Chapter 1: Marketing in a Changing World
True/False



1.  

Needs are states of perceived deprivation.

TRUE
FALSE


2.  

Customer satisfaction is the extent to which a product's perceived performance matches a buyer's expectations.

TRUE
FALSE


3.  

Exchange is the core concept of marketing.

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FALSE


4.  

Exchange marketing is part of the larger idea of relationship marketing.

TRUE
FALSE


5.  

Each nation's economy and the whole world's economy consist of simple interacting sets of markets linked through exchange processes.

TRUE
FALSE


6.  

Attracting a new customer costs more than four times as much as keeping an existing customer satisfied.

TRUE
FALSE


7.  

In today's highly competitive marketplace, companies cannot afford to lose money on one transaction if it helps to cement a profitable long-term customer relationship.

TRUE
FALSE


8.  

The goal of the marketing concept is to build customer satisfaction into the very fabric of the firm.

TRUE
FALSE


9.  

Companies are not only trying to sell more of their locally produced goods in international markets, they are also buying more components and supplies locally.

TRUE
FALSE


10.  

The World Wide Web has given companies access to millions of new customers at a fraction of the cost of print and television advertising, despite the huge costs of setting up a web page.

TRUE
FALSE


11.  

Marketing myopia occurs when sellers are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs.

TRUE
FALSE


12.  

To qualify as an economic exchange, the buyer must offer the seller money for a product or service.

TRUE
FALSE


13.  

According to the societal marketing concept, the organisation should determine the needs, wants and interests of target markets.

TRUE
FALSE


14.  

The changing world economy is the primary reason for the emergence of "hybrid products", where design, material purchases, manufacturing, and marketing may all take place in different countries.

TRUE
FALSE


15.  

Although related, marketing management and demand management are very different activities.

TRUE
FALSE


16.  

A market is a set of actual, not potential, buyers of a product.

TRUE
FALSE


17.  

That consumers favour available and highly affordable products is the central tenet of the production concept.

TRUE
FALSE


18.  

The selling concept holds that the organisation should determine the needs and wants of consumers, and undertake a large-scale selling effort.

TRUE
FALSE


19.  

Ironically, markets are not among the core marketing concepts identified in the text.

TRUE
FALSE


20.  

A new car, a car cleaner, and a car wash are all considered products.

TRUE
FALSE


21.  

Selling is only one of several marketing functions, but it is often the most important.

TRUE
FALSE


22.  

Marketing is human activity directed at satisfying needs and wants through the exchange process.

TRUE
FALSE


23.  

Intangible items such as a stockbroker's advice should not be considered a product as defined in the text.

TRUE
FALSE


24.  

Exchange is a tangential concept in the discipline of marketing.

TRUE
FALSE


25.  

Barbara Calvert recently donated $25 to her church's annual fundraising campaign. Barbara's donation should be considered a transaction.

TRUE
FALSE


26.  

Marketing activities may be performed not only by sellers, but also by potential customers.

TRUE
FALSE


27.  

The production concept may be an appropriate philosophy when demand exceeds supply and/or when product cost is high and improved productivity is needed to bring it down.

TRUE
FALSE


28.  

The National Parks Services has recently increased park fees to decrease the number of people visiting the parks. This action is known as demarketing.

TRUE
FALSE


29.  

Marketing management is, in reality, demand marketing.

TRUE
FALSE


30.  

Selling focuses on the needs of the seller; marketing focuses on the needs of the buyer.

TRUE
FALSE


31.  

Customer value is the difference between the values the customer gains from owning and using a product and the cost of obtaining the product.

TRUE
FALSE


32.  

Transaction marketing is part of a larger idea of relationship marketing.

TRUE
FALSE


33.  

Managing consumer demand means managing production.

TRUE
FALSE


34.  

Many domestically produced goods and services are "hybrids", with design, materials, purchases, manufacturing and marketing taking place in several countries.

TRUE
FALSE


35.  

Given the increased competition in today's marketing environment, there is a decreased need for companies to take responsibility for the social and environmental impact of their actions.

TRUE
FALSE


36.  

Human wants are the form taken by human needs as they are shaped by culture and individual personalities.

TRUE
FALSE


37.  

The marketing concept takes an "outside-in" perspective on the exchange process.

TRUE
FALSE


38.  

The cost of retaining a current customer is more than that of attracting a new customer.

TRUE
FALSE


39.  

The key to successful customer retention is customer appreciation.

TRUE
FALSE


40.  

The large hype about recycling is a result of people becoming more socially responsible, not because of rapid globalisation.

TRUE
FALSE


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