CH 5 TEST BANK QUESTIONS WITH
COMPLETE ANSWERS 2025.
1. Marketing is defined as producing, promoting, and selling products.
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a. True
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b. False - ANSWER: ANSWER: False
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RATIONALE: Marketing is the activity, set of institutions, and processes for creating,
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communicating, delivering, and exchanging offerings that have value for customers,
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clients, partners, and society at large.
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2. According to the American Marketing Association, marketing is the activity, set of
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institutions, and processes for creating, communicating, delivering, and exchanging
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offerings that have value for customers, clients, partners, and society at large.
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a. True
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b. False - ANSWER: ANSWER: True
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3. An exchange cannot take place unless each party in the exchange has
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something that the other party values.
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a. True
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b. False - ANSWER: ANSWER: True
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4. Sara Lee Industries spent considerable money and time developing a crustless
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bread. Prior to the introduction, the company had not conducted market research
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among its customers, but it was confident that its science and technology
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department had produced a successful new product. Based on this example, Sara
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Lee is a good example of a production-oriented company.
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a. True
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b. False - ANSWER: ANSWER: True
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5. Unlike a production-orientated firm, a firm embracing a sales orientation focuses
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on customer wants and needs so it can develop the best product at the lowest
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cost that will require very little selling effort.
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a. True
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b. False - ANSWER: ANSWER: False
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,RATIONALE: A sales orientation is based on the ideas that people will buy more
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goods and services if aggressive sales techniques are used and that high sales
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result in high profits.
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6. The focus of a production-oriented firm is on what it can make or do best.
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a. True
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b. False - ANSWER: ANSWER: True
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7. The marketing concept states that the social and economic justification for an
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organization's existence is the satisfaction of customers' wants and needs while
cc cc cc cc cc cc cc cc cc cc cc
meeting organizational objectives.
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a. True
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b. False - ANSWER: ANSWER: True
cc cc cc cc cc
8. The ultimate goal of most market-oriented firms is profitability that results from
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satisfying the wants and needs of its consumers.
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a. True
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b. False - ANSWER: ANSWER: True
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9. The societal marketing concept considers society's longterm best interests along
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with the satisfaction of customers' wants and needs.
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a. True
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b. False - ANSWER: ANSWER: True
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10. Increasingly well informed customers have shifted the power from manufacturers
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and retailers to consumers.
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a. True
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b. False - ANSWER: ANSWER: True
cc cc cc cc cc
11. Personnel in sales oriented firms tend to be "outward looking," focusing on
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selling what the market wants.
cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: Personnel in salesoriented firms tend to be "inward looking," focusing
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on selling what the
cc cc cc cc
organization makes rather than making what the market wants.
cc cc cc cc cc cc cc cc
12. Customer value is the relationship between company profits and company costs.
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a. True
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, b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: Customer value is the relationship between benefits and the sacrifice
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necessary to obtain those benefits.
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13. The way to achieve customer satisfaction and value is to offer the lowest price.
cc cc cc cc cc cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: Marketers interested in customer value offer realistic prices and try to
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achieve customer satisfaction and value by ensuring customer expectations are met
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or exceeded.
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14. 3D Systems is a company that uses computers to generate new product
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prototypes. It has generated loyal business clients by providing the best customer
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support in the industry. The company also provides direct sales consultations that
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give its salespeople intimate knowledge about what exactly its customers want.
cc cc cc cc cc cc cc cc cc cc cc
This partnership between 3D Systems and its customers is relationship marketing.
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a. True
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b. False - ANSWER: ANSWER: True
cc cc cc cc cc
15. Only a firm's salespeople need to be customer oriented.
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a. True
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b. False - ANSWER: ANSWER: False
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RATIONALE: All employees need to be customer oriented because in the
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customer's eyes, the employee (regardless of the position held in the organization)
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is the firm and may be the only firm representative the customer ever sees.
cc cc cc cc cc cc cc cc cc cc cc cc cc cc
16. Retailers who give their sales clerks the authority to handle customer complaints
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without having to get approval from a supervisor are using empowerment.
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a. True
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b. False - ANSWER: ANSWER: True
cc cc cc cc cc
17. In the early 1920s, Ford promised its customers any color vehicle they wanted
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as long as it was black. Ford's management assumed anyone buying a car would
cc cc cc cc cc cc cc cc cc cc cc cc cc cc
accept the color black, so it made products affordable by offering only one variety
cc cc cc cc cc cc cc cc cc cc cc cc cc cc
in large quantities. Ford is an example of a market-oriented firm.
cc cc cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: A market-oriented organization recognizes that different customers
cc cc cc cc cc cc cc
groups want different features or benefits.
cc cc cc cc cc cc
COMPLETE ANSWERS 2025.
1. Marketing is defined as producing, promoting, and selling products.
cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: Marketing is the activity, set of institutions, and processes for creating,
cc cc cc cc cc cc cc cc cc cc cc
communicating, delivering, and exchanging offerings that have value for customers,
cc cc cc cc cc cc cc cc cc cc
clients, partners, and society at large.
cc cc cc cc cc cc
2. According to the American Marketing Association, marketing is the activity, set of
cc cc cc cc cc cc cc cc cc cc cc cc
institutions, and processes for creating, communicating, delivering, and exchanging
cc cc cc cc cc cc cc cc cc
offerings that have value for customers, clients, partners, and society at large.
cc cc cc cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
3. An exchange cannot take place unless each party in the exchange has
cc cc cc cc cc cc cc cc cc cc cc cc
something that the other party values.
cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
4. Sara Lee Industries spent considerable money and time developing a crustless
cc cc cc cc cc cc cc cc cc cc cc
bread. Prior to the introduction, the company had not conducted market research
cc cc cc cc cc cc cc cc cc cc cc cc
among its customers, but it was confident that its science and technology
cc cc cc cc cc cc cc cc cc cc cc cc
department had produced a successful new product. Based on this example, Sara
cc cc cc cc cc cc cc cc cc cc cc cc
Lee is a good example of a production-oriented company.
cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
5. Unlike a production-orientated firm, a firm embracing a sales orientation focuses
cc cc cc cc cc cc cc cc cc cc cc
on customer wants and needs so it can develop the best product at the lowest
cc cc cc cc cc cc cc cc cc cc cc cc cc cc cc
cost that will require very little selling effort.
cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: False
cc cc cc cc cc
,RATIONALE: A sales orientation is based on the ideas that people will buy more
cc cc cc cc cc cc cc cc cc cc cc cc cc
goods and services if aggressive sales techniques are used and that high sales
cc cc cc cc cc cc cc cc cc cc cc cc cc
result in high profits.
cc cc cc cc
6. The focus of a production-oriented firm is on what it can make or do best.
cc cc cc cc cc cc cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
7. The marketing concept states that the social and economic justification for an
cc cc cc cc cc cc cc cc cc cc cc cc
organization's existence is the satisfaction of customers' wants and needs while
cc cc cc cc cc cc cc cc cc cc cc
meeting organizational objectives.
cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
8. The ultimate goal of most market-oriented firms is profitability that results from
cc cc cc cc cc cc cc cc cc cc cc cc
satisfying the wants and needs of its consumers.
cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
9. The societal marketing concept considers society's longterm best interests along
cc cc cc cc cc cc cc cc cc cc
with the satisfaction of customers' wants and needs.
cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
10. Increasingly well informed customers have shifted the power from manufacturers
cc cc cc cc cc cc cc cc cc cc
and retailers to consumers.
cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
11. Personnel in sales oriented firms tend to be "outward looking," focusing on
cc cc cc cc cc cc cc cc cc cc cc cc
selling what the market wants.
cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: Personnel in salesoriented firms tend to be "inward looking," focusing
cc cc cc cc cc cc cc cc cc cc
on selling what the
cc cc cc cc
organization makes rather than making what the market wants.
cc cc cc cc cc cc cc cc
12. Customer value is the relationship between company profits and company costs.
cc cc cc cc cc cc cc cc cc cc cc
a. True
cc
, b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: Customer value is the relationship between benefits and the sacrifice
cc cc cc cc cc cc cc cc cc cc
necessary to obtain those benefits.
cc cc cc cc cc
13. The way to achieve customer satisfaction and value is to offer the lowest price.
cc cc cc cc cc cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: Marketers interested in customer value offer realistic prices and try to
cc cc cc cc cc cc cc cc cc cc cc
achieve customer satisfaction and value by ensuring customer expectations are met
cc cc cc cc cc cc cc cc cc cc cc
or exceeded.
cc cc
14. 3D Systems is a company that uses computers to generate new product
cc cc cc cc cc cc cc cc cc cc cc cc
prototypes. It has generated loyal business clients by providing the best customer
cc cc cc cc cc cc cc cc cc cc cc cc
support in the industry. The company also provides direct sales consultations that
cc cc cc cc cc cc cc cc cc cc cc cc
give its salespeople intimate knowledge about what exactly its customers want.
cc cc cc cc cc cc cc cc cc cc cc
This partnership between 3D Systems and its customers is relationship marketing.
cc cc cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
15. Only a firm's salespeople need to be customer oriented.
cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: All employees need to be customer oriented because in the
cc cc cc cc cc cc cc cc cc cc
customer's eyes, the employee (regardless of the position held in the organization)
cc cc cc cc cc cc cc cc cc cc cc cc
is the firm and may be the only firm representative the customer ever sees.
cc cc cc cc cc cc cc cc cc cc cc cc cc cc
16. Retailers who give their sales clerks the authority to handle customer complaints
cc cc cc cc cc cc cc cc cc cc cc cc
without having to get approval from a supervisor are using empowerment.
cc cc cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: True
cc cc cc cc cc
17. In the early 1920s, Ford promised its customers any color vehicle they wanted
cc cc cc cc cc cc cc cc cc cc cc cc cc
as long as it was black. Ford's management assumed anyone buying a car would
cc cc cc cc cc cc cc cc cc cc cc cc cc cc
accept the color black, so it made products affordable by offering only one variety
cc cc cc cc cc cc cc cc cc cc cc cc cc cc
in large quantities. Ford is an example of a market-oriented firm.
cc cc cc cc cc cc cc cc cc cc cc
a. True
cc
b. False - ANSWER: ANSWER: False
cc cc cc cc cc
RATIONALE: A market-oriented organization recognizes that different customers
cc cc cc cc cc cc cc
groups want different features or benefits.
cc cc cc cc cc cc
