Chapter 01: Marketing: The Art and Science of Satisfying Customers

Chapter 01: Marketing: The Art and Science of Satisfying Customers

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Indicate whether the statement is true or false.

• Production and marketing of goods and services are two basic functions that create utility.
• True
• False

• Form utility refers to conversion of raw materials and components into finished goods and services.
• True
• False

• An auto manufacturer creates ownership utility for its consumers by combining metal, rubber, plastic, and petroleum

products.

• True
• False

• Within a business environment, the marketing function is responsible for the creation of time, place, and ownership

utility, whereas the production function creates form utility.

• True
• False

• Buying an iPod generates ownership utility; however, buying a concert ticket does not.
• True
• False

• Owen buys a car to drive to and from school. Owen has created ownership utility.
• True
• False

• Marketing of a product begins after it hits the shelf.
• True
• False

• Production orientation is a business philosophy that stresses on the importance of quantity of products rather than the

quality of products.

• True
• False

• In the sales era, firms attempted to match their output to the potential number of customers who would want it.
• True
• False

• A seller’s market is one in which there are more goods and services than people willing to buy them.
• True
• False

• The marketing era is the successive historical outcome of the production era.

(Contemporary Marketing, 19e Louis Boone, David Kurtz) (Test Bank, Answer at the end of each Chapter) 1 / 4

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Chapter 01: Marketing: The Art and Science of Satisfying Customers

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• True
• False

• The marketing era is defined by a shift in focus from products and sales to satisfying a consumer’s needs.
• True
• False

• The emergence of the marketing concept has resulted in companies being better able to understand their customers’

buying needs.

• True
• False

• The advent of a strong buyer’s market created the need for consumer orientation by businesses.
• True
• False

• The marketing concept focuses on the objective of achieving short-term profits instead of long-run success during

tough economic times.

• True
• False

• It can be said that Glen Inc., a woolen products manufacturing company based in Switzerland, is a firm that uses a

market-driven strategy because it produces goods based on local customers’ experiences, needs, and preferences.

• True
• False

• In the history of marketing, the fourth era, known as the social era, has given way to the fifth era, called the

relationship era.

• True
• False

• A firm with a fully developed marketing concept is one with a company-wide consumer orientation with the objective

of achieving long-term success.

• True
• False

• The relationship era builds on the marketing era’s customer orientation by only focusing on maintaining relationships

with customers.

• True
• False

• Celebrities use person marketing as a way to increase their value in the marketplace.
• True
• False

• Promotional events designed to attract visitors to a particular area or to improve the image of a city, state, or nation

would be examples of event marketing. 2 / 4

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Chapter 01: Marketing: The Art and Science of Satisfying Customers

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• True
• False

• Branches of the U.S. military sometimes show recruitment advertisements in cinemas featuring movies that are most

likely to attract viewers of military age. This is an example of place marketing.

• True
• False

• A theater group promoting a performance to raise funds in the fight against cancer is an example of both cause

marketing and event marketing.

• True
• False

• Marketing of sporting, cultural, and recreational activities to selected target markets is known as cause marketing.
• True
• False

• Virtually all colleges and universities have alumni associations that publish magazines, hold reunions, and try to raise

funds. These activities constitute organization marketing.

• True
• False

• The traditional view of marketing can be described as transaction-based marketing.
• True
• False

• According to relationship marketing, the lifetime value of a customer should exceed the investment made by the firm

to attract and keep the customer.

• True
• False

• Relationship marketing moves customers up a loyalty ladder—from new customers to regular purchasers, then to loyal

supporters of the firm and its goods and services, and finally to advocates who not only buy its products but recommend them to others.

• True
• False

• Relationship building in marketing starts with excellent customer service after purchase.
• True
• False

• Mobile marketing is a term used to describe marketing messages sent via wireless technology.
• True
• False

• The cost of finding new customers is far less than the cost of maintaining existing ones. 3 / 4

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Chapter 01: Marketing: The Art and Science of Satisfying Customers

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• True
• False

• Compared to transaction marketing, relationship marketing relies more heavily on information technologies.
• True
• False

• On average, marketing expenses account for half of the costs involved in a product.
• True
• False

• Intermediaries that may be involved in a product's movement from producer to final consumer are known as

wholesalers.

• True
• False

• Manufacturers engage in risk taking when they create goods and services based on research and their belief that

consumers need them.

• True
• False

• Marketing is the indirect connection between a firm and its customers.
• True
• False

Indicate the answer choice that best completes the statement or answers the question.

• Noel Pvt. Ltd. combines metal, rubber, and other components in the production of appliances. In doing so, the

company creates _____ utility.

• ownership
• form
• place
• time

38. The utility of a product or service is its:

• want-satisfying power.
• reusability.
• function as a commodity.
• design quality.

• Fame-us is a talent hunt agency focusing on the youth looking to enter Hollywood. As part of their marketing strategy,

Fame-us generates time and place utility by:

• creating a nationwide advertising campaign to attract applicants.
• launching road shows across cities and conducting talent hunts at campuses during Thanksgiving.
• endorsing their services using famous celebrities from Hollywood.
• / 4