Name Clas Dat
: s: e:
chapter 1
Indicate whether the statement is true or false.
1. On average, marketing expenses account for half of the costs involved in a product.
a. True
b. False
2. Production orientation is a business philosophy that stresses on the importance of quantity of products rather than the
quality of products.
a. True
b. False
3. Form utility refers to conversion of raw materials and components into finished goods and services.
a. True
b. False
4. Marketing of a product begins after it hits the shelf.
a. True
b. False
5. It can be said that Glen Inc., a woolen products manufacturing company based in Switzerland, is a firm that uses a
market-driven strategy because it produces goods based on local customers’ experiences, needs, and preferences.
a. True
b. False
6. Virtually all colleges and universities have alumni associations that publish magazines, hold reunions, and try to raise
funds. These activities constitute organization marketing.
a. True
b. False
7. In the sales era, firms attempted to match their output to the potential number of customers who would want it.
a. True
b. False
8. Promotional events designed to attract visitors to a particular area or to improve the image of a city, state, or nation
would be examples of event marketing.
a. True
b. False
9. Buying an iPod generates ownership utility; however, buying a concert ticket does not.
a. True
b. False
10. In modern terminology, Apple's excellent sales and customer service, sleek design, innovative engineering, and
reliability all add up to a world-class "product."
a. True
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,Name Clas Dat
: s: e:
chapter 1
b. False
11. The relationship era builds on the marketing era’s customer orientation by only focusing on maintaining relationships
with customers.
a. True
b. False
12. Manufacturers engage in risk taking when they create goods and services based on research and their belief that
consumers need them.
a. True
b. False
13. The advent of a strong buyer’s market created the need for consumer orientation by businesses.
a. True
b. False
14. Mary Kay Cosmetic's long-time policy of rewarding top sales representatives with a "Mary Kay pink" Cadillac is an
example of integrated marketing communications.
a. True
b. False
15. When Dolly Parton promotes her theme park called Dollywood, it is both place and person marketing.
a. True
b. False
16. According to relationship marketing, the lifetime value of a customer should exceed the investment made by the firm
to attract and keep the customer.
a. True
b. False
17. Marketing of sporting, cultural, and recreational activities to selected target markets is known as cause marketing.
a. True
b. False
18. The emergence of the marketing concept can be linked to the shift from a seller’s market to a buyer’s market.
a. True
b. False
19. Celebrities use person marketing as a way to increase their value in the marketplace.
a. True
b. False
20. Marketing is the indirect connection between a firm and its customers.
a. True
b. False
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, Name Clas Dat
: s: e:
chapter 1
21. An auto manufacturer creates ownership utility for its consumers by combining metal, rubber, plastic, and petroleum
products.
a. True
b. False
22. Intermediaries that may be involved in a product's movement from producer to final consumer are known as
wholesalers.
a. True
b. False
23. Owen buys a car for himself. Owen has created ownership utility.
a. True
b. False
24. Mobile marketing is a term used to describe marketing messages sent via wireless technology.
a. True
b. False
25. The marketing concept focuses on the objective of achieving short-term profits instead of long-run success during
tough economic times.
a. True
b. False
26. Branches of the U.S. military sometimes show recruitment advertisements in cinemas featuring movies that are most
likely to attract viewers of military age. This is an example of place marketing.
a. True
b. False
27. When bad weather damages crops such as wheat and corn, food manufacturers such as Kraft often have to pass the
additional cost of scarce supplies along to their customers in the form of higher prices.
a. True
b. False
28. A firm with a fully developed marketing concept is one with a company-wide consumer orientation with the objective
of achieving long-term success.
a. True
b. False
29. The marketing era is defined by a shift in focus from products and sales to satisfying a consumer’s needs.
a. True
b. False
30. Relationship marketing moves customers up a loyalty ladder—from new customers to regular purchasers, then to loyal
supporters of the firm and its goods and services, and finally to advocates who not only buy its products but recommend
them to others.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 3
: s: e:
chapter 1
Indicate whether the statement is true or false.
1. On average, marketing expenses account for half of the costs involved in a product.
a. True
b. False
2. Production orientation is a business philosophy that stresses on the importance of quantity of products rather than the
quality of products.
a. True
b. False
3. Form utility refers to conversion of raw materials and components into finished goods and services.
a. True
b. False
4. Marketing of a product begins after it hits the shelf.
a. True
b. False
5. It can be said that Glen Inc., a woolen products manufacturing company based in Switzerland, is a firm that uses a
market-driven strategy because it produces goods based on local customers’ experiences, needs, and preferences.
a. True
b. False
6. Virtually all colleges and universities have alumni associations that publish magazines, hold reunions, and try to raise
funds. These activities constitute organization marketing.
a. True
b. False
7. In the sales era, firms attempted to match their output to the potential number of customers who would want it.
a. True
b. False
8. Promotional events designed to attract visitors to a particular area or to improve the image of a city, state, or nation
would be examples of event marketing.
a. True
b. False
9. Buying an iPod generates ownership utility; however, buying a concert ticket does not.
a. True
b. False
10. In modern terminology, Apple's excellent sales and customer service, sleek design, innovative engineering, and
reliability all add up to a world-class "product."
a. True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name Clas Dat
: s: e:
chapter 1
b. False
11. The relationship era builds on the marketing era’s customer orientation by only focusing on maintaining relationships
with customers.
a. True
b. False
12. Manufacturers engage in risk taking when they create goods and services based on research and their belief that
consumers need them.
a. True
b. False
13. The advent of a strong buyer’s market created the need for consumer orientation by businesses.
a. True
b. False
14. Mary Kay Cosmetic's long-time policy of rewarding top sales representatives with a "Mary Kay pink" Cadillac is an
example of integrated marketing communications.
a. True
b. False
15. When Dolly Parton promotes her theme park called Dollywood, it is both place and person marketing.
a. True
b. False
16. According to relationship marketing, the lifetime value of a customer should exceed the investment made by the firm
to attract and keep the customer.
a. True
b. False
17. Marketing of sporting, cultural, and recreational activities to selected target markets is known as cause marketing.
a. True
b. False
18. The emergence of the marketing concept can be linked to the shift from a seller’s market to a buyer’s market.
a. True
b. False
19. Celebrities use person marketing as a way to increase their value in the marketplace.
a. True
b. False
20. Marketing is the indirect connection between a firm and its customers.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 2
, Name Clas Dat
: s: e:
chapter 1
21. An auto manufacturer creates ownership utility for its consumers by combining metal, rubber, plastic, and petroleum
products.
a. True
b. False
22. Intermediaries that may be involved in a product's movement from producer to final consumer are known as
wholesalers.
a. True
b. False
23. Owen buys a car for himself. Owen has created ownership utility.
a. True
b. False
24. Mobile marketing is a term used to describe marketing messages sent via wireless technology.
a. True
b. False
25. The marketing concept focuses on the objective of achieving short-term profits instead of long-run success during
tough economic times.
a. True
b. False
26. Branches of the U.S. military sometimes show recruitment advertisements in cinemas featuring movies that are most
likely to attract viewers of military age. This is an example of place marketing.
a. True
b. False
27. When bad weather damages crops such as wheat and corn, food manufacturers such as Kraft often have to pass the
additional cost of scarce supplies along to their customers in the form of higher prices.
a. True
b. False
28. A firm with a fully developed marketing concept is one with a company-wide consumer orientation with the objective
of achieving long-term success.
a. True
b. False
29. The marketing era is defined by a shift in focus from products and sales to satisfying a consumer’s needs.
a. True
b. False
30. Relationship marketing moves customers up a loyalty ladder—from new customers to regular purchasers, then to loyal
supporters of the firm and its goods and services, and finally to advocates who not only buy its products but recommend
them to others.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 3
