Chapter 1 Flashcards
_____ refers to the perceived benefits, both monetary and nonmonetary, that customers receive from a product.
customer value
Which of the following is true of customer value?
To create value, the new good, service, or idea must satisfy a perceived marketplace demand.
Once a company has created value, the next thing that the company must do is to
communicate that value.
Lara and her friends visit a new restaurant in town called Betelgeuse. They just happen to notice it while on a long drive. Lara and her friends like the ambience, décor, as well as the food. Lara is surprised when she finds out that the restaurant has been open for two years and neither her friends nor she knew of it until that day. At which of the following aspects of marketing has Betelgeuse failed?
communicating value to potential customers
Freez is an ice-cream manufacturer in Ceda, a predominantly agrarian nation. Freez does not spend too much on marketing its products. Instead, it focuses on improving the processes through which it manufactures ice cream. Freez believes that the quality of the ice cream alone is enough to differentiate itself from other manufacturers and generate sales. In this scenario, Freez’s marketing strategy is
production oriented.
What did firms such as Ford do during the Great Depression when product sales decreased?
They resorted to personal selling and advertising.
Which of the following led to the development of the marketing concept strategy?
the surplus of products in the market beginning in the early 1950s
Which of the following is characterized by customer orientation?
marketing concept
During the rainy season, people look to buy raincoats and umbrellas. Raindrop, an apparels manufacturer, caters to this need. Which of the following actions would represent the conversion of this need into a want?
Raindrop introduces a line of see-through umbrellas that glow in the dark.
Needs are states of felt deprivation that
are created when customers lack something useful or desirable.
Why should marketers distinguish between needs and wants?
It helps them provide products that fulfill customers’ wants and satisfy their underlying needs.
Which of the following can be considered a product decision?
determining the features of a product
P7J, a chain of discount stores across the United States, has many store brands including Wire, a line of sports shoes. Wire is a popular brand among regular store customers and they vouch for its quality being as good as other top brands. Facing competition from other shoe brands, P7J reduced the prices on Wire products by 30 percent. While it sold an average of 800 units per day at a price of $30 per unit amounting to $24,000 before the discount, it sold 1,000 units per day amounting to $21,000 after the discount. Which of the following is exemplified by this scenario?
A reduction in pricing does not necessarily increase overall revenue earned from a product.
Which of the following is the role of the promotion element in the marketing mix?
communicating the value of a product to customers
The name, term, symbol, design, or any combination of these that identifies and differentiates a firm’s products is referred to as
a brand.
