) Wikipedia
E) The virtual marketplace
Answer: B
112) Alcoholism and cigarette smoking are both examples of ________.

A) anticonsumption behaviors
B) "bait-and-switch" behaviors
C) consumer addictions
D) shrinkage
E) consumed consumer behaviors
Answer: C
113) Which of the following is the industry term for inventory and cash losses from shoplifting
and employee theft?
A) bait-and-switch
B) anticonsumption
C) demarketing
D) shrinkage
E) lifetime cost of a customer
Answer: D
114) Product tampering and spray-painting graffiti on buildings are both examples of ________.
A) demarketing
B) exploitative consumption
C) addictive consumption
D) shrinkage
E) anticonsumption
Answer: E
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115) A new shampoo advertisement on television identifies all of the wonderful benefits the
consumer will enjoy when using one company's shampoo as opposed to another company's
shampoo. What is this company seeking to convey in this television commercial?
A) the product's time utility
B) the product's distinctive competency
C) the company's production orientation
D) the company's marketing segmentation process
E) the product's differential benefits
Answer: E
Diff: 2
AACSB: Analytical Thinking
116) Kao Corp., which makes Ban deodorant, invited teenage girls to create an ad that would
encourage other girls to buy the product. This program is an example of ________.
A) the wisdom of crowds
B) the production concept
D) open-source modeling
E) consumer-generated content
Answer: E
Diff: 2
117) Terrible Tees is an online t-shirt company that invites consumers to enter their t-shirt
designs in a monthly contest. All visitors to the site are invited to vote on their favorite design,
and at the end of the month, the company produces and takes orders for the t-shirt design with
the most votes. This is an example of ________.
A) the wisdom of crowds
B) the production concept
D) a folksonomy
E) a brandfest
Answer: A
Diff: 2
118) To calculate lifetime value, a company would estimate the amount of money a person would
spend with the company over a lifetime and then subtract what it will cost the company to
maintain this relationship.
Answer: TRUE
Diff: 2
21
119) A firm has a competitive advantage when it is able to outperform the competition, providing
customers with a desired benefit not provided by the competition. Answer: TRUE
120) Differential benefits set products apart from competitors' products by providing something
unique that customers want. Answer: TRUE
121) Service provided to the customer after a purchase is not an activity associated with the
value chain. Answer: FALSE
122) According to the theory of the wisdom of crowds, consumers are more interested in content
produced by other consumers than in content produced by brands.Answer: FALSE
123) A value proposition includes the whole bundle of benefits the firm promises to deliver, not
just the benefits of the product itself.Answer: TRUE
124) Why might a company try to determine the lifetime value of a customer? What must a
company do to determine this information?
Answer: A company must look at how much profit it expects to make from a particular
customer, including each and every purchase he will make from the company now and in the
future. To calculate lifetime value, the company estimates the amount the person will spend and
then subtracts what it will cost to maintain this relationship.
125) Explain how marketers are held accountable for the results of their work, including a
discussion of scorecards and ROI.
Answer: Marketers must prove to management that they are generating measurable value by
aligning marketing activities with the firm's overall business objectives. Scorecards, which are
like the marketing department's report card, are used to report how the company or brand is
actually progressing in achieving various goals. Marketers assess the return on marketing
investment (ROMI) by measuring how much they are spending and measuring the effects of
marketing activities on the company's bottom line.
Diff: 3
AACSB: Application of Knowledge
126) The Ford Motor Company sponsored "The Great American Pony Drive II" in honor of
devotees of its legendary Mustang. In this example, how is the Ford Motor Company considering
the lifetime value of a customer of the Mustang?
Answer: Ford Motor Company would calculate how much lifetime profit it expects to make
from a devoted Mustang customer minus the cost of maintaining this relationship. The cost of
sponsoring "The Great American Pony Drive II" may be much less than the profits from current
and future sales of the Mustang car to participating customers.
Diff: 2
127) Why should a firm be aware of its competitors' distinctive competencies?

Answer: A distinctive competence is a firm's capability that is superior to the competition. A
22
company must be aware of its competitors' distinctive competencies in order to successfully
compete in the marketplace, shaping its own distinctive competencies into differential benefits
that customers desire more than they desire the benefits offered by competitors.
Diff: 2
128) What are two competitive advantages a customer may benefit from when buying a bottle of
soda from a local corner convenience store versus a chain supermarket?
Answer: The customer may be able to park his car close to the door of the convenience store and
make the purchase in only a few minutes. The parking lot of the chain store may require the
customer to walk a distance before entering the store. The volume of customers in the
supermarket may cause the purchase to take longer than the purchase at the convenience store.
Diff: 3
129) Explain how addictive consumption is a dimension of the "dark side" of marketing.
Answer: Consumer addiction is a physiological or psychological dependency on products or
services. Many companies profit by providing addictive products or by selling solutions.
Consumers can use any product or service to relieve some problem to the point that reliance on it
becomes extreme.
Diff: 2
130) Briefly explain how the value chain is related to competitive advantage.
Answer: Every link, or activity, in the value chain is an opportunity to either remove value from
or add value to the product the consumer eventually buys. A successful company creates a
competitive advantage by performing one or more of the value chain activities better than its
competitors.
Diff: 2
131) ________ is a decision process in which marketing managers determine the strategies that
will help the firm meet its long-term objectives and then execute those strategies using the tools
they have at their disposal.
A) Total quality management
B) Sustainability
C) Return on investment
D) Marketing
E) The open source model
Answer: D
Diff: 2
LO: 1.4: Explain the basics of market planning
23
132) The ________ is a document that describes the marketing environment, outlines the
marketing objectives and strategy, and identifies who will be responsible for carrying out each
part of the marketing strategy.
A) marketing mix
B) marketing plan
D) value chain
E) channel of distribution
Answer: B
Diff: 1
133) The first phase of market planning is to ________.

A) identify a target market
B) calculate production costs
C) develop a value chain
D) determine a market position
E) analyze the marketing environment
Answer: E
Diff: 2
134) ________ is the process of thinking strategically about the big picture and where the firm
and its products fit within it.
A) The marketing mix
B) Total quality management
C) Marketing planning
D) Customer relationship management
E) Value proposition creation
Answer: C
Diff: 2
135) A ________ consists of all possible customers in a market regardless of the differences in
their specific needs and wants.
A) popular culture
B) value chain
C) marketing mix
D) marketing concept
E) mass market
Answer: E
Diff: 1
136) Which of these statements about mass marketing is true?

A) A mass marketing strategy is always preferable to a target marketing strategy.
B) The success of any organization's marketing efforts depends on its ability to engage in mass
24
marketing.
C) Mass marketing can be cost effective.
D) Mass marketing allows marketers to develop products to satisfy the specific needs and wants
of specific groups of customers.
E) Automakers typically use a mass marketing strategy.
Answer: C
137) A ________ is a distinctive group of customers within a larger market who are similar to
one another in some way and whose needs differ from other customers in the larger market.
A) market segment
B) popular culture
C) mass market
D) market mix
E) market position
Answer: A
Diff: 2
138) A ________ is defined as a market segment on which an organization focuses its marketing
plan and toward which it directs its marketing efforts.
A) social network
B) market convergence
C) subculture
D) value chain
E) target market
Answer: E
Diff: 2
139) Marketers develop positioning strategies to ________.

A) limit the number of elements of the marketing mix used for one product
B) identify the location where the organization will sell its products
C) determine the specific means the organization uses to distribute its products
D) create a desired perception of the product in consumers' minds in comparison to competitors'
brands
E) select metrics to determine the effectiveness of marketing planning
Answer: D
Diff: 1
140) When a firm analyzes the marketing environment, it is least likely to look at which of the
following?
A) the firm's current strengths
B) the firm's current weaknesses
C) the actions of competitors
D) the state of the economy
E) the cost of developing a new product
25
Answer: E
Diff: 2
26
141) Using a(n) ________ approach, a company uses a single strategy to reach all customers.
A) open-source
B) crowdsourcing
C) mass market
D) social networking
E) societal marketing
Answer: C
142) A catalog retailer has identified African-American professionals between the ages of thirty-
five and forty-five as the group of customers within the larger market that is a potential market
for its products. The retailer plans to direct its marketing efforts toward this group of consumers.
The retailer has identified a ________.
A) target market
B) marketing mix
C) product mix
D) mass market
E) market aggregation
Answer: A
143) An organic farmer has identified three distinct groups who might be interested in his
products: vegetarians, people who are concerned about chemicals in their foods, and people who
consider themselves innovators and trendsetters. These three groups are examples of ________.
A) marketing mixes
B) market segments
C) product mixes
D) mass markets
E) market positions
Answer: B
144) There are several different sports watches for cyclists. When compared to its competitors,
the Bike Nashbar watch is the least expensive. The Acumen Basic is the only one designed for
older cyclists who prefer a larger display. Sports Instrument is the most comfortable of all the
available watches. This describes the ________ of the three sports watches.
A) marketing mixes
B) mass marketing strategies
C) positioning
D) consumer orientations
E) selling orientations
Answer: C
145) The first phase of marketing planning is the development of a market position.
Answer: FALSE
146) A marketer who wants to achieve a competitive advantage over her rivals cannot use the
marketing mix to achieve this goal.
Answer: FALSE
27
147) The terms market segment and target market represent the same concept. Answer: FALSE
148) Selecting a mass market, a firm risks losing potential customers to competitors who instead
try to meet the needs of specific target markets.Answer: TRUE
149) Write two questions that a firm would be likely to consider during the market planning
stage.
Answer: Answers will vary, but should reflect an understanding of the "big picture" nature of
market planning. Examples: What product benefits will our customers want in the near future?
What sets our firm apart from competitors? How will legal and regulatory issues affect our
business?
150) What is a market segment? Explain how an automaker might appeal to different market
segments.
Answer: A market segment is a distinct group of customers within a larger market who are
similar to one another in some way and whose needs differ from other customers in the larger
market. An automaker offers different car models—sedans, sports cars, SUVs, station wagons,
minivans, etc.—to appeal to different segments of the car-buying market.
151) What is the difference between a mass market and a market segment?
Answer: A mass market consists of all possible customers in a market regardless of their
differences, while a market segment is a smaller group of customers within the mass market who
are similar to each other in one or some ways and different from the others in the mass market.
28

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Marketing: Real People, Real Choices, 9e (Solomon/Marshall/Stuart)

Chapter 1 Welcome to the World of Marketing: Create and Deliver Value

1) A ________ is the ultimate user of a good or service.

4) The Four Ps are ________.

10) Marketing communication is also referred to as ________.

11) For an exchange to occur, ________.

16) Nongovernmental organizations are also known as ________.

34) Which of the following is the best example of a consumer good?

35) Which of the following is the best example of a service?

52) Many not-for-profit organizations use marketing principles. Answer: TRUE

54) Business-to-business marketing represents greater total sales than business-to-consumer

62) Discuss how the principles of marketing can be applied to people.

67) Provide a brief explanation of what marketing is.

70) Briefly describe the collaborative consumption trend.

71) Give three examples of modern marketplaces.

73) In which kind of market would a production orientation be most successful?

75) A ________ orientation is a management philosophy that focuses on ways to satisfy

91) The acronym ROI stands for rely on instinct.

97) The ratio of benefits to costs is one way to think of ________.

102) A ________ is a series of activities involved in designing, producing, marketing, delivering,

107) Social networking is an integral part of which of the following?

108) Which of the following is true of Web 2.0?

109) Which of the following is NOT characteristic of Web 3.0?

112) Alcoholism and cigarette smoking are both examples of ________.

127) Why should a firm be aware of its competitors' distinctive competencies?

133) The first phase of market planning is to ________.

136) Which of these statements about mass marketing is true?

139) Marketers develop positioning strategies to ________.

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