Marketing MCQ Questions and Solutions with Explanations | Management

The marketing concept applies to production firms as well as service industries.

The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.

The correct answer is A: TRUE

Here's why:

Think of customer value as what a customer gets (benefits) compared to what they give up (cost).

Beating the competition means being better than other companies at attracting and keeping customers.

The question says that finding a need that no one else has noticed and satisfying it *first* is a great way to improve customer value and beat the competition.

Why is this true?

Because if you're the first to meet a need, you gain a big advantage:

* Customers will see you as innovative and valuable.
* You'll attract new customers who have that unmet need.
* You'll build customer loyalty because you're providing something unique.
* Competitors will have to play catch-up, giving you a head start.

Therefore, being first to satisfy an unconsidered need is a powerful strategy for improving customer value and beating competitors.

Acquiring New Customers Is Important, But Retaining Them Accelerates Profitable Growth.

Dissonance-reducing buying behaviour occurs when the consumer is highly involved but sees little difference between brands. This is likely to be the case with the purchase of a lawn mower or a diamond ring.

Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption.

A Service is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. Service marketing is marketing based on relationship and value. It may be used to market a service or a product.

Distinct characteristic of services is intangibility. Service intangibility means that services cannot be seen, tasted, felt, heard or smelled before they are bought.

All of the following are examples of services except Computer software. System software is software designed to provide a platform for other software.

Services are typically produced and consumed simultaneously. This is an example of the inseparability characteristic of services. Inseparability is the characteristic that a service has which renders it impossible to divorce the supply or production of the service from its consumption.