Marketing: Marketing: An Introducti Introduction, on, 6e (Armstrong et al.) Chapter 1 Marketing: Creating and Capturing Customer Value
1) Which of the following is most essential to even the simplest definition of marketing? A) demand management B) the production concept C) customer relationships D) making a sale E) making a profit Answer: C Diff: 1 !pe: !pe: "C #age $ef: % &kill: Concept '(ective: 1*1 +) Which of the following is an accurate description of modern marketing toda!? A) "arketing is the creation of products for customers, B) "arketing is managing profita(le customer relationships, C) &elling and advertising are s!non!mous with marketing, D) "arketing involves satisf!ing producers- needs first, E) "arketing is used (! for*profit organi.ations onl!, Answer: B Diff: 1 !pe: !pe: "C #age $ef: % &kill: Concept '(ective: 1*1 /) According to management guru #eter Drucker0 he aim of marketing is to 22222222, A) create customer demands B) identif! customer demands C) make selling unnecessar! D) set realistic customer e3pectations E) sell products Answer: C Diff: 1 !pe: !pe: "C #age $ef: 4 &kill: Concept '(ective: 1*1
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5) 22222222 is defined as a social and managerial process (! which individuals and organi.ations o(tain what the! need and want through creating and e3changing value with others, A) &elling B) Advertising C) Bartering D) "arketing E) 6egotiating Answer: D Diff: + !pe: !pe: "C #age $ef: 4 &kill: Concept '(ective: 1*1 %) he 22222222 steps of the five*step marketing process are a(out understanding customers0 creating customer value0 and (uilding strong customer relationships, A) first two B) first three C) first four D) last three E) last four Answer: C Diff: + !pe: !pe: "C #age $ef: 7 &kill: Concept '(ective: 1*+ 4) According to the simple five*step model of the marketing process0 a compan! needs to 22222222 (efore designing a customer*driven marketing strateg!, strateg!, A) determine how to deliver superior value B) (uild profita(le relationships with customers C) use customer relationship management to create full partnerships with ke! customers D) understand the marketplace and customer needs and wants E) construct ke! components of a marketing program Answer: D Diff: 1 !pe: !pe: "C #age $ef: 7 &kill: Concept '(ective: 1*+ 7) 22222222 are human needs as shaped (! individual personalit! and culture, A) Deprivations B) Wants C) Demands D) 8alues E) E3changes Answer: B Diff: 1 !pe: !pe: "C #age $ef: 7 &kill: Concept '(ective: 1*+ + Copyright © 2017 Pearson Canada Inc.
5) 22222222 is defined as a social and managerial process (! which individuals and organi.ations o(tain what the! need and want through creating and e3changing value with others, A) &elling B) Advertising C) Bartering D) "arketing E) 6egotiating Answer: D Diff: + !pe: !pe: "C #age $ef: 4 &kill: Concept '(ective: 1*1 %) he 22222222 steps of the five*step marketing process are a(out understanding customers0 creating customer value0 and (uilding strong customer relationships, A) first two B) first three C) first four D) last three E) last four Answer: C Diff: + !pe: !pe: "C #age $ef: 7 &kill: Concept '(ective: 1*+ 4) According to the simple five*step model of the marketing process0 a compan! needs to 22222222 (efore designing a customer*driven marketing strateg!, strateg!, A) determine how to deliver superior value B) (uild profita(le relationships with customers C) use customer relationship management to create full partnerships with ke! customers D) understand the marketplace and customer needs and wants E) construct ke! components of a marketing program Answer: D Diff: 1 !pe: !pe: "C #age $ef: 7 &kill: Concept '(ective: 1*+ 7) 22222222 are human needs as shaped (! individual personalit! and culture, A) Deprivations B) Wants C) Demands D) 8alues E) E3changes Answer: B Diff: 1 !pe: !pe: "C #age $ef: 7 &kill: Concept '(ective: 1*+ + Copyright © 2017 Pearson Canada Inc.
9) When (acked (! (u!ing power0 wants (ecome 22222222, A) social needs B) demands C) ph!sical needs D) self*esteem needs E) e3changes Answer: B Diff: 1 !pe: !pe: "C #age $ef: 7 &kill: Concept '(ective: 1*+ ) Which of the following (est encompasses market offerings? A) products B) people0 places0 and ideas C) products and information D) products and e3periences E) persons0 places0 organi.ations0 information0 and ideas Answer: E Diff: 1 !pe: !pe: "C #age $ef: 9 &kill: Concept '(ective: 1*+ 1;) 22222222 refers to sellers that pa! more attention to their own products than to the (enefits and e3periences produced (! these products, A) &elling m!opia B) "arketing management C) 8alue proposition D) "arketing m!opia E) he product concept Answer: D Diff: 1 !pe: !pe: "C #age $ef: 9 &kill: Concept '(ective: 1*+ 11) When marketers set low e3pectations for a market offering0 the! are most likel! to run the risk of which of the following? A) disappointing lo!al (u!ers B) decreasing (u!ers satisfaction C) failing to attract enough (u!ers D) failing to understand their (u!ers- needs E) incorrectl! identif!ing a target market Answer: C Diff: + !pe: !pe: "C #age $ef: &kill: Concept '(ective: 1*+ / Copyright © 2017 Pearson Canada Inc.
1+) 22222222 is the act of o(taining a desired o(ect from someone (! offering something in return, A) A value proposition B) E3change C) Bri(er! D) 8alue E) Donation Answer: B Diff: 1 !pe: !pe: "C #age $ef: &kill: Concept '(ective: 1*+ 1/)
14) When it comes to communicating with customers0 marketers have traditionall! asked the =uestion0 >ow can we influence our customers? Effective marketers now ask0 22222222, A) >ow can we appl! the production concept? B) >ow can our customers influence us? C) >ow can we appl! the selling concept? D) >ow can we appl! the selling concept using social media? E) >ow can we appl! the product concept? Answer: B Diff: + !pe: "C #age $ef: &kill: Concept '(ective: 1*+ 17) Which of the following is the most likel! result of a marketing strateg! that a ttempts to serve all customers? A) All customers will (e delighted, B) Customer*perceived value will (e increased, C) Customer evangelists will (ecome unpaid salespersons for the service or product, D) #erhaps no customers will (e satisfied, E) he compan! will likel! need to follow up with a demarketing campaign, Answer: D Diff: + !pe: "C #age $ef: 1; &kill: Concept '(ective: 1*/ 19) he art and science of choosing target markets and (uilding profita(le relationships with them is called 22222222, A) marketing management B) positioning C) segmentation D) selling E) societal marketing Answer: A Diff: 1 !pe: "C #age $ef: 1; &kill: Concept '(ective: 1*/ 1) &electing which segments of a population of customers to serve is called 22222222, A) market segmentation B) positioning C) customi.ation D) target marketing E) choosing a value proposition Answer: D Diff: 1 !pe: "C #age $ef: 1; &kill: Concept '(ective: 1*/ % Copyright © 2017 Pearson Canada Inc.
+;) Dollarama stores focus on serving (u!ers who have relativel! modest means, his is an e3ample of 22222222, A) convenience B) value pricing C) market segmentation D) target marketing E) value packing Answer: D Diff: 1 !pe: "C #age $ef: 1; &kill: Concept '(ective: 1*/ +1) 22222222 is the set of (enefits or values a compan! promises to deliver to its consumers to satisf! their needs, A) A mone!*(ack guarantee B) ow pricing C) @ood customer service D) A value proposition E) An attri(ute Answer: D Diff: 1 !pe: "C #age $ef: 11 &kill: Concept '(ective: 1*/ ++) An effective value proposition answers the =uestion 22222222, A) Wh! should < (u! !our (rand rather than a competitor-s? B) >ow does !our (rand (enefit me and societ!? C) What are the costs and (enefits of !our (rand? D) What kind of e3perience will < have with products and services associated with this (rand? E) What are the (enefits of (eing a lo!al consumer of !our (rand? Answer: A Diff: + !pe: "C #age $ef: 11 &kill: Concept '(ective: 1*/ +/) Which of the following marketing management orientations focuses primaril! on improving efficiencies along the suppl! chain? A) production concept B) product concept C) selling concept D) marketing concept E) societal marketing concept Answer: A Diff: / !pe: "C #age $ef: 11 &kill: Concept '(ective: 1*/ 4 Copyright © 2017 Pearson Canada Inc.
+5) Which one marketing management concept0 if the onl! one adopted0 can lead manufacturers to develop marketing m!opia? A) customer*driven marketing B) customer*driving marketing C) societal marketing D) selling E) product concept Answer: E Diff: + !pe: "C #age $ef: 1+ &kill: Concept '(ective: 1*/ +%) Which of the following marketing management concepts is most closel! aligned with the philosoph! of continuous product improvement and the (elief that customers will choose products that offer high =ualit!0 performance0 and innovative features? A) product B) production C) customer D) marketing E) promotion Answer: A Diff: + !pe: "C #age $ef: 11 &kill: Concept '(ective: 1*/ +4) he product concept sa!s that a compan! should 22222222, A) improve marketing of its (est products B) market onl! those products with high customer appeal C) focus on the target market and make products that meet those customers- demands D) devote its energ! to making continuous product improvements E) make promoting products the top priorit! Answer: D Diff: + !pe: "C #age $ef: 11 &kill: Concept '(ective: 1*/ +7) Build a (etter mousetrap and the world will (eat a path to !our door reflects the 22222222 concept, A) production B) marketing C) selling D) product E) target marketing Answer: D Diff: + !pe: "C #age $ef: 1+ &kill: Concept '(ective: 1*/ 7 Copyright © 2017 Pearson Canada Inc.
+9) he 22222222 concept calls for aggressive selling and promotion effort, A) marketing B) production C) product D) selling E) societal marketing Answer: D Diff: 1 !pe: "C #age $ef: 1+ &kill: Concept '(ective: 1*/ +) he 22222222 concept holds that achieving organi.ational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction (etter than competitors do, A) product B) production C) selling D) e=uit! E) marketing Answer: E Diff: 1 !pe: "C #age $ef: 1+ &kill: Concept '(ective: 1*/ /;) According to the authors of !our te3t0 the 22222222 concept is a sense and respond philosoph! rather than a make and sell philosoph!, A) product B) production C) marketing D) retailing E) societal marketing Answer: C Diff: + !pe: "C #age $ef: 1+ &kill: Concept '(ective: 1*/
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/1) Which of the following consumer products would likel! (e marketed using the selling concept? A) laundr! detergent B) funeral services C) chocolate (ars D) hair st!list services E) computer ta(lets Answer: B Diff: / !pe: "C #age $ef: 1+ &kill: Concept '(ective: 1*/ /+) Which of the following reflects the marketing concept philosoph!? A) We don-t have a marketing department0 we have a customer department, B) We-re in the (usiness of making and selling superior products, C) We (uild them so !ou can (u! them, D) When it-s profits versus customers- needs0 profits will alwa!s win out, E) ou won-t find a (etter deal an!where, Answer: A Diff: + !pe: "C #age $ef: 1+ &kill: Concept '(ective: 1*/ //) Customer*driven marketing is most likel! to work well when 22222222 and when customers 22222222, A) a clear need e3ists are difficult to identif! B) customers do not know what the! want have limited (udgets C) there are few competitors are concerned a(out their long*run welfare D) a clear need e3ists know what the! want E) a want e3ists cannot afford it Answer: D Diff: + !pe: "C #age $ef: 1/ &kill: Concept '(ective: 1*/ /5) When customers don-t know what the! want or don-t even know what-s possi(le0 the most effective strateg! is 22222222 marketing, A) customer*driven B) customer*driving C) societal D) production E) product Answer: A Diff: + !pe: "C #age $ef: 1/ &kill: Concept '(ective: 1*/ Copyright © 2017 Pearson Canada Inc.
/%) he societal marketing concept seeks to esta(lish a (alance (etween consumer short*run wants and consumer 22222222, A) short*run costs and profits B) short*run ethics C) long*run welfare D) immediate health E) value propositions Answer: C Diff: + !pe: "C #age $ef: 1/ &kill: Concept '(ective: 1*/ /4) he 22222222 concept holds that firms must strive to deliver value to customers in a wa! that maintains or improves (oth the consumer-s and societ!-s well (eing, A) marketing B) selling C) product D) societal marketing E) e=uit! Answer: D Diff: 1 !pe: "C #age $ef: 1/ &kill: Concept '(ective: 1*/ /7) he three areas of consideration that should (e (alanced in the societal marketing concept are consumer wants0 societ!-s interests0 and 22222222, A) human welfare B) want satisfaction C) compan! profits D) short*run wants E) long*term needs Answer: C Diff: + !pe: "C #age $ef: 15 &kill: Concept '(ective: 1*/ /9) he set of marketing tools a firm uses to implement its marketing strateg! is called the 22222222, A) promotion mi3 B) product mi3 C) marketing mi3 D) " E) marketing effort Answer: C Diff: + !pe: "C #age $ef: 15 &kill: Concept '(ective: 1*/ 1; Copyright © 2017 Pearson Canada Inc.
/) he authors of the te3t would argue that 22222222 is the most fundamental concept of modern marketing, A) customer relationship management B) social media C) (roadcast advertising D) properl! trained sales people E) low prices Answer: A Diff: + !pe: "C #age $ef: 15 &kill: Concept '(ective: 1*5 5;) Building and maintaining profita(le value*laden relationships with satisfied customers of a compan! is called 22222222, A) customer lifetime value B) customer perceived value C) customer relationship management D) data(ase marketing E) societal marketing Answer: C Diff: + !pe: "C #age $ef: 1% &kill: Concept '(ective: 1*5 51) Which of the following is determined (! a customer-s personal evaluation of the (enefits and costs of a market offering relative to those of competing offers? A) customer*perceived value B) customer satisfaction C) customer*perceived performance D) customer relationship management E) market segmentation Answer: A Diff: + !pe: "C #age $ef: 1% &kill: Concept '(ective: 1*5
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5%) Which of the following strategies would a compan! most likel! use to increase customer satisfaction? A) decreasing variet! of services offered B) lengthening the suppl! chain C) lowering prices or increasing its services D) firing unprofita(le customers E) limiting e3periences with a (rand Answer: C Diff: + !pe: "C #age $ef: 19 &kill: Concept '(ective: 1*5 54) re=uent fl!er programs offered (! airlines are an e3ample of a 22222222, A) fre=uenc! marketing program B) (asic customer relationship C) clu( marketing program D) consumer*generated marketing program E) structural (enefit provided for top customers Answer: A Diff: 1 !pe: "C #age $ef: 19 &kill: Concept '(ective: 1*5 57) Which of the following (est e3plains wh! consumers have greater power and control in toda!-s marketplace? A) he production concept and competition have lowered prices, B)
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59) he marketing world is em(racing 22222222 (ecause consumers can wield greater power and control in the marketplace through communication technologies, A) partner relationship management B) suppl! chain management C) customer*managed relationships D) market segmentation E) target marketing Answer: C Diff: + !pe: "C #age $ef: 1 &kill: Concept '(ective: 1*5 5) Which of the following is an e3ample of consumer*generated marketing? A) o!ota-s presence in online communities B) 6ike-s 6ike #lus running We( site C) >, , >ein.-s use of (rand*related consumer videos posted on video*sharing we(sites D) 6eiman "arcus-s
%+) When the econom! tightens0 customer lo!alt! and customer retention (ecome 22222222 for marketers, A) even more important B) less important C) impossi(le D) long*term (ut not short*term goals E) short*term (ut not long*term goals Answer: A Diff: + !pe: "C #age $ef: +/ &kill: Concept '(ective: 1*5 %/) &tew eonard0 ownerFoperator of supermarkets0 reacts adversel! to losing a single customer sale, >e feels that this amounts to losing the entire stream of future purchases that a customer is likel! to make if he or she remains in the area, his is an illustration of 22222222, A) share of customer B) market share C) profita(ilit! D) customer lifetime value E) market share maintenance Answer: D Diff: + !pe: "C #age $ef: +5 &kill: Concept '(ective: 1*5 %5) #hil ust started a new ha(it of eating once a week at "r, &u( restaurants, 'n average0 he spends a(out G1; per meal, #hil sa!s0 <-m +; !ears old and < plan on eating at "r, &u( until < am %; !ears old, #hil-s lifetime value at "r, &u( could (e (est estimated (! which calculation? A) G1; H %; B) G1; H +; C) G1; H %+ H %; D) G1; H %+ H /; E) G1; H %+ H +; Answer: D Diff: + !pe: "C #age $ef: +5 &kill: Concept '(ective: 1*5
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%%) When an airline goes after a share of travel from its customers0 it is attempting to increase 22222222, A) its value proposition B) share of customer C) target markets D) customer variet! E) customer ownership Answer: B Diff: + !pe: "C #age $ef: +5 &kill: Concept '(ective: 1*5 %4) Ama.on,com leverages relationships with its /% million customers (! offering them music0 videos0 gifts0 to!s0 consumer electronics0 and office products0 among other product items, Based on previous purchase histor!0 the compan! recommends related CDs0 (ooks0 or videos that might (e of interest, his helps Ama.on,com capture a greater 22222222, A) value proposition B) customer ownership C) share of customer D) social network E) customer (ase Answer: C Diff: + !pe: "C #age $ef: +5 &kill: Concept '(ective: 1*5 %7) 22222222 is the total com(ined customer lifetime values of all the compan!-s current and potential customers, A) &hare of customer B) Customer lifetime value C) Customer e=uit! D) #rofita(ilit! E) &hare of market Answer: C Diff: 1 !pe: "C #age $ef: +% &kill: Concept '(ective: 1*5
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%9) he ultimate aim of customer relationship management is to produce 22222222, A) customer delight B) customer satisfaction C) stead! sales volume D) a relia(le data(ase E) sustaina(le (usiness Answer: A Diff: + !pe: "C #age $ef: +/ &kill: Concept '(ective: 1*5 %) According to the authors0 a highl! profita(le0 short*term customer is a 22222222, A) true friend B) (utterfl! C) stranger D) (arnacle E) true (eliever Answer: B Diff: + !pe: "C #age $ef: +4 &kill: Concept '(ective: 1*5 4;) he authors of !our te3t classif! customers into four relationship groups0 according to the customers- profita(ilit! and proected lo!alt!, 22222222 are the customers with the highest profit potential and strong lo!alt!, A) Barnacles B) &trangers C) Butterflies D) rue friends E) Big fish Answer: D Diff: 1 !pe: "C #age $ef: +4 &kill: Concept '(ective: 1*5 41) Which of the following has contri(uted to the deeper0 more interactive nature of toda!-s customer relationships? A) digital technologies B) television advertising C) newspaper ads D) radio advertising E) outdoor ads Answer: A Diff: + !pe: "C #age $ef: +7 &kill: Concept '(ective: 1*% 17 Copyright © 2017 Pearson Canada Inc.
4+) As the econom! emerges from the recent recession and heads into the post*recession era0 one dominant consumer trend that has taken shape is 22222222, A) ultra*spending B) sensi(le consumption C) purchase reticence D) keeping up with the ones- consumption E) conspicuous consumption Answer: B Diff: + !pe: "C #age $ef: + &kill: Concept '(ective: 1*% 4/) Which of the following statements is true a(out social media as a marketing tool? A) &ocial media is a clums! wa! to collect consumer research, B) &ocial media is a relativel! ine3pensive wa! to collect market research, C) &ocial media is a challenging tool to engage with customers, D) &ocial media usage is declining, E) &ocial media cannot (e emplo!ed (! government organi.ations0 and non*profit organi.ations, Answer: B Diff: 1 !pe: "C #age $ef: +9 &kill: Concept '(ective: 1*% 45) Which of the following trends is part of the changing marketing landscape? A) decline in not*for*profit marketing B) a halt in glo(ali.ation C) growing conspicuous consumption D) consumer desire for more sustaina(le marketing practices E) decline in digitalFonline marketing Answer: D Diff: 1 !pe: "C #age $ef: +4*/+ &kill: Concept '(ective: 1*% 4%) Which of the following is currentl! the fastest growing form of marketing? A) consumer*generated marketing B) mo(ile marketing C) mass media marketing D) promotional sampling E) word*of*mouth marketing Answer: B Diff: + !pe: "C #age $ef: +9 &kill: Concept '(ective: 1*%
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4) Ben I err!-s challenges all stakeholders0 including emplo!ees0 top management0 and even ice cream scoopers in their stores0 to consider individual and communit! welfare in their da!*to* da! decisions, Actions such as this (! companies sei.ing the opportunit! to do well (! doing good reflects 22222222, A) virtual marketing B) caring capitalism C) profit marketing D) sustaina(le marketing E) m!opia Answer: B Diff: + !pe: "C #age $ef: /+ &kill: Concept '(ective: 1*% 7;) A church targeting different demographic groups to increase attendance is an e3ample of 22222222, A) for*profit marketing B) not*for*profit marketing C) mindless marketing D) ethics in marketing E) societal marketing Answer: B Diff: + !pe: "C #age $ef: /;*/1 &kill: Concept '(ective: 1*% 71) he first four steps of the marketing process focus on 22222222, A) understanding the market B) delivering customer service C) creating value for customers D) understanding customer demands and needs E) finding value from customers Answer: C Diff: + !pe: "C #age $ef: // &kill: Concept '(ective: 1*%
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7+) @reg Williams now has the (u!ing power to purchase the computer s!stem he has wanted for the last si3 months, @reg-s want now has (ecome a 22222222, A) need B) necessit! C) demand D) satisfier E) transaction Answer: C Diff: 1 !pe: "C #age $ef: 7 &kill: Application '(ective: 1*+ 7/) >enr! ord-s philosoph! was to perfect the "odel* so that its cost could (e reduced further for increased consumer afforda(ilit!, his reflects the 22222222, A) product concept B) marketing concept C) societal marketing concept D) production concept E) selling concept Answer: D Diff: / !pe: "C #age $ef: 11 &kill: Application '(ective: 1*/ 75) $ailroads were once operated (ased on the thinking that users wanted trains rather than transportation0 overlooking the challenge of other modes of transportation, his reflects the 22222222, A) product concept B) production concept C) selling concept D) marketing concept E) societal marketing concept Answer: A Diff: / !pe: "C #age $ef: 11 &kill: Application '(ective: 1*/
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7%) olene-s firm (elieves that consumers will not (u! enough of its products unless the firm undertakes a large*scale selling and promotion effort, olene-s firm is practicing the 22222222, A) production concept B) marketing concept C) selling concept D) relationship concept E) social advertising campaign Answer: C Diff: 1 !pe: "C #age $ef: 1+ &kill: Application '(ective: 1*/ 74) Which of the following phrases reflects the marketing concept? A) he supplier is king, B) "arketing should (e viewed as hunting and not gardening, C) his is what < make0 won-t !ou please (u! it? D) his is what < want0 won-t !ou please make it? E) his is (etter than the competition0 won-t !ou please (u! it? Answer: D Diff: / !pe: "C #age $ef: 1+ &kill: Application '(ective: 1*/ 77) "arie 'rti. eno!s her work at uturistic Designs0 er organi.ation understands and anticipates customer needs even (etter than customers themselves do and creates products and services to meet current and future wants and demands, "arie-s firm practices 22222222 marketing, A) shared value B) customer*driven C) societal D) donor E) product Answer: B Diff: + !pe: "C #age $ef: 1/ &kill: Application '(ective: 1*/
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79) &ome fast*food restaurants offer tast! and convenient food at afforda(le prices0 (ut in doing so the! contri(ute to a national o(esit! epidemic and environmental pro(lems, hese fast*food restaurants overlook the 22222222 philosoph!, A) marketing concept B) product concept C) production concept D) societal marketing concept E) selling concept Answer: D Diff: + !pe: "C #age $ef: 1/ &kill: Application '(ective: 1*/ 7) he 6iketown running clu( that organi.es twice weekl! evening runs for 6ike customers is an e3ample of a 22222222, A) fre=uenc! marketing program B) (asic customer relationship C) clu( marketing program D) consumer*generated marketing program E) structural (enefit provided for top customers Answer: C Diff: + !pe: "C #age $ef: 19 &kill: Application '(ective: 1*5 9;) ou have ust taken a new position in an organi.ation and !ou-re learning a(out the o( functions of !our new colleagues, ou o(serve that !our marketing manager is heavil! involved in the process of (uilding and maintaining profita(le customer relationships, our marketing manager fre=uentl! speaks a(out the need to deliver superior customer value and satisfaction, our manager is concerned with which one of the following? A) data(ase management B) we(site hits C) the societal marketing concept D) not*for*profit marketing E) customer relationship management Answer: E Diff: 1 !pe: "C #age $ef: 1% &kill: Application '(ective: 1*5
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91) &all! purchased Brand J lotion,
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95) ou are an assistant marketing director for a firm in a market with man! low*margin customers, What t!pe of relationship would it (e most profita(le for !ou to de velop with these customers? A) full partnerships B) (asic relationships C) clu( programs D) selective relationships E) communit! relationships Answer: B Diff: + !pe: "C #age $ef: 19 &kill: Application '(ective: 1*5 9%) #ete &anche.0 a recent graduate of (usiness school0 has a different approach than his marketing manager0 who (elieves in keeping customers at arm-s length and using television advertising, #ete knows that toda! few successful firms still practice this t!pe of true 2222222 2 and are instead turning to selective relationship management, A) clu( marketing B) fre=uenc! marketing C) mass marketing D) customer satisfaction E) marketing segmenting Answer: C Diff: + !pe: "C #age $ef: 1 &kill: Application '(ective: 1*5 94) A large department store segments its customers into 5 categories K(utterflies0 true friends0 strangers0 and (arnacles) in order to evaluate customers on 22222222, A) profita(ilit! and revenue B) revenue and customer lo!alt! C) profita(ilit! and customer lo!alt! D) revenue and communications costs E) profit and communications costs Answer: C Diff: / !pe: "C #age $ef: +/*+5 &kill: Application '(ective: 1*5
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97) Elisandra0 a marketing manager at a regional chain restaurant0 has decided to create a contest calling for customers to create commercials for the restaurant, Winning entries will (e posted on the organi.ation-s home page, Elisandra-s plan is an e3ample of 22222222, A) consumer*generated marketing B) partner relationship management C) customer lifetime value D) communit! development around a (rand E) share of customer Answer: A Diff: + !pe: "C #age $ef: +; &kill: Application '(ective: 1*5 99) he concept of saving mone! (! firing !our customers refers to which t!pe of customer? A) customers that la! complaints B) unprofita(le customers C) old customers D) new customers E) no customer should ever (e fired Answer: B Diff: + !pe: "C #age $ef: +4 &kill: Application '(ective: 1*5 9) At @ina-s 6ails0 the posted polic! is Without our customers0 we don-t e3ist, @ina and her staff aim to delight each customer0 and the! are =uick to offer discounts or e3tra services whenever a customer is an!thing less than satisfied,
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;) Afia0 a team leader in charge of customer relationship management0 is planning strategies for improving the profita(ilit! of her firm-s least profita(le (ut lo!al customers, &he is also e3amining methods for firing customers in this group who cannot (e made profita(le, o which of the following customer relationship groups do these customers (elong? A) (utterflies B) true friends C) strangers D) (arnacles E) short*term customers Answer: D Diff: + !pe: "C #age $ef: +4 &kill: Application '(ective: 1*5 1) our local department of education has (udgeted a significant amount of mone! for a radio0 print0 television0 and online advertising campaign emphasi.ing the long*term (enefits0 (oth educational and professional0 of reading ever! da!, his is an e3ample of aKn) 22222222 campaign, A) ethical B) social marketing C) for*profit D) consumer*generated E) differentiated Answer: B Diff: + !pe: "C #age $ef: /; &kill: Application '(ective: 1*% +) All advertising is part of marketing0 (ut not all marketing efforts are advertising, Answer: $LE Diff: 1 !pe: #age $ef: 4 &kill: Communication '(ective: 1*1 /) &elling is managing profita(le customer relationships, Answer: A&E Diff: + !pe: #age $ef: 4 &kill: Concept '(ective: 1*1 5) "arketing is managing profita(le customer relationships, Answer: $LE Diff: 1 !pe: #age $ef: % &kill: Concept '(ective: 1*1
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%) he twofold goal of marketing is to attract new customers (! promising superior value and to keep and grow current customers (! delivering satisfaction, Answer: $LE Diff: + !pe: #age $ef: % &kill: Concept '(ective: 1*1 4) >uman needs are shaped (! culture and individual personalit!, Answer: A&E Diff: + !pe: #age $ef: 7 &kill: Concept '(ective: 1*+ 7) he difference (etween human needs and wants is that needs are not influenced (! culture, Answer: $LE Diff: + !pe: #age $ef: 7 &kill: Concept '(ective: 1*+ 9) When (acked (! (u!ing power0 needs (ecome wants, Answer: A&E Diff: 1 !pe: #age $ef: 7 &kill: Concept '(ective: 1*+ ) "arket offerings are limited to ph!sical products, Answer: A&E Diff: + !pe: #age $ef: 9 &kill: Concept '(ective: 1*+ 1;;) "arket offerings can include products0 services0 information0 or e3periences offered to a market to satisf! a need or want, Answer: $LE Diff: 1 !pe: #age $ef: 9 &kill: Concept '(ective: 1*+ 1;1) When sellers focus on e3isting needs and lose sight of underl!ing customer wants0 the! suffer from marketing m!opia, Answer: A&E Diff: / !pe: #age $ef: 9 &kill: Concept '(ective: 1*+
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1;+) "arketers should look (e!ond the attri(utes of the products and services the! sell to also create (rand e3periences for consumers, Answer: $LE Diff: + !pe: #age $ef: 9 &kill: Concept '(ective: 1*+ 1;/) 'nl! sellers of products0 services0 and ideas practice marketing0 whereas (u!ers do not, Answer: A&E Diff: + !pe: #age $ef: &kill: Concept '(ective: 1*+ 1;5) "arket segmentation is the process of seeking fewer customers and reduced demand for profit ma3imi.ation, Answer: A&E Diff: + !pe: #age $ef: 1; &kill: Concept '(ective: 1*/ 1;%) "arketing management is interested in serving all customers in ever! wa! to remain competitive in toda!-s markets, Answer: A&E Diff: + !pe: #age $ef: 1; &kill: Concept '(ective: 1*/ 1;4) wo important =uestions underl!ing marketing strateg! are Who is our target market? and What-s our value proposition? Answer: $LE Diff: / !pe: #age $ef: 1; &kill: Concept '(ective: 1*/ 1;7) he production concept and product concept are orientations that can lead to marketing m!opia, Answer: $LE Diff: / !pe: #age $ef: 1+ &kill: Concept '(ective: 1*/
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1;9) Am!-s law office has developed a new format and wording for wills, he staff (elieves the! offer the most in =ualit!0 performance0 and innovative features, >er law office is practicing the production concept, Answer: A&E Diff: / !pe: #age $ef: 11 &kill: Application '(ective: 1*/ 1;) he selling concept holds that consumers will not (u! enough of the firm-s products unless it undertakes a large*scale selling and promotion effort, Answer: $LE Diff: 1 !pe: #age $ef: 1+ &kill: Concept '(ective: 1*/ 11;) he maor difference (etween the selling concept and the marketing concept is that the selling concept considers onl! e3isting needs, Answer: A&E Diff: + !pe: #age $ef: 1+ &kill: Application '(ective: 1*/ 111) he societal marketing concept calls on marketers to (alance consumer wants and desires0 compan! profits0 and societ!-s interest, Answer: $LE Diff: + !pe: #age $ef: 1/ &kill: Concept '(ective: 1*/ 11+)
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115) Customer*perceived value is defined as the customer-s evaluation of the perceived difference (etween all the (enefits and all the costs of a marketing offer relative to those of competing offers, Answer: $LE Diff: 1 !pe: #age $ef: 1% &kill: Concept '(ective: 1*5 11%) Customer*perceived value depends on the product-s perceived performance relative to a (u!er-s e3pectations, Answer: A&E Diff: + !pe: #age $ef: 1% &kill: Concept '(ective: 1*5 114) 6ew communication technologies create challenges as well as advantages for marketers, Answer: $LE Diff: 1 !pe: #age $ef: 1 &kill: Concept '(ective: 1*5 117) Consumer*generated marketing will have little impact as a marketing force, Answer: A&E Diff: + !pe: #age $ef: ++ &kill: Concept '(ective: 1*5 119) Ever! functional area of an organi.ation0 not onl! a marketing department0 can and should interact with customers, Answer: $LE Diff: + !pe: #age $ef: +/ &kill: Concept '(ective: 1*5 11)
1+1) &ince customers are the source of revenue for a firm0 all customers are profita(le, Answer: A&E Diff: 1 !pe: #age $ef: +% &kill: Concept '(ective: 1*5 1++) Before the marketing mi3 is developed0 marketers need to understand the wants and needs of customers, Answer: $LE Diff: 1 !pe: #age $ef: /+ &kill: Communication '(ective: 1*% 1+/) "an! compan! we(sites also serve as online (rand communities, Answer: $LE Diff: 1 !pe: #age $ef: +7 &kill: Communication '(ective: 1*% 1+5) &ocial media spending (! companies is at a ma3imum toda!, Answer: A&E Diff: + !pe: #age $ef: +9 &kill: Communication '(ective: 1*% 1+%) "o(ile marketing is slowl! taking off, Answer: A&E Diff: + !pe: #age $ef: +9 &kill: Communication '(ective: 1*% 1+4) Briefl! compare and contrast the concepts of needs0 wants0 and demands0 giving an e3ample of each, Discuss how these concepts relate to marketing practices, Answer: >uman needs are states of felt deprivation, 6eeds are part of the human make*up the! are not created (! e3ternal forces, >umans have a (asic ph!sical need for food0 clothing0 warmth0 and safet! a (asic social need for (elonging and affection and a (asic individual need for knowledge and self*e3pression, Lnlike needs0 wants are not innate instead0 wants are needs shaped (! culture0 societ!0 and individual personalit!, or e3ample0 a Canadian needs food (ut wants a Big "ac and a soft drink, A Canadian with ten dollars needs food0 wants a Big "ac and soft drink0 and demands lunch at "cDonalds, Wants (ecome demands when the! are (acked (! consumers- (u!ing power, "arketers conduct e3tensive research to understand customers- wants and demands, he! then attempt to fulfill customers- wants and demands through their market offerings, Diff: + !pe: E& #age $ef: 7 &kill: Application '(ective: 1*+ /+ Copyright © 2017 Pearson Canada Inc.
1+7) E3plain how and wh! marketers go (e!ond selling a product or service to create (rand e3periences, Answer: &ellers are most effective when the! focus on the (enefits and e3periences produced (! their products and services rather than on the specific products and services themselves, &mart marketers focus on creating a (rand e3perience0 incorporating several products and services for their customers, B! doing so0 marketers hope to increase customer satisfaction0 creating a (od! of customers who will repeatedl! purchase their market offerings and recommend those offerings to friends, Diff: + !pe: E& #age $ef: 9 &kill: Application '(ective: 1*+ 1+9) Compare the selling and marketing concepts0 listing the ke! components of each philosoph!, Answer: he selling concept reflects an inside*out philosoph!0 while the marketing concept takes an outside*in perspective, he selling concept is t!picall! practiced wh en an organi.ation is selling products or services that (u!ers do not normall! think of purchasing0 such as insurance or (lood donation, Aggressive selling focuses on creating sales transactions rather than on (uilding long*term relationships with customers, he aim of the selling concept is to sell what the compan! makes rather than making what the customer wants, he marketing concept0 on the other hand0 is (ased upon identif!ing the needs and wants of target markets and then satisf!ing those needs and wants (etter than competitors do,
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1/;) 'ne of the maor developments in marketing can (e summed up in one word: relationships, Define customer relationship management and its associated tools and levels of relationships, Answer: Customer $elationship "anagement KC$") is the process of (uilding and maintaining profita(le customer relationships (! delivering superior customer value and satisfaction, A compan! with mostl! low*margin customers is likel! to seek (asic relationships0 using (rand* (uilding advertising and sales promotion, An organi.ation with few customers and high margins0 on the other hand0 will work to create ke! partnerships with select customers, o create stronger (onds with customers0 some marketers use tools such as financial (enefits or rewards (ased on fre=uenc! of purchase, 'ther tools include social (enefits0 like offering ke! customers the opportunit! to network and create communities through clu( marketing programs, o retain current customers and remain profita(le0 companies toda! are going (e!ond transactional marketing to customer relationship management, he ke! is to create and sustain relationships for the long term, Diff: + !pe: E& #age $ef: 1%*+/ &kill: Application '(ective: 1*5 1/1) he aim of customer relationship management is to create not ust customer satisfaction0 (ut customer delight, E3plain, Answer: Customer satisfaction cannot (e taken for granted, Because (rand lo!alt! is dependent upon strong customer satisfaction0 companies strive to retain0 satisf!0 and even delight current customers, irms create customer delight (! promising onl! what the! can deliver and then delivering more than what the! promised, he! also create emotional relationships with ke! customers, Delighted customers make repeated purchases and (ecome customers for life, "ore importantl!0 the! also essentiall! (ecome an unpaid sales force for the firm as customer evangelists who tell other potential customers a(out their positive e3periences with the product, Diff: + !pe: E& #age $ef: 1% &kill: Application '(ective: 1*5
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1/+) Discuss the opportunities and advantages that new communication technologies have created for marketers, Answer: hrough the owever0 while new communication tools create relationship*(uilding opportunities for marketers0 the! also create challenges, he! give consumers a greater voice0 and therefore greater power and control in the marketplace, oda!-s consumers have more information a(out (rands than ever (efore0 and the! have a wealth of platforms for airing and sharing their (rand views with other consumers, his (enefits companies when views of its products are positive0 (ut can (e damaging when customers share stories of negative e3periences with a compan!-s products, Diff: + !pe: E& #age $ef: 1*+; &kill: Application '(ective: 1*5 1//) Define customer e=uit! and e3plain wh! it is important to a compan!, Answer: Customer e=uit! is the sum of the lifetime values of all a compan!-s current and potential customers, Customer e=uit! is dependent upon customer lo!alt! from a firm-s profita(le customers, Because customer e=uit! is a reflection of a compan!-s future0 companies must manage it carefull!0 viewing customers as assets that need to (e ma3imi.ed, Diff: 1 !pe: E& #age $ef: +% &kill: Application '(ective: 1*5
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1/5) Descri(e and compare the four t!pes of customers classified (! their potential profita(ilit! to an organi.ation, owever0 if the! cannot (e made profita(le0 the! should (e fired, ike strangers0 (utterflies are not lo!al, >owever0 the! are potentiall! profita(le (ecause there is a good fit (etween the compan!-s offerings and their needs, ike real (utterflies0 this t!pe of customer will come and go without (ecoming a permanent0 lo!al consumer of a compan!-s products, Companies should use promotional (lit.es to attract these customers0 create satisf!ing and profita(le transactions with them0 and then ce ase investing in them until the ne3t time around, he final t!pe of customers is true friends the! are (oth profita(le and lo!al, here is a strong fit (etween their needs and the compan!-s offerings0 so the compan! should make continuous relationship investments in an effort to go (e!ond satisf!ing and to delight these customers, A compan! should tr! to delight true friends so the! will tell others a(out their good e3periences with the compan!, Diff: + !pe: E& #age $ef: +%*+4 &kill: Application '(ective: 1*5 1/%) Discuss how the ow should the! reach us?), Diff: 1 !pe: E& #age $ef: +7*+ &kill: Application '(ective: 1*%
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1/4) he management team at Big Burritos0 a new fast*food restaurant0 wants to develop a new marketing plan, What would a marketing manager tell Big Burritos- management team their twofold goal of marketing should (e? Answer: he twofold goal of marketing is to attract new customers (! promising superior value and to keep and grow current customers (! delivering satisfaction Kor delightM), Diff: + !pe: E& #age $ef: % &kill: Application '(ective: 1*1 1/7) Culture and individual personalit! shape human needs into wants, What transforms wants into demands? Answer: Wants (ecome demands when the! are (acked (! purchasing power, Diff: + !pe: E& #age $ef: 7 &kill: Application '(ective: 1*+ 1/9) >ow might a seller avoid marketing m!opia? Answer: "arketing m!opia is the mistake of pa!ing more attention to a compan!-s offerings, &ellers should consider the particular (enefits and e3periences produ ced (! their products0 rather than focusing primaril! on the specific products the! offer, ow might a manufacturer of tents and camping e=uipment create (rand e3periences for consumers? Answer: A manufacturer of camping e=uipment might produce tents0 sleeping (ags0 cooking e=uipment0 and other items that are integral to the camping e3perience, hen the manufacturer might market these products and related services0 such as camping communities or an informational camping We( site0 to satisf! the total camping needs of their customers, Diff: / !pe: E& #age $ef: 9 &kill: Application '(ective: 1*+ 15;) A modern marketing s!stem relies on profita(le relationships0 including the relationship sellers have with (u!ers0 competitors and suppliers Considering this0 what might Walmart rel! on in order to offer low prices? Answer: he main elements of a marketing s!stem include suppliers0 the producer0 its competitors0 marketing intermediaries like Walmart0 and consumers, Each part! in the s!stem adds value to the ne3t level of reaching the end user, Walmart-s success at (uilding profita(le relationships depends not onl! on how it relates to customers0 (ut also0 how well the entire s!stem serves the end user, Walmart must rel! on suppliers that will provide merchandise at low costs, Diff: + !pe: E& #age $ef: 1; &kill: Application '(ective: 1*+ /7 Copyright © 2017 Pearson Canada Inc.
151) he marketing team at Bead Beautiful0 a line of eweller! targeted at pre*teenage girls0 is meeting to formulate the products- value proposition, What should team mem(ers consider as the! define a value proposition for Bead Beautiful? Answer: ow do such companies address their customers- desires? Answer: 'utside represents consumers while inside represents the seller, Companies that appl! the marketing concept0 an outside*in perspective0 (egin with researching and understanding the needs of a well*defined market, hese companies then integrate all the marketing activities that will affect their targeted customers0 creating strong relationships (ased on identif!ing customer needs and delivering customer value and satisfaction, Diff: + !pe: E& #age $ef: 1+ &kill: Application '(ective: 1*/ /9 Copyright © 2017 Pearson Canada Inc.
15%) A nineteenth*centur! street vendor in ondon sang0 Who will (u! m! fresh0 red roses? Did the vendor take an outside*in or inside*out perspective? E3plain, Answer: 'utside represents consumers while inside represents the seller, he vendor-s approach was inside*out, he roses were picked and availa(le0 so the! were an e3isting product, he vendor-s o( was then to attract willing (u!ers for this e3isting product rather than determine what his customers wanted and provide a product to satisf! that want, Diff: / !pe: E& #age $ef: 1+ &kill: Application '(ective: 1*/ 154) E3plain wh! electronics and pharmaceuticals manufacturers ma! use customer*driven marketing, Answer: Customer*driven companies research customers to learn a(out their desires0 gather new product ideas and test product improvements,
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15) E3plain wh! a supermarket owner might consider customer lifetime value when a disgruntled customer leaves the store dissatisfied, Answer: Customer lifetime value is the entire stream of purchases a customer would make over a lifetime,
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1%/) ow is marketing (eing applied in the not*for*profit sector? Answer: 6ot*for*profits toda! face stiff competition for support and mem(ership, irms in the not*for*profit sector ma! use marketing to enhance their images or to attract mem(erships and donors, &ome organi.ations0 such as government agencies0 ma! design social marketing campaigns to encourage specific causes, Diff: + !pe: E& #age $ef: /;*/1 &kill: Application '(ective: 1*%
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Carol 8eldt0 owner of &eagull errace0 watched her investment grow from a small0 seaside motel to a thriving !ear*round resort in ust a few !ears, Atop a (luff overlooking the "aine coast0 &eagull errace had attracted thousands of visits during the summer months0 (ut then faced a tremendous downturn in (usiness during the winter months, But0 given the industr! in the near(! towns0 ver! little !ear*round competition0 and our close pro3imit! to #ortland0 Carol added0 < couldn-t understand wh! seasonalit! had to hit &eagull errace so hardM &o Carol spent her first winter devising a new marketing plan, &he put together a promotional package designed to attract (usiness travelers !ear*round, Carol-s plan0 then0 involved a seasonal promotional gimmickNto (e implemented from earl! winter to late springNthat would attract the same num(ers as the large summer crowd, >er idea workedM During her second winter0 Carol greeted numerous (usiness travelersN(oth satisfied repeat guests as well as new guests who had (een snagged (! her promotional appeals, We still have a long wa! to go0 Carol admitted, 'ur delicatessen offers delicious entrees0 (ut we-d like to e3pand that, We provide health clu( privileges off*site0 (ut we-d like to eventuall! provide our own, hese are goals < hope to achieve in a few !ears, 'ur first proect0 however0 included a renovation of our guest rooms and <-m =uite proud of the results, Carol then added0 Actuall! there are so man! possi(ilitiesM With an indoor pool area0 < will eventuall! offer weekend getawa!s throughout winter, 1%%) Based on the marketing process0 what are Carol 8eldt-s strengths? Answer: he marketing process (uilds profita(le customer relationships (! creating value for customers and capturing value in return, Although her main activities involved heav! promotion0 as well as room renovations0 Carol was suffering from marketing m!opia, &he was focused more on the products she offered and on e3isting customer wants, Carol started to develop relationships with customers during her second season0 hopefull! learning a(out her customersunderl!ing needs,
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1%7) >ow is Carol 8eldt attempting to create a (rand e3perience for her visitors? Answer: Brand e3periences are created (! integrating several services and products for consumers, Carol is attempting to include numerous services and amenities for her visitors from greeting guests upon arrival0 to offering delicious entrees at the delicatessen and providing offsite health clu( privileges, Eventuall!0 ever!thing the visitors want or need will (e offered at &eagull errace such as an indoor pool for winter weekend getawa!s, Diff: + !pe: E& #age $ef: 9 &kill: Application '(ective: 1*+ 1%9) Define the target market at &eagull errace, Answer: A target market is a selection of market segments that a compan! will focus on serving, wo t!pes of guest are (eing lured: seasonal visitors during the summer and !ear*round (usiness travelers, he target market include (oth satisfied repeat guests as well as new guests, Eventuall!0 &eagull errace hopes to attract winter weekend getawa! visitors, Diff: 1 !pe: E& #age $ef: 1; &kill: Application '(ective: 1*/ 1%)
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141) >ow might the marketing mi3 at &eagull errace differ (etween its two target markets? Answer: A compan!-s marketing mi3 is the integration of the product0 price0 place and promotion in order to deliver on its value proposition, he current target markets at &eagull errace are !ear round (usiness travelers0 and seasonal summer vacationers, Although the product and the place are virtuall! the same for the two target markets0 promotions and price can differ, Business travelers ma! (e offered a discount (usiness rate &ummer guests ma! pa! higher rates0 (ut the (eaut! of "aine-s coast and the (each0 as well as &eagull errace-s variet! of services0 will (e the main attractions, ow should Carol 8eldt guarantee customer satisfaction? Answer: Customer satisfaction is the e3tent to which a product-s perceived performance matches a (u!er-s e3pectations, irst0 Carol must discover what e3pectations her customers have, @athering and responding to feed(ack from customers is one method for determining customer e3pectations and how the!-ve (een satisfied, &econdl!0 she should create product offerings that e3ceed customer e3pectations, his will result in delighted customers who will not onl! c ome (ack (ut will also act as customer evangelists0 spreading the word a(out their good e3perience to others, Diff: + !pe: E& #age $ef: 1% &kill: Application '(ective: 1*5 14/) E3plain how Carol 8eldt is engaging in partner relationship management, E3plain how this could (e enhanced, Answer: #artner relationship management is working closel! with partners throughout the compan! as well as outside the compan! to ointl! (ring greater value to customers, $epeat guests0 we assume0 are satisfied with their e3perience at &eagull errace, his is pro(a(l! (ecause ever!one who works at &eagull is ointl! working together to meet or e3ceed customer e3pectations, Carol should ensure that food provided at the delicatessen continues to provide delicious food and that her staff continue to provide e3ceptional service, Carol also has an arrangement with an offsite health clu( where guests at &eagull errace currentl! receive health clu( privileges, @uests during the summer could receive sail(oat rentals through such arrangements, Diff: / !pe: E& #age $ef: +/ &kill: Application '(ective: 1*5
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