Test Bank Chapter 6 Understand Consumer And Business Markets

Marketing Management, 3e (Marshall)

Chapter 6 Understand Consumer and Business Markets

1) Delivering value to the customer is the core of marketing.

2) Internal factors affecting consumer choices include personal characteristics and psychological attributes.

3) According to the model of the consumer decision process, the environmental forces that affect the consumer decision process include the value proposition, distribution, and marketing communications.

4) Personality trait theories are based on the assumption that each person has a set of consistent, enduring personal characteristics.

5) Lifestyle refers to an individual's perspective on life as demonstrated by that person's activities, interests, and opinions (AIO).

6) Gender roles do not change over time and maintain uniformity across cultures.

7) Motivation is a system to select, organize, and interpret information to create a useful, informed picture of the world.

8) Maslow's hierarchy of needs theory suggests that individuals are interested in luxuries even if their basic needs have not been met.

9) An attitude is a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. Attitudes are seldom if ever neutral.

10) Marketers can affect learning by providing information using a message, format, and delivery that will encourage customers to retain the information.

11) Research on brand personality identified five brand personality traits. These include honesty, enthusiasm, skill, hardiness, and sense of humor.

12) Men and women vary in the products they require, but not in the marketing communications they are receptive to.

13) The two categories of values are cultural and personal.

14) Cognitive learning involves creating an association between two stimuli.

15) Values, morals, and beliefs are all part of one's culture.

16) Bob, a Pittsburgh native, thinks of his family as his wife, children, siblings, and parents. Marco, a Mexican immigrant, thinks of his family as a larger network including cousins and grandparents. This reflects a difference in cultural values.

17) Family is a societal factor that impacts consumer choices.

18) Berta maintains a blog on cooking on which she shares recipes, product recommendations, and shopping tips. She has 300,000 followers and she regularly answers questions from them about cooking and where to find her favorite kitchen tools. Berta would be considered a market maven.

19) While Ting was watching her favorite program, Housewives of Kankakee, she happened to see a political ad that told about a candidate's views on health insurance, and she decided she would vote for her. This represents high-involvement learning.

20) The reference group known as a secondary group includes people with whom one has frequent contact.

21) Keeping your hands in your pockets and looking at the clock are examples of positive nonverbal communication.

22) An individual watching a reality show will react differently whether watching the show alone or at a party with friends.

23) Mike and Judy find out they are going to have a baby and realize their Infiniti G coupe has to be replaced with a more practical vehicle. They engage in a thorough information search by reviewing car magazines, soliciting opinions from friends and family, conducting online research, reading consumer reports, and test-driving a number of new cars and SUVs before making a final purchase decision. This is an example of extensive information search.

24) Mary pretends that she has a three-bedroom house with a minivan in the driveway, even though she lives in an apartment and takes the train to work. The three-bedroom house reflects Mary's real state.

25) When Kobe decided it was time for a new car, he determined he wanted a Japanese-made four-door sedan. This represents Kobe's complete set.

26) After shopping around, Janine bought a top-of-the-line Vitamix, but when she got home she was worried that she spent too much and should have bought a less expensive juicer. Janine was experiencing post-purchase dissonance.

27) Business markets tend to concentrate in certain locations in the United States as a result of suppliers wanting to be located near their buyers.

28) A straight rebuy is a routine purchase that is often given to a preferred supplier.

29) A modified rebuy may occur when a buyer is familiar with the existing product and supplier but may be looking for additional information. Perhaps new competitors or products have entered the market or the current supplier is not meeting expectations.

30) Initiators are any individuals, both inside and outside the organization, with relevant expertise in a particular area that is used by the buying center in making the final decision.

31) The people in a company who block access to key personnel in the buying process are called goalkeepers.

32) The NAICS defines 300 major business sectors that cover all of North America.

33) OEM customers purchase in large quantities to support their own product demand.

34) The business market purchase decision process is triggered when someone inside or outside the company identifies a need.

35) The sales proposal gives the company an opportunity to showcase its unique products, service, and pricing.

36) Organizations have resorted to various e-procurement methods, such as setting up direct links to approved suppliers to make the business purchase easier and move it closer to front-line decision makers.

37) The process of business purchasing online is known as the e-chain.

38) Internal forces such as ________ affect consumer choices.

A) age and attitude

B) culture and education

C) personality and society

D) learning and culture

E) income and culture

39) ________ are all marketing activities that affect the consumer decision process.

A) Value proposition, technology, and culture

B) Culture, society, and technology

C) Value proposition, distribution, and marketing communications

D) Distribution, technology, and culture

E) Marketing communications, technology, and culture

40) Graduating from college, getting married, and having a child all transform an individual's buying habits and are referred to as the ________.

A) lifecycle buying stages

B) family life cycle

C) life stage cycle

D) lifestyle cycle

E) family life stages

41) James is highly influenced by his work environment. He will most likely ________.

A) go for a vacation at the same places as his coworkers

B) avoid vacationing at the same places as his coworkers

C) make different purchase decisions from his coworkers

D) shop in locations that are not preferred by his coworkers

E) wear clothes that set him apart from his coworkers

42) Which of the following is a psychological attribute that affects consumer choices?

A) occupation

B) gender

C) perception

D) lifestyle

E) education

43) Which contemporary theory of motivation believes that satisfying hygiene factors does not create a loyal employee or customer?

A) Maslow's hierarchy of needs

B) Expectancy theory

C) Herzberg's two-factor theory

D) McClelland's achievement motivation theory

E) Aldelfer's ERG theory

44) Attitudes are learned or at least influenced by ________.

A) new information

B) customer touch points

C) behavioral segmentation

D) motivation

E) formalization

45) Managers gain important information such as the beliefs/values of customers by having them check off rating scales that evaluate a product's performance on a list of attributes by using the ________ model.

A) repositioning

B) formalization

C) organizational learning

D) psychographic segmentation

E) multiattribute

46) Which of the following shapes a person's belief system?

A) obedience

B) information from trusted sources

C) hard work and freedom

D) reciprocity

E) cognitive learning

47) Perception drives a person's attitudes, beliefs, motivation, and, eventually, his or her ________.

A) values

B) self-esteem

C) performance

D) behavior

E) attention

48) Alma and Tarvares see an ad for a new Sony LCD flat-panel television. Alma sees the ad as a high-quality television worth the money while Tarvares sees the ad as an overpriced television that does not warrant a premium price. What makes them see the same ad so differently?

A) acceleration factors

B) degrees of affiliation

C) cognitive dissonance

D) perception

E) formalization

49) What are the three psychological tools that shape perception?

A) selective hearing, selective attention, selective vision

B) selective attention, selective distortion, selective retention

C) selective distortion, selective attention, selective vision

D) selective awareness, selective vision, selective attention

E) selective awareness, selective distortion, selective retention

50) Bella is exposed to around 2,500 messages daily. Since she cannot process, let alone retain, all those messages, she focuses on what is relevant and eliminates what is not. What psychological tool does she employ?

A) selective attention

B) selective distortion

C) selective awareness

D) selective retention

E) selective hearing

51) Selective ________ refers to a tool that helps individuals focus on what is relevant and eliminate what is not.

A) awareness

B) distortion

C) retention

D) attention

E) hearing

52) Selective ________ tends to reinforce existing attitudes and creates a real challenge for marketers trying to overcome negative beliefs and attitudes since people are less likely to be aware of or retain information to the contrary.

A) awareness

B) distortion

C) memory

D) retention

E) hearing

53) Information can be misunderstood or made to fit existing beliefs, a process known as selective ________.

A) awareness

B) distortion

C) memory

D) retention

E) hearing

54) ________ occurs when information is processed and added to long-term memory.

A) Learning

B) Cognitive dissonance

C) Formalization

D) Data mining

E) Repositioning

55) ________ is any change in the content or organization of long-term memory or behavior.

A) Conditioning

B) Memory

C) Learning

D) Dissonance

E) Training

56) The two fundamental approaches to learning are ________.

A) coaching and listening

B) trial and error and coaching

C) coaching and conditioning

D) conditioning and cognitive learning

E) conditioning and trial and error

57) A company wants to create an association between two stimuli: marketing information and attitude. The company is relying on ________.

A) cognitive affiliation

B) organizational learning

C) cognitive association

D) operant conditioning

E) classical conditioning

58) When baby boomers hear music that connects them with positive memories and the product and brand that is being advertised, it demonstrates the idea of ________.

A) conditioned learning

B) operant conditioning

C) cognitive learning

D) organizational learning

E) operant memory

59) Frito-Lay is using ________ when offering free in-store samples of Doritos for the express purpose of getting people to try the product, enjoy the product, and finally purchase a bag of Doritos.

A) operant conditioning

B) cognitive learning

C) behavioral mining

D) database marketing

E) classical conditioning

60) When Bob was asked to describe Sherry, he didn't describe her based on her age or education; rather, he talked about her easy-going manner, which reflected her ________.

A) appearance

B) personality

C) household life cycle

D) family life-cycle

E) aptitude

61) ________ is a set of unique personal qualities that produce distinctive responses across similar situations.

A) Attitude

B) Personality

C) Ideology

D) Lifestyle

E) Mind-set

62) Marketing managers need to pay attention to culture because ________.

A) culture is a critical situational factor that affects individuals throughout the consumer choice process

B) it has a profound impact on the consumer choice process by laying more emphasis on nonverbal communication

C) it results in informal social systems that exert influence over an individual's attitudes and behaviors.

D) it drives social status by laying more emphasis on success-driven factors

E) failing to understand culture has a significant negative effect on product acceptance

63) Which of the following statements is true about language?

A) It includes factors that focus primarily on group influences.

B) It is considered to be a situational factor that is the primary driver of consumer behavior.

C) It is time-sensitive and has a profound effect on the consumer buying process.

D) It is an essential cultural building block.

E) It includes principles shared by a society that assert positive ideals.

64) Americans value hard work and achievement while Japanese citizens value harmony and hierarchy. This shows a difference in ________ factors.

A) cultural

B) social

C) internal

D) psychological

E) situational

65) In addition to culture, three factors are particularly relevant in consumer behavior. They are ________.

A) language, values, and attitudes

B) language, attitudes, and nonverbal communications

C) values, attitudes, and language

D) values, beliefs, and language

E) language, values, and nonverbal communications

66) Which of the following statements best defines cultural values?

A) Cultural values are a set of critical situational factors that affects individuals throughout the consumer choice process.

B) Cultural values are the needs, desires, and objectives of those involved in a purchase decision.

C) Cultural values are a set of unique personal qualities that produce distinctive responses across similar situations.

D) Cultural values are principles shared by a society that assert positive ideals.

E) Cultural values are a set of qualities that are formed at a relatively early age and are consistent and enduring.

67) ________ communication is the means of communicating through facial expressions, eye behavior, gestures, posture, and any other body language.

A) Transformational

B) Nonverbal

C) Transactional

D) Situational

E) Meta

68) In the United States, most business conversations occur between three and five feet, which is a greater distance than in Latin American cultures. This is an example of differences in ________.

A) situational factors

B) personal space

C) cultural factors

D) time perception

E) value equity

69) Maria identifies with a specific religious group, which is a smaller division of her culture. Maria's religious group is an example of a(n) ________.

A) institution

B) social group

C) support network

D) subculture

E) society

70) A person shops differently when the line at the checkout is long. This is due to ________.

A) aspirational purchases

B) personal circumstances

C) physical placement

D) social factors

E) cultural values

71) The household life cycle is changing due to changes in ________.

A) cultural beliefs

B) cultural values

C) family structure

D) product lifecycle

E) social class

72) ________ is a ranking of individuals into harmonized groups based on demographic characteristics such as age, education, income, and occupation.

A) Classical conditioning

B) Social class

C) Reference group

D) Operant class

E) Household life cycle (HLC)

73) John's beliefs, attitudes, and behaviors are influenced by his friends. His friends can be identified as a(n) ________ group.

A) leading

B) reference

C) influential

D) association

E) transactional

74) Ammon works at Max's Pizza shop. He is a single father and makes only minimum wages. However, by utilizing the new financial terms available, he recently leased a BMW automobile; this is an example of a(n) ________ purchase.

A) demographic

B) organizational

C) aspirational

D) concentrated

E) objective

75) ________ fulfill an important role by classifying, explaining, and then bestowing information, most often to family and friends but occasionally to a broader audience.

A) Gatekeepers

B) Influencers

C) Affiliation groups

D) Reference groups

E) Opinion leaders

76) Jill is considered a(n) ________ when it comes to wine because she has information about many kinds of wines, places to shop, and other facets of the wine market. Her friends always go to her when they need something for a special occasion.

A) social class

B) market maven

C) subculture

D) cognitive dissonance

E) cottage industry

77) When people are concerned about the outcome of a process, they will spend more time acquiring information about product options and become more emotionally connected to the process and the decision by engaging in ________.

A) high-involvement purchase

B) high-involvement learning

C) low-involvement purchase

D) limited information search

E) minimal information search

78) Matthew has a new dog and is shopping for a pet grooming tool. He just picks up the first brush he sees and buys it. This is an example of ________.

A) low-involvement purchasing

B) low learning motivation

C) low level of commitment

D) low-involvement learning

E) low-importance purchasing

79) ________ are the stages of the consumer decision-making process in order.

A) Problem recognition, identifying alternatives, evaluation of alternatives, selection of an alternative, purchase decision

B) Problem recognition, evaluation of alternatives, product choice, evaluation

C) Evaluation of alternatives, product choice, evaluation

D) Evaluation of alternatives, information search, product choice

E) Problem recognition, search for information, evaluation of alternatives, product choice decision, post-purchase evaluation

80) Mia thinks about how she would like to feel or live today. She is thinking about a(n) ________ state.

A) real

B) ideal

C) preferred

D) experiential

E) complete

81) Josh notices the low-fuel light is on as he is driving home. Without any additional information, he stops at the local station on the way home to fill up. This is an example of a(n) ________.

A) high involvement purchase

B) end-user purchase

C) extensive information search

D) minimal information search

E) external information search

82) Before Gabriel bought a camera, he reviewed magazines, solicited opinions from friends and families, conducted online searches, and tested out different cameras in the store. This is an example of a(n) ________.

A) extensive information search

B) end-user investigation

C) minimal information search

D) low involvement purchase

E) internal information search

83) ________ information sources include independent groups, personal associations, marketer-created information, and experiences.

A) External

B) Internal

C) Low

D) High

E) Preferred

84) ________ choices tend to be more holistic than emotional choices, using summary impressions rather than specific attributes to evaluate the options and affect even important purchases such as a car or house.

A) Rational

B) Balanced

C) Attitude-based

D) State-of-mind

E) Weighted

85) When shopping with her friend, Kristina chooses the same products that her friend likes and buys. This is an example of ________ affecting the actual choice decision.

A) physical surroundings

B) social circumstances

C) time circumstances

D) biorhythms

E) state of mind

86) Karla bought her dress for the recital not because she liked the color and style, but because it made her feel good about herself, and she needed that confidence before performing. This represents the importance of the ________ aspect of a product.

A) instrumental performance

B) symbolic performance

C) social aptitude

D) disposability

E) use/nonuse

87) The nature of B2B markets requires ________.

A) impersonal communication at regular intervals through mediums such as direct mail

B) investment of more resources primarily on service sectors

C) organizations to invest more on consumers than suppliers to maintain their business

D) a more personal relationship between the buyer and seller than in B2C markets

E) companies to focus primarily on selling products that end up as components for finished goods

88) Which of the following statements is true about customer relationships in business markets?

A) A strong impersonal relationship with customers is critical in maintaining one's business.

B) One-on-one personal communication is the most important tool in developing and maintaining customer relationships.

C) An impersonal relationship in B2B markets often connotes a greater emphasis on technology.

D) Customers demand not only an impersonal relationship with their vendors but also an efficient one.

E) Customers prefer direct communication mediums such as e-mail and direct mail for any correspondence.

89) It is said that B2B demand is more ________ in general than B2C demand for products or services.

A) elastic

B) bimodal

C) inelastic

D) systemic

E) variable

90) A ________ chain is the synchronized movement of goods through the channel.

A) delphi

B) value

C) supply

D) time-series

E) demand

91) The relationship between consumer demand for products and demand for B2B products is known as ________ demand.

A) psychographic

B) fluctuating

C) derived

D) latent

E) inelastic

92) Small changes in consumer demand can lead to considerable shifts in business product demand and are referred to as the ________.

A) transactional effect

B) transverse effect

C) degree of affiliation

D) acceleration effect

E) multi-attribute model

93) Reordering products that are used on a consistent basis is called a(n) ________.

A) new purchase

B) transactional purchase

C) aspirational purchase

D) modified rebuy

E) straight rebuy

94) When Ford Motor Company is familiar with a product and supplier, but decides to seek additional information on new products in the marketplace, it is in the process of a(n) ________.

A) straight rebuy

B) modified rebuy

C) new purchase

D) adapted rebuy

E) aspirational purchase

95) Johnson & Marshall, a growing producer of organic tea, creates a group to make purchase decisions that is made up of people from the purchasing department, senior management with financial knowledge, and engineers with design expertise. This group best represents a(n) ________.

A) ad hoc group

B) gate keeping group

C) data warehouse

D) buying center

E) customer touch point

96) Paul is the groundskeeper for a golf course. He not only mows the greens and fairways but is also an expert on the grass that is used and how to care for it. The golf pro and club manager consult with him about what new equipment the club needs to maintain the greens. Paul plays the role of a(n) ________ in the buying process.

A) market maven

B) user

C) decider

D) opinion leader

E) gatekeeper

97) Gatekeepers are important in the B2B buying process because ________.

A) they provide the organization with relevant expertise in particular purchase decisions

B) they engineer costly capital equipment purchases by employing a wide range of financial tools

C) they act as a buffer between the buying center members and consumers in the buying process

D) they limit the number of vendors in a given buying process

E) they act as initiators in certain scenarios of the purchase decision process

98) Deciders are an important group for the salesperson to identify because ________.

A) they make the ultimate purchase decision

B) they decide what characteristics the product should possess

C) they decide what price the company should pay

D) they have control over who is allowed to be a vendor

E) they decide who are the most significant influencers in the buying center

99) Mark is trying to sell a metal-bending machine to a manufacturing firm. He decides to talk to people inside the firm who have expertise in metal bending—who can then provide this information to the buying center. The people he is targeting are known as ________.

A) influencers

B) users

C) gatekeepers

D) initiators

E) aggregators

100) Maryanne noticed that one of the manufacturing teams lost productivity over a six-month period. She puts together a document that describes the productivity loss and does a study to determine the cause. She finds that one of the key machines in the process breaks down often. Maryanne asks several machine manufacturers to come in to make proposals for new machines. Maryanne is playing the role of a(n) ________.

A) influencer

B) gatekeeper

C) initiator

D) arbitrator

E) reseller

101) Boris Jankowski is a salesperson for a manufacturer of beer making equipment. He learns that a regional microbrewery is going to expand into another state. It has created a buying center to purchase the needed equipment. Boris's first job is to ________.

A) discover the budget for the purchase

B) develop criteria for the purchase

C) discover the most important influencer

D) discover who is part of the buying center

E) develop a presentation for the buying center

102) Which of the following statements is TRUE about North American Industrial Classification System (NAICS) codes?

A) The NAICS codes are considered to be perfect codes that adjust to a country's own unique economic structure.

B) The NAICS codes apply to the major economies of the world except Mexico and Canada.

C) The NAICS codes make it possible to purchase detailed information on each of the codes in the system.

D) The NAICS code defines 10 business sectors based on a four-digit hierarchical code.

E) The NAICS code classifies companies on the basis of their tertiary output.

103) MRO supplies are generally purchased through a ________.

A) modified rebuy

B) new purchase

C) transactional purchase

D) straight rebuy

E) contractual rebuy

104) Companies like Home Depot sell to the B2B market and B2C market out of the same store. This puts the company in the category of a(n) ________.

A) gatekeeper

B) reseller

C) out supplier

D) market maven

E) cottage industry

105) Which of the following statements is TRUE about government purchases?

A) They require minimal information regarding product specifications.

B) The purchase process is very simple and less time-consuming.

C) The U.S. government is the single largest buyer of goods and services in the world.

D) Profitability is the fundamental driver in making these purchases.

E) These purchases often include an emotional component.

106) The primary difference between selling to the profit-oriented market and the nonprofit market is that nonprofits ________.

A) generally opt for a new purchase rather than a straight or modified rebuy

B) have a more rational decision process

C) place more emphasis on their business goals than performance specifications

D) have a limited number of resources compared to their for-profit counterparts

E) entail purchase decisions that often include an emotional component to them

107) In the purchase process, once a problem has been identified, the next step is to ________.

A) seek sales proposals

B) identify potential suppliers

C) clearly define the need and develop product specifications

D) prepare a distribution document resembling the request for proposal

E) evaluate equally-qualified vendors and purchase criteria

108) In the purchase process, the purpose of outlining product specifications is ________.

A) to identify purchase agents who are experts at preparing a request for proposal

B) to guide potential suppliers

C) to ensure people buy the product

D) to clearly and concisely present the timeline for the steps leading to the final decision

E) to ensure that the customer has accepted the value proposition

109) In the purchase process, once the company's needs have been identified and product specifications have been outlined, the next step would involve ________.

A) identifying potential problems in the purchase decision process

B) evaluating the purchase decision

C) evaluating suitable vendors to award contracts

D) identifying and determining potential suppliers

E) seeking sales proposals in response to a request for proposal

110) A request for proposal (RFP) is the process ________.

A) of evaluating service recovery strategies adopted by a company to reacquire customers

B) by which customer computers communicate directly with supplier computers

C) undertaken by organizations to gain access to critical information withheld by gatekeepers

D) of putting product specifications into a document for distribution

E) of handing out sales contracts to vendors, preferably those on the supplier list

111) When a company solicits RFPs from suppliers with an open vendor search, the goal is to ________.

A) get several proposals to help with negotiations

B) get one good response from a preferred vendor

C) get as many responses so as to gain a competitive advantage

D) opt for a vendor who uses well-developed service recovery strategies to gain customers

E) opt for a vendor who focuses primarily on the service criteria rather than on developing value

112) ________ criteria are a set of analyses and metrics grouped together to assess the cost of ownership.

A) Financial

B) Service

C) Transactional

D) End user

E) Value

113) The most fundamental criterion in vendor selection is ________.

A) degree of affiliation

B) risk tolerance

C) reliability

D) location

E) intangibility

114) Any influence on the product and supplier choice is an organizational factor. The primary organizational factor is ________.

A) database marketing

B) customer-relationship management

C) psychographic segmentation

D) organizational learning

E) risk tolerance

115) Electronic data interchange (EDI) allows ________.

A) organizations to request RFPs from potential vendors

B) customer computers to communicate directly with supplier computers

C) computers to fulfill the functions of a buying center on a virtual network

D) customers to determine the real cost of a purchase through a set of computer metrics

E) organizations to maintain a more personal relationship with customers through e-mail

116) Melony Inc., an automobile manufacturer, has created an integrated website to assist its purchasing department in purchasing and supplying products online. In this scenario, Melony's initiative best reflects a method of ________.

A) e-resource

B) e-retailing

C) e-sourcing

D) e-procurement

E) e-governance

117) When evaluating purchase alternatives, research has found that consumers make product choices primarily from three perspectives: emotional, attitude-based, and attribute-based. Describe each of these.

118) Detail the five major roles of members of the buying center: users, initiators, influencers, gatekeepers, and deciders.

119) Explain the business market purchase decision process by taking a fictional company through the six stages of the process.

120) Discuss the four e-procurement methods and give an example of when each might be used.