question

Brenda wants a new car that will be dependable transportation and look good. She wants to satisfy both functional and psychological needs. True or False

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True

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Maslow's Hierarchy of Needs is an interesting concept for psychology, but it has little relevance for marketing. True or False

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False

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Upscale men's and women's clothing stores primarily appeal to consumers' ______________ needs. - functional -postpurchase - safety - psychological - situational

answer

psychological

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Marketers love consumers who engage in __________________, buying their company's product with little thought or consideration of alternatives. - compensatory decisions - limited problem solving - extended problem solving - reference group consumption - habitual decision making

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habitual decision making

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The discrepancy between a consumer's actual state and desired state is associated with which of the following steps in the consumer decision process? - need recognition - information research - alternative evaluation - purchase - postpurchase

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need recognition

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Which of the following needs pertain to the performance of a product or service? - need recognition - functional needs - demographic needs - psychological needs - cultural needs

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functional needs

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_____ involves the buyer considering his own personal knowledge about a product based on past experience. - information search - Internal search for information - external search for information - experimental search for information - vicarious experience

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Internal search for information

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The fact that a family would spend a lot more time researching the market before making a home purchase than it would in the decision to purchase an inexpensive dollhouse for the youngest member of household can best be explained by the _____. - locus of control - performance risk - psychological risk - social risk aversion - perceived benefits versus perceived costs of search

answer

perceived benefits versus perceived costs of search

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A purchase decision can be delayed or discouraged altogether due to a number of different forms of _____. - locus of control - information search - need recognition - perceived risk - evaluative criteria

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perceived risk *Five types of risk associated with purchases can affect the timing and likelihood of a purchase decision

question

Once a consumer has recognized a need and searched for possible options, he must shift through the choices available and _____. - recognize additional needs - search for more information - evaluate the alternatives - make the purchase - engage in postpurchase behaviors

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evaluate the alternatives *The third step in the consumer decision making process, after need recognition and information search, is the evaluation of alternatives.

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When consumers are engaged in the consumer decision process, the specific brands or stores they can readily recall in a product category are called the _____. - universal set - retrieval set - attribute set - evoked set - brand set

answer

retrieval set * Retrieval sets are those brands and stores that consumers can readily bring forth from memory

question

When Catherine was considering different brands of jeans to buy, she could only think of three she would actually consider purchasing. These three brands make up her _____. - universal set - retrieval set - attribute set - evoked set - brand set

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evoked set * A consumer's evoked set comprises the alternative bands that the consumer states she would probably consider actually purchasing

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Ethan considered three important attributes when deciding where he would do his banking: the convenience of the location, hours of operation, and interest rates for CDs. In this situation, these three attributes are called _____. - attribute sets - evaluative sets - evaluative criteria - formative criteria - alternative evaluation

answer

evaluative criteria *Evaluative criteria consist of salient attributes about a particular product category that are used to evaluate the attractiveness of different alternatives

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Nathan wanted to be able to pick up a pair of new athletic shoes immediately when he purchased them, however, he was willing to trade off immediate availability because he could purchase the shoes and a 50% discount online. This is an example of using a _____. determinant attribute compensatory decision rule noncompensatory decision rule decision heuristic conversion rate

answer

noncompensatory decision rule *A compensatory decision rule involves trading off one desired characteristic against another such that a desirable characteristic will compensate for another.

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According to the Elaboration Likelihood Model, which of the following variables determines whether limited or extended problem solving will operate in a particular purchase decision? Purchase readiness Attentional capacity Likelihood of purchase The level of involvement The level of elaborate thinking

answer

The level of involement *Consumers engage in two types of buying processes depending on their level of involvement: extended problem solving for high-priced or risky goods, and limited problem solving, which includes impulse buying and habitual decision making.

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_____ are firms that buy and reprocess products and services before selling them again to the next buyer. Manufacturers Producers Resellers Institutions Government

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Producers *Manufacturers buy raw materials, components, and parts which they reprocess, allowing them to produce their own goods for resale.

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_____ are marketing intermediaries that resell manufactured products without significantly altering their form. Manufacturers Producers Resellers Institutions Government

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Resellers *Resellers are marketing intermediaries that resell manufactured products without making significant alterations in their form.

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In terms of business markets, organizations like hospitals that provide goods and services to people in their care are classified as _____. manufacturers producers resellers institutions government

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Institutions *Hospitals, educational organizations, and religious organizations are classified as institutional business markets.

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In most countries, the _____ market is one of the largest purchasers of goods and services. rev: 04_16_12 manufacturing producer reseller institutional government

answer

government *Generally speaking, the government market purchases the most goods and services, including manufactured goods, consulting services, technology, healthcare, and human services.

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The business-to-business buying process is initiated by which of the following steps? The RFP process Need recognition Proposal analysis Product specification Vendor performance assessment

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Need recognition *In the first stage of the B2B buying process, the buying organization recognizes it has an unfulfilled need.

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After recognizing a need, an organization would consider alternative solutions and move to the second stage of the business-to-business buying process, which is _____. the RFP process proposal analysis order specification product specification vendor performance assessment

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product specification *Once an organization recognizes a need, it moves to the second stage of the process which is product specification.

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John is involved in the buying center of a large organization by determining whether to buy what to buy how to buy and where to buy. What role does he play in this situation? Initiator Influencer → Decider Buyer Gatekeeper

answer

Decider *The decider is the person who ultimately determines any part of the entire buying decision including whether to buy, what to buy, how to buy, or where to buy.

question

In a firm with multiple participants in the _____ buying center, one person makes the decision alone. autocratic consensual consultative democratic republic

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autocratic *In autocratic buying centers, one person makes the decision alone, even though there may be multiple participants.

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Business purchases where the majority rules, are considered to be _____ buying centers. republic autocratic democratic consensual consultative

answer

democratic *Democratic buying centers require that the majority supports the purchase decision.

question

The University will purchase new computers during the summer to update the computer labs. Although the new computers will be more advanced in terms of their technology, the purchase itself will involve some of the same considerations as those for previous purchases. This is an example of which of the following types of buying situation? Straight rebuy Standard rebuy Modified rebuy New buy Capital buy

answer

Modified buy *In a modified rebuy, the buyer has purchased a similar product in the past but some specifications for the purchase have been changed.

question

When Kinko's replenishes its supply of copy paper, it most likely involves a _____ situation. new buy standard rebuy modified rebuy straight rebuy material buy

answer

straight rebuy *Straight rebuys occur when buyers simply buy additional units of products that they had previously purchased.

question

In both new buy and straight rebuy situations, all members of a buying center will be intensely involved in the purchasing decision. True False

answer

False *In a new buy, all members of the buying center will be involved in the purchasing decision; however, in a straight rebuy, it is likely that the buyer (who may be a purchasing agent) will handle the transaction, perhaps with prompting from an initiator (who might also be the user).

question

Nearly all small businesses have consensus buying centers. True False

answer

False *Small businesses have different buying center cultures. In a given business, the buying center culture might be Autocratic, Democratic, Consultative, or Consensus.

question

An organization's culture reflects the _____________________ that guide its employees' behavior. B2B dynamics RFP process buying center philosophy set of values, traditions, and customs derived set of influences

answer

set of values, traditions, and customs *Just as nations and regions have cultures--sets of values, traditions, and customs--organizations have cultures too.

question

Which of the following is NOT one of the four general types of organizational cultures? autocratic democratic consultative capitalist consensus

answer

capitalist *The four types of organizational cultures are Autocratic, Democratic, Consultative, and Consensus.

question

Originally focused on relocating manufacturing to lower-cost production countries, _____ has now grown to include medical services, financial advice, and technological support. the globalization of production the World Bank Group the World Trade Organization the International Monetary Fund the General Agreement on Tariffs and Trade

answer

the globalization of production *Offshoring, the globalization of production, was originally intended to take advantage of low-cost structures of production in foreign countries, although it has grown to include products associated with a knowledge economy.

question

The purpose of the _____ is to lower trade barriers, such as high tariffs on imported goods as well as other restrictions that inhibit the free flow of goods across borders. globalization of production World Trade Organization International Monetary Fund World Bank Group General Agreement on Tariffs and Trade

answer

General Agreement on Tariffs and Trade *The General Agreement on Tariffs and Trade was enacted to lower trade barriers to allow the free flow of goods across borders.

question

The _____ represents the only international organization that deals with the global rules of trade among nations. World Bank Group World Trade Organization Federation of Global Trade International Monetary Fund General Agreement on Tariffs and Trade

answer

World Trade Organization *Based in Geneva, Switzerland, the World Trade Organization is the only international organization dealing with global rules of trade.

question

Dedicated to fighting poverty, the _____ was conceived to improve the living standards of people in the developing world. Federation of Global Trade World Trade Organization International Monetary Fund World Bank Group General Agreement on Tariffs and Trade

answer

World Bank Group *The fundamental purpose of the World Bank Group is to fight poverty and improve living standards for people in the developing world.

question

_____ is the most widely used metric to gauge the size and market potential of an economy. The trade deficit Gross national income Gross domestic product Purchasing power parity The human development index

answer

Gross Domestic Product *Gross domestic product is the most widely used metric to gauge the size and market potential of the economy, and is defined as the market value of the goods and services produced by the country in particular year.

question

The Economist's Big Mac Index, which suggests that exchange rates should adjust to equalize the cost of a basket of goods and services using McDonald's Big Mac as the market basket, is an example of which of the following metrics? Trade deficit Human development index Gross domestic product Gross national income Purchasing power parity

answer

Purchasing power parity *Purchasing power parity is a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, if expressed in the same currency. The Economist's Big Mac Index is an example of this.

question

_____ is a composite metric of three indicators of the quality of life in different countries: life expectancy at birth, educational attainment, and whether the average incomes are sufficient to meet the basic needs of life in the country. The trade deficit Gross national income Gross domestic product Purchasing power parity The human development index

answer

The human development index

question

If a small business wants to take the least risky strategy to enter its first foreign market, it would choose which of the following global entry strategies? Exporting Franchising Joint venture Strategic alliance Direct investment

answer

Exporting *Exporting involves producing goods in one country and selling them in another, requiring the least financial risk with only a limited return.

question

_____ involves a binding contractual agreement between two businesses whereby the marketing operations are tightly controlled and often standardized. Exporting Franchising Joint venture Strategic alliance Direct investment

answer

Franchising *Franchising is a contractual agreement between the firm, the franchisor, and another firm or individual, the franchisee. The franchising contract allows the franchisee to operate the business under a format developed and supported by the franchisor.

question

Although they do not directly invest in one another, independent firms entering into collaborative partnerships to expand globally are called _____. franchises joint ventures strategic alliances direct investments indirect investments

answer

Strategic alliances *Strategic alliances refer to collaborative relationships between independent firms, through the partnering firms do not create equity partnership; that is, they do not invest in one another.

question

Although China represents one of the largest markets for soup in the world, Campbell's Soup Company had to invest considerable time and effort in making changes to its existing products to sell them in that country primarily due to _____. cultural differences economic development pricing strategies distribution systems communication strategies

answer

cultural differences *The Chinese consume 320 billion bowls of soup each year, however, they take great pride in personally preparing it with fresh ingredients, which represented a significant cultural barrier that Campbell's soup Company had to overcome in its marketing efforts.

question

Less-developed countries like Switzerland and Britain are experiencing rapid population growth. True False

answer

False *Switzerland and Britain are among the more highly developed countries. In general, the populations of more developed countries are either not growing or even, in some cases, shrinking slightly

question

Collin wants information about the infrastructure in the countries his company is planning to export to. He will gather information about the transportation and communications capabilities in each country. True False

answer

True *The infrastructure of a country includes transportation and communications.

question

In recent years, the decline in the value of the dollar has hurt U.S. marketers: exporting goods to other countries. importing goods from other countries. through countertrade. through quotas. all of these.

answer

importing goods from other countries *U.S. firms importing from other countries must pay higher relative prices when the value of the U.S. dollar drops.

question

Many of the best-known American retailers, like KFC and McDonalds, have expanded globally using: franchising. exporting. joint venture. direct investment. strategic alliance.

answer

franchising *Franchising is a contractual agreement between two companies in which one pays for the right to use the brand and concept developed by the other. Fast food restaurant chains are one category in which franchising is widely used.

question

A self-values map displays the position of products or brands in the consumer's mind. True False

answer

False *The question describes a perceptual map, not a self-values map.

question

The first step in the STP process is to establish a strategy. True False

answer

True *The first step of the STP process is to establish strategy or objectives.

question

When Coca-Cola evaluated its overall mission, including its strengths, weaknesses, opportunities, and threats, it involved which step of the segmentation targeting and positioning process? Establish overall strategy or objectives Determined segmentation methods Evaluate segment attractiveness Select the target market Develop the positioning strategy

answer

Establish overall strategy or objectives *The first step in the segmentation process is to articulate the vision or objectives of the company's marketing strategy, consistent with its mission as well as its current situation.

question

Lawn care products manufacturer Scotts, has developed easy-to-follow annual lawn care programs to help homeowners develop thick, green lawns that will combat weeds, insects, and diseases. The specific steps and their timing vary based on climate. What type of segmentation does Scotts use as the basis to design these programs? Behavioral Demographic Geodemographic Geographic Geothermal

answer

Geographic *Geographic segmentation organizes consumers into groups on the basis of where they live, including their agricultural growing zone.

question

Evaluating each market segment's attractiveness and selecting one or more of the market segments to pursue is called _____. market segmentation target marketing market positioning market mixing cognitive dissonance

answer

Target marketing *Evaluating a segment's attractiveness is the first stage in target marketing.

question

The publishing conglomerate, Conde Nast is able to purchase mailing lists of people who have bridal interests, knowing that its Modern Bride magazine customers are somewhat distinct from those who subscribe to GQ. In terms of evaluating segment attractiveness, this is a way of assuring the segment is _____. substantial responsive reliable profitable identifiable

answer

Identifiable *A firm must be able to identify who is within its market, thus the segment must be identifiable.

question

In order for segmentation strategy be successful, the segment must react similarly and positively to firm's offering, corresponding to which of the following criteria for evaluating segment attractiveness? Substantial Reachable Responsive Profitable Identifiable

answer

Responsive *Firms must strive to target segments of customers in ways that they will be responsive to those marketing efforts.

question

The manufacture of t-shirts concentrates all efforts on cost containment by offering the product in only one size but in a variety of colors, using a one-size-fits-all approach. This involves a _____ targeting strategy. one-to-one mass marketing concentrated differentiated micromarketing

answer

Mass Marketing *An undifferentiated targeting strategy, or mass marketing, involves very little differentiation if any in the products offered to the marketplace.

question

General Motors targets several different market segments and designs separate automobile makes and models for each. This is an example of _____. undifferentiated marketing mass marketing concentrated marketing differentiated marketing micromarketing

answer

differentiated marketing * General Motors is using a differentiated targeting strategy to reach several market segments with a different offering for each

question

Mr. Dennison knows each and every child who comes in to his Kumon reading center, and prides himself on knowing how he can personally address each of their reading challenges. What type of market coverage strategy is Mr. Dennison employing in his business? Mass marketing Segment marketing Niche marketing Micromarketing Concentrated marketing

answer

Micromarketing *When a firm tailors a product or service to suit individual customers' wants and needs, it is undertaking micromarketing. This is particularly suitable for small producers.

question

Which of the following best describes the term "market positioning?" The position that a company holds in the market in terms of size relative to competitors. The output of the congruity analysis. The place the product occupies in consumer's minds relative to competing products. The geographic location of the headquarters of a corporation. A group of organizations that have similar wants and needs.

answer

The place the product occupies in consumer's minds relative to competing products. *Market positioning involves a process of defining the marketing mix so that the target consumers have a clear, distinctive, desirable perception and understanding of what the product does or represents in comparison with competing products.

question

The positioning strategy can help communicate a brand's _____, representing the unique value provided to customers. benefits segmentation value proposition segmentation method targeting strategy micromarketing

answer

value proposition *The value proposition is the unique value that a product or service provides to customers representing how it is better than and different from those of competitors.

question

_____ is a tool used to visually display how consumers perceive the position of products or brands in the market on different dimensions relative to competitors. An ideal point An optimal point A competitive map A perceptual map Competitive positioning

answer

A perceptual map *A perceptual map displays, in two or more dimensions, how consumers perceive the position of products or brands in a particular product category.

question

Marketers like Benetton want their ads to appeal to one's self-concept, suggesting to consumers: "Trendy products for the masses." "I'm like them, so I should buy their products." "I will never be rich, but I can dress like I am." "Be Peace." "All is fair in love, marketing, and war."

answer

"I'm like them, so I should buy their products." *Self-concept is the way we see ourselves. Benetton hopes that consumers will identify with the ads, seeing themselves (or the way they wish to be).

question

Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to: differentiate his product line. consider future customer loyalty. create a perceptual map. select a target market. divide geographic segments into lifestyle groups.

answer

select a target market. *After setting objectives, forming segments, and evaluating segment attractiveness, the next step of the STP process is to select one or more target markets.

question

B2B Buying Process

answer

Need Recognition, Product Specification, RFP Process, Proposal Analysis and Supplier Selection, Order Specification, Vendor/ Performance Assessment Using Metrics

question

Consumer Decisions Process

answer

Need Recognition, Information Search, Alternative Evaluation, Purchase, Post Purchase

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