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Chapter 12 Understanding Marketing Processes and Consumer Behaviour MULTIPLE CHOICE QUESTIONS. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following is correct with regard to the opening case entitled “Lululemon: A Clear Marketing Strategy, Even in Trying Times"? A) Lululemon is strongly focused on being an effective retailer and nothing more B) Lululemon's mission is to have the largest market share in the yoga-inspired athletic gear market C) In maintaining its tight focus, Lululemon does not offer yoga classes even though it sells yoga-inspired clothing D) Lululemon does not have an ecommerce site E) Lululemon's products are expensive and the company is unapologetic about that Answer: E 2) ________ is the process of planning and executing the development, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. A) Promotion B) Relationship marketing C) Marketing D) Market strategy E) Market segmentation Answer: C 3) Products that are purchased by individuals for their personal use are A) consumer goods. B) consumable goods. C) personal goods. D) industrial goods. E) market goods. Answer: A 4) When the whole firm is coordinated to profitably achieve the goal of serving its present and potential customers, this is known as A) marketing segmentation. B) demographics. C) the marketing concept. D) marketing. E) product differentiation. Answer: C 5) The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives is called A) publicity. B) marketing. C) relationship marketing. D) idea promotion. E) advertising. Answer: B 6) According to the marketing concept A) the firm must coordinate its marketing and non-marketing activities. B) customer satisfaction is the firm's only objective. C) maximum short-run profit is the firm's only objective. D) the marketing department should function independently of the rest of the firm. E) the finance area becomes critically important because ways must be found to pay for all the marketing research activity that is necessary. Answer: A 7) Value is determined by comparing a product’s ________________; the formula requires dividing ____________. A) costs and benefits; benefits by costs B) price and quality; price by quality C) price and durability; durability by price D) quality and durability; quality by durability E) availability and price; price by availability Answer: A 8) Products which are purchased by end users for their personal use are _________ goods, while products which are purchased by companies for production purposes are _________ goods. A) industrial; consumer B) capital; accessory C) consumer; industrial D) high utility; low utility E) none of these Answer: C 9) Which phrase best captures the essence of relationship marketing? A) Emphasis on price B) Emphasis on quality C) Emphasis on long-term relationships with customers D) Emphasis on reliable source of supply of products E) Emphasis on profitable operations Answer: C 10) Which phrase best captures the essence of relationship marketing? A) Emphasis on quality B) Emphasis on intensive distribution C) Emphasis on long-term relationships with customers D) Emphasis on exclusive distribution E) Emphasis on profitable operations Answer: C 11) Advertisements that alert people to the dangers of smoking are an example of A) idea marketing. B) consumer marketing. C) service marketing. D) relationship marketing. E) industrial marketing. Answer: A 12) Sales of raw materials, mainframe computers, and office supplies are an example of A) consumer marketing. B) relationship marketing. C) industrial marketing. D) service marketing. E) idea marketing. Answer: C 13) What kind of business activity is a business engaged in when it makes hydraulic filters for a manufacturing company? A) Consumer marketing B) Disaggregate marketing C) Market planning D) Industrial marketing E) Product differentiation Answer: D 14) Which term is used to identify products that are used by companies to produce other products? A) Target markets B) Consumer goods C) Relationship marketing D) Industrial goods E) Service marketing Answer: D 15) One of the results of adopting the marketing concept is that the firm A) develops a strong production orientation. B) spends more money on marketing. C) hires more top leaders for research and development. D) spends more time determining what customers want. E) becomes much more profit oriented. Answer: D 16) The ________ philosophy says that the entire firm is coordinated to serve its present and potential customers at a profit. A) marketing concept B) marketing functions C) marketing mix D) product mix E) marketing research Answer: A 17) The strategy for gearing marketing activities to meet consumer needs and wants and to do so profitably is A) relationship marketing. B) the marketing concept. C) the marketing plan. D) the marketing mix. E) market research. Answer: B 18) Products that are purchased by firms to produce other products are A) production goods. B) company goods. C) consumer goods. D) industrial goods. E) market goods. Answer: D 19) Coffee, cold medicine, cologne, cars, and toothpaste are examples of A) consumable goods. B) market goods. C) consumer goods. D) industrial goods. E) personal goods. Answer: C 20) Conveyors, coal, transistors, steel, and wheat are examples of A) industrial goods. B) consumer goods. C) company goods. D) production goods. E) market goods. Answer: A 21) Marketing of insurance, airlines, investment counsellors, and health clinics are examples of A) relationship marketing. B) industrial marketing. C) service marketing. D) idea marketing. E) consumer marketing. Answer: C 22) Marketing strives to provide all forms of utility except A) form B) time C) place D) ownership E) benefit Answer: E 23) Advertising to make people more aware of the hazards of drinking and driving is an example of A) industrial marketing. B) relationship marketing. C) service marketing. D) idea marketing. E) consumer marketing. Answer: D 24) Which of the following is not one of the major types of marketing? A) Idea marketing B) Telemarketing C) Consumer marketing D) Service marketing E) Industrial marketing Answer: B 25) Ads for soft drinks, cars, toys, and soap are examples of A) consumer marketing. B) relationship marketing. C) service marketing. D) industrial marketing. E) idea marketing. Answer: A 26) The marketing concept A) focuses on building products that provide value to customers. B) excludes input from the Human Resources department. C) means building a competitive advantage through product differentiation. D) means that the whole firm is coordinated to achieve one goal: customer satisfaction. E) does not include the finance department. Answer: D 27) Value compares a product's benefits with its ________. A) utility B) price C) satisfaction D) costs E) convenience Answer: D 28) Sales of janitorial services, mainframe computers, and office supplies to other manufacturers are examples of A) industrial marketing. B) service marketing. C) relationship marketing. D) consumer marketing. E) idea marketing. Answer: A 29) Which of the following is not a consumer good? A) Toothpaste B) Car C) Steel D) Cold medicine E) Perfume Answer: C 30) What kind of activity is a business firm engaged in when it sells its products to another business firm? A) Marketing research B) International marketing C) Aggregate marketing D) Consumer marketing E) Industrial marketing Answer: E 31) What kind of business activity is a grocery store engaged in when it sells meat to a homemaker? A) Consumer marketing B) Disaggregate marketing C) Product differentiation D) Industrial marketing E) Market planning Answer: A 32) Which of the following terms is used to identify products that are used by companies to produce other products? A) Service marketing B) Industrial goods C) Target markets D) Consumer goods E) Disaggregate products Answer: B 33) A business firm that sells its product to another business firm is engaged in A) consumer marketing. B) industrial marketing. C) international marketing. D) relationship marketing. E) marketing research. Answer: B 34) Harley-Davidson offers social incentives through the Harley Owners Group (H.O.G.) , the largest motorcycle club in the world. This is an example of A) industrial marketing. B) relationship marketing. C) consumer marketing. D) marketing research. E) international marketing. Answer: B 35) If Brighten Your World Inc. sells its light bulbs to the Jacobs Motor Company to be used in all of their cars as headlights, Brighten Your World is engaging in what type of marketing activity? A) Marketing research B) Consumer marketing C) Relationship marketing D) Aggregate marketing E) Industrial marketing Answer: E 36) Which of the following is correct with regard to the box entitled “Guelph Thinks Green”? A) A group of students at the University of Guelph is trying to develop household items from garbage B) The city of Guelph is one of the leading cities in Canada in the green movement C) Plastic breaks down in landfills very quickly D) A company called Green World Solutions is developing biodegradable waste bags E) Savings that can be achieved by limiting plastic bag consumption are limited to the retail industry Answer: D 37) Who has the responsibility for developing the plan to introduce a new product, service, or idea? A) Quality assurance manager B) Marketing manager C) Production manager D) Planning manager E) Warehouse manager Answer: B 38) Which of the following is not one of the four principal elements of marketing? A) Place B) Product C) Pricing D) Promotion E) Productivity Answer: E 39) Which of the following is one of the four P's of the marketing mix? A) Psychographics B) Product C) Performance D) Productivity E) Probing (market research) Answer: B 40) Which of the following is not one of the elements of marketing? A) Pricing B) Production C) Product D) Distribution E) Promotion Answer: B 41) Who has the responsibility for developing the plan to introduce a new product, service, or idea? A) The quality assurance manager B) The marketing manager C) The sales manager D) The production manager E) The public relations manager Answer: B 42) The 4 P's of marketing include all of the following except A) product. B) place. C) price. D) promotion. E) profit. Answer: E 43) The ________ is a good, service, or idea that is marketed to fill consumer needs and wants. A) product B) place C) profit D) promotion E) price Answer: A 44) When Frigidaire offered appliances in colours other than the standard white, it was modifying its A) place. B) profit. C) promotion. D) price. E) product. Answer: E 45) A TD Canada Trust advertisement that emphasized non-traditional extended banking hours is an example of A) product differentiation. B) market research. C) industrial marketing D) relationship marketing E) market segmentation Answer: A 46) Which of the following is one of the four P's of the marketing mix? A) Product differentiation B) Price C) Profit D) Production E) Productivity Answer: B 47) ________ choices determine basic design of the product offered to consumers. A) Productivity B) Product C) Promotion D) Place E) Price Answer: B 48) A detailed and focused strategy for gearing marketing activities to meet consumer needs and wants is called a ________. A) promotion plan B) product positioning C) sales plan D) marketing plan E) marketing mix Answer: D 49) Which item identifies the goods, services, or ideas that attempt to fulfill consumers' wants? A) Inventory B) Inventory control line items C) Merchandise items D) Utility E) Products Answer: E 50) ________ is the creation of a product or product image that differs enough from existing products to attract consumers. A) New product development B) Product differentiation C) Advertising D) Product promotion E) Product modification Answer: B 51) When Maytag created the perception that its products were more reliable (by showing a lonely repair person with nothing to do) it was using a(n) ________ strategy. A) product differentiation B) promotion C) every-day-low-prices D) new product development E) market segmentation Answer: A 52) What results are expected from a successful product differentiation program? A) The manner in which the product functions must be changed B) Differentiation requires that prices be mid-level in order to generate a high volume of sales C) Customer response to the product will change D) Differentiation requires that prices be high in order to generate a high volume of sales E) Promotional plans will not change Answer: C 53) Which term is used to identify the creation of a product or product image that is different enough from existing products to attract consumers? A) Product management B) Promotion C) Product development D) Product diversification E) Product differentiation Answer: E 54) What results should be expected if a firm uses a low price strategy for its products? A) Low prices lead to a larger volume of sales B) Low prices represent mid-level quality to consumers C) Low prices represent low quality to consumers D) Profits per unit are higher E) Low prices lead to a lower volume of sales Answer: A 55) ________ must support the firm's operating costs, administrative costs, research costs and marketing costs such as advertising and sales salaries. A) Product differentiation B) Price C) Product D) Place E) Promotion Answer: B 56) In the selling of nails, ________ is likely to be of little consequence, but in the selling of toys, it is likely to be crucial. A) promotion B) product C) place D) price E) profit Answer: A 57) Which element of the marketing mix is illustrated by the use of premiums, trading stamps, and coupons meant to encourage consumers to buy more of a product? A) Price B) Promotion C) Production D) Place E) Productivity improvements Answer: B 58) Which of the following is not one of the promotional tools of a marketing manager? A) Sales promotion B) Market segmentation C) Advertising D) Personal selling E) Publicity Answer: B 59) Mass customization is an important production method to marketers because ________. A) it promotes loyal customers B) it allows marketers to provide products that satisfy specific needs of consumers C) it speeds the production cycle, providing time utility to customers D) its focus on delivering quality products leads to customer satisfaction E) it ensures profitability Answer: B 60) ________ is the most highly visible component of the marketing mix. A) Promotion B) Place C) Profit D) Product E) Price Answer: A 61) ________ is the part of the marketing mix concerned with getting the product from the producer to the consumer. A) Place B) Price C) Promotion D) Profit E) Product Answer: A 62) Making decisions about how to ship a product, about warehousing, and about inventory control techniques are part of A) profit. B) place. C) product. D) promotion. E) price. Answer: B 63) Hansen Trucking Company transports detergent from a loading dock in Toronto to a supermarket shelf in Sherbrooke. This is a(n) ________ element of the marketing mix. A) ownership B) form C) time D) product E) place Answer: E 64) It is the middle of August, and Bob has been driving for the last three hours without air conditioning. He is hot and thirsty, and would like to find something cold to drink. Bob would consider ________ the most important element in the marketing mix for a soft drink marketer. A) promotion B) profit C) place D) price E) product Answer: C 65) Al is typically responsible for planning and implementing all of the activities that result in the transfer of goods or services to customers. Al is a ________ manager. A) product B) production C) marketing D) sales E) logistics Answer: C 66) The four factors in the marketing mix are A) advertising, sales promotion, publicity, and public relations. B) marketing managers, a marketing plan, relationship marketing, and profit. C) price, place, promotion, and product. D) profit, price, place, and promotion. E) demographics, psychographics, geographics, and product-use. Answer: C 67) Which of the following is correct with regard to the elements in the marketing mix? A) Of the four elements, “product” is generally least important B) The elements are all equally important, regardless of the product being sold C) Price plays a small role in fresh meat, but a relatively larger role in selling newspapers D) Distribution is not very important in marketing gasoline, but it is important for lumber E) Promotion is vital in selling toys, but much less important in selling nails Answer: E 68) What is the fundamental goal of product differentiation? A) To increase profit margins B) To set the company’s products apart from competitive products in the market C) To maximize market share D) To more effectively market to industrial consumers E) To more effectively market to certain demographic segments of the market Answer: B 69) Which of the following is correct with regard to price? A) It refers only to the actual amount of money that consumers pay for a product B) It is generally the second-most important element in the marketing mix C) In some cases, high prices will actually attract customers by implying that the product is unusually good D) It is more important for industrial goods than it is for consumer goods E) All of these Answer: C 70) Campbell Soup’s use of the red and white label is a way of achieving A) product differentiation. B) publicity. C) relationship marketing. D) industrial marketing. E) market segmentation. Answer: A 71) Other things being equal, what results should be expected if a firm uses a low price strategy for a product? A) A higher volume of sales B) A lower volume of sales C) Consumers will perceive the product as having high quality D) Profits per unit will be higher E) Production costs will increase Answer: A 72) If you were the manager for Track & Wheels, a local backhoe dealer, which promotion would likely be the best method to sell high-priced backhoes? A) Product placement B) Price placement C) Product differentiation D) Personal selling E) New product development Answer: D 73) Which term is used to identify the division of a market into categories of customer types? A) Industrial marketing B) Marketing mix C) Customer marketing D) Market segmentation E) Market de-categorization Answer: D 74) Groups of people with similar wants and needs that can be expected to show interest in the same products are called A) customers. B) prospects. C) homogeneous segments. D) potential customers. E) target markets. Answer: E 75) When Reader's Digest identified and classified its readers into young-adults, computer owners, and professionals/managers it was using A) prospect identification. B) potential customer categorizing. C) customer identification. D) product differentiation. E) market segmentation. Answer: E 76) When GM offers compact cars, vans, trucks, luxury cars, and sports cars with various features at various price levels, it is trying to provide a vehicle for every A) prospect. B) potential customer. C) market segment. D) customer. E) market. Answer: C 77) Purple Moon markets adventure software to pre-teen girls. This is an example of A) relationship marketing. B) mass customization. C) product differentiation. D) customer identification. E) market segmentation. Answer: E 78) When Binney and Smith, the makers of Crayola, began marketing the brand "Crayola IQ" to the so-called "tweens" group, the company was practising A) product differentiation. B) mass customization. C) industrial marketing. D) market segmentation. E) customer identification. Answer: D 79) What is a target market? A) Teenagers ages 13 to 18 who enjoy fast food B) Men who are taller and heavier than average C) The percent of market share the firm wants to achieve D) A group of people with similar wants who are expected to show interest in the same products E) The percentage of total revenue generated by one product Answer: D 80) The blue jean market is quite varied, and people wear them for different reasons and for different purposes. There are fashion jeans, work jeans, truck-driving jeans, cowboy jeans, etc. To serve this market better, many firms now practice A) mass marketing strategy. B) regional marketing. C) market segmentation. D) diversified marketing. E) multi-marketing. Answer: C 81) Information about where people live and how they spend their money is used to segment the markets by A) religion and social class. B) demographics. C) geographic variables. D) age and income patterns. E) product-use. Answer: C 82) In order to target a particular part of the market, the marketing manager must A) focus on international markets. B) direct attention to the Canadian market and forget about international markets. C) divide the total market into different segments. D) introduce products which will satisfy the needs of the total market. E) develop a reliable method of transporting goods and services to the customers. Answer: C 83) The best way to segment the market for umbrellas is probably by A) geographics. B) product-use. C) psychographics. D) random selection. E) demographics. Answer: A 84) Segmenting a market by postal codes is an example of segmentation by A) geographics. B) demographics. C) psychographics. D) product-use. E) random selection. Answer: A 85) The best segmentation for small drug stores or dry cleaners would be A) geographic. B) demographic. C) random selection. D) product-use. E) psychographic. Answer: A 86) Which of the following is not one of the variables considered when segmenting a market? A) Demographic variables B) Psychographic variables C) Product differentiation D) Product-use variables E) Geographic variables Answer: C 87) ________ is segmentation by such traits as age, income, gender, ethnicity, and marital status. A) Random selection B) Demographics C) Psychographics D) Product-use E) Geographics Answer: B 88) Target customers for one business are classified as 20 to 34 years old, married with children, and earning $25 000 to $34 999 a year. These customers have been classified by A) geographic. B) random selection. C) psychographics. D) demographics. E) product-use. Answer: D 89) Which market segment is used when a business firm uses information such as age, income, gender, ethnic background, and martial status? A) Demographic B) Photographic C) Product-use variables D) Psychographic E) Geographic Answer: A 90) Which of the following would not be considered a demographic variable? A) Age B) Postal code C) Income level D) Education E) Family size Answer: B 91) Which of the following would not be considered a demographic variable? A) Attitude B) Religion C) Gender D) Income level E) Race Answer: A 92) Which of the following is least likely to be used to segment markets? A) Height B) Age C) Education D) Race E) Nationality Answer: A 93) Which of the following is not one of the psychographic variables? A) Religion B) Interests C) Opinions D) Motives E) Attitudes Answer: A 94) Which segment of a market will consider consumer characteristics such as their motives, opinions, interests, and attitudes? A) Consumographic variables B) Geographic variables C) Psychographic variables D) Product-use variables E) Demographic variables Answer: C 95) People with similar wants and needs constitute ___________, which clearly requires ___________. A) a demographic market segment; market segmentation B) target market; market segmentation C) target market; relationship marketing D) a geographic market segment; relationship marketing E) a psychographic market segment; relationship marketing Answer: B 96) For newlyweds who want to honeymoon in the Bahamas, Sunshine Travel should consider this group as their A) homogeneous segments. B) potential customers. C) target market. D) prospects. E) customers. Answer: C 97) The process of dividing a market into categories of customers by age is called A) product-use market segmentation. B) relationship marketing. C) geographic market segmentation. D) psychographic market segmentation. E) demographic market segmentation. Answer: E 98) The importance of ________ in marketing can be seen in the example of the introduction of "Crayola IQ" colour pencils because crayons were seen as too “babyish” by 8 to 12 year olds. A) language B) geography C) demographics D) history E) psychology Answer: C 99) Multicultural marketing is part of market segmentation by __________ A) psychographics B) demographics C) geography D) product-use E) attitudes Answer: B 100) Which of the following should be considered in the demographic variables for market segmentation? A) How the product will be used (e.g., athletic footwear vs. dress shoes) B) Interests, attitudes, and opinions of consumers C) Income levels, marital status D) Trends in population shifts E) Where people live Answer: C 101) When consumer characteristics such as life styles, opinions, interests, and attitudes are used, which basis of segmentation is evident? A) Geographic B) Psychographic C) Product positioning D) Demographic E) Product-use Answer: B 102) ________ are particularly important to marketers because marketers can, through marketing efforts, sway consumers' likes and dislikes. A) Demographics B) Geographics C) Marital status and age D) Psychographics E) Product-use Answer: D 103) After a recent downturn in sales, the British company Burberry is using ________ to reposition itself as a global luxury brand. A) geographic variables B) brand loyalty C) demographic variables D) psychographic variables E) none of these are correct Answer: D 104) Women who purchase clothes for office wear would be segmented using which variable? A) Level of income B) Demographic C) Geographic D) Product-use E) Psychographic Answer: D 105) Companies in Poland have succeeded in overcoming consumer resistance to credit by promoting the safety and desirability of using credit rather than depending solely on cash. This is an example of the use of a __________ variable in market segmentation. A) level of income B) demographic C) geographic D) product-use E) psychographic Answer: E 106) Jennifer has recently bought two pairs of shoes. One pair was for casual wear and the other was for jogging. Jennifer bought these shoes on the basis of which segmentation variable? A) Level of income B) Demographic C) Geographic D) Product-use E) Psychographic Answer: D 107) The Ford Focus is promoted to consumers on the basis of economy, while the Porsche is promoted on the basis of high performance. This is an example of A) relationship marketing. B) product positioning. C) product differentiation. D) mass customization. E) psychographic segmentation. Answer: B 108) Which of the following is correct with regard to market segmentation? A) A group of people who share an age or income level category will typically have similar spending habits B) Compared with English Canadians, French Canadians attend ballet less frequently, travel more often, and eat less chocolate C) Tim Hortons has adapted to the needs and expectations of Quebeckers even though it has done very little to adapt its product line to the Quebec market D) Research shows that psychographic variables work better than geographic or product-use variables E) All of these Answer: C 109) A group of people in Canada buy all Express Yourself fashion products because they feel the clothes relate to their rebel lifestyle. What kind of segmentation would best help you define this group of individuals? A) Intrinsic segmentation B) Psychographic segmentation C) Demographic segmentation D) Geographic segmentation E) Product-use variables segmentation Answer: B 110) Which of the following is not a step in the market research process? A) Select a research method B) Collect data C) Prepare a report D) Study the current situation E) Implement the recommendations Answer: E 111) Primary data are A) data gathered for primary areas of the firm, like marketing and production. B) based on facts gathered from library research. C) based on data newly collected for a specific research purpose. D) any of the above, depending upon why the marketer is doing the research. E) gathered by consulting Statistics Canada publications. Answer: C 112) Which of the following is not an example of secondary data? A) Genealogical records found at the local library B) Data published by Statistics Canada C) Brochures published by provincial tourism departments and cited in a university study of travel D) Surveys filled out by current students on how they selected their college or university E) Information available from published sources like the Canada Yearbook Answer: D 113) Assume that you went to a shopping mall to determine people's attitudes toward a new peanut butter and pickle flavour ice cream. You would be collecting ________ data. A) census B) interview C) primary D) psychographic E) secondary Answer: C 114) What does "primary data" mean when used in the context of marketing research? A) Information that is already available as a result of earlier research by the firm B) Data which is of importance for marketing decisions C) Information available from published sources like the Canada Yearbook D) The proposal for a new product by the R & D staff E) New research which must be conducted by the firm Answer: E 115) As a consultant to Procter & Gamble, John Smith often views and monitors consumers to determine their buying habits. This research method is known as A) observation. B) experimentation. C) consumer behaviour analysis. D) focus group research. E) surveying. Answer: A 116) The study of what buyers need and how best to meet those needs is known as A) marketing. B) market research. C) psychographics. D) market segmentation. E) market stimulation. Answer: B 117) When is market research used most frequently? A) When a new or altered product is being considered B) When a product is out of stock C) When the promotional campaign is first under way D) When the product is fully stocked in each of the distribution centres E) When determining the reason for a product's failure Answer: A 118) Where does the five-step market research process begin? A) Analyze data B) Collect data C) Recommend solutions D) Study of the current situation E) Select research method Answer: D 119) The information that Statistics Canada provides on the Canadian economy is an example of A) secondary data. B) statistical variance analysis. C) primary data. D) a demographic variable. E) product research. Answer: A 120) What is the last step in the market research process? A) Observe consumers B) Collect data C) Study the current situation D) Prepare a report E) Select a research method Answer: D 121) Marketing research is A) the study of consumer needs and wants, and the ways in which sellers can best meet them. B) the process of collecting, storing, and retrieving data in electronic files. C) the process of fixing, adapting, and communicating the nature of the product itself. D) the process of dividing a market into categories of customer types. E) a marketing strategy that emphasizes long-lasting relationships with customers. Answer: A 122) Rondell Corp. is involved in a market research program. They have already studied the current situation to discover customer needs and what is being done to meet those needs. What should they do next? A) Collect data B) Select a research method C) Analyze the data D) Conduct a focus group E) Prepare a report Answer: B 123) Sherrie wants to complete a research project; unfortunately, she has no idea where to begin. You advise her to begin by A) designing a questionnaire. B) collecting data. C) selecting a research method. D) studying the current situation. E) analyzing data. Answer: D 124) Secondary data are A) statistics and information that are available as a result of previous research. B) based on data newly collected for a specific research purpose. C) based on information gathered by someone else, but not yet published. D) any of the above, depending upon why the marketer is doing the research. E) data gathered for secondary areas of the firm like marketing research and accounting. Answer: A 125) Sherrie wants to save money and time on her research project. You recommend she use A) observation. B) focus groups. C) primary data she collects herself. D) secondary data. E) experiments. Answer: D 126) What is the first step in the market research process? A) Observe consumers B) Form a focus group C) Collect data D) Study the current situation E) Select a research method Answer: D 127) Your boss has empowered you to complete a research project to determine if your company should expand its product line. Your boss only wants to see the final step of the market research process, which is A) the primary data. B) a report that includes alternative solutions and recommendations. C) the study of the current situations. D) the secondary data. E) a description of the research method you used. Answer: B 128) While Sylvia has not asked teenage consumers any questions, she has noted that they purchase green nail polish, as opposed to purple. Which research method has Sylvia used? A) Nominal scaling B) Focus groups C) Observation D) Survey E) Experimentation Answer: C 129) When Procter & Gamble sent video crews into 80 U.K. households to capture people’s daily routines and how they used products, they were using A) video mining. B) observation. C) experimentation. D) focus groups. E) surveys. Answer: C 130) When UPS asked customers how the company could improve its service, UPS was using A) video mining. B) observation. C) experimentation. D) focus groups. E) surveys. Answer: E 131) Which of the following is correct with respect to surveys? A) Questionnaires are not generally necessary in surveys B) The accuracy of surveys is routinely very high C) When using surveys, a random sample is usually better than a representative sample of consumers D) Online surveys are growing in popularity because the company gets immediate results E) All of these Answer: D 132) After asking people about their “desired scent experience,” Procter & Gamble developed Febreze Scentstories, a product that gives off 5 different scents every 30-minutes. They did this after using what approach to data gathering? A) Video mining B) Observation C) Experimentation D) Focus groups E) Surveys Answer: D 133) The local radio station wants to find out how it can increase the size of its listening audience. As a marketing consultant, your best advice is to complete research via A) an experiment. B) a focus group. C) a survey. D) observation. E) it is not possible to tell given the information provided. Answer: C 134) A moderator-led discussion about a product or service is called ________. A) psychoanalysis B) experimentation C) a focus group D) video mining E) observation Answer: C 135) Sally spent the day in the local grocery store passing out free samples of a new potato chip. Sally gave every second customer the new chip with dip and every other customer the new chip without dip. What type of research was Sally conducting? A) Observation B) Primary and secondary data collection C) Experimentation D) Survey E) Focus groups Answer: C 136) ________ is the study of the decision process by which customers come to purchase and consume products. A) Customer buying logic B) Purchase decision model C) End-user purchase behaviour D) Consumer behaviour E) Buyer behaviour Answer: D 137) The influence category which includes "lifestyle" is __________, while the category that includes an individual's "motivations" is _________. A) personal; psychological B) psychological; social C) cultural; social D) social; cultural E) social; psychological Answer: A 138) Which category of influences on consumer behaviour includes lifestyle, personality, and economic status? A) Social B) Personal C) Past experience D) Psychological E) Cultural Answer: B 139) Which category of influences on consumer behaviour includes family, opinion leaders, friends, co-workers, and associates? A) Social B) Cultural C) Personal D) Psychological E) Past experience Answer: A 140) Which category of influences on consumer behaviour includes ethnic groups, social class, occupation, and income? A) Past experience B) Psychological C) Social D) Cultural E) Personal Answer: D 141) Based on a product review in a magazine, Rob decided on which product to buy. He is demonstrating the impact of A) psychological influences. B) cultural influences. C) past experience influences. D) social influences. E) personal influences. Answer: D 142) In consumer behavior, ________ influences include the "way of living" that distinguishes one large group and one ethnic group from each other. A) cultural B) psychological C) social D) personal E) none of the above Answer: A 143) Scott is an intelligent, conservative programmer. His clothes purchases are typically darker in colour and not the current fad. This is an example of A) past experience influences. B) cultural influences. C) social influences. D) personal influences. E) psychological influences. Answer: D 144) Bob, due to a strong work ethic, has worked his way up the ladder and would be considered middle class which is reflected in his recent purchases. This is an example of A) psychological influences. B) social influences. C) personal influences. D) cultural influences. E) past experience influences. Answer: D 145) An individual’s motivations, perceptions, ability to learn, and attitudes are part of which influence in consumer behaviour? A) Personal B) Social C) Cultural D) Past experience E) Psychological Answer: E 146) On the first day of your new job, you notice that your wardrobe is not up to company standards. You are at the ________ stage. A) problem recognition B) purchase decision C) post-purchase evaluation D) information seeking E) evaluation of alternatives Answer: A 147) What is the first step in the consumer buying process? A) Post-purchase evaluation B) Information seeking C) Evaluation of alternatives D) Purchase decision E) Problem/need recognition Answer: E 148) Needing some new clothes, you ask one of your co-workers where he shops. That evening you check the newspapers for sales. You are in the ________ stage. A) information seeking B) post-purchase evaluation C) problem recognition D) purchase decision E) evaluation of alternatives Answer: A 149) You are checking out some stores to see what they have in personal computers. You also are reviewing Consumer Reports and several computer magazines. You are in the ________ stage. A) problem recognition B) post-purchase evaluation C) evaluation of alternatives D) purchase decision E) information seeking Answer: E 150) Michael decides that he cannot afford the cost of a new set of tires for his car until after payday. Which state of the consumer buying process is he in? A) Problem recognition B) Evaluation of alternatives C) Purchase decision D) Information seeking E) Post-purchase evaluation Answer: C 151) Before making your final decision on that new computer you write down all the features, prices, and warrantees of the different products you've seen. You are in the ________ stage. A) problem recognition B) post-purchase evaluation C) purchase decision D) information seeking E) evaluation of alternatives Answer: E 152) The buying process begins when the customer A) seeks information. B) evaluates the purchase. C) makes a purchase decision. D) recognizes a problem or need. E) evaluates alternatives. Answer: D 153) Accessing a Web site in search of magazine articles about a product before its purchase is an example of what part of the consumer-buying model? A) Post-purchase evaluation B) Information seeking C) Need recognition D) Purchasing the product E) Evaluation of alternatives Answer: B 154) A "buy" decision that involves the logical evaluation of product attributes, such as cost, quality, and usefulness, is based on A) emotional motives. B) production motives. C) psychological motives. D) rational motives. E) pricing motives. Answer: D 155) A "buy" decision that involves non-objective factors and can lead to "irrational" decisions is based on A) management motives. B) emotional motives. C) pricing motives. D) social motives. E) rational motives. Answer: B 156) To help you decide which new suit to purchase for your job interview, you ask a trusted friend to give you her opinion on each of the suits you're looking at. You are in the ________ stage. A) post-purchase evaluation B) purchase decision C) evaluation of alternatives D) information seeking E) problem recognition Answer: C 157) As you go to the store to write a cheque for the new professional suit you're going to buy, you consider what ties and shirts would go well with it. You are in the ________ stage. A) evaluation of alternatives B) purchase decision C) problem recognition D) post-purchase evaluation E) information seeking Answer: B 158) After checking out the prices of the new cars, Susie has elected to buy a used car. She is in the ________ stage. A) information seeking B) problem recognition C) purchase decision D) evaluation of alternatives E) post-purchase evaluation Answer: C 159) Rob has decided to buy a new computer based on the relatively low costs, the features he can get, the warranty that comes with the computer, and the overall usefulness it will provide. He has made his decision based on A) rational motives. B) irrational motives. C) subjective motives. D) analytical motives. E) emotional motives. Answer: A 160) As Bill enters the store he notices a shirt that he likes and decides to buy it even though he came into the store looking for pants. He has made a(n) ________ decision. A) rational B) emotional C) illogical D) subjective E) logical Answer: B 161) Which is a rational motive for the decision to make a purchase? A) A purchase which is based on motives such as aesthetics or sociability B) Purchasing a pair of slacks because your friend looks great wearing the same kind of slacks C) An evaluation of the attributes of the product, for example, cost, quality, usefulness D) A decision to buy chewing gum while waiting in the checkout line E) Purchasing a chocolate milkshake because you like the taste Answer: C 162) What is the last stage of the consumer buying process model? A) Evaluate alternatives B) Post-purchase evaluation C) Purchase decision D) Problem recognition E) Respond to market analysis survey questionnaire Answer: B 163) As you are driving down the road in your new Chevrolet, you notice that a new Ford has stopped beside the road and has its hazard lights blinking. You smile but decide to stop anyway to help out. You are in the ________ stage. A) problem recognition B) information seeking C) purchase decision D) evaluation of alternatives E) post-purchase evaluation Answer: E 164) When you obtain your first job after graduation, your new income may let you purchase items that were once too expensive. You would be in what stage of the consumer buying process? A) Purchase decision B) Information seeking C) Evaluation of alternatives D) Post-purchase evaluation E) Problem/need recognition Answer: E 165) You and your spouse decide that the sports car you currently own is not going to be suitable for travelling with your new baby Amy. Which consumer buying stage are you in? A) Purchase decision B) Post-purchase evaluation C) Problem recognition D) Information seeking E) evaluation of alternatives Answer: C 166) Which of the following is correct with regard to rational and emotional purchase motives? A) Emotional purchase motives generally lead to post-purchase unhappiness B) Rational motives are normally used for industrial goods purchases, while emotional motives are normally used for consumer goods purchases C) Research shows that rational motives are more commonly used by men, while emotional motives are more commonly used by women D) Emotional motives are used when purchasing services, while rational motives are used when purchasing goods E) None of these Answer: E 167) If you are in the market for a new set of skis, you probably have some idea of who provides the best skis and how they differ. You may have accumulated some of this knowledge during the information-seeking stage and combined it with what you knew before. The next stage for you is to A) evaluate alternatives. B) seek information. C) buy a new pair of skis. D) recognize the problem. E) post-purchase evaluation. Answer: A 168) ________ marketing, also known as buzz marketing, can be beneficial, but it can also be the most devastating since the business cannot control it. A) Brand loyalty B) Special events C) Word of mouth D) Billboard E) Celebrity Answer: C 169) Which of the following products had to be adapted for sale in foreign markets? A) Budweiser beer B) Coca-Cola C) Marlboro cigarettes D) Personal computers E) All of these Answer: D 170) When a firm is considering entering the international market with one or more of its products, which of the following is the most important? A) Marketing managers must reconsider each of the elements in the marketing mix B) Marketing managers must change the manufacturing process to lower manufacturing costs so as to offset higher shipping costs C) The marketing managers must learn the language which is used in that market, e.g., Korean, Japanese, Spanish D) The marketing manager must select a local sales representative from within the foreign nation E) Marketing managers must travel to the international market each month in order to evaluate the effects of their work Answer: A 171) Which of the following is not true of the international marketing mix? A) A company can speed up its international distribution activities by buying an existing business in another country. B) Cultural differences can cause negative reactions to products that are advertised improperly. C) Some products can be sold abroad with virtually no changes. D) Products that sell for a given price in the United States may sell at a different price in another country. E) The International Standards Act ensures the existence of uniform advertising practices in most countries. Answer: E 172) Some products can be sold abroad with virtually no changes. Which of the following products does require adaptations before it can be sold abroad? A) Cigarettes B) Electric shavers C) Foreign beer D) Soft drinks E) Domestic beer Answer: B 173) A large company can save ________ in foreign markets by buying an existing business that is well-established in that country because they can use the established company's distribution and marketing networks to sell their own brand. A) years of production time B) market research costs C) production costs D) years of start-up time E) none of these are correct Answer: D 174) Which elements of the marketing mix would apply to a successful small business owner? A) Advertising and personal selling B) Advertising and sales promotion C) Product, price, promotion, and place D) Marketing research and pricing E) Place and promotion Answer: C 175) Which of the following is not true of the small business marketing mix? A) A clever marketing campaign will create success for a product that few consumers want or need. B) A small business must have a clear picture of their target market's needs and wants. C) Small business pricing errors usually result from a failure to estimate operating expenses accurately. D) Smaller companies may have advantages over larger companies in distribution. E) Successful small businesses plan for promotional expenses as a part of start-up costs. Answer: A 176) What causes most pricing errors in small business firms? A) Owners select poor locations for service firms B) Owners don't know the price of their competitors' products C) Entrepreneurs introduce new products which they like but for which there is no market D) Over-reliance on word of mouth advertising results in potential customers who do not know about the product or service E) Failure to project operating expenses accurately Answer: E TRUE/FALSE QUESTIONS. Write 'T' if the statement is true and 'F' if the statement is false. 177) Marketing applies to goods, services, and ideas. Answer: True 178) The terms "marketing" and "advertising" are basically synonymous. Answer: False 179) Products that are purchased for personal use are known as consumer goods. Answer: True 180) The primary way to distinguish consumer goods from industrial goods is by considering the "price" element of the marketing mix. Answer: False 181) Products that are purchased from a business firm for the purpose of assembly into other products are industrial goods. Answer: True 182) Marketing focuses largely on consumer goods, and less so on consumer services. Answer: False 183) The marketing concept emphasizes profitability as more important than any other criterion. Answer: False 184) The Harley Owners Group fosters relationship marketing. Answer: True 185) The theory behind relationship marketing is that you build solid and long-lasting relationships with customers. Answer: True 186) Relationship marketing is a strategy that emphasizes in-the-moment relationships with customers and suppliers. Answer: False 187) The most important element of the marketing mix is price. Answer: False 188) The four P's of the marketing mix are product, pricing, promotion, and place. Answer: True 189) The four P's of marketing are product, place, promotion, and profit. Answer: False 190) The term "product" found in the marketing mix includes goods, services, or the ideas that attempt to meet a consumer's needs. Answer: True 191) No business can undertake marketing activities without a product, i.e., a good, a service, or idea that attempts to fulfill consumers' needs. Answer: True 192) Successful pricing strategies are often created to meet a firm's profit objectives regardless of the buyers' purchase objectives. Answer: False 193) The marketing plan is a detailed and focused strategy for gearing marketing activities to meet consumer needs and wants. Answer: True 194) The four elements in the marketing mix are generally equally important. Answer: False 195) When Campbell's markets their soups in distinctive red and white cans it is practicing product differentiation. Answer: True 196) Based on your knowledge of the computer industry, does Dell Computer use price as a competitive weapon? Answer: True 197) Target markets are first defined by product, then by consumers. Answer: False 198) Market segmentation and product differentiation are almost identical concepts, except that market segmentation puts more emphasis on "price" while product differentiation puts more emphasis on "place." Answer: False 199) Members of a market segment do not necessarily share traits or behaviours that might affect their purchasing decisions. Answer: False 200) Marketers typically use geographic, demographic, psychographic, and product-use variables to segment markets. Answer: True 201) The four most important ways of segmenting markets are by gender, attitudes, physical location, and demographics. Answer: False 202) Psychographics, like demographics and geographics, are seldom changed by marketing efforts. Answer: False 203) Typical variables used in segmenting markets by demographic characteristics include age, education, family life cycle, family size, income, nationality, race, religion, and sex. Answer: True 204) Demographics focuses on consumer traits, attitudes, and motives. Answer: False 205) Factors such as age, income, gender, marital status, and religion of consumers would be considered psychographic traits of a market. Answer: False 206) A car like the Ford Focus tends to be positioned on the basis of economy, while a Porsche tends to be positioned on the basis of performance. Answer: True 207) Psychographic variables are more difficult to change than demographic variables. Answer: False 208) Product positioning is most closely related to the "place" element in the marketing mix. Answer: False 209) Market researchers typically look at geographic, demographic, psychographic, and profit variables when segmenting the market. Answer: False 210) Market segmentation must be done carefully, as a group of people may share an age category, income, level, or some other segmentation variable but their spending habits may be quite different. Answer: True 211) Market research is the study of what buyers need and how best to meet those needs. Answer: True 212) The first step in conducting market research is to study the current situation in order to identify a need and to determine how that need is being met. Answer: True 213) Observation and experimentation are the only methods used to conduct market research. Answer: False 214) Observation is a popular method of market research because it is relatively low in cost. Answer: True 215) Video mining is used to determine the percentage of shoppers that buy vs. the percentage that only browse. Answer: True 216) One disadvantage of the experimentation method of conducting marketing research is its cost. Answer: True 217) Video mining is used by retailers mainly to catch shoplifters. Answer: False 218) Experimentation tries to compare the responses of similar individuals in different circumstances. Answer: True 219) At The Bay, online customer satisfaction surveys have replaced the “mystery shopper” system the company used to use. Answer: True 220) Consumers are more likely to tell the truth in focus groups than they are when filling out surveys. Answer: False 221) The major influences on consumer behaviour are psychological, personal, social, and cultural. Answer: True 222) Perceptions are included in the category "personal influences," while reference groups are included in the "social influences" category. Answer: False 223) A model of the consumer buying process shows that the search for information is the first stage of the buying process model. Answer: False 224) A consumer who recognizes that he or she is thirsty during a shopping trip is in the information seeking stage of the buying process model. Answer: False 225) Emotional motives lead to irrational thinking and usually wrong decisions. Answer: False 226) All emotional decisions are irrational. Answer: False 227) Dissatisfied consumers usually try the product again to give it another chance. Answer: False 228) Buzz marketing is powerful, but a business cannot necessarily control it. Answer: True 229) Foreign customers differ from domestic buyers in language, customs, business practices, and consumer behaviour. Answer: True 230) Marketing managers have learned through experience that the Canadian marketplace is the real proving ground for products and if successful here, those products may be exported and marketed internationally without much change. Answer: False 231) Realistic market research and sound product planning have enabled many small businesses to survive and grow. Answer: True 232) Small business rarely fail due to poor distribution. Answer: False 233) The most critical aspect of distribution for a new small business is maintaining a small inventory level. Answer: False SHORT ANSWER QUESTIONS. Write the word or phrase that best completes each statement or answers the question. 234) What is the ratio for value? Answer: Value = benefits/costs. 235) What is a consumer good? Answer: A consumer good is a product purchased by consumers for personal use. 236) What is the difference between consumer goods and industrial goods? Answer: Consumer goods are products, such as cologne, cold medicine, or cars, that the consumer buys for personal use or household consumption. Industrial goods are products used by companies to produce other products. Bulldozers and machine parts are industrial goods. 237) List the four elements in the marketing mix. Answer: Product, pricing, place, and promotion. 238) What is a product? Answer: A product is a good, service, or idea that is marketed to fill consumer needs and wants. 239) What is a target market? Answer: A target market is a group of buyers who have similar wants and needs and who can be expected to show interest in the same products. 240) Identify four bases for market segmentation. Answer: Geographic variables, demographic variables, psychographic variables, and behavioral variables. 241) Identify the four common methods of segmenting consumer markets. Answer: • geographic • demographic • psychographic • product-use 242) What are the psychographic variables used in market segmentation? Answer: lifestyle, opinions, interests, and attitudes 243) What is secondary data? Answer: Secondary data is readily available as a result of previous research. 244) What is primary data? Answer: Primary data is data developed through new research. 245) List four basic methods for collecting marketing research data. Answer: Observation, survey, focus groups, and experimentation. 246) What is the first step in the consumer buying process? Answer: Problem/need recognition. 247) What is the last step in the consumer buying process? Answer: Post purchase evaluation. ESSAY QUESTIONS. Write your answer in the space provided or on a separate sheet of paper. 248) What is marketing? Answer: • the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives • can be applied to consumer goods and industrial goods, services, and ideas 249) What is value? Answer: The ratio for value can be expressed as (Benefits/Costs). Value compares a product's benefits with its costs. Benefits include not only the functions of the product, but also the emotional satisfaction associated with owning, experiencing, or possessing it. Costs include the price, the expenditure of the buyer's time, and the emotional costs of making a purchase decision. 250) Describe the difference between consumer goods and industrial goods. Answer: • consumer goods: for use by end users • industrial goods: used to make other products by companies making consumer goods 251) Choose three different consumer products to demonstrate how the importance of the marketing mix elements varies. Answer: 1. Smartphones: Place (distribution) is crucial for accessibility, while promotion emphasizes brand differentiation. 2. Luxury Watches: Price (pricing strategy) is critical to perceived value, while product quality and promotion focus on prestige and exclusivity. 3. Fast Food: Promotion heavily influences consumer awareness and preferences, while product (taste and variety) and place (convenience of locations) also play significant roles. 252) What are the four principal elements of marketing which managers rely on in planning and implementing marketing strategies? Answer: • product, pricing, promotions and place (distribution) also known as the 4 P's or marketing mix • supply the right product (service) to meet a need, at the right price, in the right place and telling the customer where it is 253) Describe the elements of the marketing mix. What is their collective role? Answer: The elements of the marketing mix include product, price, promotion, and place. The product portion of the marketing mix includes goods, services, or ideas designed to fill a consumer need or want. Meeting consumer needs often means changing existing products to keep pace with emerging markets and competition; many marketers focus on differentiating their product(s) from those of competitors. Pricing a product involves the selection of the best price at which to sell the product. Prices must support a variety of costs within the organization. Further, both low- and high-price strategies can be effective in different situations. Place, or distribution, refers to the proper placement of products in the market. Place decisions—including transporting, warehousing, and inventory control—are all about getting the product from the producer to the consumer. Promotion is the most highly visible component of the marketing mix; promotion refers to the techniques for communicating information about products. Promotion involves activities surrounding advertising, sales promotions, publicity, and public relations. Collectively, the marketing mix allows a marketer to better relate to the identified target market; based on the characteristics of the target market, the marketer will "build" the marketing mix elements around the target market. 254) What is a target market? Briefly explain how a well-defined target market is important to a company. Answer: • target market: • any group of people who have similar wants and needs and may be expected to show interest in the same product(s) • why important: • helps focus company's marketing mix (product characteristics, pricing, promotion, and place) • gives information on consumer buying traits • helps marketing managers focus on the big picture, and not on an individual to individual case basis 255) What is a market segment? How does a marketing manager use information about a market segment? In what ways would a market likely be segmented? Answer: • a segment is part of the total market divided by customer types • segments are commonly divided by geographic, demographic, psychographic and product-use factors which help in analyzing customers • managers use segment information to help determine customers' needs by analyzing the traits and behaviours 256) What is product positioning? Answer: Product positioning involves identifying the important attributes that consumers use to assess the product, and then focusing on these. For example, a low-priced car like the Ford Focus is positioned on the basis of economy, while a high-priced Porsche is positioned in terms of high performance. 257) Discuss the effects that demographics can have an effect on marketing strategies. Answer: Companies have typically focused on the youth market, but in many countries the population is aging and companies must begin to market their products to older consumers. 258) Give some specific examples of how some companies have already capitalized on changing demographics. Answer: Proctor & Gamble has targeted older women with two new beauty products as well as an osteoporosis drug. Motorola has introduced a new phone that should be of interest to older consumers because it has a zoom function that increases the font size. Meiji Dairies Corp. has introduced a yogurt brand for people over 40. 259) What is market segmentation and why is it important? Answer: The process of dividing a market into categories of customer types; key to developing a communication link with potential buyers who will likely respond to the same message 260) Identify the four common methods of segmenting consumer markets. Answer: • geographic • demographic • psychographic • product use 261) What is a market segment? How does a marketing manager use information about a market segment? In what ways would a market likely be segmented? Answer: • a segment is part of the total market divided by customer types • segments are commonly divided by geographic, demographic, psychographic and product-use factors which help in analyzing customers • managers use segment information to help determine customers' needs by analyzing the traits and behaviours 262) Market research can occur at any point in a product's existence. Briefly discuss each step in the research process. Answer: • step one: study the current situation, and define the need and what is being done to meet it at this point • step two: select a research method—observation, survey/focus group, experimentation • step three: collect data—secondary data and/or primary data • step four: analyze the data • step five: prepare a report, identifying alternative solutions and making recommendations for the appropriate course of action 263) How does an understanding of consumer behaviour help a marketing manager? Include the meaning of the major factors influencing consumer behaviour. Answer: • understanding helps managers learn the common traits of consumers in a partial or market segment so they can better understand their needs and why they are motivated to buy what, where, when and at what price they will want to pay • by identifying the influences of consumers (psychological, personal, social and cultural) markets can better understand their needs and purchasing behaviour 264) Identify the five steps in the consumer buying process. Answer: 1) Problem recognition 2) Information seeking 3) Evaluation of alternatives 4) Purchase decision 5) Post-purchase evaluation 265) Explain each step in the consumer buying process. Answer: The consumer buying process begins with problem/need recognition. At this point, the consumer likely knows that there is a product or service available in the marketplace that will fulfill the problem or need. The consumer then seeks information. This process is not always extensive, but before making major purchases, most people seek information from personal sources, public sources, and experience. After seeking information, the consumer has come up with some alternatives; the next step is to evaluate those alternatives. When making a product or service choice, most consumers evaluate alternatives based on price, availabilities, guarantees, etc. A list of pros and cons is often developed for each alternative. Finally, the consumer chooses from among the alternatives when making the purchase decision. Postpurchase evaluation includes the consumer's perceptions about the product or service after the purchase; at this point, the consumer feels a certain level of satisfaction or dissatisfaction with the purchase. 266) Describe the four major influences on consumer behavior. Answer: The four major influences on consumer behavior are psychological, personal, social, and cultural. Psychological influences include an individual's motivations, perceptions, ability to learn, and attitudes. Personal influences include lifestyle, personality, and economic status. Social influences include family, opinion leaders, friends, coworkers, and professional associates. Cultural influences include culture, subculture, and social class. 267) What must a marketing manager do to successfully market products or services in an international market? Answer: • managers must re-evaluate the 4 P's of the marketing mix strategy in terms of the new markets' language, customers, business practices and consumer behaviour patterns • they must conduct market research to determine if the new international markets' needs are the same as their domestic market 268) Explain how international promotion is different from domestic promotion. Answer: • Many Europeans believe that a product must be inherently shoddy if a company has to advertise. • Cultural differences can cause negative reaction to products that are advertised improperly 269) What marketing factors are appropriate for successful small business firms? Discuss how these factors figure in the failure of other small firms. Answer: • the same market factors that are important to large and medium firms apply to small firms • small firms need to conduct a complete market analysis to determine if a need exists, determine their competitor advantage, determine their market niche, and develop complete market strategies with the 4 P's to meet customers' needs and wants • problems arise when the research is not careful enough and marketing decisions are made without good facts to back them 270) Identify the ways that small businesses can benefit from an understanding of the marketing mix. Answer: Small-businesses need to understand the marketing mix, products, pricing, distribution and promotion. Small-businesses needs a thorough understanding of what customers want. Small-business pricing errors usually result from a failure to estimate operating expenses accurately, but when small businesses set prices by carefully assessing costs, many earn satisfactory profits. Small-business distribution is the ability of many small businesses to attract and retain customers depending partly on the choice of location, especially for new service businesses. Small-business promotion includes holding down costs by using less expensive promotional methods, like publicity in local newspapers or identifying themselves and their products with associated groups, organizations and events. Test Bank for Business Essentials Ronald J. Ebert, Ricky W. Griffin, Frederick A. Starke, George Dracopoulos 9780132479769, 9780134384733

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