COMBINTED TEST BANK -
MANAGERIAL
ACCOUNTING GARRISON
EDITION 12TH TEST
BANK
, Chapter 1
Marketing: Managing Profitable Customer Relationships
GENERAL CONTENT: Multiple-Choice Questions
1. Marketing seeks to create and manage profitable customer relationships by delivering
to customers.
a. competitive prices
b. superior value
c. superior service
d. superior promotion
e. product assortment (
Answer: b; p. 4; Easy; LO1)
2. You have learned at work that today’s successful companies at all levels have one thing in
common: they are heavily committed to marketing and strongly .
a. obtaining the best CEOs
b. increasing wealth to stockholders
c. customer focused
d. employee motivation
e. social responsibility (
Answer: c; p. 4; Moderate; LO2)
3. is managing profitable customer relationships.
a. Management
b. Control
c. Marketing
d. Human resources
e. Customer service (
Answer: c; p. 4; Easy; LO1)
4. The twofold goal of marketing is to keep and grow current customers and to .
a. attract new customers by promising superior value
b. keep and grow current customers by delivering competitive pricing
c. keep and grow current customers by delivering friendly service
d. keep and grow current customers by delivering vast product assortment
e. all of the above
(
Answer: a; p. 4; Moderate; LO4)
5. Highly successful companies know that if they take care of their customers, will
follow.
a. frequent good word of mouth
b. market share
c. profits
d. market share and profits
e. increased competition (
Answer: d; p. 5; Challenging; LO4)
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,Q6. Which of the following best defines marketing?
A. Selling and advertising
B. Distribution and pricing
C. Managing profitable customer relationships
D. Creating flashy promotions
Answer: C
Rationale: Marketing is more than just sales or ads—it is the process of managing profitable
customer relationships by creating value and building loyalty. Options A, B, and D are only parts of
marketing, not the core definition.
Q7. Wants become demands when:
A. Customers identify their preferences
B. Customers have buying power to back their wants
C. Competitors create market pressure
D. Firms promote aggressively
Answer: B
Rationale: Wants are shaped by culture and personality. They become demands when customers have
both desire and purchasing power. Without resources, a want cannot translate into market demand.
Q8. Which company action would best avoid marketing myopia?
A. Focusing on product features only
B. Concentrating on customer benefits and experiences
C. Prioritizing production efficiency
D. Reducing marketing research efforts
Answer: B
Rationale: Marketing myopia occurs when firms focus on the product rather than the customer
need/experience. Avoiding this requires a customer-centered approach (Option B).
Q9. A smartphone company defines its mission as “delivering digital connections that improve lives,”
instead of “selling phones.” This reflects:
A. Product concept
B. Marketing myopia
C. Value proposition
D. Promotion strategy
Answer: C
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Rationale: A value proposition is a set of benefits promised to satisfy needs. Unlike product-focused
missions, it communicates solutions and experiences.
, Q10. Which phrase reflects the twofold goal of marketing?
A. Satisfying employees and suppliers
B. Attracting new customers and growing current ones
C. Creating ads and promotions
D. Expanding distribution and pricing
Answer: B
Rationale: The marketing goal is clear: attract new customers with superior value while keeping
and growing existing customers through satisfaction and loyalty.
Q11. A gym offers new members free trials and personalized coaching to retain them. This illustrates:
A. Customer lifetime value
B. Marketing myopia
C. Price skimming
D. Societal marketing
Answer: A
Rationale: Customer lifetime value (CLV) is the total worth of a customer over their relationship
with the firm. Retention strategies (like free trials, coaching) maximize CLV.
Q12. When Coca-Cola balances customer happiness with environmental sustainability, it practices:
A. Selling concept
B. Production concept
C. Societal marketing concept
D. Product concept
Answer: C
Rationale: The societal marketing concept seeks a balance between company profits, customer
satisfaction, and society’s well-being. That’s what Coca-Cola is doing here.
Q13. A firm launches aggressive sales promotions for insurance that customers rarely seek out. Which
concept is in action?
A. Production concept
B. Selling concept
C. Marketing concept
D. Societal concept
Answer: B
Rationale: The selling concept is common for unsought goods like insurance or funeral services,
where heavy selling/promotion is required to push purchases.
Downloaded by Collins Mwaniki ()
MANAGERIAL
ACCOUNTING GARRISON
EDITION 12TH TEST
BANK
, Chapter 1
Marketing: Managing Profitable Customer Relationships
GENERAL CONTENT: Multiple-Choice Questions
1. Marketing seeks to create and manage profitable customer relationships by delivering
to customers.
a. competitive prices
b. superior value
c. superior service
d. superior promotion
e. product assortment (
Answer: b; p. 4; Easy; LO1)
2. You have learned at work that today’s successful companies at all levels have one thing in
common: they are heavily committed to marketing and strongly .
a. obtaining the best CEOs
b. increasing wealth to stockholders
c. customer focused
d. employee motivation
e. social responsibility (
Answer: c; p. 4; Moderate; LO2)
3. is managing profitable customer relationships.
a. Management
b. Control
c. Marketing
d. Human resources
e. Customer service (
Answer: c; p. 4; Easy; LO1)
4. The twofold goal of marketing is to keep and grow current customers and to .
a. attract new customers by promising superior value
b. keep and grow current customers by delivering competitive pricing
c. keep and grow current customers by delivering friendly service
d. keep and grow current customers by delivering vast product assortment
e. all of the above
(
Answer: a; p. 4; Moderate; LO4)
5. Highly successful companies know that if they take care of their customers, will
follow.
a. frequent good word of mouth
b. market share
c. profits
d. market share and profits
e. increased competition (
Answer: d; p. 5; Challenging; LO4)
Downloaded by Collins Mwaniki ()
,Q6. Which of the following best defines marketing?
A. Selling and advertising
B. Distribution and pricing
C. Managing profitable customer relationships
D. Creating flashy promotions
Answer: C
Rationale: Marketing is more than just sales or ads—it is the process of managing profitable
customer relationships by creating value and building loyalty. Options A, B, and D are only parts of
marketing, not the core definition.
Q7. Wants become demands when:
A. Customers identify their preferences
B. Customers have buying power to back their wants
C. Competitors create market pressure
D. Firms promote aggressively
Answer: B
Rationale: Wants are shaped by culture and personality. They become demands when customers have
both desire and purchasing power. Without resources, a want cannot translate into market demand.
Q8. Which company action would best avoid marketing myopia?
A. Focusing on product features only
B. Concentrating on customer benefits and experiences
C. Prioritizing production efficiency
D. Reducing marketing research efforts
Answer: B
Rationale: Marketing myopia occurs when firms focus on the product rather than the customer
need/experience. Avoiding this requires a customer-centered approach (Option B).
Q9. A smartphone company defines its mission as “delivering digital connections that improve lives,”
instead of “selling phones.” This reflects:
A. Product concept
B. Marketing myopia
C. Value proposition
D. Promotion strategy
Answer: C
Downloaded by Collins Mwaniki ()
Rationale: A value proposition is a set of benefits promised to satisfy needs. Unlike product-focused
missions, it communicates solutions and experiences.
, Q10. Which phrase reflects the twofold goal of marketing?
A. Satisfying employees and suppliers
B. Attracting new customers and growing current ones
C. Creating ads and promotions
D. Expanding distribution and pricing
Answer: B
Rationale: The marketing goal is clear: attract new customers with superior value while keeping
and growing existing customers through satisfaction and loyalty.
Q11. A gym offers new members free trials and personalized coaching to retain them. This illustrates:
A. Customer lifetime value
B. Marketing myopia
C. Price skimming
D. Societal marketing
Answer: A
Rationale: Customer lifetime value (CLV) is the total worth of a customer over their relationship
with the firm. Retention strategies (like free trials, coaching) maximize CLV.
Q12. When Coca-Cola balances customer happiness with environmental sustainability, it practices:
A. Selling concept
B. Production concept
C. Societal marketing concept
D. Product concept
Answer: C
Rationale: The societal marketing concept seeks a balance between company profits, customer
satisfaction, and society’s well-being. That’s what Coca-Cola is doing here.
Q13. A firm launches aggressive sales promotions for insurance that customers rarely seek out. Which
concept is in action?
A. Production concept
B. Selling concept
C. Marketing concept
D. Societal concept
Answer: B
Rationale: The selling concept is common for unsought goods like insurance or funeral services,
where heavy selling/promotion is required to push purchases.
Downloaded by Collins Mwaniki ()
