MKTG 101 Fall 2025 Exam 1

1) Which of the following is NOT an accurate description of modern marketing?

A) Marketing is the creation of value for customers

B) marketing involves managing profitable customer relationships

C) Marketing emphasizes selling and advertising exclusively

D) Marketing involves satisfying customer needs and wants

E) Marketing is building value-laden exchange relationships with customers

C) Marketing emphasizes selling and advertising exclusively

2) Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ________.

Value creation and exchange

3) According to the five-step model of the marketing process, which of the following is the final step in creating value for customers?

building profitable relationships and creating customer delight

4) According to the five-step model of the marketing process, a company should ________before designing a customer-driven marketing strategy.

D) Understand the marketplace and customer needs and wants

5) ________ are human needs that are shaped by culture and individual personality.

Wants

6) Needs include all of the following EXCEPT ________.

The newest iPhone 

Needs include – states of deprivation  

• Physical – food, clothing, warmth, safety  

• Social – belonging and affection 

• Individual – knowledge and self-expression 

7) Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's want now has become a(n) ________.

C) demand

8) Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?

D) marketing myopia

9) ________ is the act of obtaining a desired object from someone by offering something in return.

Exchange

10) Seagull Terrace offers its customers good accommodations, local delicacies, and amazing seaside views. The overall experience provided at the motel is a part of its

Market offering

11) (T/F) The difference between human needs and wants is that needs are not created by Marketers.

True

12) (T/F) An experience such as a vacation can be defined as a market offering.

True

13) The art and science of choosing target markets and building profitable relationships with them is called ________.

Marketing management

14) Selecting which segments of a population to serve is called ________.

Target Marketing

15) Dividing the market into various groups of customers that a company may serve is called ________.

Market segmentation

16) Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.

Target marketing

17) An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of________

Market segments

18) Which of the following customer questions is answered by a company's value proposition?

"Why should I buy your brand rather than a competitor's?"

19) Which of the following statements is true of the production concept?

It leads to companies focusing too narrowly on their own operations.

20) Which of the following is the aim of the product concept?

focus on making continuous product improvements

21) Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept.

Product

22) Which of the following statements is true of the selling concept?

D) It is typically practiced with unsought goods.

23) Jolene's firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm's services through her large-scale promotional efforts. Jolene's firm most likely practices the ________.

Selling concept

24) The selling concept is typically practiced ________.

With goods that buyers normally do not think of buying

25) Which of the following uses a customer-centered "sense-and-respond" philosophy rather than a product-centered "make-and-sell" philosophy?

The marketing concept

26) Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.

societal marketing concept

27) Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?

Not all customers will be satisfied.

28) Which of the following statements reflects the marketing concept?

D) considering customer focus and value as the paths to sales and profits

29) When demand for athletic shoes produced by Nike and endorsed by Michael Jordan is high, Nike limits how many pairs of shoes are manufactured. This action maintains strong demand by limiting supply. This decision contradicts the philosophy of which marketing concept?

Production Concept

30) (t/f) An organization's department follows a customer-centered sense-and-respond philosophy. The department is most likely practicing the product concept.

False

31) (t/f) The production concept and the product concept are marketing management orientations that are more likely to lead to marketing myopia.

True

32) (t/f) Fast Food, Inc. views marketing as the process of finding and retaining profitable customers by providing them with the food they want. Fast Food, Inc. practices societal marketing.

False

33) In which of the following situations has a company most actively embraced customer-managed relationships?

C) iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner.

34) Which of the following statements is true about creating customer loyalty and retention?

A) Losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage.

35) FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon ________.

customer-perceived value

36) Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by ________.

Over deliver on promises - Promising only what they can deliver and then delivering more than they promise.

37) Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________.

customer satisfaction

38) Greater consumer control means that companies can no longer rely on ________.

marketing by intrusion

39) Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________.

consumer-generated marketing

40) Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.

consumer-generated marketing

41) The final step in the marketing process is ________.

capturing value from customers

42) At Gina's retail stores, the posted policy reads, "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.

capturing customer lifetime value

43) Apart from retaining good customers, most marketers want to constantly increase their "share of customer." What does this mean in marketing terms?

Marketers want to increase the share they get of the customer's purchasing in their product categories.

44) For most marketers, customer relationship management is exclusively a matter of customer data management.

False

45) (t/f) Customer-managed relationships are marketing relationships that are controlled by customers; therefore, they are of no significance to marketers.

False

46) Many companies now use customer profitability analysis to identify and weed out unprofitable customers.

True

47) Marketers set up company and brand Web sites that provide information and promote the company's products. Social media is a significant part of today's marketing strategy. Which of these tools is NOT part of the growth in digital technology?

C) telemarketing calls

48) Government agencies design ________ to encourage energy conservation and discourage smoking, excessive drinking, and drug use.

social marketing campaigns

49) As part of the rapid globalization of today's economy, companies are selling more domestically produced goods in international markets and ________.

purchasing more supplies abroad

50) A church targeting different demographic groups to increase attendance is an example of ________.

not-for-profit marketing

51) Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.

Microenvironment

52) The interrelated departments within a company that influence marketing decisions form the ________ environment.

internal

53) ________ help companies stock and move goods from their points of origin to their destinations.

Physical distribution firms

54) Boxes, Inc. sells products to end users or to other companies that will sell to end users. Boxes, Inc. is a ________.

reseller

55) A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. These organizations and groups are also known as ________.

D) citizen-action publics

56) Cape Sky Inc., an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The Cape Sky logo and name are displayed throughout the racecourse. Cape Sky most likely sponsors this event in order to appeal to which of the following types of publics?

D) general publics

57) Government markets consist of government agencies that buy goods and services ________.

A) to produce public services

58) (t/f) The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.

False

59) (t/f) Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets.

True

60) Trudie Jones works for a distribution channel firm that helps several electronics companies find customers or make sales to them. Trudie works for a reseller.

True

61) Companies that watch variables such as income, cost of living, and interest rates, are more likely to be negatively affected by an economic change such as a recession or Boom.

False

62) The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently studying the size, density, location, age, and occupation of its target market. Which of the following environments is being studied in this scenario?

demographic environment

63) Which of the following is true of the baby boomers?

they control an estimated 70 percent of the United States' disposable income

64) Which of the following is true of the Millennials?

they are the children of baby boomers and were born between 1981 and 1996

65) Gen Zers are highly mobile, connected, and social. They base their purchases on ________.

product research on their own

66) In the context of geographical shifts in population, the migration toward ________ areas has resulted in a rapid increase in the number of people who telecommute.

Micropolitan

67) Micropolitan areas are ________.

likely to offer the same advantages as metropolitan areas (?)

68) In the United States, job growth currently is the weakest for ________.

manufacturing workers

69) With an expected increase in ethnic diversity within the American population, marketers are most likely to place a greater emphasis on ________.

targeted advertising messages

70) Consumers' spending patterns since the Great Recession include ________.

buying less and looking for greater value in what they buy

71) (t/f) The single most important demographic trend in the United States that marketers should understand is the changing family structure of the population.

False

72) (t/f) Marketers must increasingly consider the special needs of traditional households because this segment of the population is growing more rapidly than nontraditional households.

False

73) The physical environment affecting marketing activities is referred to as the ________ environment.

Natural

74) Many companies use RFID product labels on their goods, which exemplifies the ________ environment in business.

Technological

75) (t/f) The technological environment is predominantly static.

False

76) The ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.

Political

77) Cause-related marketing has become a primary form of ________.

corporate giving

78) A society's ________ are expressed in how people view themselves and others, organizations, society, nature, and the universe.

cultural values

79) (t/f) The popularity of cause-related marketing as a form of corporate giving is rapidly declining.

False

80) Companies that take a proactive stance toward the marketing environment are most likely to ________.

develop strategies to change the environment in their favor

81) When a company hires lobbyists to influence legislation affecting its industry, it is taking a defensive stance toward the marketing environment.

False

82) The real value of marketing information lies in how it is used ________.

in the customer insights that it provides

83) The marketing department of a reputable firm wants to improve strategic decision making, track the actions of other players in the market, and provide early warning of opportunities and threats. Which of the following would help the firm achieve its objectives?

competitive marketing intelligence

84) (t/f) External databases are electronic collections of consumer and market information obtained from data sources within a company's network.

False

85) ________ is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

marketing research

86) The goal of ________ research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product.

Descriptive

87) Secondary data consist of ________.

information that already exist somewhere having been collected for another purpose

88) Primary data consist of ________.

information collected for the specific purpose at hand

89) ________ involves gathering primary data by closely examining relevant people, actions, and situations.

observational research

90) Which of the following contact methods is the most cost-effective?

online surveys

91) Redrunners Inc., a manufacturer of sports merchandise, is gathering customer opinions about the firm's new sports shoe line. A team of researchers in the company invited eight regular customers to talk about the new line of shoes, asking why they chose to buy the shoe and what they disliked most about its design. A moderator was present to monitor the discussion. Which of the following types of contact methods is Redrunners using?

group interviewing

92) A(n) ________ is a segment of the population selected for marketing research to represent the population as a whole.

Sample

93) For her current research project, Margaret Rogers wants to select a sample in which every member has a known and equal chance of selection. In other words, Margaret is looking for a ________.

simple random sample

94) Which of the following refers to a nonprobability sample in which the researcher finds and interviews a prescribed number of people in each of several categories?

quota sample

95) Which of the following is NOT true about KNN method?

PPT Slides --  

Advantages: simple, effective, and data driven  

Disadvantages: require large size of dataset, require great computational capacity  

Ideas of KNN:  

1. Compute distance to other training records 

2. Identify k nearest neighbors 

3. Use class labels of nearest neighbors to determine the class label of unknown record 

4. Customer identification  

5. Customer retention 

6. Customer development  

96) Which of the following is TRUE about KNN method?

PPT Slides — forecasting is never 100% accurate

Advantages: simple, effective, and data driven  

Disadvantages: require large size of dataset, require great computational capacity  

Ideas of KNN:  

1. Compute distance to other training records 

2. Identify k nearest neighbors 

3. Use class labels of nearest neighbors to determine the class label of unknown record 

4. Customer identification  

5. Customer retention 

6. Customer development 

97) After a research instrument is selected, the next step in the marketing research process is to ________.

implementing the research plan

98) (t/f) Marketing researchers can conduct their own searches of secondary data sources by using mail questionnaires and interviewing individuals.

False

99) (t/f) Personal interviews can be used to collect large amounts of information at a low cost per respondent.

false

100) What is the purpose of marketing analytics?

to interpret the data obtained