1. ________ is the difference between the prospective customer’s evaluation of all the benefits and
all the costs of an offering and the perceived alternatives.
a. Failure avoidance rate
b. Perceived usefulness
c. Total customer benefit
d. Competitors’ market share rate
e. Customer-perceived value
2. Sammy’s is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its
marketing efforts on all the experiences the customers will have on the way to obtaining their
food order and eating it. Hence, Sammy’s is focusing its marketing efforts on its ________
a. cost versus benefit
b. value delivery
d. horizontal marketing
e. marketing channel
3. ________ describes the net present value of the stream of future profits expected over the
customer’s lifetime purchases.
a. Customer profitability analysis
b. Activity-based costing
c. Customer lifetime value
d. Customer value analysis
e. Customer-perceived value
4. Rachel and Josh are on vacation in Hawaii. When they arrived at the hotel, they were offered
chilled juice. Their check-in formalities were handled by the staff. When they entered their
room, they saw that chocolates had been placed on the pillows and a flower arrangement on the
table. The hotel’s actions are an example of ________.
a. customer lifetime value
b. customer value analysis
c. customer-perceived value
d. a customer touch point
e. customer profitability analysis
5. ________ marketing is the practice of sending messages only when consumers express a
willingness to become more involved with the brand.
6. Using the information in his company’s ________ lets a telemarketer respond to customer
inquiries more effectively because he or she can see a total picture of the customer relationship.
a. call rejection list
b. data warehouse
c. customer-value hierarchy
d. call back list
e. bibliographic database
7. Through data ________, marketing statisticians can extract useful information about individuals,
trends, and segments from the mass of data.
8. Which of the following is true for customer relationship marketing?
a. It is very difficult to find and train database employees.
b. Focusing too much on databases separates a company from its customers.
c. Long-term results of such systems are still unproven.
d. Building and maintaining a customer database requires a large investment.
e. Competitors can often hack into CRM systems.
9. Marriage, childbirth and divorce constitute the ________ that shape the consumption pattern
a. product life cycle
b. social status
c. postpuberty cycles
d. psychological life cycle
e. critical life events
10. ________ portrays the “whole person” interacting with his or her environment.
11. The starting point for understanding consumer behavior is the ________ model in which
marketing and environmental stimuli enter the consumer’s consciousness, and a set of
psychological processes combine with certain consumer characteristics to result in decision
processes and purchase decisions.
12. Maria considers buying a car for herself after she notices the advantages derived by her best
friend from his new car. Which of the following forms of stimulus has activated Maria’s
problem recognition process?
a. external stimuli
b. internal stimuli
c. peer stimuli
d. marketing induced stimuli
e. secondary stimuli
13. A(n) ________ puts people into a frame of mind, such as, liking or disliking an object and
moving toward or away from it.
14. Which of the following products is most likely to be characterized by low involvement but
significant brand difference?
a. a milk carton
b. packet of salt
c. digital cameras
15. Ben always reaches for the bright blue and yellow box of Ritz crackers when he visits the
snack food aisle in the grocery store. He rarely even reads the box or checks the price. Which
of the following heuristics is most likely being used by Ben?
16. Many business buyers prefer to buy a total problem solution from one seller. This process
is also known as ________.
a. supply buying
b. channel consolidation
c. systems buying
d. horizontal buying
e. vertical buying
17. ________ is composed of all parties who participate in the purchasing decision-making process
and share common goals and risks associated with their decisions.
a. The marketing sales team
b. The logistics center
c. The buying center
d. Engineering support
e. Strategic management
18. Which of the following is a step in the straight rebuy buyclass?
a. problem recognition
b. proposal solicitation
c. general need description
d. supplier search
e. product specification
19. In reordering office supplies, the only stages that the buyer passes through are the product
specification stage and the ________ stage.
a. order-routine specification
b. general need description
c. supplier search
d. problem recognition
e. performance review
20. The ________ market consists of schools, hospitals, nursing homes, prisons, and other
institutions that must provide goods and services to people in their care.
a. secondary business
21. In most countries, ________ are the major buyers of goods and services. They typically require
suppliers to submit bids and often award the contract to the lowest bidder.
b. consumer packaged-goods companies
c. educational institutions
d. health services vendors
e. government organizations
22. If a marketer decides to segment a market based on neighborhoods, the marketer will have
chosen the ________ method of segmentation.
23. The sale of turkeys in the United States is highest in mid-to late November as people buy
turkeys to serve at Thanksgiving. Grocery stores who specifically advertise turkeys at this time
of year are segmenting on the basis of ________.
b. user status
c. buyer-readiness stage
24. In the ________ step of the market segmentation process, the marketer evaluates the segment
using criteria such as market growth and market access.
a. segment identification
b. need-based segmentation
c. segment “acid test”
d. segment attractiveness
e. segment profitability
25. Which of the following statements is true about the five forces identified by Michael Porter
that determine the intrinsic long-run attractiveness of a market or market segment?
a. A segment is attractive if it already contains numerous, strong, or aggressive
b. A segment is attractive when there are actual or potential substitutes for the product.
c. A segment is unattractive if the company’s suppliers are unable to raise prices or reduce
d. A segment is unattractive if buyers possess strong or growing bargaining power.
e. The most attractive segment is one in which entry barriers are low and exit barriers are