Test Bank for Principles of

Principles o f Marketing Eighteenth Edition Philip Kotler Gary Armstrong Test Bank for Principles of Marketing Revised by Michael Casey 1 / 4

Principles of Marketing, 18e (Kotler)

Chapter 1 Marketing: Creating Customer Value and Engagement

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

• Marketing is the creation of value for customers.
• Marketing involves managing profitable customer relationships.
• Marketing emphasizes selling and advertising exclusively.
• Marketing involves satisfying customers' needs.
• Marketing is building value-laden exchange relationships with customers.

Answer: C

AACSB: Analytical thinking

Skill: Concept

Objective: LO 1.1: Define marketing and outline the steps in the marketing process.

Difficulty: Moderate

2) According to management guru Peter Drucker, "The aim of marketing is to ________."

• maximize profits of the company
• emphasize customer wants and not customer needs
• make selling unnecessary
• fulfill unrealistic customer expectations
• sell products

Answer: C

AACSB: Application of knowledge

Skill: Concept

Objective: LO 1.1: Define marketing and outline the steps in the marketing process.

Difficulty: Easy

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

• research and development
• innovation and creativity
• manufacturing efficiencies
• value creation and exchange
• sales and revenue creation

Answer: D

AACSB: Application of knowledge

Skill: Concept

Objective: LO 1.1: Define marketing and outline the steps in the marketing process.

Difficulty: Moderate

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

• designing a customer-driven marketing strategy
• understanding the marketplace and customer needs
• constructing an integrated marketing program that delivers superior value
• building profitable relationships and creating customer delight

E) capturing value from customers to create profit and customer equity

Answer:

E

AACSB:

Application of knowledge

Skill:

Concept

Objective:

LO 1.1: Define marketing and outline the steps in the marketing process.

Difficulty:

Moderate 5) According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy.

• determine how to deliver superior value to customers
• build profitable relationships with customers
• use customer relationship management to create full partnerships with key customers
• understand the marketplace and customer needs and wants

E) construct an integrated marketing program

Answer:

D

AACSB:

Application of knowledge

Skill:

Concept

Objective:

LO 1.1: Define marketing and outline the steps in the marketing process.

Difficulty:

Moderate 6) Marketing is managing profitable customer relationships.

Answer:

TRUE

AACSB:

Application of knowledge

Skill:

Concept

Objective:

LO 1.1: Define marketing and outline the steps in the marketing process.

Difficulty:

Easy 7) ________ are human needs that are shaped by culture and individual personality.

• Necessities
• Wants
• Demands
• Values

E) Exchanges

Answer:

B

AACSB:

Application of knowledge

Skill:

Concept

Objective:

LO 1.2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.

Difficulty:

Easy 2

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8) When backed by buying power, wants become ________.

• social needs
• demands
• physical needs
• self-esteem needs
• exchanges

Answer: B

AACSB: Application of knowledge

Skill: Concept

Objective: LO 1.2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.

Difficulty: Easy

9) Needs include all of the following EXCEPT ________.

• food
• knowledge
• affection
• the newest iPhone
• belonging

Answer: D

AACSB: Application of knowledge

Skill: Concept

Objective: LO 1.2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.

Difficulty: Easy

10) 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) ________.

• need
• necessity
• demand
• exchange
• transaction

Answer: C

AACSB: Analytical thinking

Skill: Application

Objective: LO 1.2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.

Difficulty: Moderate

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