Chapter 1—An Overview of Marketing
TRUE/FALSE
1. Marketing is defined as producing, promoting, and selling products.
ANS: F
Marketing means more than just producing, promoting, and selling products. It is a
philosophy that stresses customer relationships as well as benefiting the organization and
its stakeholders.
PTS: 1 REF: 3 OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Strategy
2. According to the American Marketing Association, marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.
ANS: T PTS: 1 REF: 3 OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Strategy
3. An exchange cannot take place unless each party in the exchange has something that the
other party values.
ANS: T PTS: 1 REF: 3 OBJ: 01-1 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
,4. Sara Lee Industries spent considerable money and time developing a crustless bread. Prior
to the introduction, the company had not conducted market research among its customers,
but it was confident that its science and technology department had produced a successful
new product. Based on this example, Sara Lee is a good example of a production-oriented
company.
ANS: T PTS: 1 REF: 4 OBJ: 01-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Research
5. The focus of a production-oriented firm is on what it can make or do best.
ANS: T PTS: 1 REF: 4 OBJ: 01-2 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
6. Unlike a production orientated firm, a firm embracing a sales orientation focuses on
customer wants and needs so it can develop the best product at the lowest cost that will
require very little selling effort.
ANS: F
A sales orientation is based on the ideas that people will buy more goods and services if
aggressive sales techniques are used and that high sales result in high profits.
PTS: 1 REF: 4 OBJ: 01-2 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
7. The marketing concept states that the social and economic justification for an organization's
existence is the satisfaction of customers’ wants and needs while meeting organizational
objectives.
ANS: T PTS: 1 REF: 5 OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
, 8. The societal marketing concept considers society's long-term best interests along with the
satisfaction of customers' wants and needs.
ANS: T PTS: 1 REF: 6 OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
9. Personnel in sales-oriented firms tend to be “outward looking,” focusing on selling what the
market wants.
ANS: F
Personnel is sales-oriented firms tend to be “inward looking,” focusing on selling what the
organization makes rather than making what the market wants.
PTS: 1 REF: 7 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
10. Customer value is the relationship between company profits and company costs.
ANS: F
Customer value is the relationship between benefits and the sacrifice necessary to obtain
those benefits.
PTS: 1 REF: 7 OBJ: 01-3 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
11. The way to achieve customer satisfaction and value is to offer the lowest price.
ANS: F
Marketers interested in customer value offer realistic prices and try to achieve customer
satisfaction and value by ensuring customer expectations are met or exceeded.
, PTS: 1 REF: 8-9 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Customer
12. 3D Systems is a company that uses computers to generate new product prototypes. It has
generated loyal business clients by providing the best customer support in the industry. The
company also provides direct sales consultations that gives its salespeople intimate
knowledge about what exactly its customers want. This partnership between 3D Systems
and its customers entails relationship marketing.
ANS: T PTS: 1 REF: 10 OBJ: 01-3 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
13. Only a firm's salespeople need to be customer-oriented.
ANS: F
All employees need to be customer-oriented because in the customer's eyes, the employee
(regardless of the position held in the organization) is the firm and may be the only firm
representative the customer ever sees.
PTS: 1 REF: 10 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Customer
14. Retailers who give their sales clerks the authority to handle customer complaints without
having to get approval from a supervisor are using empowerment.
ANS: T PTS: 1 REF: 11 OBJ: 01-3 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
TRUE/FALSE
1. Marketing is defined as producing, promoting, and selling products.
ANS: F
Marketing means more than just producing, promoting, and selling products. It is a
philosophy that stresses customer relationships as well as benefiting the organization and
its stakeholders.
PTS: 1 REF: 3 OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Strategy
2. According to the American Marketing Association, marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.
ANS: T PTS: 1 REF: 3 OBJ: 01-1 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Strategy
3. An exchange cannot take place unless each party in the exchange has something that the
other party values.
ANS: T PTS: 1 REF: 3 OBJ: 01-1 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
,4. Sara Lee Industries spent considerable money and time developing a crustless bread. Prior
to the introduction, the company had not conducted market research among its customers,
but it was confident that its science and technology department had produced a successful
new product. Based on this example, Sara Lee is a good example of a production-oriented
company.
ANS: T PTS: 1 REF: 4 OBJ: 01-2 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Research
5. The focus of a production-oriented firm is on what it can make or do best.
ANS: T PTS: 1 REF: 4 OBJ: 01-2 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
6. Unlike a production orientated firm, a firm embracing a sales orientation focuses on
customer wants and needs so it can develop the best product at the lowest cost that will
require very little selling effort.
ANS: F
A sales orientation is based on the ideas that people will buy more goods and services if
aggressive sales techniques are used and that high sales result in high profits.
PTS: 1 REF: 4 OBJ: 01-2 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
7. The marketing concept states that the social and economic justification for an organization's
existence is the satisfaction of customers’ wants and needs while meeting organizational
objectives.
ANS: T PTS: 1 REF: 5 OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
, 8. The societal marketing concept considers society's long-term best interests along with the
satisfaction of customers' wants and needs.
ANS: T PTS: 1 REF: 6 OBJ: 01-2 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
9. Personnel in sales-oriented firms tend to be “outward looking,” focusing on selling what the
market wants.
ANS: F
Personnel is sales-oriented firms tend to be “inward looking,” focusing on selling what the
organization makes rather than making what the market wants.
PTS: 1 REF: 7 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Strategy
10. Customer value is the relationship between company profits and company costs.
ANS: F
Customer value is the relationship between benefits and the sacrifice necessary to obtain
those benefits.
PTS: 1 REF: 7 OBJ: 01-3 TYPE: Def
TOP: AACSB Reflective Thinking | TB&E Model Customer
11. The way to achieve customer satisfaction and value is to offer the lowest price.
ANS: F
Marketers interested in customer value offer realistic prices and try to achieve customer
satisfaction and value by ensuring customer expectations are met or exceeded.
, PTS: 1 REF: 8-9 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Customer
12. 3D Systems is a company that uses computers to generate new product prototypes. It has
generated loyal business clients by providing the best customer support in the industry. The
company also provides direct sales consultations that gives its salespeople intimate
knowledge about what exactly its customers want. This partnership between 3D Systems
and its customers entails relationship marketing.
ANS: T PTS: 1 REF: 10 OBJ: 01-3 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
13. Only a firm's salespeople need to be customer-oriented.
ANS: F
All employees need to be customer-oriented because in the customer's eyes, the employee
(regardless of the position held in the organization) is the firm and may be the only firm
representative the customer ever sees.
PTS: 1 REF: 10 OBJ: 01-3 TYPE: Comp
TOP: AACSB Reflective Thinking | TB&E Model Customer
14. Retailers who give their sales clerks the authority to handle customer complaints without
having to get approval from a supervisor are using empowerment.
ANS: T PTS: 1 REF: 11 OBJ: 01-3 TYPE: App
TOP: AACSB Reflective Thinking | TB&E Model Customer
