Chapter 9—Decision Support Systems and Marketing Research

1. Everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans is referred to as:a. competitive intelligenceb. marketing informationc. decision support informationd. marketing researche. observation

ANS: BThis describes marketing information, and accurate and timely information is the lifeblood of marketing decision making.

PTS: 1 REF: 139 OBJ: 09-1 TOP: AACSB Reflective ThinkingKEY: CB&E Model Strategy MSC: BLOOMS Knowledge

2. A(n) _____ is an interactive, flexible, computerized information system that enables managers to obtain and manipulate information as they are making decisions.a. expert systemb. marketing information systemc. artificial intelligence systemd. marketing decision support systeme. database marketing system

ANS: DThis is the definition of a marketing decision support system.

PTS: 1 REF: 139 OBJ: 09-1 TOP: AACSB TechnologyKEY: CB&E Model Strategy MSC: BLOOMS Knowledge

4. A true marketing decision support system possesses all of the following characteristics EXCEPT:a. flexibleb. discovery orientedc. interactived. accessiblee. synergistic

ANS: EA true marketing decision support system is interactive, flexible, discovery oriented, and accessible.

5. _____ is the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns.a. Electronic targetingb. Sampling procedure specificationc. Database marketingd. Competitive data mininge. Consumer behavior marketing

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ANS: CThis is the definition of database marketing.

6. _____ is the process of planning, collecting, and analyzing data relevant to a marketing decision. The results of this analysis are then communicated to management.a. Data collectionb. Artificial intelligencec. Decision supportd. Marketing researche. Single-source research

ANS: DThis is the definition of marketing research.

PTS: 1 REF: 140 OBJ: 09-2 TOP: AACSB Reflective ThinkingKEY: CB&E Model Research MSC: BLOOMS Knowledge

10. Marketing research has three functional roles. These roles are:a. normative, descriptive, and explanatoryb. predictive, normative, and persuasivec. descriptive, diagnostic, and predictived. flexible, interactive, and discovery-orientede. descriptive, explanatory, and predictive

ANS: CThe three roles are descriptive, diagnostic, and predictive.

PTS: 1 REF: 140 OBJ: 09-2 TOP: AACSB Reflective ThinkingKEY: CB&E Model Research MSC: BLOOMS Knowledge

21. In contrast to marketing research problems, management decision problems are:a. action orientedb. pervasivec. narrower in scoped. synergistice. information oriented

ANS: AThe marketing research problem is information oriented, but the management decision problem is action oriented.

PTS: 1 REF: 141 OBJ: 09-3 TOP: AACSB Reflective ThinkingKEY: CB&E Model Research MSC: BLOOMS Comprehension

23. Data previously collected for purposes other than the one at hand are an important source of information as the researcher defines the problem. These data are called _____ data.a. single-sourceb. secondaryc. primary

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d. consensuale. convenience

ANS: BThis is the definition of secondary data.

25. Trade groups, commercial publications, and government departments can be used as sources of:a. secondary datab. consensual informationc. primary datad. artificial intelligencee. marketing audits

ANS: AInnumerable outside sources of secondary information exist, such as trade and industry associations, business periodicals, and government departments and agencies.

33. The research design specifies:a. follow-up procedures for the researchb. the information that will be foundc. how the final report will be writtend. how the information gathered will be used to predict external environmental changese. the research questions to be answered

ANS: EThe research design specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.

34. Information collected for the first time for the purpose of solving a particular problem under investigation is called _____ data.a. primaryb. secondaryc. dichotomousd. observatione. convenience

ANS: AThis is the definition of primary data.

PTS: 1 REF: 142 OBJ: 09-3 TOP: AACSB Reflective ThinkingKEY: CB&E Model Research MSC: BLOOMS Knowledge

37. What is the chief advantage of primary data?a. Low cost compared to secondary datab. Relevance to the problem at handc. Availability to any interested party for used. Accessibility through computerized databasese. Avoiding interviewer biases

ANS: B

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Primary data are information collected for the first time for the purpose of solving a particular problem under investigation.

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41. The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes.a. heuristic orientedb. survey researchc. experimentsd. observation researche. single-source research

ANS: BSurvey research takes several forms and is the most popular method for gathering primary data.

42. In-home personal interviews:a. offer high-quality data at a high costb. offer the ability to obtain high-quality data at a low costc. are becoming increasingly more populard. are less expensive than mall interceptse. offer information of moderate quality but at a low cost

ANS: AThe cost of interviewer time and mileage is high, but these interviews yield high-quality information.

43. Which type of survey research method involves interviewing people in the common areas of shopping malls?a. Telephone interviewsb. Panel surveysc. Mall intercept interviewd. Centralized interviewse. Interactive research

ANS: CThis is the definition of a mall intercept interview.

50. Telephone interviews offer:a. speed in gathering datab. a potential for reaching all householdsc. few nonresponsesd. the ability to collect large amounts of complex datae. the lowest-cost method for obtaining data

ANS: ATelephone interviews are one of the fastest means for collecting data. See Exhibit 9.2.

75. _____ research depends on watching what people do.a. Anonymous viewershipb. Observationc. Interactived. Personal scannere. Survey

ANS: B

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Observation research is a method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity.

89. A(n) _____ sample is characterized by every element in the population having a known statistical likelihood of being selected.a. irregularb. probabilityc. nonprobabilityd. conveniencee. piggyback

ANS: BThis is the definition of a probability sample.

93. A _____ sample is any sample in which little or no attempt is made to obtain a representative cross section of the population.a. frameb. randomc. probabilityd. nonprobabilitye. representational

ANS: DThis is the definition of a nonprobability sample.

94. Nonprobability samples:a. require more expensive marketing research than probability samplingb. include any sample in which little is done to obtain a representative cross section of the

populationc. by definition must be representative of the populationd. often start out with random numbers to ensure selection of subjects is truly randome. offer an easy method for determining sampling error

ANS: BA nonprobability sample is any sample in which there is little or no attempt to obtain a representative cross section of the population.

103. Which of the following is a type of probability sample?a. Judgment sampleb. Convenience samplec. Random sampled. Quota samplee. Snowball sample

ANS: CA random sample is a type of probability sample in which every member of the population has a known and equal chance of selection. The other types of samples are nonprobability samples. See Exhibit 9.4.

116. All of the following are advantages associated with the use of Internet surveys EXCEPT:a. decreased costsb. ability to contact hard-to-reach respondentsc. reduced measurement errord. ability to get survey results much more rapidly

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e. ability to personalize the survey

ANS: CMeasurement error is not an advantage associated with the use of Internet surveys.

118. All of the following are advantages associated with online focus groups EXCEPT:a. good participation ratesb. cost-effectivenessc. narrow geographic scoped. accessibilitye. honesty of respondents

ANS: COnline focus groups offer a broad geographic scope.

123. Marketing research should not be undertaken when:a. the perceived costs are greater than the projected benefitsb. there are no secondary data in existence to guide the project definitionc. it will take a long time to completed. the actual costs are less than the forecasted benefitse. the perceived costs are the same as the forecasted benefits

ANS: AResearch should be undertaken only when the expected value of the information is greater than the cost of obtaining it.

PTS: 1 REF: 154-155 OBJ: 09-6 TOP: AACSB Reflective ThinkingKEY: CB&E Model Research MSC: BLOOMS Analysis

124. An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors is called:a. competitive researchb. competitive intelligencec. industrial espionaged. an audite. differential competitive advantage

ANS: BThis is the definition of competitive intelligence.

MSC: BLOOMS Synthesis

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Chapter 11—Developing and Managing Products

2. New-to-the-world products, where the product category itself is new, are also called:a. discontinuous innovationsb. moderate innovationsc. slow-diffusing productsd. venture productse. creative offerings

ANS: AThese products create an entirely new market.

13. _____ occurs when an existing product is targeted toward new market segments. It is another type of new-product development because the product is new to that segment.a. Brainstormingb. Diffusingc. Repositioningd. Screeninge. Reciprocity

ANS: CRepositioned products are existing products targeted at new markets or market segments, or ones repositioned to change the current market’s perception of the product.

14. Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT:a. establish an environment conducive to achieving new-product objectivesb. make the long-term commitment needed to support innovation and new-product

developmentc. capitalize on experience to achieve and maintain competitive advantaged. use a company-specific approach, driven by corporate objectives and strategies, with a

well-defined new-product strategy at its coree. introduce ten new products every year

ANS: EIntroducing a specific number of new products each year is not one of the factors identified for success.

16. The first stage of the new-product development process is:a. screening and concept testingb. establishing the new-product strategyc. exploring opportunitiesd. developing a business analysise. the building of a prototype

ANS: BSee Exhibit 11.1. New-product strategy is the first subset of the organization’s new-product development plan. It specifies what roles new products play in the organization’s overall plan and describes goals.

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18.Which of the following is the LEAST likely source for new-product ideas?a. A company’s distributorsb. Its customersc. Its employeesd. Its financial lenderse. Its competitors

ANS: DCustomers, employees, distributors, and competitors are interacting with the marketplace and may have ideas for goods to serve customer needs. The bank from which the company gets its debt financing is the least likely alternative here.

20. The process of converting applications for new technologies into marketable products is called:a. basic researchb. product modificationc. marketing developmentd. product developmente. correlation analysis

ANS: DProduct development is a marketing strategy that entails the creation of marketable new products.

21. _____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas.a. New-product brain dumpingb. Screeningc. A focus group interviewd. Brainstorminge. Diffusion

ANS: DThe goal of brainstorming is to get a group to think of unlimited ways to vary a product or solve a problem, no matter how ridiculous it may seem.

24. Which of the following stages of the new-product development process is the first filter, which serves to eliminate new-product ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason?a. Applied diffusionb. Introductory diffusionc. Business analysisd. Test marketinge. Idea screening

ANS: EMost new-product ideas are rejected at this stage, called the idea screening stage.

25. At what stage of the new-product development process are most new-product ideas rejected?a. Test marketingb. Diffusionc. Business analysisd. Idea screening

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e. Idea generation

ANS: DScreening is the stage when the bulk of the ideas are rejected for being incompatible or impractical.

30. _____ evaluate new-product ideas usually before any prototype has been created.a. Concept testsb. Simulated market testsc. Market testsd. User testse. Venture analyses

ANS: AConcepts test are often used at the screening stage to rate concept (or product) alternatives.

PTS: 1 REF: 175 OBJ: 11-2 TOP: AACSB Reflective ThinkingKEY: CB&E Model Product MSC: BLOOMS Knowledge

34. In the _____ stage of new-product development, the technical feasibility of manufacturing the new product is examined as a prototype is produced.a. screeningb. developmentc. market testingd. concept testinge. business analysis

ANS: BDuring the development stage, the technical feasibility of manufacturing the product at a reasonable cost is thoroughly examined. This stage can be long and expensive and can involve a great deal of testing. Products are often modified after the testing.

35. A team-oriented approach to new-product development is referred to as:a. simultaneous product developmentb. synergistic product developmentc. commercialized product developmentd. synchronized product developmente. parallel product development

ANS: AThe development process works best when all the involved areas (research and development, marketing, engineering, production, and even suppliers) work together rather than sequentially, a process call simultaneous product development.

37. _____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.a. Use testingb. Test marketingc. Concept testingd. Laboratory testinge. Discontinuous innovation

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ANS: BAfter products and marketing programs have been developed, they are usually tested in the marketplace using test marketing, which is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

39. A(n) _____ typically entails showing members of the product’s target market advertising and other promotional materials for several products, including the test product. These people are then taken to a mock or real store, where their purchases are recorded.a. adoption-rate testb. real test marketc. concept testd. simulated (laboratory) market teste. consumer juried test

ANS: DThis is a description of a simulated (laboratory) market test.

PTS: 1 REF: 177-178 OBJ: 11-2 TOP: AACSB Reflective ThinkingKEY: CB&E Model Product | CB&E Model Research MSC: BLOOMS Knowledge

40. The maker of Purell hand sanitizer tested consumers’ reactions to its Purell Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and then “shop” in a mock store filled with real products, including the new product. This is an example of a(n):a. adoption-rate testb. simulated (laboratory) market testc. concept testd. use teste. juried consumer test

ANS: BSimulated (laboratory) market tests typically entail showing members of the target market advertising for a variety of products and then monitoring purchase behavior in a mock or real store.

PTS: 1 REF: 177-178 OBJ: 11-2 TOP: AACSB Reflective ThinkingKEY: CB&E Model Product MSC: BLOOMS Application

41. Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?a. Product samplingb. Simulated product adoptionc. Online test marketingd. Simulated diffusione. Market concentration

ANS: CThe text describes Proctor & Gamble’s online test marketing.

42. The final stage in the new-product development process is:a. product testing

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b. market testingc. commercializationd. product prototypinge. simulated marketing

ANS: CCommercialization is the decision to market a product.

43. During the _____ stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin.a. commercializationb. product testingc. market analysisd. product prototypinge. simulated marketing

ANS: AThe commercialization stage is the decision to market a product and sets several task in motion.

46. A product that is perceived as new by a potential adopter, whether the product is “new to the world” or simply new to the individual, is called a(n):a. innovationb. diffusionc. discontinuous productd. laggarde. simulated new product

ANS: AAn innovation is a product perceived as new by a potential adopter.

48. The process by which the adoption of an innovation spreads is referred to as:a. diffusionb. circulationc. transmissiond. disseminatione. dispersion

ANS: AThis is the definition of diffusion.

50. _____ are eager to try new ideas and products. They typically have higher incomes, are better educated, and are more cosmopolitan than other categories of adopters.a. Early adoptersb. Innovatorsc. Early majorityd. Late majoritye. Laggards

ANS: BThese are characteristics of innovators, who are almost obsessed with trying new ideas and products.

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55. All of the following are categories of adopters in the diffusion process of innovations EXCEPT:a. laggardsb. innovatorsc. early majorityd. early adopterse. doubters

ANS: EThe five categories of adopters are innovators, early adopters, early majority, late majority, and laggards.

58. The _____ adopt a product because most of their friends have already done so, and their adoption is usually the result of pressure to conform because they rely on group norms.a. laggardsb. early adoptersc. early majorityd. innovatorse. late majority

ANS: E PTS: 1 REF: 180 OBJ: 11-4TOP: AACSB Reflective Thinking KEY: CB&E Model Product | CB&E Model StrategyMSC: BLOOMS Knowledge

63. Which is the last adopter category to adopt an innovation?a. Late majorityb. Laggardsc. Late diffusersd. Reluctant adopterse. Traditionalists

ANS: BLaggards represent the final 16 percent to adopt an innovation. By the time they adopt an innovation, it has probably become outmoded and replaced by something else.

64. All of the following are product characteristics influencing the rate of adoption EXCEPT:a. complexityb. compatibilityc. relative advantaged. observabilitye. distribution

ANS: EWhile it is a marketing factor that may influence the rate of adoption of a new product, distribution is not a product factor influencing the rate of adoption.

65. Which product factor influencing the rate of adoption represents the degree of difficulty involved in understanding and using a new product?a. Complexityb. Compatibility

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c. Relative advantaged. Observabilitye. Trialability

ANS: AThe more complex the product, the slower is its diffusion.

67. Which product characteristic affecting the rate of adoption represents the degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs?a. Complexityb. Compatibilityc. Relative advantaged. Observabilitye. Trialability

ANS: BProducts that are compatible with others will gain from existing product knowledge, past experiences, and current needs.

71. The product characteristic affecting the rate of adoption characterized by the degree to which a product is perceived as superior to existing substitutes is:a. compatibilityb. complexityc. relative advantaged. product differentiatione. competitive advantage

ANS: CThe relative advantage is the degree to which a product is perceived to be superior to existing substitutes.

76. The degree to which a product can be used on a limited basis represents which product characteristic influencing the rate of adoption?a. Complexityb. Trialabilityc. Observabilityd. Relative advantagee. Sampling

ANS: BTrialability is the degree to which a product can be tried on a limited basis.

81. All the brands that satisfy a particular type of need such as shaving products, laundry detergent, soft drinks, and furniture make up a(n):a. product life cycle stageb. primary groupc. adopter categoryd. product categorye. reference group

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ANS: DThis is the definition of a product category.

PTS: 1 REF: 181 OBJ: 11-5 TOP: AACSB Reflective ThinkingKEY: CB&E Model Product MSC: BLOOMS Comprehension

85. The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage.a. growthb. declinec. introductoryd. maturitye. commercialization

ANS: ABecause losses often occur during the introductory stage, profits first appear in the growth stage.

87. At the beginning of the maturity stage of the product life cycle, sales typically:a. become flat and do not changeb. increase at an increasing ratec. decrease at a decreasing rated. decrease at an increasing ratee. increase at a decreasing rate

ANS: EIn the maturity stage, sales are still increasing, but the rate of increase has slowed down.

89. In which stage of the product life cycle do marginal competitors start dropping out of the market?a. Introductionb. Growthc. Maturityd. Declinee. Shake-out

ANS: CIn the maturity stage, sales increase at a decreasing rate, and as prices and profits continue to fall, marginal competitors start dropping out of the market.

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Chapter 6—Consumer Decision Making

2. The steps of the consumer decision-making process in order are:a. need recognition, alternative aggregation, reevaluation, purchase decision, postpurchase

behaviorb. need positioning, stimulus response reactions, evaluation of alternatives, purchase

decision, postpurchase behaviorc. need positioning, alternative aggregation and divestment, purchase decision, postpurchase

evaluationd. information search, need positioning, evaluation of alternatives, product trial, purchase

decision, postpurchase satisfactione. need recognition, information search, evaluation of alternatives, purchase, and

postpurchase behavior

ANS: ESee Exhibit 6.1.

3. Which step in the consumer decision-making process is a result of an imbalance between actual and desired states?a. Evaluation of alternativesb. Want recognitionc. Purchased. Need recognitione. Postpurchase behavior

ANS: DNeed recognition is the result of an imbalance between actual and desired states.

5. Which of the following is any unit of input affecting one or more of the five senses: sight, smell, taste, touch, and hearing?a. Tacticb. Needc. Stimulusd. Wante. Desire

ANS: CStimuli can be either internal, such as occurrences you experience, or external, which are influences from an outside source. Both affect one or more of the five senses.

11. After a need or want is recognized, a consumer may search for information about the various alternatives available to satisfy it. This occurs during which part of the consumer decision-making process?a. Evaluation of alternativesb. Information searchc. Cognitive dissonanced. Consideration stagee. Product identification

ANS: B

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After recognizing a need or want, consumers search for information about the various alternatives available to satisfy it.

14. Which of the following is an information source that is not associated with advertising or promotion?a. Externalb. Nonmarketing-controlledc. Marketing-controlledd. Unbiasede. Primary

ANS: BNonmarketing-controlled information sources do not originate with marketers promoting the product.

15. An external information search is especially important when:a. there is a great deal of past experienceb. there are high costs associated with making an incorrect decisionc. the cost of gathering information is highd. buying frequently purchased, low-cost itemse. there is little risk of making an incorrect decision

ANS: BIf a consumer perceives a purchase to involve high risk (financial, social, etc.), an external search will lower the risk by providing more information.

20. All of the following influence the extent to which an individual conducts an external search for information EXCEPT:a. perceived riskb. knowledgec. prior experienced. social classe. level of interest

ANS: DSocial class wouldn’t necessarily affect the amount of information search a consumer would conduct.

21. A group of brands, resulting from an information search, from which a buyer can choose is referred to as the buyer’s:a. evoked setb. primary setc. inert setd. complete sete. justifiable set

ANS: AA buyer’s evoked set is the set of alternatives from which a buyer can choose; also called consideration set.

25. Extending a well-known and respected brand name from one product category to another product category is referred to as:a. brand stretchingb. brand extensions

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c. brand bouncingd. brand transfere. brand building

ANS: BBrand extensions are common a way companies employ categorization to their advantage.

30. All of the following are ways consumers can reduce cognitive dissonance EXCEPT:a. justifying the decisionb. seeking new informationc. sending a letter to the marketerd. avoiding contradictory informatione. returning the product

ANS: CCognitive dissonance is the inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

31. How can marketers reduce consumers’ cognitive dissonance?a. Offer guaranteesb. Offer sales promotionsc. Avoid contradictory informationd. Change the producte. Ignore it

ANS: ACognitive dissonance is an inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions, and marketers can reduce it by sending a postpurchase thank you or letter, displaying product superiority in ads, or offering guarantees.

32. _____ is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.a. Economic valueb. Involvementc. Opportunity costd. Temporal coste. Perceived level of personal risk

ANS: BThis is the definition of involvement.

33. The types of products people purchase using routine response behavior are typically:a. frequently purchased, low-cost itemsb. frequently purchased, high-cost itemsc. infrequently purchased, low-cost itemsd. infrequently purchased, high-cost itemse. all types of items, regardless of price or frequency of purchase

ANS: ARoutine response behavior is the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services.

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34. _____ is characterized by low involvement, a short time frame, an internal-only information search, and low costs.a. Limited decision makingb. Routine response behaviorc. Emotional buyingd. Intensive decision makinge. Temporally-limited behavior

ANS: B See Exhibit 6.2.

37. The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category is referred to as:a. routine response behaviorb. limited decision makingc. extensive decision makingd. uninvolved decision makinge. affective decision making

ANS: BThis is the definition of limited decision making.

41. When a consumer is purchasing an unfamiliar, expensive product or an infrequently bought item, he or she is practicing:a. extensive decision makingb. cognitive harmonizingc. limited problem solvingd. strategic behaviore. stimulus discrimination

ANS: AThis is the definition of extensive decision making.

45. All of the following factors directly influence consumers’ level of involvement in the purchase process EXCEPT:a. consumer’s ageb. previous experience with the productc. financial risk associated with the productd. social visibility of the purchased iteme. perceived risk of negative consequences as a result of the purchase

ANS: AAge is a demographic variable that doesn’t necessarily influence a consumer’s level of involvement.

54. An enduring belief that a specific mode of conduct is personally or socially preferable to an alternative mode of conduct is called a(n):a. lifestyleb. self-conceptc. attituded. valuee. perception

ANS: D

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This is the definition of a value.

55. Homogeneous groups of people who share elements of the overall culture as well as unique elements of their own group are called:a. autonomous personal unitsb. probability samplesc. subculturesd. normative groupse. dissociative groups

ANS: C58. A(n) _____ is a group of people in a society who are considered nearly equal in status or community

esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms.a. extended familyb. subculturec. dissociative groupd. social classe. procreational family

ANS: DThis is the definition of social class.

60. Social influences on consumer buying decisions include:a. society, culture, and familyb. reference groups, society, opinion leaders, and familyc. personality, lifestyle, and reference groupsd. reference groups, opinion leaders, and familye. lifestyle, reference groups, and family

ANS: DLifestyle and personality are individual influences. Culture and society are cultural factors.

61. A group in society, such as family, friends, or a professional organization, that influences an individual’s purchasing behavior is called a(n):a. reference groupb. conformist groupc. opinion groupd. social groupe. influential group

ANS: AThis is the definition of reference group.

62. Reference groups can be categorized very broadly as either:a. primary or secondaryb. persuasive or nonpersuasivec. direct or indirectd. positive or negativee. personal or nonpersonal

ANS: CThe two categorizations of reference group are direct and indirect.

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65. A value or attitude deemed acceptable by a group is called a(n):a. expectationb. referencec. aspirationd. opinione. norm

ANS: ENorms are considered acceptable behavior by a given reference group.

68. Which category of reference groups represents groups in which a consumer does not have membership?a. Directb. Indirectc. Primaryd. Secondarye. Incomplete

ANS: BIndirect reference groups are groups consumers do not belong to, but they might aspire to belong to one (aspirational group) or not want to be associated with one (nonaspirational group).

71. Opinion leaders are:a. wealthy, well-educated individualsb. experts on all high-involvement consumer goodsc. usually the same individuals for all social classesd. people who influence otherse. easy to locate and target

ANS: DOpinion leaders are individuals who influence the opinions of others.

74. Cultural values and norms are passed down to children through the process of:a. accumulationb. encroachmentc. assimilationd. socializatione. manifestation

ANS: DChildren are socialized to learn the culture within which they are raised.

77. All of the following are individual factors influencing consumer buying decisions EXCEPT:a. genderb. agec. familyd. personalitye. life cycle stage

ANS: C

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A person’s buying decisions are influenced by personal characteristics that are unique to each individual, such as gender; age and life cycle stage; and personality, self-concept, and lifestyle. Family is a social factor influencing consumer buying decisions.

78. _____ is an orderly series of stages in which consumers’ attitudes and behavioral tendencies change through maturity, experience, and changing income and status.a. Socializationb. The wheel of consumerismc. The family life cycled. Lifestyle consumptione. Acculturation

ANS: CFamilies go through an orderly series of stages, and consumption attitudes and behaviors are influenced by one’s stage in the series.

79. An individual’s _____ is a composite of psychological makeup and environmental forces. It includes people’s underlying dispositions, especially their most dominant characteristics.a. acculturationb. socializationc. personalityd. autonomye. attitude

ANS: CThis describes personality, which is a way of organizing and grouping the consistencies of an individual’s reactions to situations.

80. _____ is how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations.a. Socializationb. Personalityc. Socializationd. Normalizatione. Self-concept

ANS: EThis is the definition of self-concept.

81. Which of the following represents the way an individual actually perceives himself or herself?a. Personal imageb. Ideal self-imagec. Real self-imaged. Lifestyle imagee. Defined self-image

ANS: CSelf-image can be real, which is how a consumer actually perceives himself or herself, or ideal, which is the way an individual would like to be.

83. The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture is called:

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a. identificationb. retentionc. comprehensiond. perceptione. cognitive adaptation

ANS: DThis is the definition of perception.

93. Ranked from the lowest to the highest level, Maslow’s hierarchy of needs model includes:a. safety, esteem, social, physiological, and self-actualization needsb. physiological, social, esteem, economic, and self-actualization needsc. psychological, safety, economic, esteem, and social needsd. physiological, safety, social, esteem, and self-actualization needse. safety, economic, social, esteem, and self-development needs

ANS: DSee Exhibit 6.6.

94. According to Maslow’s hierarchy of needs model, the first needs most people would try to satisfy are their _____ needs.a. safetyb. physiologicalc. economicd. esteeme. derived

ANS: BThe needs in order of lowest to highest are: physiological, safety, social, esteem, and self-actualization.

107. _____ is the learned ability to differentiate between similar objects such as packages of different brands of aspirin.a. Incentive discriminationb. Stimulus generalizationc. Selective perceptiond. Selective generalizatione. Stimulus discrimination

ANS: EThis is describing stimulus discrimination, which is a learned ability to differentiate among similar products.

109. Which of the following is an organized pattern of knowledge that an individual holds as true about his or her world?a. Beliefb. Valuec. Affectd. Attitudee. Descriptor

ANS: AThis is the definition of a belief.

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111. _____ are learned tendencies to respond consistently toward a given object.a. Motivational cuesb. Culturesc. Lifestylesd. Perceptionse. Attitudes

ANS: EThis is the definition of attitudes.

112. An attitude toward a product is:a. easy to changeb. a person’s point of view about the productc. the same as a beliefd. the same as “intention to buy”e. of short duration

ANS: B“Point of view” is a simpler way to state “learned tendency to respond consistently.” Both denote an opinion.

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Chapter 7—Business Marketing

2. A product is defined as a business product rather than a consumer good on the basis of its:a. intended useb. physical characteristicsc. priced. distribution methode. tangible attributes

ANS: AThe key characteristic distinguishing business products from consumer products is intended use, not physical characteristics.

7. All of the following are current roles of the Internet in business marketing EXCEPT:a. reduce costsb. eliminate distributorsc. build channel partnerships and trustd. brand building and developmente. integrate online and traditional media

ANS: BSee Exhibit 7.2

PTS: 1 REF: 105 OBJ: 07-2 TOP: AACSB Reflective ThinkingKEY: CB&E Model Strategy MSC: BLOOMS Analysis

18. A particular segment of the business market includes those individuals and organizations that purchase goods and services for the purpose of making a profit. They achieve this goal by using purchased goods and services to make other goods, to become part of other goods, or to facilitate the daily operations of the organization. This group is called the _____ segment of the business market.a. institutionb. resellerc. wholesalerd. producere. government

ANS: DThis describes the producer segment of business customers.

23. Businesses that buy finished goods and sell them for a profit are called:a. inventory carriersb. producersc. distribution networksd. resellerse. business facilitators

ANS: DThe reseller market includes retail and wholesale businesses that buy finished goods and resell them for a profit.

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26. The U.S. government is:a. not a business market segmentb. the world’s largest single customerc. an organization accounting for over 50 percent of the U.S. gross national productd. mainly a military equipment purchasere. using one centralized purchasing office for the entire government

ANS: BThe U.S. federal government is the world’s largest customer. The other alternatives do not apply because various branches of the government have separate purchasing departments, and billions of dollars are spent on food, clothing, desks, and other standard supply items (not just military hardware).

27. One segment of the business market has primary goals that differ from the ordinary business goals such as profit, market share, or return on investment. This segment includes many schools, churches, and civic clubs. Which business market is this?a. Institutionsb. OEMsc. Servicesd. Providerse. Resellers

ANS: AInstitutions such as schools, churches, and hospitals have service or activity goals but not profit goals and are an important business market.

31. The government uses a system called NAICS to classify North American business establishments. NAICS stands for:a. Non-American Industry Classification Systemb. North and South American Institutional Coding Servicesc. Non-American Industrial Corporation Systemd. North American Institution Code Systeme. North American Industry Classification System

ANS: EThe North American Industry Classification System (NAICS) is an industry classification system for classifying North American business establishments.

34. Managers can use the NAICS data to:a. create a more focused mission statementb. eliminate riskc. classify consumer behaviord. identify potential new customerse. determine purchase motives

ANS: DNAICS data can be converted to market potential estimates, market share estimates, and sales forecasts. It can also be used for identifying potential new customers.

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35. All of the following are demand characteristics of business markets EXCEPT:a. inelastic demandb. fluctuating demandc. joint demandd. stable demande. derived demand

ANS: DBusiness markets are characterized by derived demand, inelastic demand, joint demand, and fluctuating demand.

36. The demand for consumer goods often affects the demand for business products. This characteristic of business markets is called _____ demand.a. elasticb. inelasticc. fluctuatingd. derivede. joint

ANS: DThe demand for business products is called derived demand because organizations buy products to be used in producing their customers’ products.

40. When two or more items are used in combination to produce a final product, they are said to have _____ demand.a. derivedb. inelasticc. jointd. fluctuatinge. elastic

ANS: CThis is the definition of joint demand.

43. When demand for a product is _____, an increase or decrease in the price of the product will not significantly affect demand for the product.a. responsiveb. elasticc. inelasticd. derivede. bundled

ANS: CThis is the definition of inelastic demand.

52. The distribution structure in business marketing typically:a. includes at least one wholesalerb. is directc. is complex and multistaged. uses a three-step channele. uses retail distributors

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ANS: BDirect channels, where manufacturers market directly to users, are much more common in business markets than in consumer markets.

53. _____ is commonplace in business marketing and can sometimes occur over several months.a. Negotiationb. Need mediationc. Customerizationd. Purchase arbitratione. Disintermediation

ANS: ANegotiating is common in business marketing.

54. If a business needs a particular good or service and decides to look among its own customers for a provider of that good or service, the business is:a. working to create purchase arbitrationb. opening itself up to prosecution for illegal activitiesc. acting unethicallyd. trying to eliminate derived demand barrierse. practicing reciprocity

ANS: EReciprocity is the practice of business purchasers choosing to buy from their own customers.

58. _____ is the primary promotional method for the sale of all business products.a. Direct mailb. Advertisingc. Personal sellingd. Public relationse. Trade promotions

ANS: CBusiness sales tend to be large in dollar amounts and quantities and may require negotiation; thus, they may rely heavily on the salesperson’s ability to communicate and work with the customer.

59. All of the following are considered types of business products EXCEPT:a. raw materialsb. convenience goodsc. major equipmentd. accessory equipmente. component parts

ANS: BThe types of business products are major equipment, accessory equipment, raw materials, component parts, processed materials, supplies, and business services

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