Test Bank for Marketing An Introduction, Seventh Canadian Edition, 7th edition by Gary Armstrong

Test Bank for Marketing An Introduction, Seventh Canadian Edition, 7th edition by Gary Armstrong TEST ITEM FILE Geoff Malleck University of Waterloo Marketing Seventh Canadian Edition Gary Armstrong University of North Carolina Philip Kotler Northwestern University Valerie Trifts Dalhousie University ISBN: 978-0-13- Copyright © 2021 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected by Canadian copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants permission to instructors who have adopted Marketing, Seventh Canadian Edition, by Gary Armstrong, Philip Kotler, and Valerie Trifts, to post this material online only if the use of the website is restricted by access codes to students in the instructor’s class that is using the textbook and provided the reproduced material bears this copyright notice. Table of Contents CHAPTER 1 Marketing: Creating Customer Value and Engagement........................... CHAPTER 2 Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships ................................................... CHAPTER 3 Analyzing the Marketing Environment ................................................... CHAPTER 4 Managing Marketing Information to Gain Customer Insights ................. CHAPTER 5 Understanding Consumer and Business Buyer Behaviour....................... CHAPTER 6 Customer Value-Driven Marketing Strategy: Creating Value for Target Customers .............................................................................................. CHAPTER 7 Products, Services, and Brands: Building Customer Value ..................... CHAPTER 8 Developing New Products and Managing the Product Life Cycle ........... CHAPTER 9 Pricing: Understanding and Capturing Customer Value .......................... CHAPTER 10 Marketing Channels: Delivering Customer Value ................................... CHAPTER 11 Retailing and Wholesaling...................................................................... CHAPTER 12 Engaging Consumers and Communicating Customer Value: Advertising and Public Relations ............................................................................... CHAPTER 13 Personal Selling and Sales Promotion ..................................................... CHAPTER 14 Direct, Online, Social Media, and Mobile Marketing .............................. CHAPTER 15 The Global Marketplace ......................................................................... CHAPTER 16 Sustainable Marketing: Social Responsibility and Ethics........................ ii 1 © 2021 Pearson Canada Inc. Marketing: An Introduction, 7ce (Armstrong/Kotler/Trifts) Chapter 1 Marketing: Creating Customer Value and Engagement 1) Marketing, more than any other business function, deals with ________. A) customers B) sales C) advertising D) new products E) brands Answer: A Diff: 1 Type: MC LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Application of knowledge 2) Amazon, like many other successful companies, is driven by one primary objective, namely ________. A) value creation for the customers. B) providing shareholders with healthy returns on their investments. C) acquiring companies in order to add to its many product offerings. D) fast and reliable delivery. E) acquiring market share from industry leader, Walmart. Answer: A Diff: 1 Type: MC LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Application of knowledge 3) According to the five-step model of the marketing process, the first step in marketing is ________. A) capturing value from customers to create profits and customer equity B) constructing an integrated marketing program that delivers superior value C) engaging customers, building profitable relationships, and creating customer delight D) understanding the marketplace and customer needs and wants E) designing a customer-driven marketing strategy Answer: D Diff: 2 Type: MC LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 2 © 2021 Pearson Canada Inc. 4) In recent years marketers have leveraged various forms of social media and other technologies to advance their primary goal of ________. A) gaining favourable media attention B) being better able to reach the customer directly, personally and interactively C) gathering more sales data (big data) D) finding less expensive ways to operate thus driving higher levels of profitability. E) faster product development Answer: B Diff: 2 Type: MC LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 5) Management guru Peter Drucker stated, "The aim of marketing is to make selling unnecessary." Answer: TRUE Diff: 1 Type: TF LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 6) What is marketing? Briefly describe the marketing process. Answer: Marketing can be defined as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. The marketing process consists of five steps. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and long-term customer equity. Diff: 2 Type: ES LO: 1-1: Define marketing and outline the steps in the marketing process. AACSB: Analytical thinking 7) As described in the text, both Airbnb and Target's CEO's share a practice that they believe makes them more capable leaders of their company. This practice involves more frequent ________. A) interviews with the media (Fortune Magazine, Wall Street Journal) B) blog posts on how to run a company (Jeff Bullas, James Altucher) C) visits to their locations (AirBnb hosts and Target stores) D) personal vacations to ensure they get rested while enjoying time away from their role E) isolation from the market in order to make more refined decisions Answer: C Diff: 2 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 3 © 2021 Pearson Canada Inc. 8) ________ are defined as states of felt deprivation. A) Needs B) Ideas C) Demands D) Values E) Exchanges Answer: A Diff: 1 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 9) ________ are the form human needs take as they are shaped by culture and individual personality. A) Wants B) Necessities C) Services D) Benefits E) Risks Answer: A Diff: 1 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 10) Consumers' needs and wants are fulfilled through ________. A) value B) demand C) desire D) market offerings E) ideas Answer: D Diff: 1 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 4 © 2021 Pearson Canada Inc. 11) Abel now has the buying power to purchase the computer that he wanted to buy six months ago. Abel's want has most likely become a ________. A) need B) value C) demand D) market offering E) desire Answer: C Diff: 3 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 12) Canadian telecommunications giant BELL has committed resources to continue its annual, "Let's Talk" day to promote greater awareness in mental health. This is an example of a marketing offering for a(n) ________. A) product B) person C) idea D) place E) exchange Answer: C Diff: 2 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 13) Marketers are said to suffer from marketing myopia when they ignore underlying consumer needs and focus excessively on ________. A) consumers' brand experiences B) competitors' threats C) consumers' existing wants D) competitors' strengths E) consumers' future demands Answer: C Diff: 2 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 5 © 2021 Pearson Canada Inc. 14) The Walt Disney World Resort doesn't just offer amusement park rides, it uses its famed Disney magic to create carefully orchestrated ________. A) service offerings B) benefits C) wants D) values E) experiences Answer: E Diff: 2 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 15) When considering the factors that influence the experience of the Walt Disney World Resort, something as simple as how each employee is identified makes a difference. At Disney World, employees are called ________. A) Superstars B) Mickey's Crew C) Precious Jewels D) Mickey's Mouseketeers E) Cast Members Answer: E Diff: 1 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 16) ________ is the act of obtaining a desired object from someone by offering something in return. A) Targeting B) Segmentation C) Differentiation D) Exchange E) Positioning Answer: D Diff: 1 Type: MC LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 6 © 2021 Pearson Canada Inc. 17) Market offerings are limited to physical products. Answer: FALSE Diff: 1 Type: TF LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 18) Market offerings include entities such as people, places, information, and ideas. Answer: TRUE Diff: 2 Type: TF LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 19) When sellers pay less attention to the specific products they offer and more attention to the benefits and experiences produced by these products, they suffer from marketing myopia. Answer: FALSE Diff: 2 Type: TF LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 20) A greater focus on underlying customer needs than on existing customer wants leads to marketing myopia. Answer: FALSE Diff: 2 Type: TF LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 21) A market is a segment of potential consumers who share a common need or want. Answer: TRUE Diff: 1 Type: TF LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 7 © 2021 Pearson Canada Inc. 22) Describe how the Loblaws clothing brand, Joe Fresh, differentiates itself from other clothing labels. Answer: By selling Joe Fresh in Loblaw brand stores (Superstore, Zehrs, ValueMart etc), Loblaws took advantage of its strong brand presence and the large number of stores to enable Joe Fresh to be highly accessible and visible. While it may appear a challenge to sell clothing in a grocery store, Loblaw's marketing strategy leveraged location as a key differentiator. People frequent their stores, so Joe Fresh remains front of mind. In order to succeed, Loblaws has to offer frequent product rotations (regular updates of new products on shelves). The company hired famous Canadian fashion designer Joe Mimran to advance the perception that Joe Fresh carries current fashions. Joe Fresh is considered a key part of fashion week activities. Compared to competing brands, Loblaws offers lower prices for up-to-date fashions. Diff: 2 Type: ES LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 23) Using suitable examples, briefly compare and contrast the concepts of needs, wants, and demands. Discuss how these concepts relate to marketing practices. Answer: Human needs are states of felt deprivation. Needs are part of the human make-up; they are not created by external forces. Humans have a basic physical need for food, clothing, warmth, and safety, a basic social need for belonging and affection, and a basic individual need for knowledge and self-expression. Unlike needs, wants are not innate. Instead, wants are needs shaped by culture, society, and individual personality. For example, someone needs food, wants a Big Mac and soft drink, and demands lunch at McDonalds. Wants become demands when they are backed by consumers' buying power. Marketers conduct extensive research to understand customers' needs, wants, and demands. They then attempt to fulfill customers' needs, wants, and demands through their market offerings. Diff: 3 Type: ES LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Analytical thinking 8 © 2021 Pearson Canada Inc. 24) Explain market offerings and marketing myopia. Answer: Consumers' needs and wants are fulfilled through market offerings — some combination of products, services, information, or experiences offered to a market to satisfy a need or a want. Market offerings are not limited to physical products. They also include services — activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking, airline, hotel, retailing, and home repair services. More broadly, market offerings also include other entities, such as persons, places, organizations, information, and ideas. Many sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products. These sellers suffer from marketing myopia. They are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs. They forget that a product is only a tool to solve a consumer problem. A manufacturer of quarter-inch drill bits may think that the customer needs a drill bit but what the customer really needs is a quarter-inch hole. These sellers will have trouble if a new product comes along that serves the customer's need better or less expensively. The customer will have the same need but will want the new product. Diff: 2 Type: ES LO: 1-2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. AACSB: Application of knowledge 25) ________ is the art and science of choosing target markets and building profitable relationships with them. A) Differentiation B) Marketing management C) Positioning D) Segmentation E) Customer-perceived value Answer: B Diff: 1 Type: MC LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 26) Rather than assume that each client has the same needs, a travel agency that understands marketing creates separate departments; one dedicated to retirees, another to the business traveler, a third department concentrates on student travel and the fourth department focusing on families. This is an example of a firm that has considered ________. A) mass customization B) cost leadership C) positioning D) market Segmentation E) value engineering Answer: D Diff: 1 Type: MC LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 9 © 2021 Pearson Canada Inc. 27) Dollarama profitably appeals to families with more modest means. The retailer's approach is most likely referred to as ________. A) mass distribution B) cost leadership C) consumer-generated marketing D) target marketing E) undifferentiated marketing Answer: D Diff: 3 Type: MC LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 28) A brand's ________ is the set of benefits that it promises to deliver to consumers to satisfy their needs. A) dominant effect B) fringe benefit C) perquisite D) value proposition E) dividend yield Answer: D Diff: 1 Type: MC LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 29) British Columbia-based Flair Airlines gives you "Canada's ticket to ultra-low airfares" is their ________. A) value proposition B) segmentation strategy C) market offering D) selling concept E) production concept Answer: A Diff: 2 Type: MC LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 10 © 2021 Pearson Canada Inc. 30) Which of the following marketing management orientations may yield the unintended consequence of aggressive selling by creating short term sales transactions rather than on building long-term relationships? A) marketing concept B) product concept C) selling concept D) direct marketing concept E) production concept Answer: C Diff: 2 Type: MC LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 31) PC manufacturer, Lenovo, focuses on low labour costs and mass distribution to ensure the continuous availability of its products at reasonable prices. Lenovo most likely follows the ________. A) customer-driving marketing concept B) marketing concept C) societal marketing concept D) production concept E) selling concept Answer: D Diff: 3 Type: MC LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking 32) Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This most likely reflects the ________. A) customer-driving marketing concept B) marketing concept C) societal marketing concept D) production concept E) selling concept Answer: D Diff: 3 Type: MC LO: 1-3: Identify the key elements of a customer value-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. AACSB: Analytical thinking