Marketing Processes and Consumer Behavior

1 Copyright © 2017 Pearson Education, Inc. Business Essentials, 11e (Ebert/Griffin) Chapter 11 Marketing Processes and Consumer Behavior 1) What is the term for the process of creating, communicating, and delivering ...

1 Copyright © 2017 Pearson Education, Inc. Business Essentials, 11e (Ebert/Griffin) Chapter 11 Marketing Processes and Consumer Behavior 1) What is the term for the process of creating, communicating, and delivering value to customers while managing customer relationships in ways that benefit the organization and its stakeholders? A) Financial planning B) Controlling C) Operations management D) Marketing E) Demographic profiling AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 2) Which of the following occurs between similar products and is based on buyers' perceptions of the benefits of products offered by particular companies? A) International competition B) Substitute competition C) Brand competition D) Benefit competition E) Placement competition AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 3) What are the tangible and intangible qualities that a company builds into its products? A) Features B) Requirements C) Benefits D) Safety devices E) Guarantees AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 2 Copyright © 2017 Pearson Education, Inc. 4) What type of goods includes raw materials used to produce other products? A) Substitute products B) Industrial goods C) Consumer goods D) Marketing goods E) Disposable goods AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 5) What are products with intangible features such as professional advice? A) Personal goods B) Services C) Industrial goods D) Psychographics E) Reseller goods AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 6) What type of marketing is used to build long-term relationships with customers? A) Industrial marketing B) Relationship marketing C) Social marketing D) Economic marketing E) Consumer marketing Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 3 Copyright © 2017 Pearson Education, Inc. 7) What is data warehousing? A) A marketing strategy that creates sales agreements that stipulate product delivery B) The process of dividing a market into categories of customer types C) The study of consumer needs and wants and the way in which sellers can best meet them D) The process of collecting, storing, and retrieving data in electronic files E) A customer identification strategy that targets potential buyers AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 8) Companies who use ad campaigns to raise public awareness of important issues such as texting while driving are working with what type of environment? A) Political-legal B) Sociocultural C) Technological D) Competitive E) Demographic AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 9) Marketing managers often support the activities of political action committees (PACs). In doing this, which environment are they attempting to influence? A) Competitive B) Economic C) Technological D) Political-legal E) Geo-demographic AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 4 Copyright © 2017 Pearson Education, Inc. 10) A company decides to introduce a line of crackers made with organically grown grains and vegetables. What environmental trend is the company responding to? A) Competitive B) Sociocultural C) Political-legal D) Economic E) Technological AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 11) What do organizations use to build better, stronger information connections with clients? A) Customer relationship management (CRM) B) Data warehousing C) Industrial marketing D) Possession utility E) Data mining AACSB: Analytical thinking Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 12) Which of the following is used to automate the analysis of customer information and how might they be influenced by marketers? A) Data mining B) Brand competition C) Customer relationship management D) Relationship marketing E) Data warehousing AACSB: Analytical thinking Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 5 Copyright © 2017 Pearson Education, Inc. 13) What type of utility is practiced by those companies who allow marketers to have a voice in product design and identifying features customers want? A) Time B) Possession C) Form utility D) Value E) Place Difficulty: Moderate AACSB: Analytical thinking Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 14) What is created when the ownership of a product, including the setting of selling prices, terms of credit, and ownership documentation is transferred to a customer? A) Place utility B) Time utility C) Value utility D) Possession utility E) Form utility AACSB: Analytical thinking Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 15) The ability of a good or service to satisfy a need is considered to be its A) benefit. B) utility. C) value. D) market. E) sociocultural environment. AACSB: Analytical thinking Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 6 Copyright © 2017 Pearson Education, Inc. 16) When a domestic marketer competes against foreign firms to sell products of a similar nature, what type of sales competition is created? A) Brand B) Substitute C) International D) Competitive E) Social Difficulty: Moderate AACSB: Analytical thinking Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 17) Marketing consists primarily of advertising a product or service.. Difficulty: Easy AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 18) Benefits add value by providing features that increase the customer's satisfaction. AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 19) The formula for value is benefits divided by costs. AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 7 Copyright © 2017 Pearson Education, Inc. 20) Marketing concepts can be extended to the promotion of ideas. AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 21) Economic conditions greatly influence marketing plans for product offerings. Difficulty: Moderate AACSB: Application of knowledge Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 22) Time utility is created by a sales agreement that stipulates where products will be delivered to customers. AACSB: Analytical thinking Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 8 Copyright © 2017 Pearson Education, Inc. 23) Explain the elements that comprise the marketing environment. Difficulty: Easy AACSB: Analytical thinking Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 24) Describe the three types of competition faced by marketers. AACSB: Analytical thinking Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the external marketing environment. 25) What is the term for a detailed strategy for focusing marketing efforts on consumers' needs and wants? A) Marketing mix B) Marketing manager C) Product differentiation D) Product development E) Marketing plan AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 9 Copyright © 2017 Pearson Education, Inc. 26) What part of the marketing mix includes communicating information about products and is the most visible component of the marketing mix? A) Product B) Promotion C) Price D) Place E) Psychographics AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 27) What is used to guide the detailed activities of the marketing plan ensuring the goals of the plan are accomplished? A) Marketing strategy B) Product differentiation C) Marketing objectives D) Distribution policy E) Marketing mix AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 28) What specific issues do marketing strategies help marketers determine? A) The goals the marketing plan intends to accomplish B) The marketing objectives of what marketer will accomplish C) The mix of goods or services to fill a customer's needs or wants D) The marketing activities a business will use to achieve marketing goals E) The features that will differentiate a product from competitors AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 10 Copyright © 2017 Pearson Education, Inc. 29) Why does a marketing strategy utilize the marketing mix, which includes product, price, place, and promotion? A) To control the organization's resources to support marketing activities B) To transfer goods or services to customers C) To develop a clear strategy for planning and implementing marketing activities D) To plan the organization's marketing toward supporting the organization's overall mission E) To satisfy customers in target markets AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 30) Which of the following represents a feature or image that makes one product different from its competitors? A) Marketing strategy B) Product differentiation C) Place distribution D) Personal selling E) Product positioning AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 31) What is the overall effect when a good or service is priced higher than competitors? A) There will be an implication of higher quality standards. B) There will be greater demand for the product. C) Sales will start slow, but increase over time. D) There will be a larger market size, but smaller profit. E) There will be a smaller market and smaller profit. AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 11 Copyright © 2017 Pearson Education, Inc. 32) How do organizations determine how to move products to customers? A) Promotion B) Marketing mix C) Place (or distribution) D) Marketing managers E) Personal selling feedback AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 33) How do companies offer one-time direct inducements to buyers when promoting goods or services? A) Personal selling B) Premiums C) Public relations campaigns D) Integrated marketing E) Advertising AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 34) What is the term for the communication efforts that are designed to build goodwill and build favorable attitudes in consumers? A) Sales promotion B) Advertising C) Promotion D) Public relations E) Personal selling AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 12 Copyright © 2017 Pearson Education, Inc. 35) When selling industrial goods and services, using representatives who are trained to understand the needs of each customer is a key component of A) advertising. B) personal selling. C) sales promotions. D) publicity. E) interactive marketing. AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 36) What are the tangible products bought strictly for personal use? A) Consumer goods B) Services C) Relationship goods D) Data E) Industrial goods AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 37) Product differentiation is selecting the best price at which to sell a product. AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 38) The goals of the marketing plan are the foundations for the marketing objectives. AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 13 Copyright © 2017 Pearson Education, Inc. 39) The product mix includes consideration of product, pricing, place, and promotion. Difficulty: Easy AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 40) A feature or image that makes a product different from existing products is called product differentiation. AACSB: Application of knowledge Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 41) Describe the elements of the marketing mix. What is their collective role? AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 42) Why is product development a challenge for marketers? AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 14 Copyright © 2017 Pearson Education, Inc. 43) Why is product placement an effective marketing tool? AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 44) Why is it important for a company to develop new products? AACSB: Analytical thinking Objective: 11.2: Explain the purpose of a marketing plan and identify its main components. 45) Which is usually the first step in the marketing strategy that allow marketers to focus efforts on a particular group of people or organizations? A) Distribution B) Product differentiation C) Target market selection D) Pricing E) Integration AACSB: Application of knowledge Objective: 11.3: Explain market segmentation and how it is used in target marketing. 46) For marketers, what type of variables are lifestyles, opinions, interests, and attitudes? A) Geographic variables B) Demographic variables C) Psychographic variables D) Product use variables E) Labor market variables AACSB: Application of knowledge Objective: 11.3: Explain market segmentation and how it is used in target marketing. 15 Copyright © 2017 Pearson Education, Inc. 47) What does the process of positioning involve? A) Hiring only employees who have the strongest credentials B) Designing a company's products to appeal to target customers C) Focusing on only one component of the marketing mix D) Disregarding customers' reactions to a company's products E) Reorganizing employees according to seniority AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 48) What market segment is based on where the target market lives and how location affects their lifestyle? A) Demographic B) Behavioral C) Positional D) Geographic E) Psychographic AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 49) Which of the following describe(s) measurable traits about a consumer, such as income, gender, or marital status? A) Psychographics B) Geographics C) Geo-demographics D) Behavior E) Demographics AACSB: Application of knowledge Objective: 11.3: Explain market segmentation and how it is used in target marketing. 16 Copyright © 2017 Pearson Education, Inc. 50) How does behavioral segmentation identify target markets? A) Behavioral variables B) Demographics C) Marketing research D) Geographics E) Psychographics AACSB: Application of knowledge Objective: 11.3: Explain market segmentation and how it is used in target marketing. 51) What can marketers use to attempt to separate consumers based on identifying traits such as age or income? A) Demographic variables B) Geographic segmentation C) Product positioning D) Integrated marketing E) Demographic segmentation AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 52) Which of the following is the combination of traits used to identify consumers and act as a common segmentation tool? A) Psychographic variables B) Behavioral variables C) Marketing variables D) Geo-demographic variables E) Primary variables AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 17 Copyright © 2017 Pearson Education, Inc. 53) What type of segmentation is more effective because of the greater number of variables and has consequently become the most common segmentation tool? A) Demographic segmentation B) Psychographic segmentation C) Behavioral segmentation D) Marketing segmentation E) Geo-demographic segmentation AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 54) What would marketers utilize if they wanted to identify markets where customers had a certain lifestyle, personality, or attitude? A) Place utility B) Geographic segmentation C) Psychographic segmentation D) Possession utility E) Behavioral segmentation AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 55) What process is used by marketers to communicate the nature of a product to a target segment? A) Product positioning B) Target marketing C) Promotion D) Product differentiation E) Personal influence AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 18 Copyright © 2017 Pearson Education, Inc. 56) What can be utilized to ensure a company's marketing and nonmarketing efforts are compatible? A) Market segmentation B) Integrated marketing strategies C) Target marketing D) Public relations E) Personal selling AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 57) Geographic variables describe populations by identifying traits, such as age, income, gender, ethnic background, marital status, race, religion, and social class. AACSB: Application of knowledge Objective: 11.3: Explain market segmentation and how it is used in target marketing. 58) Target marketing requires dividing a market into categories of customer types or segments. AACSB: Application of knowledge Objective: 11.3: Explain market segmentation and how it is used in target marketing. 59) A description such as single, age 20-34, earning $30,000 a year is an example of a psychographic variable. AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 19 Copyright © 2017 Pearson Education, Inc. 60) Psychographics cannot be changed by marketing efforts. AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 61) Explain the difference between demographic variables and psychographic variables. AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 62) Explain how marketers identify different market segments. AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 63) What are target markets? Explain the role that target markets play in market segmentation. AACSB: Analytical thinking Objective: 11.3: Explain market segmentation and how it is used in target marketing. 20 Copyright © 2017 Pearson Education, Inc. 64) Which tool used for gaining decision-making information identifies what customers want and how to fulfill those wants? A) Market segmentation B) Market research C) Promotion D) Public relations E) Integrated marketing strategy AACSB: Application of knowledge Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 65) What is the goal of market research? A) To identify stakeholders and how to best meet their needs B) To gain goodwill with consumers by utilizing public relations C) To increase competitiveness by clarifying relationships that affect the marketing decisions D) To conduct studies on customer responses to the marketing mix E) To determine which research method will deliver the most effective results AACSB: Analytical thinking Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 66) When is conducting market research generally most effective? A) When entering international markets B) When sales begin to drop C) When competitors release newer, competitive products. D) When developing new products or altering existing products E) When a new product is ready to be released AACSB: Analytical thinking Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 21 Copyright © 2017 Pearson Education, Inc. 67) When conducting market research, what type of data is used when existing data is unavailable or inadequate? A) Secondary B) Demographical C) Global D) Psychographic E) Primary Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 68) Which type of market research allows for an electronic history of consumers? A) Observation B) Primary research C) Surveys D) Focus groups E) Experimentation AACSB: Analytical thinking Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 69) When gathering opinions about consumer decisions, what type of research tool would be most beneficial if the issue is not overly complex? A) Observation B) Primary research C) Surveys D) Focus groups E) Experimentation Difficulty: Moderate AACSB: Application of knowledge Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 22 Copyright © 2017 Pearson Education, Inc. 70) What is the advantage of utilizing focus groups for research? A) They easily generate comparison data with competitors' products. B) They offer fact based information on products. C) They are more structured and are easier to analyze. D) They allow for more in-depth discussion on complex issues. E) They are less costly and time consuming. Difficulty: Moderate AACSB: Analytical thinking Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 71) What is the process where marketers can compare the response of similar people under different circumstances? A) Observation B) Surveying C) Focus group studies D) Experimentation E) Questionnaires AACSB: Analytical thinking Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 72) Marketing research is the study of behavioral variables.. Difficulty: Moderate AACSB: Analytical thinking Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 23 Copyright © 2017 Pearson Education, Inc. 73) Primary data is data already available from previous research. AACSB: Analytical thinking Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing research methods. 74) What is the study of the decision process by which customers come to purchase and consume products? A) Marketing B) Segmentation C) Resource management D) Consumer behavior E) Acculturation AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 75) What type of behavior do consumers exhibit by regularly purchasing products because they are satisfied with the performance of the product? A) Psychological influences B) Need recognition C) Brand loyalty D) Emotional motives E) Consumer activism AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 24 Copyright © 2017 Pearson Education, Inc. 76) Which of the following is the LEAST important influence on consumer behavior? A) Psychological factors B) Personal factors C) Social factors D) Technological factors E) Cultural factors AACSB: Analytical thinking Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 77) What is the name for the influences that include the "way of living" that distinguishes one large group from another? A) Psychological B) Personal C) Social D) Domestic E) Cultural AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 78) What is the term that describes what happens after the sale to ensure consumers buy the product again? A) Postpurchase evaluation B) Prepurchase evaluation C) Rational motives D) Emotional motives E) Evoked set AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 25 Copyright © 2017 Pearson Education, Inc. 79) 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 process? A) Post-purchase evaluation B) Problem solving C) Information seeking D) Purchasing the product E) Recognizing a need Difficulty: Moderate AACSB: Analytical thinking Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 80) Which consumer influence includes perceptions, ability to learn, and attitudes? A) Psychological B) Personal C) Social D) Loyalty E) Cultural AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 81) Family members and friends can have a strong impact on consumer choices when acting as A) psychological influences. B) personal influences. C) social influences. D) loyalty influences. E) cultural influences. AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 26 Copyright © 2017 Pearson Education, Inc. 82) Which of the following best defines the way of living that distinguishes one large group from another? A) Consumer B) Subculture C) Social class D) Culture E) Demographic AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 83) How do consumers develop opinions and beliefs about a set of products they will consider buying? A) Through evaluation of alternatives B) Through emotional motives C) Through need recognition D) Through post-purchase evaluation E) Through information seeking AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 84) Which of the following is greatly influenced by nonobjective factors such as sociability, imitation and aesthetics? A) Emotional motives B) Post-purchase evaluation C) Rational motives D) Evaluation of alternatives E) Need recognition AACSB: Analytical thinking Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 27 Copyright © 2017 Pearson Education, Inc. 85) When making a purchase decision, decisions that include logical evaluation, cost, and quality are what type of decisions? A) Evoked B) Rational C) Comparison D) Consideration set E) Emotional AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 86) If a buyer is unhappy with their purchase decision, what are they more likely to do than those who are happy with their purchase decision? A) Use a different decision-making process. B) Continue to purchase the same product until a replacement is found. C) Tell others. D) Rely more on rational motives. E) Develop a more limited evoked set of purchase options. AACSB: Analytical thinking Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 87) Rational motives involve nonobjective factors and include sociability, imitation of others, and aesthetics. AACSB: Analytical thinking Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 28 Copyright © 2017 Pearson Education, Inc. 88) Focus groups allow researchers to observe a group of participants gathered in one place while they explore issues associated with a product. AACSB: Analytical thinking Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 89) Personal influences on consumer behavior include lifestyle, personality, and economic status. AACSB: Analytical thinking Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 90) Consumers with less brand loyalty are usually satisfied with a products performance over time. AACSB: Application of knowledge Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 91) Describe psychological, personal, social, and cultural influences on consumer behavior. AACSB: Analytical thinking Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 29 Copyright © 2017 Pearson Education, Inc. 92) Explain each step in the consumer buying process. AACSB: Analytical thinking Objective: 11.5: Describe the consumer buying process and the key factors that influence that process. 93) Which of the following is the BEST example of a B2B market transaction? A) A college student buys dorm furniture from an on-campus store. B) A group of teenage girls buy new clothes for the upcoming school year. C) A high-school coach borrows sports equipment from a neighboring school. D) A dentist provides free toothbrushes to patients. E) A chain of ice cream parlors regularly purchases napkins from the same supplier. AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 94) What are B2B buyer-seller situations often based on? A) Frequent and enduring buyer-seller relationships B) Incidental buyer-seller interactions C) Buyers and sellers with limited training D) Short-term buyer-seller relationships E) Commercial buyer-seller networks Difficulty: Moderate AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 30 Copyright © 2017 Pearson Education, Inc. 95) Who are the firms who provide goods and services that are used by the purchasing public? A) Services markets B) Industrial markets C) Reseller markets D) Government markets E) Institutional markets AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 96) Before products reach consumers, what market, consisting of wholesalers and retailers, do products pass through? A) Services markets B) Industrial markets C) Reseller markets D) Government markets E) Institutional markets AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 97) What do organizations use to build relationships among users? A) Institutional marketing B) Web-driven revenue C) Negotiations D) Social networking media E) Reseller relationships AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 31 Copyright © 2017 Pearson Education, Inc. 98) How do marketers best use viral marketing? A) To increase use of social media networks B) To identify needs in the international market C) To promote public relations D) To improve branding E) To foster excitement for stimulating sales AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 99) Which of the following is an advantage of using viral marketing and social networking? A) Marketers can reach a wider audience at a lower cost. B) Consumers can post opinions and feedback about products. C) New markets are easier to identify. D) Companies have more control over what the public experiences. E) Companies can respond to and eliminate negative reviews. AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 100) When attempting to market a domestic product in an international market, what typically has to happen? A) The product must be priced higher because of currency exchange rates. B) The product must have major redesign work done. C) The home country distribution system must be retrained for the international market. D) The product must have an existing close competitor in the intended market. E) The advertising campaign must be consistent with those used in the home country. AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 32 Copyright © 2017 Pearson Education, Inc. 101) How can marketers best develop product promotion in a new, international market? A) Centered on product usage B) Centered on price and innovation C) Centered on cultural values and local customs D) Centered on using a "hard-sell" campaign E) Centered on home country values and customs AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 102) How can companies reduce the cost and delays involved in entering new markets? A) By selling items at a loss when determining international pricing B) By redeveloping the product from scratch to better meet consumer needs in the new market C) By avoiding the traditional U.S.-based marketing mix D) By utilizing existing international distribution systems E) By establishing new and unique promotions for the new market. AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 103) Which of the following do firms use to enhance public relations and branding while stimulating chatter about a product within a target market? A) Consumer-seller relationships B) Segmentation C) Company specialist D) Corporate blogs E) Enduring buyer-seller relationships AACSB: Analytical thinking Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 33 Copyright © 2017 Pearson Education, Inc. 104) The institutional market is made up of businesses that buy goods to be converted into other products or that are used up during production. Difficulty: Moderate AACSB: Application of knowledge Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 105) The B2B market includes industrial, reseller, and government/institutional markets. AACSB: Application of knowledge Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 106) The reseller market includes farmers, manufacturers, and some retailers. AACSB: Application of knowledge Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 107) B2B sellers rarely have long-term relationships with buyers.. Difficulty: Moderate AACSB: Application of knowledge Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 34 Copyright © 2017 Pearson Education, Inc. 108) Discuss the three categories of B2B markets. AACSB: Application of knowledge Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of business-to-business (B2B) buying behavior. 109) How does a realistic market potential estimate affect small business success? A) It allows small business owners to know how to modify a product for consumers. B) It allows small business owners to have a clear picture of their target segments. C) It allows for better use of social media based marketing efforts. D) It increases the ability to be flexible in pricing strategy. E) It provides a more accurate understanding of fixed and variable costs. AACSB: Analytical thinking Objective: 11.7: Discuss the marketing mix as it applies to small business. 110) In what area can a small business create an advantage over larger competitors? A) Value B) Price C) Response time D) Marketing E) Shipping costs AACSB: Analytical thinking Objective: 11.7: Discuss the marketing mix as it applies to small business. 35 Copyright © 2017 Pearson Education, Inc. 111) When a small business identifies themselves and their products with local groups and events, what aspect of marketing are they pursuing? A) Price B) Promotion C) Product D) Public relations E) Place AACSB: Analytical thinking Objective: 11.7: Discuss the marketing mix as it applies to small business. 112) What do most small business fail to estimate correctly, often resulting in the business failing? A) Price B) Promotion C) Product D) Public relations E) Place AACSB: Analytical thinking Objective: 11.7: Discuss the marketing mix as it applies to small business. 113) Companies with an existing distribution network are at a disadvantage in the global context. AACSB: Application of knowledge Objective: 11.7: Discuss the marketing mix as it applies to small business. 114) Discuss the issues of international promotion. AACSB: Application of knowledge Objective: 11.7: Discuss the marketing mix as it applies to small business. 36 Copyright © 2017 Pearson Education, Inc. 115) What advantages do smaller companies have over larger competitors when it comes to the distribution aspect of the marketing mix? AACSB: Application of knowledge Objective: 11.7: Discuss the marketing mix as it applies to small business. 116) Identify the ways small businesses can benefit from an understanding of the marketing mix. AACSB: Analytical thinking Objective: 11.7: Discuss the marketing mix as it applies to small business.