Test 2 Prep

Carla and John earn $7000 each month.
After paying taxes of $1000, the two pay $4000 necessities

(like food, rent, insurance, and transportation). This leaves them how much in discretionary income?
$7000
A)
$3000
B)
$6000
C)
$2000
D)
This cannot be determined from the information provided.
E)
Feedback:
AACSB: Reflective Thinking
Level of Difficulty: 1 Easy
Learning Objective: 05-01
Page: 114
Blooms: Apply
Topic: Economic Needs Affect Most Buying Decisions
Discretionary income is what is left of income after paying taxes and paying
for necessities.
2
INCORRECT
According to the text, the economic-buyer theory:
A)
says that most consumers do not know the economic value of products they
purchase.
explains why people behave the way they do.
B)
includes psychological variables and social influences.
C)
is too simplistic to explain consumer behavior.
D)
assumes that consumers always buy the lowest price alternative.
E)
Feedback:
AACSB: Analytic
Level of Difficulty: Easy
Blooms: Apply
Topic: Economic Needs Affect Most Buying Decisions
Most marketing managers think that buyer behavior is not as simple as the
economic-buyer model suggests.
3
INCORRECT
The Body Shop by L'Oreal, a chain of personal care products and spas, boasts of
its dedication to natural cosmetic products developed without the use of animal
testing or unfair labor practices. This appeal is designed to meet customers:
physiological needs.
A)
safety needs.
B)
economic needs.
C)
social and personal needs.
D)
green needs.
E)
Feedback:
Level of Difficulty: Medium
Blooms: Understand
Topic: Psychological Influences within an Individual
Marketing appeals that make claims about the social and environmental
benefits of products are attempting to meet customers' personal and social
needs.
4
INCORRECT
Carmela Sanchez is planning to buy a pair of running shoes. Recently, she has
been noticing more Adidas advertising in magazines. This is an example of:
a physiological need.
A)
dissonance.
B)
need satisfaction.
C)
selective exposure.
D)
a consumer expectation.
E)
Feedback:
Blooms: Apply
Selective exposure is when our eyes and minds seek out and notice only
information that interests us.
5
INCORRECT
When Taco Bell shows a large close-up of a chicken taco in a television ad, it is:
encouraging selective retention.
A)
hoping to encourage extensive problem solving by the audience.
B)
appealing to the social needs of the audience.
C)
appealing to the economic needs of the audience.
D)
using a cue to encourage a particular response to the hunger drive.
E)
Feedback:
Blooms: Apply
Depending on the cues (products, signs, ads, and other stimuli in the
environment) an individual chooses some specific response to satisfy a drive.
6
INCORRECT
A person's social class is determined by all of the following variables except

_____.
ethnicity
A)
occupation
B)
education
C)
income level
D)
type and location of housing
E)
Feedback:
Blooms: Remember
Topic: Social Influences Affect Consumer Behavior
In most countries, social class is closely related to a person's occupation, but
it may also be influenced by education, community participation, where a
person lives, income, possessions, social skills, and other factors. Ethnicity
does not determine a person's social class.
7
INCORRECT
Reference-group influence would be weakest for determining which particular

_____ a person buys.
watch
A)
cosmetics
B)
clothing
C)
laundry soap
D)
car
E)
Feedback:
Blooms: Apply
Topic: Social Influences Affect Consumer Behavior
Reference influence is stronger for products that others "see" and which
relate to status in the group.
8
INCORRECT
Outdoor merchandiser Bass Pro Shops creates giant retail stores filled with
hunting and fishing exhibits to attract customers, entertain them, and keep
them in stores for long periods of time. This retailing strategy is based on the
idea that:
economic needs influence the buyer decision process.

A)
family life cycles affect a person's consumer decisions.
B)
characteristics of the purchase situation influence consumer behavior.
C)
single people are more willing to try new brands.
D)
customers are motivated by their physiological needs.
E)
Feedback:
Blooms: Apply
Topic: Individuals Are Affected by the Purchase Situation
Surroundings can affect buying behavior. For example, the excitement at an
on-site auction may stimulate impulse buying, but checking out an auction
online might lead to a different response. Bass Pro Shops places exciting
outdoor-adventure exhibits in stores to attract consumers and stimulate
purchases.
9
INCORRECT
Consumers go through six steps when deciding to accept or reject a new idea.
In this adoption process:
the confirmation step follows the decision step.
A)
the evaluation step follows the trial step.
B)
the awareness step follows the interest step.
C)
the trial step follows the awareness step.
D)
the final result is dissonance.
E)
Feedback:
AACSB: Analytic
Blooms: Understand
Topic: The Consumer Decision Process

In the adoption process, an individual moves through some fairly definite
steps: awareness, interest, evaluation, trial, decision, and confirmation.
10
CORRECT
For consumers making high-involvement purchases that require extensive

problem solving, the steps of the consumer-decision process progress as
follows:
A)
B)
need awareness, problem solving, purchase decision, post-purchase

evaluation.
need awareness, routinized response, purchase decision, post-purchase
evaluation.
need awareness, purchase decision, dissonance.
C)
D)
problem solving, purchase decision, post-purchase evaluation, need

awareness.
purchase decision, post-purchase evaluation, problem solving.
E)
Feedback:
Topic: The Consumer Decision Process
Blooms: Analyze
AACSB: Analytic
For high-involvement purchases that require extensive problem solving, the
steps of the consumer decision process occur in this order: need awareness,
extensive problem solving, purchase decision, and post-purchase evaluation.
The customer has to conduct extensive problem solving whenever he or she
is uncertain how to meet an important need.
Which of the following is not true regarding organizational buyers?
A)
B)
C)
D)
Buyers for all kinds of organizations (governments, nonprofit groups,

intermediaries) tend to buy in much the same way as do manufacturers.
The basic aspects of business customer buying behavior tend to be quite
similar in the U.S. and in international markets.
Marketing strategies aimed at them are often tailored to each individual
customer.
Their purchases are made to help their organizations meet the demands for
their products.
Their needs are usually harder to define than for final consumers.
E)
Feedback:
Blooms: Understand
Topic: Organizational Customers Are Different
It is often easier to understand an organization's needs because most
organizations make purchases for the same basic reason. They buy goods
and services that will help them meet the demand for the goods and services
that they in turn supply to their markets.
2
INCORRECT
All of the following statements about organizational buyers are true except:
business and organizational clients are "customers."
A)
not all organizational customers are business firms.
B)
organizational buyers rarely focus on economic factors.
C)
D)
E)
marketing managers often refer to organizational customers collectively as

the "business-to-business" market.
organizational buyers make purchases primarily to satisfy their own
customers and clients.
Feedback:
Blooms: Understand
Topic: Organizational Customers Are Different
Organizations typically focus on economic factors when they make purchase
decisions and are usually less emotional in their buying than final
consumers.
3
INCORRECT
Procurement officer, supply manager, purchasing agent, and buyer are titles for
an organization's:
marketing managers.
A)
purchasing managers.
B)
executive officers.
C)
warehouse managers.
D)
accountants.
E)
Feedback:
Blooms: Remember
Topic: Many Different People May Influence a Decision
Many organizations rely on specialists to ensure that purchases are handled
sensibly. These specialists have different titles in different firms, such as
procurement officer, supply manager, purchasing agent, or buyer. Basically,
they are all purchasing managers.
4
INCORRECT
A modified rebuy would be most likely when:

a railroad plans to change from steel to aluminum rail cars to cut weight.
A)
a car producer is developing a sportier car which will require wider tires.
B)
a bread producer is placing its weekly order for flour.
C)
a computer producer is buying new assembly line equipment.
D)
a shoe factory needs more glue to attach heels to its shoes.
E)
Feedback:
Blooms: Apply
Topic: Organizational Buyers Are Problem Solvers
A modified rebuy would be most likely when a car producer is developing a
sportier car which will require wider tires. In this case, the purchase
specifications would only require some review and modifications.
5
INCORRECT
Today, when a buyer can't specify all of the details of what it will need in the
future, the relationship with a supplier is most likely to involve:
an auction.
A)
a procurement hub.
B)
negotiated contracts.
C)
competitive bids.
D)
no agreement.
E)
Feedback:
AACSB: Analytic
Blooms: Apply
Topic: Buyer-Seller Relationships in Business Markets
When a buyer can't specify all of the details of what it will need in the future,
the relationship with a supplier is most likely to involve negotiated contracts.
6
INCORRECT
Close buyer-seller relationships have many advantages for a firm, but one key
disadvantage is:
firms with close relationships can expect more from the partnership.
A)
long-term commitments to another organization reduce flexibility for a firm.
B)
closely-tied firms often share tasks at lower total cost.
C)
information sharing can lead to efficient decisions and better planning.
D)
buyer-seller relationships foster mutual trust and a long-term outlook.
E)
Feedback:
AACSB: Analytic
Blooms: Understand
Topic: Buyer-Seller Relationships in Business Markets
Close buyer-seller relationships are not always advantageous. For buyers,
long-term commitments can reduce flexibility. As a result, buyers and sellers
should choose closer relationships where the benefits outweigh the costs.
7
INCORRECT
To sell to manufacturers, marketers need to understand important

characteristics of those firms. Which of the following is not characteristic of the
manufacturing sector in the United States?
The majority of manufacturing firms are small - 10 or fewer employees.
A)
Owners are frequently the purchasers in manufacturing firms.
B)
Small manufacturers tend to have formal buying procedures and guidelines.
C)
D)
Large manufacturers tend to highly formal buying procedures and

guidelines.
Feedback:
Blooms: Understand
Topic: Manufacturers Are Important Customers
Unlike larger firms, small manufacturers tend to have informal buying
procedures and guidelines.
8
INCORRECT
The U.S. government would not publish NAICS data that gives:
the total sales volume of the four steel manufacturers in a geographic area.
A)
the number of employees for similar two-digit industry groups.
B)
the total sales volume of the only textile equipment manufacturer in a state.
C)
the sales volumes of similar two-digit industry groups.
D)
the number of establishments for various industry groups.
E)
Feedback:
AACSB: Analytic
Blooms: Understand
Topic: Manufacturers Are Important Customers

The government does not provide detail when only one or two plants are
located in an area. Textile equipment manufacturer, being the only plant in a
state would not find a place in the NAICS code.
9
INCORRECT
Large wholesale and retail buyers typically:

pay close attention to each of the products they buy.
A)
don't trust automatic inventory control methods.
B)
see themselves as selling agents for manufacturers.
C)
buy most of their products as straight rebuys.
D)
use new-task buying for most product purchases.
E)
Feedback:
AACSB: Analytic
Blooms: Understand
Topic: Retailers and Wholesalers Buy for Their Customers
Retailers and wholesalers usually carry a large number of products. Most
intermediaries buy their products on a routine, automatic reorder basis
straight rebuys.
10
CORRECT
When selling to _____, marketers must expect to use advertising, rely heavily
on e-commerce for purchases and customer service, and make pitches to
whomever is in charge (or their administrative assistant).
small service firms
A)
big box retailers
B)
large manufacturers
C)
governments
D)
final consumers
E)
Feedback:
Blooms: Understand
Topic: Producers of Services Smaller and More Spread Out
Marketing to small service firms is characterized by reliance on advertising,
e-commerce transactions, and personal selling to "whomever is in charge."
Marketing research:
A)
should be planned by research specialists who understand research

techniques better than marketing managers.
is needed to keep marketing managers in touch with their markets.
B)
consists mainly of survey design and statistical techniques.
C)
is only needed by producers who have long channels of distribution.
D)
All of these alternatives are correct.
E)
Feedback:
AACSB: Analytic
Page: 166
Blooms: Understand
Topic: Effective Marketing Requires Good Information
Marketing managers need accurate information about what is happening in
the market. Marketing managers use marketing research to get the required
information.
2
INCORRECT
An outside sales force can provide customers with up-to-date inventory levels,
product prices, delivery dates, and so forth by accessing information on the
firm's own:
marketing model.
A)
marketing dashboard.
B)
intranet.
C)
JIT system.
D)
EDI system.
E)
Feedback:
AACSB: Analytic

Blooms: Apply
Topic: Changes Are Under Way in Marketing Information Systems
Intranet is a system for linking computers within a company. It works like
the Internet. Information is easily searched and available on demand. It is
simple to "publish" new information to a website as soon as it becomes
available.
3
INCORRECT
The first thing a marketing manager should do if one of his firm's products drops
in sales volume is:
conduct a survey to see what is wrong.
A)
define the problem.
B)
set research priorities.
C)
do a situation analysis.
D)
interview representative customers.
E)
Feedback:
AACSB: Analytic
Blooms: Apply
Topic: Defining the Problem Step 1
Defining the problem is the first step in the marketing research process to
study the drop in sales volume.
4
INCORRECT
Which of the following actions would not take place during a situation analysis?
Review of all relevant secondary data
A)
Phone and email surveys
B)
Informal talks with people familiar with the industry, problem, or situation
C)
Internet search
D)
Review of information found in an MIS

E)
Feedback:
Blooms Understand
Topic: Analyzing the Situation Step 2
Surveys are used to collect problem-specific data and are not part of the
situation analysis. A situation analysis occurs in the second step of the
marketing research process, whereas data collection takes place during Step
3.
5
INCORRECT
Data which have already been collected in a previous study are called _____
data, while data that are generated by a phone survey this month of key
customers are called _____ data.
primary; secondary
A)
primary; intranet
B)
secondary; primary
C)
secondary; experimental
D)
intranet; sample
E)
Feedback:
AACSB: Analytic
Blooms: Remember
Topic: Analyzing the Situation Step 2
Primary data is information specifically collected to solve a current problem.
Secondary data refers to information that has been collected or published
already.
6
INCORRECT
Which of the following statements is accurate regarding qualitative research?

Qualitative research seeks structured responses.
A)
Qualitative research can easily be summarized in numbers such as

percentages.
B)
A common application of qualitative research is the focus group.
C)
Qualitative research makes regular use of multiple choice questions.
D)
Telephone surveys are the most popular qualitative research.
E)
Feedback:
Blooms: Understand
Topic: Getting Problem-Specific Data Step 3
Qualitative research seeks in-depth, open-ended responses, not yes or no
answers. The researcher tries to get people to share their thoughts on a
topicwithout giving them many directions or guidelines about what to say.
7
INCORRECT
Which of the following is not a good example of the observation method of

marketing research?
A)
The manager of a supermarket occasionally walks through the store to see

what customers are doing.
A drugstore installs optical scanners at its checkout counters.
B)
C)
The owner of a shopping center puts a counting device at the entrance to

count how many cars come in.
A store manager studies videotapes of consumers shopping in the store.
D)
All of these are good examples of observation research.
E)
Feedback:
Blooms: Understand
In the observation method, researchers try to see or record what the subject
does naturally. They don't want the observing to influence the subject's
behavior.
8
INCORRECT
Which of the following research methods primarily uses observation as a means
of collecting data?
Focus group
A)
Telephone survey
B)
Ethnography
C)
Test marketing
D)
Internet research
E)
Feedback:
Blooms: Understand
In marketing research, ethnography involves studying customers in their
homes or at work. Video cameras can be useful for ethnography because
subjects often don't know their behavior is being recorded.
9
INCORRECT
The response rate to a survey affects:

who is in the population for a marketing research study.
A)
whether a statistical package can be used to analyze the data.
B)
how representative the sample is.
C)
the attentiveness of the researchers.
D)
the speed at which a response is given.
E)
Feedback:
AACSB: Analytic
Blooms: Understand
Topic: Interpreting the Data Step 4
How well a sample represents the total population affects the results.
Results from a sample that is not representative may not give a true picture.
10
CORRECT
In an international setting, marketers should partner with locals to conduct

marketing research for all the following reasons except:
locals know the local marketing situation of their respective nations.
A)
B)
C)
foreigners have great difficulty gathering accurate information on foreign

markets.
locals are less likely to make mistakes based on misunderstanding the
customs.
locals are experts who know the firm's business the best.
D)
local know the language and circumstances of the customers they study.
E)
Feedback:
Blooms: Understand
Topic: International Marketing Research
Since locals know the situation, language, customs, and circumstances of
their own people, marketers should partner with locals when conducting
research in an international setting. However, since locals are not experts on
the firm's business, marketing managers have to work collaboratively to
carry out successful research projects.
"Product" means:
all the services needed with a physical good.
A)
a physical good with all its related services.
B)
the need-satisfying offering of a firm.
C)
all of a firm's producing and distribution activities.
D)
a well-packaged item with a well-advertised brand name.
E)
Feedback:
AACSB: Analytic
Blooms: Remember
Topic: What Is a Product?
Product has been defined as the need-satisfying offering of a firm.
2
INCORRECT
A company with a large product assortment might:

have many product lines with little selection in each.
A)
have a single product line.
B)
have many individual products.
C)
All of these choices are correct.
D)
Feedback:
AACSB: Analytic
Page: 197
Blooms: Understand
Topic: Whole Product Lines Must Be Developed Too
A product assortment is the set of all product lines and individual products
that a firm sells. A firm may have multiple product lines or a single product
line within its assortment.
3
INCORRECT
Dole isn't just a fruit brand. Consumers can purchase a large variety of salads,
fruit cups, juices, healthy snacks, and smoothies under the Dole brand name.
This illustrates:
brand equity.
A)
family brand.
B)
dealer brand.
C)
individual brand.
D)
brand insistence.
E)
Feedback:
Blooms: Apply
Topic: What Kind of Brand to Use
Some branders use the same brand name for several products. This is known
as a family brand. Examples of family brands include Dole, Keebler, and
Sears. These brands offer a variety of individual products under the same
brand name.
4
INCORRECT
Nonrecognition of the brand name of a firm's product is likely to be least

important for:
coal.
A)
a music CD.
B)
lubricating oils for machinery.
C)
cold tablets.
D)
replacement auto repair parts.
E)
Feedback:
Blooms: Apply
Topic: Achieving Brand Familiarity Is Not Easy
Nonrecognition of the brand name is least important for a commodity like
coal which is relatively homogenous.
5
INCORRECT
If members of the target market for an Ford's Fiesta automobile do not initially
recognize the brand name, but compelling advertising results in more members
remembering the brand, we say the Ford Fiesta has achieved:
brand rejection.
A)
brand preference.
B)
brand nonrecognition.
C)
brand insistence.
D)
brand recognition.
E)
Feedback:
AACSB: Analytic
Blooms: Apply
Topic: Achieving Brand Familiarity Is Not Easy
Brand recognition means the ability of customers to remember a brand.
6
INCORRECT
Trends in packaging include the use of materials that can be recycled, reused, or
reduced. Such "green" packaging primarily serves to _____ the product.
promote
A)
protect
B)
enhance
C)
sell
D)
diversify
E)
Feedback:
AACSB: Analytic
Blooms: Understand
Topic: Packaging Promotes, Protects, and Enhances
In one form or another, packaging serves to promote, protect, or enhance
the product. Packaging made of recyclable material enhances the product in
the eyes of eco-conscious consumers.
7
INCORRECT
Since rental car firms, airlines, and tax return businesses don't sell tangible
goods, they offer _____ instead of warranties.
services
A)
discounts
B)
service guarantees
C)
rewards programs
D)
installations
E)
Feedback:
Blooms: Remember
Topic: Warranty Policies Are a Part of Strategy Planning
For service companies that don't offer tangible goods, service guarantees are
becoming more common as a way to attract and keep customers.
8
INCORRECT
If a consumer product is used regularly and usually bought frequently and

routinely with little thought (although branding may be important), this product
is:
a routine product.
A)
a specialty product.
B)
a homogeneous shopping product.
C)
a staple product.
D)
a casual product.
E)
Feedback:
AACSB: Analytic
Blooms: Remember
Topic: Consumer Product Classes
Staples are products that are bought often, routinely, and without much
thought like breakfast cereal, canned soup, and most other packaged foods
used almost every day in almost every household.
9 CORRECT
Having a competitive price is likely to:
A)
B)
be more important for a homogeneous shopping product than for a specialty

product.
be more important for a heterogeneous shopping product than for a
homogeneous shopping product.
be more important for an emergency product than for a staple.
C)
keep a product from falling into the "unsought" product class.
D)
None of these alternatives is correct.
E)
Feedback:
AACSB: Analytic
Blooms: Understand
Since homogeneous shopping products are products the customer sees as
basically the same, customers usually decide on which products to buy based
on price.
10
INCORRECT
Kohler is a kitchen-and-bath plumbing manufacturer that differentiates its sinks,

faucets, and toilets through the use of bold fashionable designs. This illustrates
how:
A)
B)
C)
D)
makers of convenience products try to stimulate impulse buying at the point

of purchase.
makers of shopping products try to get customers to view their products as
different from others in the category.
makers of specialty products use limited distribution and higher prices to
enhance the prestige of the brand.
makers of unsought products use aggressive promotion and personal selling
to make customers aware of their need for a product.
makers of shopping products use economies of scale to offer lowest prices.
E)
Feedback:
AACSB: Analytic
Level of Difficulty: Hard

Blooms: Analyze
As a maker of sinks, faucets, and toilets, Kohler offers goods classified as
shopping products. The fact the Kohler seeks to differentiate its products by
adding bold fashionable designs illustrates how makers of shopping products
seek ways to keep customers from viewing their products as the same as all
others in the category.

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Test 2 Prep

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Carla and John earn $7000 each month.

After paying taxes of $1000, the two pay $4000 necessities

According to the text, the economic-buyer theory:

A person's social class is determined by all of the following variables except

Reference-group influence would be weakest for determining which particular

economic needs influence the buyer decision process.

Topic: The Consumer Decision Process

For consumers making high-involvement purchases that require extensive

need awareness, problem solving, purchase decision, post-purchase

problem solving, purchase decision, post-purchase evaluation, need

Which of the following is not true regarding organizational buyers?

Buyers for all kinds of organizations (governments, nonprofit groups,

marketing managers often refer to organizational customers collectively as

A modified rebuy would be most likely when:

To sell to manufacturers, marketers need to understand important

Large manufacturers tend to highly formal buying procedures and

Topic: Manufacturers Are Important Customers

Large wholesale and retail buyers typically:

should be planned by research specialists who understand research

Level of Difficulty: Medium

Review of information found in an MIS

Which of the following statements is accurate regarding qualitative research?

Qualitative research can easily be summarized in numbers such as

Which of the following is not a good example of the observation method of

The manager of a supermarket occasionally walks through the store to see

The owner of a shopping center puts a counting device at the entrance to

Which of the following research methods primarily uses observation as a means

The response rate to a survey affects:

In an international setting, marketers should partner with locals to conduct

foreigners have great difficulty gathering accurate information on foreign

A company with a large product assortment might:

Nonrecognition of the brand name of a firm's product is likely to be least

If a consumer product is used regularly and usually bought frequently and

be more important for a homogeneous shopping product than for a specialty

Kohler is a kitchen-and-bath plumbing manufacturer that differentiates its sinks,

makers of convenience products try to stimulate impulse buying at the point

Learning Objective: 08-07

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