Kotler - Chapter1(5)

65) Beyond simply retaining good customers, marketers want to constantly increase their \customer.\A) Marketers want to increase their market share.

B) Marketers want to increase the share they get of the customer's purchasing in their product categories.

C) Marketers want to increase the profit margin with this target market.

D) Marketers want to continuously increase their customers' levels of satisfaction. E) Marketers want to turn satisfied customers into delighted customers. Answer: B Diff: 3 Page Ref: 22 Skill: Concept Objective: 1-4

66) ________ is one of the best ways to increase share of customer. A) Targeting new customers B) Using bait and switch C) Cross-selling

D) Relationship selling E) Partnership marketing Answer: C Diff: 2 Page Ref: 22 Skill: Concept Objective: 1-4

67) Amazon.com leverages relationships with its 35 million customers by offering them music, videos, gifts, toys, consumer electronics, and office products, among other items. Based on previous purchase history, the company recommends related CDs, books, videos, or other

products that might interest a customer. This most directly helps Amazon.com capture a greater ________.

A) customer lifetime value B) share of customer C) profit margin D) share of market E) customer equity Answer: B Diff: 2 Page Ref: 23 AACSB: Reflective Thinking Skill: Concept Objective: 1-4

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Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall

68) Which of the following is the total combined customer lifetime values of all a company's current and potential customers? A) share of customer

B) customer lifetime value C) customer equity D) profitability E) share of market Answer: C Diff: 2 Page Ref: 23 Skill: Concept Objective: 1-4

69) The ultimate aim of customer relationship management is to produce ________. A) customer equity B) market share C) sales volume

D) a reliable database E) higher profit margins Answer: A Diff: 3 Page Ref: 23 Skill: Concept Objective: 1-4

70) A potentially highly profitable, short-term customer is a ________. A) true friend B) butterfly C) stranger D) barnacle E) true believer Answer: B Diff: 2 Page Ref: 24 Skill: Concept Objective: 1-4

71) Customers can be classified into four relationship groups, according to their profitability and projected loyalty. Which type of customers have the highest profit potential and strong loyalty? A) barnacles B) strangers C) butterflies D) true friends E) big fish Answer: D Diff: 2 Page Ref: 24 Skill: Concept Objective: 1-4

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Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall

72) Which of the following statements about the Internet is most accurate?

A) Companies are cautiously using the Internet to build closer relationships with customers and marketing partners alike.

B) After the dot-com meltdown of 2000, fewer consumers are buying products and/or services online.

C) The Internet makes it easy for consumers to view, interact with, and create marketing content. D) Consumer e-commerce looks promising, but business-to-business e-commerce is declining. E) Web 2.0 involves a less balanced approach to online marketing than the original dot-com boom did.

Answer: C Diff: 2 Page Ref: 26 AACSB: Use of IT Skill: Concept Objective: 1-5

73) Which of the following is currently the fastest-growing form of marketing? A) consumer-generated marketing B) online marketing

C) mass media marketing D) social marketing

E) word-of-mouth marketing Answer: B Diff: 3 Page Ref: 26 AACSB: Use of IT Skill: Concept Objective: 1-5

74) Today almost every company, small and large, is affected in some way by which of the following?

A) the societal marketing concept B) not-for-profit marketing C) global competition

D) customer-generated marketing E) caring capitalism Answer: C Diff: 2 Page Ref: 26 Skill: Concept Objective: 1-5

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75) Governmental agencies are becoming more involved in marketing as the years pass. When a local government advertises keeping the area's streams and water supply cleaner, it is involved in ________.

A) green marketing

B) social marketing campaigns C) demarketing

D) environmental marketing E) partnership marketing Answer: B Diff: 2 Page Ref: 29 Skill: Concept Objective: 1-5

76) Selling is managing profitable customer relationships. Answer: FALSE Diff: 1 Page Ref: 2 Skill: Concept Objective: 1-1

77) Human needs are shaped by culture and individual personality. Answer: FALSE Diff: 2 Page Ref: 6 Skill: Concept Objective: 1-2

78) The difference between human needs and wants is that needs are not influenced by marketers. Answer: TRUE Diff: 2 Page Ref: 6 Skill: Concept Objective: 1-2

79) When backed by buying power, needs become demands. Answer: FALSE Diff: 2 Page Ref: 6 Skill: Concept Objective: 1-2

80) Market offerings are limited to physical products. Answer: FALSE Diff: 2 Page Ref: 6 Skill: Concept Objective: 1-2

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81) An experience such as a vacation can be defined as a market offering. Answer: TRUE Diff: 2 Page Ref: 6 AACSB: Reflective Thinking Skill: Application Objective: 1-2

82) When sellers focus on existing needs and lose sight of underlying customer wants, they suffer from marketing myopia. Answer: FALSE Diff: 3 Page Ref: 6 Skill: Concept Objective: 1-2

83) Only sellers of products, services, and ideas practice marketing; buyers do not. Answer: FALSE Diff: 2 Page Ref: 8 Skill: Concept Objective: 1-2

84) Market segmentation is the process of seeking fewer customers and reduced demand for profit maximization only. Answer: FALSE Diff: 3 Page Ref: 9 Skill: Concept Objective: 1-3

85) Demarketing is a marketing philosophy focused upon product differentiation and positioning. Answer: FALSE Diff: 2 Page Ref: 9 Skill: Concept Objective: 1-3

86) When it becomes necessary to reduce demand for a product or service, an organization may use demarketing to reduce or shift the number of customers. Answer: TRUE Diff: 1 Page Ref: 9 Skill: Concept Objective: 1-3

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