MKT CH 5, MKT CH 6, MKT CH 7, MKT CH 8

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66. Procedures that develop and analyze new information to help marketing managers make decisions are called: A) strategy planning. B) operational planning. C) analytical research. D) marketing research. E) statistical techniques. | Ans: D | Easy | LO: 1 | Pg. 170 | Definitional | 67. Procedures that develop and analyze new information to help marketing managers make decisions are called: A) marketing research. B) statistical techniques. C) operational planning. D) strategy planning. E) sample building units (SBUs). | Ans: A | Easy | LO: 1 | Pg. 170 | Definitional | 68. Marketing research is concerned with developing and analyzing new information to help marketing managers do a better job of: A) executing marketing strategies. B) planning marketing strategies. C) making operational decisions. D) controlling marketing strategies. E) All of the above. | Ans: E | Medium | LO: 1 | Pg. 170 | Comprehension | 69. Marketing research: A) should be planned by research specialists who understand research techniques better than marketing managers. B) is needed to keep marketing managers in touch with their markets. C) consists mainly of survey design and statistical techniques. D) is only needed by producers who have long channels of distribution. E) All of the above. | Ans: B | Easy | LO: 1 | Pg. 170 | Self-Test | 70. A ______________ is an organized way of continually gathering and analyzing data to get information to help marketing managers make ongoing decisions. A) marketing information system B) marketing model C) marketing research project D) marketing research department E) marketing logistics system | Ans: A | Easy | LO: 1 | Pg. 170 | Definitional | 71. In small companies, A) there is no need for marketing research. B) there should be a marketing research department--or there will be no one to do marketing research. C) the emphasis of marketing research should be on customer surveys. D) salespeople often do what marketing research gets done. E) there usually isn't enough money for a manager to use a search engine. | Ans: D | Easy | LO: 1 | Pg. 170 | Self-Test | 72. Regarding "marketing research" and "marketing information systems": A) marketing information systems gather and analyze data from sources inside the company, while marketing research handles all external sources. B) marketing information systems make information more available and more accessible. C) marketing information systems tend to increase the quantity of information available for decision making, but with some decrease in quality. D) most firms have gone "too far" trying to apply modern decision-making techniques. E) All of the above are true. | Ans: B | Medium | LO: 1 | Pg. 170 | Comprehension | 73. Regarding "marketing research" and "marketing information systems": A) marketing information systems gather, access, and analyze data from intracompany sources, while marketing research handles all external sources. B) both tend to focus on nonrecurring information needs. C) marketing information systems tend to increase the quantity of information available for decision making, but with some decrease in quality. D) most firms have gone "too far" trying to apply modern decision-making techniques. E) None of the above is true. | Ans: E | Medium | LO: 1 | Pg. 170 | Comprehension | 74. When getting information for marketing decisions, the marketing manager: A) may use both internal and external sources of information. B) may need to make some decisions based on incomplete information. C) may need to rely on his or her own instincts to make some decisions. D) should have access to ongoing information about business performance. E) all of the above. | Ans: E | Medium | LO: 1 | Pg. 170-73 | Comprehension | 75. Marketing research: A) provides new information for use in decision-making. B) must be a joint effort between the researcher and the manager. C) may be handled by outside specialists or by people within the firm. D) All of the above are true. E) None of the above is true. | Ans: D | Easy | LO: 1 | Pg. 170-73 | Comprehension | 76. Marketing research: A) should be planned by research specialists who understand research techniques better than marketing managers. B) is only needed by producers who use long channels of distribution. C) should be planned by marketing managers--who understand the problem--not researchers. D) is not needed by business marketers because their needs are different. E) can get changing information that is not available in the MIS. | Ans: E | Medium | LO: 1 | Pg. 170-71 | Comprehension | 77. Regarding marketing research, A) when time is short and a decision must be made, it is better not to do a research project that can answer only some of the questions. B) a good researcher will understand the marketing problem as well as the technical details of marketing research. C) marketing managers really don't have to know much about how to plan marketing research to use the results effectively. D) most large companies don't use outside research specialists. E) the marketing manager is usually too involved to be objective, so a research specialist should define the problem. | Ans: B | Medium | LO: 1 | Pg. 170-73 | Comprehension | 78. Marketing research: A) usually requires complex statistical techniques, so marketing managers should leave planning of the research to the research specialists. B) is likely to be more effective when guided by the strategy planning framework. C) should gather as much information as possible. D) begins by analyzing the situation. E) All of the above are true. | Ans: B | Easy | LO: 1 | Pg. 170-75 | Self-Test | 79. Which of the following statements BEST reflects the point of view of the text with respect to marketing research? A) "We don't use computers, surveys and the like because marketing's information needs are usually not that precise anyway." B) "When we work with outside marketing research specialists, we expect them to take the time to really understand the problem we are trying to solve." C) "As marketing manager, I feel that the marketing researchers should be left alone to do their research--since they often come up with interesting suggestions." D) "As marketing research director, I should know the marketing manager's position in advance, so we can prove it is correct if possible." E) "Our company is very small, but we should have our own marketing research department anyway--to get the information we need to make good decisions." | Ans: B | Hard | LO: 1 | Pg. 170-73 | Comprehension | 80. A complete marketing information system: A) provides a good overall view on many types of problems, but usually cannot provide answers to specific questions. B) eliminates the need for "one-shot" marketing research projects. C) is organized to continually gather data from internal and external sources, including market research studies. D) is usually too complicated for the marketing manager to use without help from data processing specialists. E) All of the above are true. | Ans: C | Easy | LO: 1 | Pg. 170-73 | Self-Test | 81. A complete marketing information system should: A) provide a good overall view on many types of problems. B) allows marketing managers to get needed information while they are actually making decisions. C) provide answers to specific questions. D) continually gather data from internal and external sources, and from market research studies. E) All of the above are true. | Ans: E | Medium | LO: 1 | Pg. 170-73 | Comprehension | 82. Setting up a marketing information system can be valuable to marketing managers because A) most companies have much useful information, but it often isn't available or accessible when the manager needs it. B) most market-oriented companies only need a certain type of information once or twice. C) marketing research data is rarely as accurate as data from a marketing information system. D) market-oriented managers can always use more data. E) a company that can't afford marketing research should at least have a marketing information system. | Ans: A | Medium | LO: 1 | Pg. 171-73 | Comprehension | 83. When getting information for marketing decisions, the marketing manager: A) can benefit from new developments in computer networks and software. B) should have access to ongoing information about business performance. C) may need to make some decisions based on incomplete information. D) All of the above are true. E) None of the above is true. | Ans: D | Easy | LO: 1 | Pg. 171-73 | Self-Test | 84. Which of the following statements about marketing information systems is true? A) Marketing information systems are used to gather, access, and analyze data from intracompany sources, while marketing research deals with external sources. B) Decision support systems allow managers to see how answers to questions might change in different situations. C) Computerized marketing information systems tend to increase the quantity of information available for decision making but not without some corresponding decrease in quality. D) The value of decision support systems is limited because the manager can't use them while he is actually making his decisions. E) All of the above are true statements. | Ans: B | Easy | LO: 1 | Pg. 173 | Self-Test | 85. The scientific method A) rejects the idea that marketing managers can make "educated guesses" about marketing relationships. B) shows that every marketing research project should have five steps. C) is an orderly and objective approach to judging how good an idea really is. D) recognizes that statistical analysis provides the only basis for rejecting an hypothesis. E) None of the above is true. | Ans: C | Easy | LO: 2 | Pg. 175 | Self-Test | 86. The scientific method is important in marketing research because it: A) forces the researcher to follow certain procedures, thereby reducing the need to rely on intuition. B) develops hypotheses and then tests them. C) specifies a marketing strategy which is almost bound to succeed. D) Both A and B are correct. E) All of the above are correct. | Ans: D | Easy | LO: 2 | Pg. 175 | Self-Test | 87. A decision-making approach that focuses on being objective and orderly in testing ideas before accepting them is the: A) MIS method. B) scientific method. C) statistical method. D) DSS method. E) marketing models method. | Ans: B | Easy | LO: 2 | Pg. 175 | Definitional | 88. Educated guesses about the relationships between things or about what will happen in the future are: A) theories. B) laws. C) "facts." D) hypotheses. E) None of the above. | Ans: D | Easy | LO: 2 | Pg. 175 | Definitional | 89. Educated guesses about the relationships between things or about what will happen in the future are: A) hypotheses. B) laws. C) proposals. D) theories. E) predictions. | Ans: A | Easy | LO: 2 | Pg. 175 | Definitional | 90. The scientific method A) rejects the idea that marketing managers can make "educated guesses" about marketing relationships. B) is an orderly way of presenting your point of view. C) assumes that statistical analysis provides the only basis for rejecting an hypothesis. D) All of the above are true. E) None of the above is true. | Ans: E | Medium | LO: 2 | Pg. 175 | Comprehension | 91. Which of the following is NOT part of the five-step marketing research process discussed in the text? A) Writing the proposal B) Analyzing the situation C) Solving the problem D) Interpreting the data E) Defining the problem | Ans: A | Easy | LO: 2 | Pg. 175 | Definitional | 92. Which of the following is NOT part of the five-step marketing research process discussed in the text? A) Interpreting the data. B) Developing the marketing information system (MIS). C) Analyzing the situation. D) Defining the problem. E) Solving the problem. | Ans: B | Easy | LO: 2 | Pg. 175 | Definitional | 93. Which of the following is most consistent with the scientific method approach to marketing research discussed in the text? A) "We continually survey our customers because the results give us good ideas for hypotheses." B) "Once we interpret the data, we can define our problem." C) "Our research is as precise as possible--because we want to be 100 percent accurate." D) "Sometimes the answers from the early stages of the research process are good enough so we stop the research and make our decisions." E) None of the above is true. | Ans: D | Easy | LO: 2 | Pg. 175 | Self-Test | 94. The most difficult step of the marketing research process is: A) analyzing the situation. B) collecting data. C) observation. D) defining the problem. E) interpreting the data. | Ans: D | Easy | LO: 2 | Pg. 176 | Self-Test | 95. Often the most difficult step in the marketing research process is: A) analyzing the situation. B) defining the problem. C) getting problem-specific data. D) interpreting the data. E) All of the above. | Ans: B | Easy | LO: 2 | Pg. 176 | Self-Test | 96. The first thing a marketing manager should do if one of his firm's products drops in sales volume is: A) conduct a survey to see what is wrong. B) define the problem. C) set research priorities. D) do a situation analysis. E) interview representative customers. | Ans: B | Easy | LO: 2 | Pg. 176 | Self-Test | 97. Regarding the marketing research process, defining the problem A) is often confused with identifying the symptoms of the problem. B) can be guided by the marketing strategy planning framework. C) precisely may have to wait until after a situation analysis has been completed. D) All of the above are true. E) None of the above is true. | Ans: D | Easy | LO: 2 | Pg. 176-77 | Comprehension | 98. Regarding the marketing research process, defining the problem A) means identifying the symptoms. B) usually requires that problem specific data be collected and interpreted. C) may have to wait until after a situation analysis has been completed. D) All of the above are true. E) None of the above is true. | Ans: C | Medium | LO: 2 | Pg. 177 | Comprehension | 99. During a "situation analysis," a marketing researcher should: A) collect primary data. B) talk with competitors facing similar problems. C) begin to talk informally to as many customers as possible. D) study what information is already available. E) All of the above. | Ans: D | Medium | LO: 2 | Pg. 177 | Definitional | 100. A company that sells equipment through independent wholesalers wants to find out why sales are down in one region. An analyst is asked to interview the wholesaler in that region. This seems to be A) part of a situation analysis. B) the beginning of a focus group interview. C) gathering information that will be analyzed by a statistical package. D) bad practice, since the problem has not been defined yet. E) None of the above is true. | Ans: A | Medium | LO: 2 | Pg. 177 | Application | 101. A small manufacturing firm has just experienced a rapid drop in sales. The marketing manager thinks that he knows what the problem is and has been carefully analyzing secondary data to check his thinking. His next step should be to: A) conduct an experiment. B) develop a formal research project to gather primary data. C) conduct informal discussion with outsiders, including middlemen, to see if he has correctly defined the problem. D) develop a hypothesis and predict the future behavior of sales. E) initiate corrective action before sales drop any further. | Ans: C | Easy | LO: 2 | Pg. 177 | Self-Test | 102. A marketing manager wants to know why her sales are down. She talks with several sales reps and finds that a competitor has introduced a successful new product. This "research" seems to be part of A) the situation analysis. B) the problem solution stage. C) obtaining problem-specific data. D) the data interpretation stage. E) the problem definition stage of the research process. | Ans: A | Medium | LO: 2 | Pg. 177 | Application | 103. Which of the following statements about doing a situation analysis is correct? A) Libraries have good data on specific topics, but it is expensive to find. B) It doesn't make sense to start a situation analysis until the problem has begun to surface. C) Much good data is available from the government, but most of it is expensive. D) A good situation analysis is usually more expensive than collecting primary data. E) None of the above is true. | Ans: B | Medium | LO: 2 | Pg. 177 | Comprehension | 104. Data that has already been collected or published is: A) useful data. B) secondary data. C) primary data. D) free data. E) rarely--if ever--useful for marketing decision making. | Ans: B | Medium | LO: 3 | Pg. 177 | Definitional | 105. Data that has been collected or published already is: A) primary data. B) free. C) franchised data. D) secondary data. E) none of the above. | Ans: D | Easy | LO: 3 | Pg. 177 | Definitional | 106. Which of the following statements concerning secondary data is correct? A) Secondary data usually takes longer to obtain than primary data. B) Secondary data is only available within the firm. C) Secondary data was originally collected for some other purpose. D) All of the above are correct. E) None of the above are correct. | Ans: C | Medium | LO: 3 | Pg. 177 | Comprehension | 107. Secondary data: A) may not be specific enough to answer the question under consideration. B) should be considered before primary data is collected. C) is often all that is needed to solve a problem. D) is available both internally and outside the firm. E) all of the above. | Ans: E | Easy | LO: 3 | Pg. 177 | Comprehension | 108. Secondary data is often available--at little or no cost--from: A) both private and government sources. B) the Internet. C) trade associations. D) company files. E) All of the above. | Ans: E | Easy | LO: 3 | Pg. 177-80 | Definitional | 109. Popular Internet search engines for locating secondary data include: A) Google B) Northern Light C) Ask D) Yahoo E) All of the above are likely to be useful. | Ans: E | Medium | LO: 3 | Pg. 172,178 | Application | 110. Marketing managers can search the Internet for secondary data by using: A) a popular Internet subject directory like Yahoo. B) a library Internet subject directory like INFOMINE. C) a powerful Internet search engine like Google. D) a relevant database that is accessed by using software at the website where the database is located. E) all of the above. | Ans: E | Easy | LO: 3 | Pg. 178 | Application | 111. Secondary data from federal government sources A) is readily available, but there is usually not much information at state and local levels. B) focuses mostly on agriculture. C) is often very helpful for estimating the size of a market. D) is only available from the Commerce Department in Washington. E) None of the above is true. | Ans: C | Easy | LO: 3 | Pg. 179 | Comprehension | 112. A good place for a marketing analyst to START looking for published statistical data is the: A) Encyclopedia of Associations. B) Congressional Record. C) The Wall Street Journal. D) Statistical Abstract of the United States. E) New York Times research files. | Ans: D | Medium | LO: 3 | Pg. 179 | Comprehension | 113. Which of the following is likely to be part of a situation analysis? A) A marketing analyst looks up data in Advertising Age magazine about expenditures in the firm's market. B) A marketing researcher asks a trade association for one of its reports. C) A marketing manager searches the subject directory of the Librarians Index to the Internet. D) All of the above. E) None of the above. | Ans: D | Hard | LO: 3 | Pg. 177-80 | Application | 114. Which of the following statements about secondary data is correct? A) Secondary data is obtained only from sources outside of the firm. B) Secondary data may be available much faster than primary data. C) Results of "old" surveys are not secondary data. D) Secondary data is usually more expensive to obtain than primary data. E) All of the above are true. | Ans: B | Medium | LO: 3 | Pg. 177,180 | Comprehension | 115. Which of the following is most consistent with the marketing research process discussed in the text? A) "We know that time is always short, so as soon as we define the problem we get on with our data collection." B) "We pay a lot for marketing research experts, so our managers don't waste time trying to figure out how projects should be conducted." C) "We always use mail surveys, so that we won't have to worry about nonresponse problems." D) "Secondary data is often all we need to solve our problems." E) None of the above is a good answer. | Ans: D | Medium | LO: 3 | Pg. 177,180 | Comprehension | 116. Which of the following statements about doing a situation analysis is correct? A) There is very little government data on business and commercial markets. B) Doing a good situation analysis is usually much less expensive than collecting primary data. C) There is little value to having a marketing researcher involved because a good marketing manager is able to do what is required. D) All of the above are true. E) None of the above is true. | Ans: B | Easy | LO: 3 | Pg. 180 | Comprehension | 117. Which of the following is probably NOT a part of a situation analysis? A) a marketing manager asks a radio station for a copy of an audience study. B) a marketing analyst determines from a Census publication how many manufacturers are in the Portland area. C) a marketing analyst looks in the Index of Business Periodicals for articles about a large retail chain. D) a computer company asks ten lawyers to participate in a focus group on how they use computers. E) All of the above seem to be part of a situation analysis. | Ans: D | Hard | LO: 3 | Pg. 179-81 | Application | 118. Which of the following is NOT likely to be included in a research proposal? A) how long the research will take. B) preliminary recommendations on how to solve the problem. C) information about what the research will cost. D) a description of what data will be collected. E) a description of how data will be collected. | Ans: B | Medium | LO: 3 | Pg. 180 | Definitional | 119. A research proposal A) should be written by the marketing manager--not the researcher--since the manager knows what needs to be done. B) usually can't provide much information about how data will be collected, since it is hard to tell until the research is started. C) might lead a marketing manager to decide that the proposed research will cost more than it is worth. D) is a plan developed during the problem definition stage of research. E) All of the above are true. | Ans: C | Easy | LO: 3 | Pg. 180 | Self-Test | 120. Which of the following would be a source of primary data? A) U.S. Census Bureau reports. B) company records on sales, costs, and advertising. C) market tests. D) all of the above. E) B and C only. | Ans: C | Easy | LO: 3 | Pg. 180 | Definitional | 121. Which of the following would NOT be a source of primary data? A) The Wall Street Journal B) Market tests C) Focus groups D) Observation studies E) Surveys | Ans: A | Easy | LO: 3 | Pg. 180 | Definitional | 122. "Qualitative research" involves: A) talks with the firm's own managers. B) questioning to obtain in-depth open-ended responses. C) "yes-no" questionnaires. D) studying secondary data. E) None of the above. | Ans: B | Easy | LO: 4 | Pg. 180 | Definitional | 123. The big advantage of qualitative research in marketing is: A) ease of interpretation. B) it provides a good basis for statistical analysis. C) the in-depth responses it provides. D) the analysis can be handled on a personal computer. E) None of the above. | Ans: C | Medium | LO: 4 | Pg. 180 | Comprehension | 124. An interview with 6 to 10 people in an informal group setting is called a(an): A) secondary interview. B) focus group interview. C) observation interview. D) quantitative research interview. E) informal investigation. | Ans: B | Easy | LO: 4 | Pg. 181 | Definitional | 125. With focus group interviews, A) consumers talk as a group for about 10 minutes, and then meet individually with an interviewer. B) it is typical for the researcher to develop quantitative summaries of the results. C) marketing managers can estimate the size of the market for a new product. D) the objective is to get the group to interact, so that many ideas are generated. E) researchers try to select a large sample so they can extend the results to the whole population. | Ans: D | Easy | LO: 4 | Pg. 181 | Comprehension | 126. A consumer products manufacturer wants consumer reaction to its existing products. Interaction is considered important to stimulate thinking. The firm should use: A) the observation method. B) focus group interviews. C) the GSR (galvanic skin response) method. D) quantitative interviews. E) telephone interviews. | Ans: B | Easy | LO: 4 | Pg. 181 | Application | 127. One of the major disadvantages of the focus group interview approach is that A) ideas generated by the group can't be tested later with other research. B) it is difficult to measure the results objectively. C) it is difficult to get in-depth information about the research topic. D) there is no interviewer, so the research questions may not be answered. E) once the interview is over there is no way for a marketing manager who was not there to evaluate what went on. | Ans: B | Medium | LO: 4 | Pg. 181 | Comprehension | 128. When focus group interviews are used in marketing, A) each person in the group answers the same questionnaire, to focus the discussion. B) the typical group size is 15 to 20 typical consumers whether online or off-line. C) it is primarily as a follow-up to more quantitative research. D) the research conclusions will vary depending on who watches the interview whether online or off-line. E) the consumer in the group who knows the most about the topic is asked to lead the discussion. | Ans: D | Medium | LO: 4 | Pg. 181 | Comprehension | 129. Quantitative marketing research A) usually makes it easier and faster for respondents to answer the questions (compared to qualitative research). B) can use a large, representative sample. C) data can be collected by mail, e-mail, online, telephone, or personal interviews. D) makes it easier for the research analyst to summarize answers. E) All of the above are true. | Ans: E | Easy | LO: 4 | Pg. 182-84 | Comprehension | 130. Which of the following is a disadvantage of quantitative research (compared to qualitative research)? A) it is harder to get in-depth answers. B) the conclusions are likely to vary more from analyst to analyst. C) the results are harder to summarize. D) it is not as fast for respondents. E) None of the above is true. | Ans: A | Medium | LO: 4 | Pg. 182 | Comprehension | 131. Marketing research which seeks structured responses that can be summarized is called: A) focus group research. B) quantitative research. C) qualitative research. D) situation analysis research. E) open-ended research. | Ans: B | Easy | LO: 4 | Pg. 182 | Definitional | 132. The percent of people contacted in a survey who complete a questionnaire is the: A) qualitative rate. B) sample rate. C) population rate. D) response rate. E) none of the above. | Ans: D | Easy | LO: 4 | Pg. 183 | Definitional | 133. The percent of people contacted who complete a survey questionnaire is the: A) response rate. B) sample base unit (SBU) rate. C) population rate. D) sample rate. E) hit rate. | Ans: A | Easy | LO: 4 | Pg. 183 | Definitional | 134. A marketing researcher wants to get sensitive information about family spending patterns as part of a survey. He is most likely to get the needed information A) with a mail, e-mail, or online survey. B) with a focus group. C) with personal interviews. D) with telephone interviews. E) Any of the above is about equally effective for getting sensitive information. | Ans: A | Easy | LO: 4 | Pg. 183 | Application | 135. A marketing researcher wants to do a survey to probe in-depth consumer attitudes about their experiences with the company's products. He is LEAST likely to get what he wants if he uses: A) personal interviews. B) online focus groups. C) telephone interviews. D) a mail survey. E) None of the above is very useful for getting in-depth information about consumer attitudes. | Ans: D | Medium | LO: 4 | Pg. 183 | Application | 136. Mail surveys: A) may be more successful than personal interviews for getting personal information. B) are often limited by low response rates. C) are popular because they can be a convenient and economical approach. D) All of the above are true. E) None of the above is true. | Ans: D | Easy | LO: 4 | Pg. 183-84 | Comprehension | 137. A firm intends to use an online survey questionnaire in a marketing research project. Compared to a mail survey: A) feedback will likely be faster online. B) the response rate will likely be lower online. C) respondents will likely be younger and better educated online. D) costs will likely be less online. E) all of the above. | Ans: E | Easy | LO: 4 | Pg. 183 | Comprehension | 138. Which of the following is NOT an advantage of telephone surveys? A) They are effective for getting answers to simple questions. B) They usually can be conducted quite quickly. C) They are especially good for getting confidential and personal information. D) Response rates are high. E) All of the above are advantage of telephone surveys. | Ans: C | Easy | LO: 4 | Pg. 183 | Comprehension | 139. Which method of quantitative research would probably produce the best results when the questions are simple and require only quick "yes" or "no" answers? A) telephone interviews. B) focus group interviews. C) mail questionnaires. D) personal interviews. E) observation. | Ans: A | Medium | LO: 4 | Pg. 183 | Application | 140. A marketing researcher wants to do in-depth research on business customers' experiences with the company's products. She is MOST likely to get what she wants if she uses A) an e-mail survey. B) the focus group approach. C) the observation approach. D) personal interviews. E) None of the above is very useful for getting in-depth information about business customers' attitudes. | Ans: D | Easy | LO: 4 | Pg. 183-84 | Self-Test | 141. Business market researchers commonly use ______________ because of their flexibility. A) mail questionnaires B) focus group interviews C) personal interviews D) telephone interviews E) none of the above | Ans: C | Medium | LO: 4 | Pg. 184 | Application | 142. The observing method in marketing research: A) uses personal interviews. B) may require customers to change their normal shopping behavior. C) is used to gather data without consumers being influenced by the process. D) is not suitable for obtaining primary data. E) All of the above. | Ans: C | Medium | LO: 4 | Pg. 184 | Comprehension | 143. What would be the best way for the marketing manager of a supermarket to find out how consumers move through the store? A) Have an interviewer go through the store with each customer. B) Observe customers with hidden cameras. C) Give customers a questionnaire after they have finished shopping. D) Install checkout counters at the end of each aisle. E) None of the above would be very good. | Ans: B | Easy | LO: 4 | Pg. 184 | Application | 144. Which of the following is NOT a good example of the observation method of marketing research? A) The manager of a supermarket occasionally walks through the store to see what customers are doing. B) A drugstore installs optical scanners at its checkout counters. C) The owner of a shopping center puts a counting device at the entrance to count how many cars come in. D) A store manager studies videotapes of consumers shopping in the store. E) All of the above are good examples of observation research. | Ans: A | Easy | LO: 4 | Pg. 184 | Self-Test | 145. With regard to getting problem-specific data: A) the observation method involves asking consumers direct questions about their observations. B) surveys distributed by e-mail are declining in popularity. C) focus group interviews are usually more representative than a set of personal interviews. D) telephone surveys are limited to short, simple questions--they don't allow the interviewer to learn what a respondent is really thinking. E) None of the above is a true statement. | Ans: E | Easy | LO: 4 | Pg. 180-85 | Self-Test | 146. Information is obtained on a continuing basis from the same respondents using a: A) contributor group. B) consumer panel. C) responder group. D) consumer experiment. E) statistical package. | Ans: B | Easy | LO: 4 | Pg. 185 | Definitional | 147. Joy Rinaldo has agreed to participate in marketing research in which she will provide information about her purchases on an ongoing basis. She is probably part of a: A) population study. B) statistical package. C) contributor group. D) consumer panel. E) focus group. | Ans: D | Easy | LO: 4 | Pg. 185 | Definitional | 148. The ______________ method is an information gathering method in which the responses of groups which are similar--except on the characteristic being tested--are compared. A) focus group B) random C) observing D) experimental E) qualitative questioning | Ans: D | Easy | LO: 4 | Pg. 185 | Definitional | 149. Two similar groups of consumers are shown different magazines which include the same ad. Then each consumer is asked questions about the advertised product. This seems to be a description of A) the experimental method. B) a set of focus group interviews. C) a consumer panel research project. D) a set of personal interviews. E) None of the above. | Ans: A | Easy | LO: 4 | Pg. 185 | Application | 150. A marketing manager wants to know if a "2 for 1" coupon will attract new customers. He will get the most persuasive results if he uses A) a focus group to ask consumers if they like the idea. B) an experimental method in which only some consumers get the coupon and the purchases of the two groups (with and without coupons) are compared. C) personal interviewers to ask consumers how they will react. D) a mail survey to ask consumers if they use coupons and why. E) none of the above would allow the manager to determine if the coupon will help get new customers. | Ans: B | Medium | LO: 4 | Pg. 185 | Application | 151. Marketing research experiments A) may be difficult to set up in real world situations. B) may involve a combination of observing and questioning. C) may be disrupted by competitors' promotion or pricing efforts. D) All of the above. E) None of the above. | Ans: D | Easy | LO: 4 | Pg. 185-86 | Comprehension | 152. To get problem-specific data, a marketing researcher would use: A) the experimental method. B) a questioning method. C) an observing method. D) Any or all of the above. E) Either A or B--but not C. | Ans: D | Medium | LO: 4 | Pg. 180-86 | Definitional | 153. About ______________ percent of marketing research spending is for syndicated research. A) 10 B) 25 C) 40 D) 60 E) 75 | Ans: C | Medium | LO: 4 | Pg. 186 | Definitional | 154. Which of the following statements about marketing research is FALSE? A) A low response rate may affect the accuracy of results. B) Managers never get all the information they would like to have. C) Getting more or better information is not always worth the cost. D) Because of the risks involved, marketing managers should never base their decision on incomplete information. E) A marketing manager should evaluate beforehand whether research findings will be relevant. | Ans: D | Easy | LO: 4 | Pg. 186 | Self-Test | 155. Statistical packages are: A) easy-to-use computer programs that analyze data. B) syndicated research services that do quantitative research. C) procedures used to be sure that a sample is representative. D) product packages that make it possible to collect data at checkout counters. E) None of the above. | Ans: A | Easy | LO: 4 | Pg. 187 | Definitional | 156. The total group a survey researcher is interested in is called the: A) population. B) sample. C) study group. D) representative group. E) None of the above. | Ans: A | Easy | LO: 4 | Pg. 188 | Definitional | 157. The part of the relevant population that is surveyed by a researcher is called the: A) representative group. B) focal group. C) target population. D) sample. E) research group. | Ans: D | Easy | LO: 4 | Pg. 188 | Definitional | 158. The response rate to a survey affects A) who is in the population for a marketing research study. B) whether a statistical package can be used to analyze the data. C) how representative the sample is. D) All of the above are good answers. E) None of the above is a good answer. | Ans: C | Easy | LO: 4 | Pg. 188 | Self-Test | 159. ______________ is concerned with whether the research data measures what it is intended to. A) Cross-tabulation B) Validity C) Regularity D) Dependability E) Confidence | Ans: B | Easy | LO: 4 | Pg. 189 | Definitional | 160. At the step when data are interpreted, a marketing manager should: A) leave it to the technical specialists to draw the correct conclusions. B) realize that statistical summaries from a sample may not be precise for the whole population. C) know that quantitative survey responses are valid, but qualitative research may not be valid. D) be satisfied with the sample used as long as it is large. E) All of the above are correct. | Ans: B | Easy | LO: 4 | Pg. 188 | Self-Test |

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83. Regarding U.S. business and organizational customers, A) more goods and services are purchased by business and organizational customers than by final consumers. B) there are more business and organizational customers than final consumers. C) there are more manufacturers than all other types of business and organizational customers combined. D) more goods and services are purchased by government buyers than by all other business and organizational customers. E) Both B and D are true. | Ans: A | Hard | LO: 1 | Pg. 142 | Comprehension | 84. Which of the following is a business or organizational customer? A) producers of goods or services. B) a retailer. C) a wholesaler. D) a government agency. E) All of the above are business and organizational customers. | Ans: E | Easy | LO: 1 | Pg. 142 | Self-Test | 85. Which of the following are NOT "business and organizational customers?" A) Wholesalers B) Manufacturers C) Financial institutions D) Government units E) All of the above ARE business and organizational customers. | Ans: E | Easy | LO: 1 | Pg. 142 | Definitional | 86. Which of the following is NOT an organizational buyer? A) the Red Cross buying office supplies. B) a sporting goods retailer buying skis. C) a law office buying a background music service. D) a country club buying tennis balls for a tournament. E) All of the above are organizational buyers. | Ans: E | Easy | LO: 1 | Pg. 142 | Application | 87. Which of the following is NOT an example of an organizational buyer? A) a government buyer purchasing a new desk for the mayor's office. B) a woman buying cookware to sell to her friends and neighbors. C) a sales rep buying a new necktie to make a good impression. D) a wholesaler buying a delivery truck. E) None of the above is a good example. | Ans: C | Easy | LO: 1 | Pg. 142 | Application | 88. Concerning consumer and business markets: A) promotion to consumer markets usually relies more heavily on the use of personal selling. B) it is often easier to define customer needs in business markets. C) a marketing mix directed at an organizational customer is usually less precisely adjusted to the needs of the specific customer. D) All of the above are true. E) None of the above is true. | Ans: B | Medium | LO: 1 | Pg. 143 | Comprehension | 89. Which of the following is NOT true regarding organizational buyers? A) Buyers for all kinds of organizations (governments, nonprofit groups, middlemen) tend to buy in much the same way as do manufacturers. B) The basic aspects of business customer buying behavior tend to be quite similar in the U.S. and in international markets. C) Marketing strategies aimed at them are often tailored to each individual customer. D) Their purchases are made to help their organizations meet the demands for their products. E) Their needs are usually harder to define than for final consumers. | Ans: E | Easy | LO: 1 | Pg. 143 | Self-Test | 90. In comparison to the buying of final consumers, the purchasing of organizational buyers: A) is strictly economic and not at all emotional. B) is always based on competitive bids from multiple suppliers. C) leans basically toward economy, quality, and dependability. D) is even less predictable. E) Both A and C are true statements. | Ans: C | Easy | LO: 1 | Pg. 143 | Self-Test | 91. Organizational buying based on a written (or electronic) description of a product is called buying by ______________. A) purchasing specifications B) reciprocity C) negotiated contract | Ans: A | Easy | LO: 1 | Pg. 144 | Definitional | 92. Purchasing specifications may include: A) the product grade B) the brand name C) the part number D) all of the above E) none of the above | Ans: D | Easy | LO: 1 | Pg. 144 | Application | 93. Which of the following buying methods would a supermarket buyer be MOST LIKELY to use in the purchase of grade A large eggs? A) Purchasing specifications B) Competitive bidding C) Negotiated contract | Ans: A | Medium | LO: 1 | Pg. 144 | Application | 94. Which of the following products would be bought using purchasing specifications? A) 100 gallons of Du Pont brand muriatic acid. B) 1,000 700MB CD-Rs. C) 50 pounds of number 10 USX nails. D) all of the above. E) none of the above. | Ans: D | Medium | LO: 1 | Pg. 144 | Application | 95. Which of the following buying methods would a purchasing manager be most likely to use on the Internet? A) Reciprocity B) Negotiated contract C) Purchasing specifications | Ans: C | Medium | LO: 1 | Pg. 144 | Application | 96. Which of the following statements about ISO 9000 is FALSE? A) ISO 9000 is a way for government suppliers to document their quality procedures, but it does not apply to other organizational suppliers. B) A supplier that has met the ISO 9000 standard is always better than one that has not. C) ISO 9000 applies to international suppliers only. D) All of the above are false. E) None of the above is false. | Ans: D | Hard | LO: 1 | Pg. 144-45 | Comprehension | 97. Buying specialists for organizations are commonly called: A) supply agents. B) vendor agents. C) value analysts. D) purchasing managers. E) consumer buyers. | Ans: D | Easy | LO: 2 | Pg. 145 | Definitional | 98. A furniture producer has decided to buy its upholstery cloth from new suppliers. The president has given the purchasing manager responsibility to make the final selections and negotiate the terms. The purchasing manager looks through books with samples and specifications, and then calls salespeople to make presentations to the production manager, who is concerned about how easy the cloth will be to cut and sew. In this case, the purchasing manager is A) an influencer. B) a buyer. C) a decider. D) a gatekeeper. E) all of the above. | Ans: E | Easy | LO: 2 | Pg. 145-46 | Comprehension | 99. Regarding organizational buying, the people who have the power to select or approve the supplier--especially for larger purchases--are called: A) influencers. B) deciders. C) buyers. D) gatekeepers. E) users. | Ans: B | Hard | LO: 2 | Pg. 145 | Definitional | 100. Natalie Simopoulos, director of procurement at Grecian Glass, Inc. must approve every purchase order, and Anthony Markatos, purchasing manager, must authorize any sales rep who wants to talk to a Grecian employee. Natalie and Anthony are acting as _____ and _____, respectively. A) decider and gatekeeper B) influencer and user C) gatekeeper and influencer D) buyer and decider E) user and gatekeeper | Ans: A | Medium | LO: 2 | Pg. 145 | Application | 101. Multiple buying influence is MOST likely to occur in which of the following purchases? A) note pads. B) a voice-mail phone system. C) a replacement for a broken chair. D) gasoline. E) paper clips. | Ans: B | Easy | LO: 2 | Pg. 145-46 | Application | 102. If many individuals are involved in a buying decision, this is: A) a multiple input situation. B) a selective rebuy. C) a modified rebuy. D) a multiple buying influence situation. E) a straight rebuy. | Ans: D | Easy | LO: 2 | Pg. 146 | Definitional | 103. A "buying center" A) may vary from purchase to purchase. B) refers to all the purchasing agents in a large firm. C) is usually identified on a firm's organization chart. D) is usually controlled by the purchasing manager. E) is usually located in major wholesale markets. | Ans: A | Medium | LO: 2 | Pg. 146 | Comprehension | 104. When a salesperson calls on a new business prospect, A) he may have trouble identifying all of the buying center members. B) he usually must see the purchasing manager first. C) the probability of encountering a gatekeeper is high. D) All of the above are true. E) None of the above is true. | Ans: D | Medium | LO: 2 | Pg. 145-46 | Comprehension | 105. For new-task buying, a good salesperson will try to contact the potential customer's: A) deciders. B) gatekeepers. C) influencers. D) buyers (purchasing managers). E) All of the above. | Ans: E | Easy | LO: 2 | Pg. 145-46 | Comprehension | 106. Vendor analysis A) emphasizes the emotional factors in a purchase decision. B) is a formal procedure used by a vendor's salespeople to be certain that all members of a buying center have been contacted. C) is used less now that multiple buying influence is more common. D) is likely to favor a vendor that offers the customer the lowest total cost associated with the purchase. E) None of the above is true. | Ans: D | Medium | LO: 2 | Pg. 147 | Comprehension | 107. Vendor analysis A) ensures objectivity by disregarding whether a supplier has been used in the past. B) emphasizes the emotional factors in a purchase decision. C) is used less now that multiple buying influence is more common. D) All of the above are true. E) None of the above is true. | Ans: E | Medium | LO: 2 | Pg. 147 | Comprehension | 108. Regarding selling to organizational buyers, A) the buyer's individual needs can be ignored when there is multiple buying influence. B) purchasing managers are usually more emotional than final consumers. C) a purchasing manager's emotional needs should be emphasized as well as his economic needs. D) sellers should try to avoid purchasing managers, since they usually can't make the final buying decision. E) All of the above are true. | Ans: C | Medium | LO: 2 | Pg. 147 | Integrating | 109. A typical purchasing manager: A) buys strictly on economic needs. B) tries to satisfy both individual needs and company needs. C) seeks the lowest possible cost. D) has the final decision on all purchases. E) All of the above. | Ans: B | Medium | LO: 2 | Pg. 147 | Comprehension | 110. Purchasing managers A) are, in general, not very well educated. B) always buy from the lowest price supplier. C) may be willing to pay more to reduce personal risk. D) are usually the last ones a salesperson sees, after the order has been approved by the gatekeepers. E) None of the above is true. | Ans: C | Easy | LO: 2 | Pg. 147 | Comprehension | 111. Most purchasing managers: A) reject "vendor analysis" as too subjective. B) want to be "sold" by persuasive salespeople. C) spend most of their time on new-task buying. D) stress dependability as well as lower cost and higher quality. E) dislike the higher risk that is involved in buying from a supplier that meets the ISO 9000 standard. | Ans: D | Medium | LO: 2 | Pg. 147 | Comprehension | 112. Purchasing managers in business markets (compared to buyers in consumer markets) are generally: A) fewer in number. B) more technically qualified. C) less emotional in their buying motives. D) more insistent on dependability and quality. E) all of the above. | Ans: E | Easy | LO: 2 | Pg. 145-47 | Comprehension | 113. Regarding organizational buying, A) a "national accounts" sales force often makes sense when firms with many facilities buy from a central location. B) purchasing managers are more likely to be found in large organizations. C) a geographically bound salesperson can be at a real disadvantage. D) All of the above are true. E) None of the above is true. | Ans: D | Medium | LO: 2 | Pg. 148 | Comprehension | 114. A requisition A) is only used for nonroutine purchases. B) is the same as a purchase order. C) sets the terms under a negotiated contract. D) is a formal contract between a buyer and a seller. E) none of the above is true. | Ans: E | Medium | LO: 2 | Pg. 148 | Comprehension | 115. An office manager needs office supplies, so he fills out a form indicating what he needs and sends it to the purchasing department to be ordered. This form is usually called A) a purchase order. B) a requisition. C) a vendor analysis. D) a buying center request. E) the start of the adoption process. | Ans: B | Easy | LO: 2 | Pg. 148 | Application | 116. Organizational buyers: A) are producers' agents. B) are problem solvers. C) base purchasing decisions entirely on company needs. D) are not affected by emotional needs. E) All of the above are true. | Ans: B | Medium | LO: 2 | Pg. 149 | Integrating | 117. Which of the following is NOT one of the organizational buying processes discussed in the text? A) multiple task buying. B) modified rebuy buying. C) new-task buying. D) straight rebuy buying. E) None of the above, i.e., all are buying processes. | Ans: A | Easy | LO: 3 | Pg. 149 | Definitional | 118. Which of the following is NOT one of the organizational buying processes discussed in the text? A) Straight rebuy buying B) Modified rebuy buying C) Important task buying D) New-task buying E) None of the above, i.e., all are buying processes. | Ans: C | Easy | LO: 3 | Pg. 149 | Definitional | 119. Multiple buying influence should be expected in: A) vendor buying. B) straight rebuy buying. C) modified rebuy buying. D) new-task buying. E) none of the above. | Ans: D | Easy | LO: 3 | Pg. 149 | Definitional | 120. Regarding new-task organizational buying, which of the following are likely to be involved? A) top managers. B) purchasing manager. C) production process engineers. D) production line supervisors. E) all of the above. | Ans: E | Easy | LO: 3 | Pg. 149 | Application | 121. Regarding new-task organizational buying, which of the following persons is LEAST likely to be involved? A) a competitor's purchasing manager. B) a purchasing manager. C) a production line supervisor. D) the company president. E) a research assistant. | Ans: A | Easy | LO: 3 | Pg. 149 | Application | 122. A buyer who has not purchased from a vendor in the past is MOST LIKELY to buy from that vendor when there is: A) straight rebuy buying B) selective buying. C) new-task buying. D) selective task buying. E) modified rebuy buying. | Ans: C | Medium | LO: 3 | Pg. 149 | Application | 123. Which of the following buying situations gives a seller the most chance for promotion impact? A) Selective task buying B) Modified rebuy buying C) New-task buying D) Straight rebuy buying E) All of the above are equal. | Ans: C | Easy | LO: 3 | Pg. 149 | Comprehension | 124. Straight rebuy A) decisions, as contrasted with modified rebuys, are more likely to involve multiple buying influence. B) vendor selections are likely to be made by a purchasing manager--without consulting anyone else. C) decisions are infrequent, but they typically take longer to make than new-task buying decisions. D) decisions usually involve getting negotiated bids from suppliers. E) decisions cannot be influenced by advertising. | Ans: B | Hard | LO: 3 | Pg. 149 | Comprehension | 125. A straight rebuy is MOST likely to occur for: A) a new computer network. B) a pension plan which meets the new government regulations. C) paper supplies for the copy equipment. D) electronic components for a new product. E) executive chairs for a new office building. | Ans: C | Easy | LO: 3 | Pg. 149 | Application | 126. A vendor is MOST likely to make a sale if the buyer has bought from the vendor before and is doing: A) straight rebuy buying. B) selective buying. C) multiple task buying. D) modified rebuy buying. E) new-task buying. | Ans: A | Medium | LO: 3 | Pg. 149 | Application | 127. A vendor is LEAST LIKELY to make a sale if the buyer has not bought from the vendor before and is doing: A) straight rebuy buying B) selective buying. C) new-task buying. D) selective task buying. E) modified rebuy buying. | Ans: A | Medium | LO: 3 | Pg. 149 | Application | 128. Percy Malik, purchasing agent for Black Mountain Chemical Industries, routinely signs purchase orders for office supplies without further consideration. At Black Mountain, purchases of office supplies are A) a modified rebuy. B) a necessity. C) Somewhat Insignificant Commodity (SIC) items. D) a new-task buy. E) a straight rebuy. | Ans: E | Medium | LO: 3 | Pg. 149 | Application | 129. A modified rebuy would be most likely when: A) A railroad plans to change from steel to aluminum rail cars to cut weight. B) A car producer is developing a sportier car which will require wider tires. C) A bread producer is placing its weekly order for flour. D) A computer producer is buying new assembly line equipment. E) A shoe factory needs more glue to attach heels to its shoes. | Ans: B | Easy | LO: 3 | Pg. 149 | Self-Test | 130. A modified rebuy is MOST likely to occur for: A) file folders. B) brooms. C) paper clips. D) a desk. E) copier paper. | Ans: D | Easy | LO: 3 | Pg. 149 | Application | 131. Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm's purchasing agent MOST LIKELY to use? A) Selective buying B) Modified rebuy buying C) Intensive buying D) New-task buying E) Straight rebuy buying | Ans: B | Medium | LO: 3 | Pg. 149 | Application | 132. Organizational buyers: A) tend to rely almost totally on salespeople as their source of information. B) prefer formal procedures for rating vendors over informal approaches like vendor analysis. C) are likely to do little search for additional information if the purchase is unimportant. D) tend to be more emotional than final consumers--because their jobs are at risk if a problem arises. E) None of the above is true. | Ans: C | Easy | LO: 3 | Pg. 149 | Definitional | 133. Organizational buyers: A) rely on many sources of information in addition to salespeople when making purchase decisions. B) may use vendor analysis to make certain that all relevant areas of a purchase decision have been considered. C) are likely to do little search for additional information if the purchase is unimportant. D) tend to be more rational--and less emotional--in their buying decisions than final consumers. E) All of the above are true. | Ans: E | Easy | LO: 3 | Pg. 147-50 | Definitional | 134. In business markets, close buyer-seller relationships A) may improve the profits of both the buyer and the seller. B) are almost always desirable from the seller's point of view, but not from the buyer's point of view. C) may have benefits, but they usually increase a firm's uncertainty and risk. D) None of the above. E) All of the above. | Ans: A | Hard | LO: 4 | Pg. 150-52 | Comprehension | 135. With respect to buyer-seller relationships in business markets, A) relationships benefit sellers, but not customers. B) some customers simply are not interested in a close relationship with a supplier. C) customer firms are better off selecting suppliers with competitive bids rather than establishing a relationship with a single vendor. D) All of the above are true. E) None of the above is true. | Ans: B | Easy | LO: 4 | Pg. 150-53 | Self-Test | 136. Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) legal bonds B) new-task sharing C) cooperation D) operational linkages E) information sharing | Ans: B | Easy | LO: 4 | Pg. 151 | Comprehension | 137. Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) information sharing B) legal bonds C) cooperation D) operational linkages E) all of the above are key dimensions | Ans: E | Easy | LO: 4 | Pg. 151 | Comprehension | 138. Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) legal bonds B) relationship-specific adaptations C) joint inspection D) operational linkages E) information sharing | Ans: C | Easy | LO: 4 | Pg. 151 | Comprehension | 139. Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) legal bonds B) relationship-specific adaptations C) cooperation D) operational linkages E) bid rigging | Ans: E | Easy | LO: 4 | Pg. 151 | Comprehension | 140. Which of the following is NOT a key dimension of buyer-seller relationships in business markets? A) legal bonds B) relationship-specific recycling C) cooperation D) operational linkages E) information sharing | Ans: B | Easy | LO: 4 | Pg. 151 | Comprehension | 141. Suppliers to business markets often A) provide information about industry trends. B) must manage inventory and delivery carefully--to provide customers with just-in-time delivery. C) serve as technical consultants to their customers. D) All of the above are true. E) None of the above is true. | Ans: D | Medium | LO: 4 | Pg. 150-53 | Comprehension | 142. In business markets, close buyer-seller relationships A) often involve a number of people from different areas in both the buyer and supplier firms. B) may be based on regular, good-faith reviews rather than legal contracts. C) can help reduce uncertainty and risk. D) usually focus on driving down joint costs. E) All of the above. | Ans: E | Medium | LO: 4 | Pg. 150-53 | Self-Test | 143. A close buyer-seller relationship in a business market: A) may require relationship-specific adaptations by the seller, the customer, or both. B) may result in the seller accepting a lower price. C) may increase the buyer's "switching costs." D) may not involve a contract that spells out each party's responsibilities. E) All of the above are true. | Ans: E | Hard | LO: 4 | Pg. 150-53 | Comprehension | 144. When a purchasing manager knows roughly what is needed but can't describe it exactly--or when the purchasing arrangement may change as the job progresses--then buying is likely to be by: A) negotiated contract. B) description. C) outsourcing. | Ans: A | Easy | LO: 4 | Pg. 153 | Definitional | 145. Which of the following situations would involve negotiated contract buying? A) design and manufacture a new computer accessory. B) produce and deliver 1,000 tons of tomatoes. C) manufacture and ship 500 secretarial chairs. D) all of the above. E) none of the above. | Ans: A | Medium | LO: 4 | Pg. 153 | Self-Test | 146. Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying. A) description. B) negotiated contract. C) resident. | Ans: B | Medium | LO: 4 | Pg. 153 | Application | 147. Today, when a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve: A) a reverse auction. B) a procurement hub. C) negotiated contracts. D) competitive bids. E) all of the above. | Ans: C | Easy | LO: 4 | Pg. 153 | Self-Test | 148. Organizational buyers purchase the same product from more than one source A) if no supplier has a superior marketing mix. B) to help ensure continuing supplies. C) because a single vendor usually doesn't want all of the business. D) if vendor analysis results in a "tie score" for the different suppliers. E) None of the above is true. | Ans: B | Hard | LO: 4 | Pg. 153-54 | Comprehension | 149. Regarding e-commerce website resources: A) Collaboration hubs focus on helping firms cooperate on an extended basis. B) Catalog sites automate search and delivery by making it easy to order products from many different suppliers. C) Online marketplaces connect buyers and sellers in particular industries. D) Procurement sites direct suppliers to a buyer at one convenient location. E) All of the above are true. | Ans: E | Medium | LO: 5 | Pg. 155-56 | Comprehension | 150. Regarding e-commerce website resources: A) Purchasing specifications are commonly used online to describe what a firm wants to buy. B) Online auction sites commonly operate for the benefit of sellers. C) Competitive bidding systems commonly drive down prices at procurement hubs. D) Online reverse auction sites commonly operate for the benefit of buyers. E) All of the above are true. | Ans: E | Easy | LO: 5 | Pg. 154-56 | Self-Test | 151. Regarding B2B e-commerce: A) Procurement sites foster competition among sellers. B) Online auction sites foster competition among buyers. C) Reverse auction sites foster competition among sellers. D) All of the above are correct. E) None of the above is correct. | Ans: D | Medium | LO: 5 | Pg. 155-56 | Integrating | 152. Regarding the size of manufacturing concerns, large firms (with more than 250 employees) A) outnumber small firms more than two to one. B) account for nearly half of all the manufacturing establishments. C) are few in number but their employees account for nearly half of all employed people. D) provide no more "value added" than the many small firms. E) None of the above is true. | Ans: C | Easy | LO: 6 | Pg. 158-59 | Self-Test | 153. Regarding the manufacturers' market, large firms (with more than 250 employees) A) account for the majority of the total "value added" by all manufacturers. B) are very few compared to the many small firms. C) employ about half of all people employed in manufacturing. D) All of the above are true. E) None of the above is true. | Ans: D | Easy | LO: 6 | Pg. 158-59 | Self-Test | 154. Regarding the business (manufacturing) market, small firms (with fewer than 10 employees) A) are not very numerous compared to the very large firms. B) account for the vast majority of the total employment provided by all manufacturers. C) are the majority of all firms, but account for less than 3 percent of "value added" by manufacturing. D) amount to nearly two million establishments. E) None of the above is true. | Ans: C | Hard | LO: 6 | Pg. 158-59 | Comprehension | 155. What percentage of total U.S. "value added" is produced by manufacturers which employ 250 or more employees? A) 40 percent B) Almost 60 percent C) 30 percent D) Less than 5 percent E) 10 percent | Ans: B | Hard | LO: 6 | Pg. 158-59 | Definitional | 156. U.S. business manufacturing markets tend to be concentrated: A) by industry. B) with a relatively few large manufacturing plants. C) by geographical location. D) All of the above. E) Only B and C above. | Ans: D | Medium | LO: 6 | Pg. 158 | Definitional | 157. U.S. manufacturers: A) all employ many workers. B) are evenly spread throughout the country. C) tend to concentrate by industry. D) do not locate close to competitors. E) Both C and D. | Ans: C | Easy | LO: 6 | Pg. 158 | Definitional | 158. If a firm targets business and organizational markets, A) NAICS codes may be helpful for segmenting potential customers in Europe but not those in the U.S. B) each customer may need to be treated as a different segment. C) competing manufacturers are often clustered in geographic locations. D) All of the above are true. E) Both B and C are true. | Ans: E | Easy | LO: 6 | Pg. 158 | Self-Test | 159. If a firm targets business and organizational markets, A) the geographic location of the customer is likely to be less important than in segmenting consumer markets. B) NAICS codes may help in segmenting manufacturers but not producers of services. C) each customer may need to be treated as a different segment. D) All of the above are true. E) None of the above is true. | Ans: C | Medium | LO: 6 | Pg. 144,158 | Comprehension | 160. "NAICS" means: A) North American Initiative for Competitive Structure. B) North American Industry Classification System. C) New Auto Industry Classification System. D) National Automakers Industry Classification System. E) National Apparel Industry Classification System. | Ans: B | Medium | LO: 6 | Pg. 159 | Definitional | 161. Which of the following NAICS codes would be used by a marketing manager who wanted data on the MOST GENERAL breakdown of a particular industry? A) 31 B) 31522 C) 315 D) 3152 E) There is no way to tell from the information provided. | Ans: A | Medium | LO: 6 | Pg. 159-60 | Application | 162. Which of the following NAICS codes would be used by a marketing manager who wanted data that was the MOST SPECIFIC to a particular type of firm within an industry? A) 31 B) 31522 C) 315 D) 3152 E) There is no way to tell from the information provided. | Ans: B | Medium | LO: 6 | Pg. 159-60 | Application | 163. If you obtain a customer's four digit NAICS code, you should know that: A) this firm might be manufacturing quite different products than other firms with the same number. B) the firm may also have a five digit code. C) a number of other firms probably have the same code. D) the firm may also have a six digit code. E) All of the above are true. | Ans: E | Easy | LO: 6 | Pg. 159-60 | Self-Test | 164. You have just been asked by your manager to compile data on firms in California that have a specific 4-digit NAICS code. You should know A) that there are no 4-digit NAICS codes. B) that there is only one firm to find, since each firm has its own 4-digit NAICS code. C) that it is possible that no data will be available, even if there is one large firm in California in that 4-digit industry. D) that she is talking about the New Auto Industry Classification Survey. E) that none of the above is true. | Ans: C | Hard | LO: 6 | Pg. 160 | Comprehension | 165. The U.S. government would NOT publish NAICS data that gives: A) the total sales volume of the four steel manufacturers in a Metropolitan Statistical Area. B) the number of employees for similar two digit industry groups. C) the total sales volume of the only textile equipment manufacturer in a state. D) the sales volumes of similar two digit industry groups. E) the number of establishments for various industry groups. | Ans: C | Easy | LO: 6 | Pg. 160 | Self-Test | 166. As contrasted with manufacturers, producers of services are: A) more geographically spread out. B) growing fast domestically and internationally. C) more numerous. D) All of the above. E) None of the above. | Ans: D | Easy | LO: 7 | Pg. 161 | Self-Test | 167. Regarding middlemen buying, A) computer-controlled inventory systems make buyers more dependent on sales reps. B) buying committees are a way for supermarkets to handle the flood of new products. C) buyers are seldom influenced by their salespeople. D) wholesalers and retailers typically only carry products which they have judged "socially desirable." E) all of the above are true. | Ans: B | Hard | LO: 7 | Pg. 162 | Integrating | 168. With regard to retail buying: A) Most retail buyers see themselves as purchasing agents for their suppliers. B) Buying committees, instead of individual retail buyers, may make the decisions. C) Retail buyers make most purchases as modified rebuys. D) All of the above are correct. E) None of the above is correct. | Ans: B | Medium | LO: 7 | Pg. 162 | Integrating | 169. When a large wholesaler or retailer uses a buying committee, A) the buyer still makes the final purchase decision. B) the sales rep may not be able to make a sales presentation to the committee. C) the impact of persuasive salespeople is increased. D) the middleman is more likely to take a chance on a really new product that hasn't yet proved itself. E) All of the above are true. | Ans: B | Medium | LO: 7 | Pg. 162 | Comprehension | 170. Committee buying in large retail chains A) makes the buyers work as a group and thus lower costs. B) allows a sales rep to avoid a difficult buyer. C) makes it difficult for the seller to see a buyer personally. D) reduces the impact of a persuasive sales rep. E) All of the above. | Ans: D | Medium | LO: 7 | Pg. 162 | Comprehension | 171. Because more middlemen are using computer systems to control inventory levels, A) they can assess the profitability of each product. B) new-task buying is increasing. C) they are carrying larger inventories. D) negotiated contract buying is increasing. E) All of the above are occurring. | Ans: A | Hard | LO: 7 | Pg. 162-63 | Comprehension | 172. Large wholesale and retail buyers typically: A) pay close attention to each of the products they buy. B) don't trust automatic inventory control methods. C) see themselves as selling agents for manufacturers. D) buy most of their products as straight rebuys. E) None of the above. | Ans: D | Easy | LO: 7 | Pg. 163 | Self-Test | 173. A retail buyer being "open to buy" means that: A) increases in demand have him back in the market. B) multiple buying influence will not occur. C) he will buy only if offered special prices. D) he has budgeted funds that he can spend during the current period. E) the sales rep should call during those "open" hours. | Ans: D | Hard | LO: 7 | Pg. 163 | Definitional | 174. "Open to buy" A) means that a retail buyer is in the market looking for "good buys." B) refers to the business hours when the retail buyer is available for sales reps. C) means that a retail buyer still has budgeted funds to spend during the current period. D) refers to retail buyers who have shelf space available for new products. E) means that "new-task" buying is likely. | Ans: C | Hard | LO: 7 | Pg. 163 | Definitional | 175. Resident buyers A) are not "resident" in the buying firm, but rather are independent buying agents in central markets. B) are especially helpful to small producers and middlemen. C) are frequently used to help select new styles and fashions, as well as fill-in items. D) are usually paid an annual fee--based on their purchases. E) All of the above are true. | Ans: E | Easy | LO: 7 | Pg. 163 | Definitional | 176. Resident buyers: A) usually work for only one large retailer because of the work involved. B) are independent buying agents who work for several retailers. C) frequently travel to central markets to buy new styles. D) maintain offices in retailers' buying departments. E) All of the above. | Ans: B | Hard | LO: 7 | Pg. 163 | Definitional | 177. Independent buying agents who work in central markets for wholesalers and retailers from outlying areas are called: A) buying committees. B) buying centers. C) buying agents. D) brokers. E) resident buyers. | Ans: E | Easy | LO: 7 | Pg. 163 | Definitional | 178. Which of the following statements about retail buying is FALSE? A) In most retail operations, a "resident buyer" runs his own department--and his decision is final. B) Most retail buyers see themselves as purchasing agents for their target customers. C) Retail buyers make most purchases as straight rebuys. D) A retail buyer is usually "open to buy" only when s/he has not spent all of the budgeted funds. E) Resident buyers are independent buying agents who help producers and middlemen reach each other inexpensively. | Ans: A | Easy | LO: 7 | Pg. 162-63 | Self-Test | 179. Regarding the government market, A) sales reps generally do not (and should not) write the specifications for government business. B) government is the largest customer group in the United States--spending about 30 percent of GDP. C) governments buy a lot, but only of certain products and can be safely ignored by most producers. D) negotiated contracts are uncommon because of mandatory bidding procedures. E) All of the above are true. | Ans: B | Hard | LO: 7 | Pg. 163-64 | Integrating | 180. The government market A) often relies on an "approved supplier list" for routine items that are bought frequently. B) is the largest customer group in the United States, accounting for about 30 percent of the gross domestic product. C) usually buys from the lowest price supplier that can meet the written specifications. D) All of the above are true. E) None of the above are true. | Ans: D | Easy | LO: 7 | Pg. 163-64 | Comprehension | 181. Regarding U.S. government market buying, A) a buyer may order from a supplier on the "approved list" at a previously set price--without asking for new bids. B) most buyers write specs so that only one brand or supplier qualifies. C) it is illegal for a salesperson to try to influence the writing of product specifications. D) Both A and C are true. E) None of the above is true. | Ans: A | Medium | LO: 7 | Pg. 164 | Comprehension | 182. Government buyers in the U.S. usually buy by: A) specification--using a mandatory bidding procedure. B) negotiated contracts. C) haggling. D) influence peddling. E) Both A and B. | Ans: E | Easy | LO: 7 | Pg. 164 | Definitional | 183. With regard to government buying: A) One of the primary concerns of government buyers is finding the lowest price. B) A government buyer may be forced to accept the lowest bid whether he wants the goods or not. C) A government buyer can accept a higher bid when lower bids don't meet the required specifications. D) All of the above are correct. E) None of the above is correct. | Ans: D | Medium | LO: 7 | Pg. 164 | Integrating | 184. Which of the following statements about bidding for government business is true? A) Government buying needs are hard to identify--and their primary concern is with finding the lowest price. B) Government buyers avoid using negotiated contracts since they must purchase at a pre-set price. C) A government buyer may be forced to accept the lowest bid that meets the specifications. D) The biggest job of the government buyer is to locate enough potential suppliers so the bidding procedure works effectively. E) All of the above are true statements. | Ans: C | Easy | LO: 7 | Pg. 164 | Self-Test | 185. The Foreign Corrupt Practices Act: A) prohibits U.S. firms from paying bribes to foreign officials. B) levies stiff penalties against people who pay bribes. C) exempts managers whose agents secretly pay bribes. D) was amended to allow small grease money payments if they are customary in that country. E) All of the above. | Ans: E | Easy | LO: 7 | Pg. 165 | Self-Test | 186. The Foreign Corrupt Practices Act: A) was passed primarily to keep corrupt foreign firms out of the U.S. market. B) holds a manager of a U..S. firm responsible if a foreign agent secretly pays a bribe, even if the agent does it on his own. C) allows U.S. firms to pay bribes to foreign officials as long as the payment is made outside the U.S. D) all of the above. E) none of the above is true | Ans: E | Easy | LO: 7 | Pg. 165 | Self-Test |

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86. According to the text, "product": A) means a physical good. B) includes all the elements of a marketing mix. C) means the need-satisfying offering of a firm. D) refers to goods but not services. E) All of the above. | Ans: C | Easy | LO: 1 | Pg. 197 | Definitional | 87. "Product" means: A) all the services needed with a physical good. B) a physical good with all its related services. C) the need-satisfying offering of a firm. D) all of a firm's producing and distribution activities. E) a well-packaged item with a well-advertised brand name. | Ans: C | Easy | LO: 1 | Pg. 197 | Self-Test | 88. According to the text, product quality means that: A) products are designed to meet demanding specifications. B) a product satisfies a customer's requirements or needs. C) there are not errors in the production process. D) the product won't ever break. E) None of the above is correct. | Ans: B | Easy | LO: 1 | Pg. 197 | Definitional | 89. From a marketing perspective, product quality primarily depends on A) the price of a product. B) a product working as it is supposed to work. C) quality control procedures used during manufacturing. D) the customer's specific requirements and needs. E) the features of products offered by competitors. | Ans: D | Medium | LO: 1 | Pg. 197 | Comprehension | 90. From a marketing perspective, a high quality copy machine is one that: A) does a good job satisfying a customer's requirements or needs. B) offers the most features. C) is produced with the best materials. D) has the longest warranty. E) is designed and manufactured to last the longest. | Ans: A | Medium | LO: 1 | Pg. 197 | Comprehension | 91. Regarding quality: A) the best credit card may not be the one with the highest credit limit. B) the best clothing may not be a pair of slacks, but a pair of jeans. C) the best computer may not be the most powerful one. D) All of the above are true. E) None of the above is true. | Ans: D | Easy | LO: 1 | Pg. 197 | Self-Test | 92. According to the text, which of the following is NOT a product? A) space in Playboy Magazine sold to an advertiser B) a Sony PlayStation III C) a Broadway musical play D) the San Diego Zoo E) All of the above are products. | Ans: E | Easy | LO: 1 | Pg. 197 | Application | 93. "Product" means: A) A physical good or service which offers potential customer satisfaction. B) A physical good with all its related features. C) The entire physical output of a firm. D) All of the elements in a firm's marketing mix. E) Something that has been produced, packaged, branded, and given a warranty. | Ans: A | Medium | LO: 1 | Pg. 197 | Definitional | 94. A "product" might include: A) a brand name, a package, and a warranty. B) instructions. C) a service which does not include a physical good at all. D) some physical item and its related features. E) All of the above. | Ans: E | Easy | LO: 1 | Pg. 197-98 | Comprehension | 95. Which of the following is a "product"? A) a used car B) a bus ride C) a haircut D) a dental exam E) all of the above | Ans: E | Easy | LO: 1 | Pg. 197-98 | Application | 96. A product assortment is: A) something offered by manufacturers but not by retailers. B) a particular product within a product line. C) a set of products that are closely related. D) the set of all product lines and individual products that a firm sells. E) None of the above. | Ans: D | Easy | LO: 1 | Pg. 200 | Definitional | 97. A company with a large product assortment might A) have many product lines with little selection in each. B) have a single product line. C) have many individual products. D) All of the above are true. E) Only A and C are true. | Ans: D | Easy | LO: 1 | Pg. 200 | Self-Test | 98. A large U.S. firm produces potato chips, shortening, dishwashing detergent, laundry detergent, shampoo, disposable diapers, and facial tissues. These are the firm's A) product classes. B) product assortment. C) individual products. D) marketing mix. E) product line. | Ans: B | Medium | LO: 1 | Pg. 200 | Application | 99. A product line is a set of individual products that are closely related in which of the following ways? A) They are sold to the same target market. B) They are produced and/or operate in a similar manner. C) They are priced at about the same level. D) They are sold through the same type of outlets. E) Any or all of the above. | Ans: E | Easy | LO: 1 | Pg. 200 | Definitional | 100. Which of the following could be an example of a firm's product line? A) coffees. B) disposable diapers. C) snow skis. D) ski boots. E) all of the above. | Ans: E | Easy | LO: 1 | Pg. 200 | Application | 101. Nike, Inc. markets several types of athletic shoes, along with clothing and fitness equipment. In other words, Nike has A) product components. B) a battle of the brands. C) no product assortment. D) many product classes. E) several product lines. | Ans: E | Medium | LO: 1 | Pg. 200 | Application | 102. Individual products: A) are part of product lines but not product assortments. B) may require their own marketing mixes. C) are usually distinguished by brand, size, price, or some other characteristic. D) All of the above. E) Both B and C. | Ans: E | Medium | LO: 1 | Pg. 200 | Definitional | 103. Which of the following is the best example of an individual product? A) 32-ounce boxes of Gain and Tide. B) 3 types of pears. C) six brands of cookies. D) 12 oz. size of Pert Plus. E) all of the above. | Ans: D | Medium | LO: 1 | Pg. 200 | Application | 104. Regarding product classes, A) Business product classes are based on how buyers think about products and how the products will be used. B) Consumer product classes are based on how consumers think about and shop for products. C) Compared to final customers, business customers do less shopping. D) Products are classified by what type of customer will use them. E) All of the above are true. | Ans: E | Easy | LO: 3 | Pg. 200-201 | Comprehension | 105. The fact that the demand for business products depends a lot on the demand for final consumer products is called: A) primary demand. B) derived demand. C) diminishing demand. D) elastic demand. E) secured demand. | Ans: B | Easy | LO: 3 | Pg. 201 | Definitional | 106. "Derived demand" is best illustrated by the demand for: A) tea as a substitute for coffee. B) brick because of increasing demand for new homes. C) fresh raspberries during the winter months. D) CD players because of increasing interest in CD audio discs. E) all of the above. | Ans: B | Medium | LO: 3 | Pg. 201 | Application | 107. Consumer product classes are based on ______________, while business product classes are based on ______________. A) how the product is to be used, the price for the product B) how consumers shop for the product, how the product is to be used C) the price of the product, the quality of the product D) how the product is produced, how the product is sold E) how the product is sold, how the product is produced | Ans: B | Easy | LO: 3 | Pg. 201 | Definitional | 108. The text's consumer product classes are based upon: A) methods of distribution. B) NAICS codes. C) the nature of the products. D) the way people think about and shop for products. E) the way firms price their products. | Ans: D | Easy | LO: 3 | Pg. 201 | Self-Test | 109. According to the text, consumer product classes: A) are based on how consumers shop for products. B) are interesting, but not helpful for planning marketing strategy. C) are based on how the products will be used. D) are based on the product features involved. E) can be broken down into goods, services, and ideas. | Ans: A | Easy | LO: 3 | Pg. 201 | Comprehension | 110. Consumer product classes A) are based on how the product will be used. B) are based primarily on how much effort is actually involved in making a purchase. C) suggest the type of marketing mix that should be used, but business product classes have little to do with the marketing mix that should be used. D) are based on how consumers think about and shop for products. E) None of the above is true. | Ans: D | Medium | LO: 3 | Pg. 201 | Comprehension | 111. The text's consumer product classes are based on: A) each product's price level. B) the way consumers think about and shop for products. C) the channel(s) of distribution used for each product. D) the nature of the product and how it will be used. E) how the product is produced. | Ans: B | Medium | LO: 3 | Pg. 201 | Definitional | 112. The text's consumer product classes are based on: A) the demand elasticity of the products. B) the way people think about and shop for products. C) the type of stores that sell the products. D) the quantity in which products will be purchased or used. E) how the sellers view the products. | Ans: B | Easy | LO: 3 | Pg. 201 | Definitional | 113. Which of the following is NOT one of the consumer product classes discussed in the text? A) Unsought products B) Innovative products C) Shopping products D) Convenience products E) Specialty products | Ans: B | Easy | LO: 3 | Pg. 201 | Integrating | 114. Which of the following is NOT one of the consumer product classes discussed in the text? A) Unsought products B) Imitation products C) Shopping products D) Convenience products E) Specialty products | Ans: B | Easy | LO: 3 | Pg. 201 | Integrating | 115. Convenience products include: A) impulse products. B) staple products. C) emergency products. D) All of the above. E) Only A and C above. | Ans: D | Easy | LO: 4 | Pg. 201 | Definitional | 116. ______________ are products a consumer needs but isn't willing to spend much time and effort shopping for. A) Convenience products B) Unsought products C) Homogeneous shopping products D) Utility products E) Heterogeneous shopping products | Ans: A | Medium | LO: 4 | Pg. 201 | Definitional | 117. ______________ are products a consumer needs but isn't willing to spend much time and effort shopping for. A) Convenience products B) Unsought products C) Homogeneous shopping products D) Specialty products E) Heterogeneous shopping products | Ans: A | Medium | LO: 4 | Pg. 201 | Definitional | 118. Which of the following would be a convenience product for most consumers? A) Gold jewelry B) Butter C) Stereo TVs D) Dress shoes E) Bicycles | Ans: B | Easy | LO: 4 | Pg. 201 | Application | 119. Regarding consumer product classes, a convenience product is to an emergency product as A) a staple is to an emergency product B) a shopping product is to a heterogeneous shopping product C) an unsought product is to a specialty product D) a new unsought product is to a regularly unsought product E) a specialty product is to a homogeneous shopping product | Ans: B | Hard | LO: 4 | Pg. 201-202 | Comprehension | 120. If a consumer product is used regularly and usually bought frequently and routinely with little thought (although branding may be important), this product is: A) a routine product. B) a specialty product. C) a homogeneous shopping product. D) a staple product. E) a casual product. | Ans: D | Easy | LO: 4 | Pg. 201 | Self-Test | 121. Staple products: A) need maximum exposure and widespread distribution at low cost. B) need adequate representation in major shopping areas. C) need widespread distribution but with assurance of preferred display. D) need widespread distribution near probable points of use. E) can have limited availability as long as display is good. | Ans: A | Hard | LO: 4 | Pg. 202 | Comprehension | 122. Impulse products are: A) products that potential customers do not want yet or know they can buy. B) bought quickly--as unplanned purchases--because of a strongly felt need. C) any products that consumers search for because of a strongly felt craving. D) any convenience products that are bought often and routinely. E) All of the above. | Ans: B | Medium | LO: 4 | Pg. 201 | Comprehension | 123. Impulse products: A) are likely to gain or lose sales depending on where they're sold. B) require a great deal of advertising. C) are a specific type of specialty product. D) are usually high in price. E) All of the above are correct. | Ans: A | Medium | LO: 4 | Pg. 201 | Definitional | 124. Which of the following products in a supermarket is MOST likely to be an impulse product? A) oranges. B) bread. C) frozen peas. D) a child's toy. E) shampoo. | Ans: D | Medium | LO: 4 | Pg. 201 | Application | 125. Which of the following products in a supermarket is LEAST likely to be an impulse product? A) bread. B) local newspaper. C) camera film. D) an ice cream cone. E) flashlight batteries. | Ans: A | Easy | LO: 4 | Pg. 201 | Application | 126. While shopping in a local supermarket, Jolene Partin came upon an aisle display of cookies and had to have some--immediately. By the time she got to the checkout counter with the rest of her selections, all the cookies were gone. In this case, the cookies were: A) an impulse product. B) a staple product. C) an unsought product. D) very nutritious. E) a consumption product. | Ans: A | Medium | LO: 4 | Pg. 201 | Application | 127. Impulse products: A) can have limited availability as long as display is good. B) need widespread distribution with display at point of purchase. C) need enough exposure to facilitate price comparisons. D) need adequate representation in major shopping areas. E) need widespread distribution at low cost. | Ans: B | Hard | LO: 4 | Pg. 202 | Comprehension | 128. Regarding the organization of the product classes, an impulse product is to an emergency product as A) a new unsought product is to a regularly unsought product. B) an installation is to a homogeneous shopping product. C) an impulse product is to a convenience product. D) a consumer product is to a business product. E) a shopping product is to a specialty product. | Ans: A | Hard | LO: 4 | Pg. 201-203 | Comprehension | 129. Compared to other consumer products, the major distinguishing characteristic of emergency products is the customer's: A) desire to negotiate for a "deal." B) urgency to get the need satisfied. C) willingness to shop around for a lower price. D) interest in the brand name. E) willingness to shop and compare. | Ans: B | Easy | LO: 4 | Pg. 201 | Comprehension | 130. During a heavy rainstorm, Louie Hirasawa slipped into a drugstore and bought an umbrella--just like the one he had at home--for $15.00 plus tax. In this case, the umbrella is: A) a specialty product. B) a shopping product. C) an unsought product. D) an emergency product. E) an impulse product. | Ans: D | Easy | LO: 4 | Pg. 201 | Application | 131. Emergency products: A) need adequate representation in major shopping areas. B) need widespread distribution but with assurance of preferred display. C) can have limited availability as long as display is good. D) need widespread distribution near probable points of use. E) need widespread distribution at low cost. | Ans: D | Hard | LO: 4 | Pg. 202 | Comprehension | 132. Which of the following is true regarding shopping products? A) Price is less important in the purchase of heterogeneous shopping products than homogeneous shopping products. B) Compared to heterogeneous shopping products, homogeneous shopping products are usually more standardized. C) Buyers usually expect more sales help or service with heterogeneous shopping products. D) All of the above are true. E) None of the above. | Ans: D | Easy | LO: 4 | Pg. 201-202 | Comprehension | 133. Consumer products which customers see as basically the same and want to buy at the lowest price are called: A) heterogeneous shopping products. B) homogeneous shopping products. C) comparison products. D) unsought products. E) convenience products. | Ans: B | Easy | LO: 4 | Pg. 201 | Definitional | 134. When some customers see all competitors' offerings as basically the same and are willing to spend much time and effort to buy the item at the lowest price, the item is: A) an analysis product. B) a specialty product. C) a staple product. D) a heterogeneous shopping product. E) a homogeneous shopping product. | Ans: E | Medium | LO: 4 | Pg. 201 | Definitional | 135. Having a competitive price is likely to A) be more important for a homogeneous shopping product than for a specialty product. B) be more important for a heterogeneous shopping product than for a homogeneous shopping product. C) be more important for an emergency product than for a staple. D) keep a product from falling into the "unsought" product class. E) None of the above is true. | Ans: A | Easy | LO: 4 | Pg. 201-202 | Self-Test | 136. Regarding consumer products, A) All unsought products remain unsought forever. B) Convenience products are products which customers want to buy at the lowest possible price. C) Price is not important at all for heterogeneous shopping products. D) Supermarkets may carry homogeneous shopping products. E) Specialty products must be searched for. | Ans: D | Hard | LO: 4 | Pg. 201 | Integrating | 137. Luke Flaherty wants to buy an electric drill for some jobs around his home. Deciding that all such drills are similar, he reads all the advertisements in his Sunday paper in search of the best price. For Luke, these drills are: A) a heterogeneous shopping product. B) a staple product. C) a specialty product. D) a homogeneous shopping product. E) an emergency product. | Ans: D | Medium | LO: 4 | Pg. 201 | Application | 138. Homogeneous shopping products: A) need widespread distribution near probable points of sale. B) need enough exposure to facilitate price comparison. C) need widespread distribution with assurance of preferred display. D) need widespread distribution at low cost. E) None of the above is true. | Ans: B | Hard | LO: 4 | Pg. 202 | Comprehension | 139. When final consumers are willing to spend much time and effort comparing quality and style--with brand and price being less important--the product is: A) an inspection product. B) a heterogeneous shopping product. C) a homogeneous shopping product. D) a specialty product. E) All of the above are correct. | Ans: B | Medium | LO: 4 | Pg. 201-202 | Definitional | 140. A consumer is most likely to want and expect help from a salesperson when shopping for A) a regularly unsought product. B) an impulse product. C) a staple. D) a heterogeneous shopping product. E) a homogeneous shopping product. | Ans: D | Medium | LO: 4 | Pg. 202 | Comprehension | 141. Gavan and Rebekah want to buy a flat-screen TV. They look at several brands in several different stores before finally deciding on a Sharp. This set was the most expensive model they saw, but they felt it had better colors and would be more reliable. In this case, this TV is: A) an impulse product. B) a heterogeneous shopping product. C) an emergency product. D) a specialty product. E) a homogeneous shopping product. | Ans: B | Medium | LO: 4 | Pg. 202 | Application | 142. Lisa Campos was interested in buying a coffee pot to use at college and a cassette player for her sister's birthday present. At the local discount store, she compared prices on coffee pots and chose the cheapest. She read the product information on each cassette player and finally chose one with stereo headphones and a rechargeable battery. For Lisa, the coffee pot was A) a convenience product, but the cassette player was a specialty product. B) a heterogeneous shopping product, but the cassette player was a staple. C) an impulse product, but the cassette player was a convenience product. D) a specialty product, but the cassette player was a heterogeneous shopping product. E) a homogeneous shopping product, but the cassette player was a heterogeneous shopping product. | Ans: E | Hard | LO: 4 | Pg. 201-202 | Application | 143. Heterogeneous shopping products: A) need adequate representation in major shopping areas near similar products. B) need widespread distribution near probable points of sale. C) need enough exposure to aid price comparison. D) need widespread distribution at low cost. E) need widespread distribution but with assurance of preferred display or counter position. | Ans: A | Hard | LO: 4 | Pg. 202 | Comprehension | 144. A consumer product that a customer really wants - and is willing to make a special shopping effort to find - is A) a staple product. B) a convenience product. C) a heterogeneous shopping product. D) a specialty product. E) an emergency product. | Ans: D | Easy | LO: 4 | Pg. 202 | Definitional | 145. Specialty products: A) have a number of close substitutes. B) are brands customers request by name. C) are generally high in price. D) all of the above. E) none of the above. | Ans: B | Easy | LO: 4 | Pg. 202 | Definitional | 146. A specialty product A) may not require much searching to find it, but the customer would be willing to search if necessary. B) may carry a well-recognized brand. C) may be frequently purchased. D) need not be an expensive item. E) All of the above. | Ans: E | Medium | LO: 4 | Pg. 202 | Definitional | 147. Specialty products are consumer products which: A) have elastic demand. B) very few customers want or can afford to buy. C) are relatively expensive and purchased only rarely. D) consumers are willing to search for because they really want them. E) All of the above. | Ans: D | Medium | LO: 4 | Pg. 202 | Comprehension | 148. Regarding specialty products, which of the following is TRUE? A) Branding does not play an important role in purchasing specialty products. B) It is a customer's willingness to search that makes it a specialty product. C) Shopping for a specialty product involves much comparing of products. D) It is the extent of searching which the customer has to do that makes it a specialty product. E) All of the above are true. | Ans: B | Easy | LO: 4 | Pg. 202 | Comprehension | 149. Which of the following orderings suggests the amount of effort (from little to much) that consumers are willing to spend in searching for the "right" product? A) Heterogeneous shopping products, specialty products, unsought products B) Convenience products, homogeneous shopping products, specialty products C) Unsought products, homogeneous shopping products, convenience products D) Staples, heterogeneous shopping products, unsought products E) Homogeneous shopping products, heterogeneous shopping products, staples | Ans: B | Hard | LO: 4 | Pg. 201-202 | Integrating | 150. Emil Flores won't buy any coffee except "Blue Mountain"--a relatively expensive type that few stores sell. He used to have to drive about 10 miles out of his way to buy it at a small shop--but now he has persuaded his local supermarket manager to handle this coffee. For him, this coffee is A) an emergency product. B) a specialty product. C) a staple product. D) an unsought product. E) a heterogeneous shopping product. | Ans: B | Medium | LO: 4 | Pg. 202 | Application | 151. Until recently, Emil Flores wouldn't buy any coffee except "Blue Mountain"--a relatively expensive type that few stores sell. He used to have to drive about 10 miles out of his way to buy it at a small shop. Then he was at a friend's home and tried an inexpensive brand of coffee sold by the local supermarket chain. Now he won't buy anything except that brand. For him, the supermarket coffee is A) an emergency product. B) a specialty product. C) a staple product. D) an unsought product. E) a heterogeneous shopping product. | Ans: B | Medium | LO: 4 | Pg. 202 | Application | 152. Denise Hunter had Thomasville brand living room furniture and wanted to buy a particular chair of the same brand. She made a few calls to find a store that had the chair in stock. When she found one, she went there and purchased the chair. For Denise, the chair was A) a homogeneous shopping product. B) a specialty product. C) an impulse product. D) a heterogeneous shopping product. E) an emergency product. | Ans: B | Hard | LO: 4 | Pg. 202 | Application | 153. Specialty products: A) need widespread distribution at low cost. B) need enough exposure to facilitate price comparison. C) need adequate representation near similar products. D) need widespread distribution near probable points of sale. E) can have limited availability. | Ans: E | Hard | LO: 4 | Pg. 202 | Comprehension | 154. Consumer products which consumers do not yet want or know they can buy - and probably would not buy without special promotion even if they saw them - are called: A) new brands of well-accepted staples. B) unsought products. C) heterogeneous shopping products. D) emergency products. E) homogeneous shopping products. | Ans: B | Easy | LO: 4 | Pg. 203 | Definitional | 155. Which of the following is an "unsought product"? A) Gravestones aimed at "senior citizens." B) A new type of "health food" produced by a new, small company. C) Life insurance aimed at college students. D) Encyclopedias aimed at new parents. E) All of the above. | Ans: E | Medium | LO: 4 | Pg. 203 | Application | 156. Unsought products: A) require wide distribution but little promotion. B) are generally unprofitable. C) should not be marketed. D) All of the above are true. E) None of the above is true. | Ans: E | Medium | LO: 4 | Pg. 203 | Comprehension | 157. Personal selling is extremely important for sellers of: A) specialty products. B) regularly unsought products. C) heterogeneous shopping products. D) new unsought products. E) homogeneous shopping products. | Ans: B | Medium | LO: 4 | Pg. 203 | Comprehension | 158. Which of the following statements about consumer products is true? A) Convenience products are those that customers want to buy at the lowest possible price. B) Shopping products are those products for which customers usually want to use routinized buying behavior. C) Specialty products are those that customers usually are least willing to search for. D) Unsought products are not shopped for at all. E) None of the above statements is true. | Ans: D | Easy | LO: 4 | Pg. 203 | Self-Test | 159. If a consumer purchases a new watch, the watch is: A) a specialty product. B) a heterogeneous shopping product. C) a homogeneous shopping product. D) a convenience product. E) it is not obvious - the watch could be any of the above. | Ans: E | Easy | LO: 3 | Pg. 203 | Application | 160. A $50 consumer product which is purchased infrequently is: A) an unsought product. B) a convenience product. C) a specialty product. D) a shopping product. E) It might be any of the above. | Ans: E | Medium | LO: 3 | Pg. 203 | Application | 161. Which of the following is NOT a business product? A) a roll of sheet metal B) a metal shelf system for storing inventory C) a custom-built robot for welding metal D) a pad of paper. E) Any of the above could be a business product. | Ans: E | Easy | LO: 3 | Pg. 204 | Application | 162. The text's business product classes are based on: A) how buyers think about products. B) how the products are to be used. C) the shopping behavior of the buyer. D) All of the above. E) Both A and B. | Ans: E | Medium | LO: 3 | Pg. 203 | Definitional | 163. Business product classes A) are based on whether demand is elastic or inelastic. B) are based on how buyers think about products and how they will be used. C) are based on the buying situation--whether the decision is new task, straight rebuy, or modified rebuy. D) All of the above are true. E) None of the above is true. | Ans: B | Medium | LO: 3 | Pg. 203 | Comprehension | 164. Which of the following is NOT one of the text's business product classes? A) Raw materials B) Component parts and materials C) Specialty products D) Professional services E) Installations | Ans: C | Easy | LO: 3 | Pg. 203-204 | Definitional | 165. Installations: A) are important long-lived capital items. B) seldom involve multiple-buying influence. C) are very large expense items for buyers as soon as they buy. D) are purchased often. E) are always custom-made. | Ans: A | Easy | LO: 4 | Pg. 204 | Definitional | 166. Which of the following business products to be purchased by a firm is most likely to involve top management in the buying decision? A) Raw materials B) Accessory equipment C) Operating supplies D) Installations E) Component parts | Ans: D | Easy | LO: 4 | Pg. 204 | Self-Test | 167. Multiple-buying influence would be most likely for: A) Repair items B) Accessories C) Professional services D) Installations E) It would be equally likely for all of the above. | Ans: D | Easy | LO: 4 | Pg. 204 | Application | 168. "Installation" products: A) are hardly ever leased because of the tax disadvantages. B) do not include buildings and land rights. C) justify multiple buying influence for custom-made equipment but not for standard equipment. D) such as custom-made equipment generally require special negotiations for each sale. E) All of the above are true. | Ans: D | Medium | LO: 4 | Pg. 204 | Comprehension | 169. Regarding installations, which is NOT true? A) The number of potential customers at any one time is quite large. B) Leasing installations may be attractive to buyers. C) It is common for sellers to offer specialized services. D) The buying needs of potential customers are basically economic. E) Multiple buying influence is common. | Ans: A | Medium | LO: 4 | Pg. 204 | Comprehension | 170. A local copying service is buying a new kind of high speed color copier. A) There will probably be more buying influences for the paper for the copier than for the copier. B) The copier is likely to be purchased with a new-task buying process. C) The copier will be depreciated as an expense item. D) A and C are both true. E) None of the above is true. | Ans: B | Medium | LO: 4 | Pg. 204 | Comprehension | 171. Trane Corp. manufactures long-lived, custom-made equipment which its customers treat as capital items. Trane's sales force faces much multiple-buying influence. Trane's products, which do not become part of the customer's final product, are: A) accessory equipment. B) installations. C) MRO items. D) component parts. E) operating supplies. | Ans: B | Medium | LO: 4 | Pg. 204 | Application | 172. VoiceSys, Inc. produces voice-mail switchboard systems used in large office buildings, hotels, and other facilities. VoiceSys is short of cash, but its products are so profitable and are selling so well that it has decided to buy more production equipment from one of the many suppliers that serve its industry. This example illustrates: A) how installations are a boom-or-bust industry. B) why installations may have to be leased or rented. C) derived demand. D) All of the above. E) None of the above. | Ans: D | Hard | LO: 4 | Pg. 204 | Application | 173. Which of the following is NOT a general characteristic of most business products? A) From a tax perspective, all purchases of business products are written off in the year in which the purchase is made. B) Their demand is derived from the demand for final consumer products. C) Buying is not as emotional as with consumer products. D) Buying is basically concerned with economic factors. E) All of the above are characteristics for most business products. | Ans: A | Easy | LO: 3 | Pg. 204 | Self-Test | 174. When making business buying decisions, it is important to remember that: A) capital item purchases can't be fully charged off to the current year's expenses. B) expense items are depreciated over several years. C) large purchases must be expensed in one year. D) capital items are expensed in one year--making them less risky to buy. E) expense items are very risky since they cannot be depreciated. | Ans: A | Hard | LO: 4 | Pg. 204 | Comprehension | 175. Which of the following would probably be treated as a capital item by a large clothing manufacturer? A) computer-controlled fabric cutting machines. B) zippers. C) cloth. D) buttons. E) none of the above. | Ans: A | Medium | LO: 4 | Pg. 204 | Application | 176. ______________ are capital items that cost less and are shorter-lived than installations. A) Supplies B) Staples C) Component parts D) Component materials E) Accessory equipment | Ans: E | Easy | LO: 4 | Pg. 204 | Definitional | 177. Compared to installations, accessory equipment A) is usually less standardized. B) involves more multiple-buying influence. C) is an expense item instead of a capital item. D) is sold to more target markets. E) becomes part of the buyer's final product. | Ans: D | Medium | LO: 4 | Pg. 204 | Comprehension | 178. Regarding business products, A) derived demand has little affect on the market for accessory equipment. B) sellers of accessory equipment usually must face more competitors than sellers of installations. C) at any one time there are usually fewer target customers for accessories than for installations. D) accessory equipment is not treated as a capital item. E) special services and advice are more important with accessories than with installations. | Ans: B | Medium | LO: 4 | Pg. 204 | Self-Test | 179. Regarding accessory equipment, which of the following is NOT true? A) Multiple buying influence is less important in the purchase of an installation than with accessory equipment. B) There are more customers for accessory equipment than for installations. C) Specialized services are more important in the purchase of installations than accessories. D) There are more sellers of accessory equipment than of installations. E) All of the above ARE true. | Ans: A | Medium | LO: 4 | Pg. 204 | Comprehension | 180. Sumitomo Bank, a large bank in southern California, has just purchased 120 high-speed telephone fax machines (costing about $1,300 each) to speed communications among its many offices. The purchase was made by the purchasing manager, who expects the machines to last about five years. In this case, the fax machines are: A) accessory equipment. B) MRO items. C) installations. D) component parts. E) professional services. | Ans: A | Medium | LO: 4 | Pg. 204 | Application | 181. Accessory equipment: A) needs fair to widespread distribution for prompt delivery. B) needs fairly widespread and numerous contacts by experienced and sometimes technically trained personnel. C) needs very widespread distribution for prompt delivery. D) needs technical contacts to determine specifications required, but widespread contacts usually are not necessary. E) needs fairly widespread contacts with users. | Ans: B | Hard | LO: 4 | Pg. 205 | Comprehension | 182. Raw materials A) are treated as expense items. B) are unprocessed but eventually become part of a final physical good. C) include both farm products and natural products. D) All of the above are true. E) B and C are true. | Ans: D | Easy | LO: 4 | Pg. 204 | Definitional | 183. Raw materials are different from other business products in that: A) buyers do not seek sources of supply. B) they require more grading. C) they require a lot of handling before moving to the next production process. D) they never involve contract production arrangements. E) pricing decisions for farm products are more complicated. | Ans: B | Medium | LO: 4 | Pg. 205 | Comprehension | 184. Procter and Gamble buys unprocessed logs which are handled as little as needed to move them to its plant. Eventually, they become part of P&G's disposable diapers and are considered an expense item on P&G's income statement. For P&G, logs are: A) farm products B) supplies C) component parts D) component materials E) raw materials | Ans: E | Easy | LO: 4 | Pg. 204-205 | Application | 185. Logs, fish, cotton, and strawberries can all be: A) supplies. B) raw materials. C) component parts. D) capital items. E) accessories. | Ans: B | Easy | LO: 4 | Pg. 204-205 | Application | 186. Which of the following is NOT a business raw material? A) logs. B) coal. C) wheat. D) cattle. E) all of the above are examples. | Ans: E | Easy | LO: 4 | Pg. 204-205 | Application | 187. Which of the following is NOT a business raw material? A) coal. B) grease. C) sugar cane. D) iron ore. E) logs. | Ans: B | Easy | LO: 4 | Pg. 204-205 | Application | 188. Short-lived goods and services which are charged off as they are used--rather than depreciated over several years--are called: A) nontaxable items. B) expense items. C) derived items. D) durables. E) capital items. | Ans: B | Easy | LO: 4 | Pg. 204 | Definitional | 189. Which of the following would be treated as an expense item for a children's clothing manufacturer? A) cloth. B) sewing needles. C) buttons. D) zippers. E) all of the above. | Ans: E | Medium | LO: 4 | Pg. 204 | Application | 190. A product which becomes part of a buyer's final product and comes finished and ready for assembly is called: A) a raw material. B) a component material. C) a component part. D) accessory equipment. E) an installation. | Ans: C | Easy | LO: 4 | Pg. 205 | Definitional | 191. Bonafide Electric produces electric motors that power refrigerators, air condition units, washing machines, and many other electric appliances produced by various manufacturers. Bonafide Electric is selling A) raw materials. B) component parts. C) MRO items D) accessory equipment. E) installations. | Ans: B | Medium | LO: 4 | Pg. 205 | Application | 192. A firm which makes stereo radios and CD players for car manufacturers who install them directly in their new cars is selling: A) component parts. B) supplies. C) component materials. D) installations. E) accessory equipment. | Ans: A | Medium | LO: 4 | Pg. 205 | Application | 193. A firm which makes special batteries that boat and motorcycle manufacturers buy and install directly in their new boats and cycles is selling: A) supplies. B) component parts. C) component materials. D) installations. E) accessory equipment. | Ans: B | Medium | LO: 4 | Pg. 205 | Application | 194. A product which becomes part of a buyer's final product, and still requires more processing is called: A) a supply. B) a component material. C) a component part. D) a raw material. E) an installation. | Ans: B | Easy | LO: 4 | Pg. 205 | Definitional | 195. Which of the following is NOT a component material? A) paper. B) copper wire. C) copper ore. D) copper screens. E) None of the above, i.e., all are component materials. | Ans: C | Easy | LO: 4 | Pg. 205 | Application | 196. Regarding component parts, A) the original equipment market and the after market for component parts are typically separate target markets. B) a product originally sold as a component part may become a consumer product when sold in the "after market." C) component buyers want dependable suppliers. D) All of the above are true. E) None of the above is true. | Ans: D | Hard | LO: 4 | Pg. 205-206 | Comprehension | 197. A marketing manager for a firm which produces component parts should keep in mind that: A) most component buyers prefer to rely on one reliable source of supply. B) the after market for component parts generally requires the same marketing mix as the one used to serve the original equipment market. C) quality is not as important with components as it is with supplies. D) the original equipment market and the after market for component parts should be viewed as separate target markets. E) All of the above are true statements. | Ans: D | Easy | LO: 4 | Pg. 206 | Self-Test | 198. Michelin manufactures tires which truck producers buy and install on their trucks. This company A) sells installations for which multiple buying influence is likely to be quite important. B) is likely to have good opportunities in the "after market." C) is selling to the OEM market. D) All of the above are true. E) Both B and C are true. | Ans: E | Medium | LO: 4 | Pg. 206 | Application | 199. Business products which are necessary expense items, and continually used up, but which do not become part of the buyer's final product are: A) component materials. B) supplies. C) component parts. D) raw materials. E) accessory equipment. | Ans: B | Easy | LO: 4 | Pg. 206 | Definitional | 200. "MRO items" are: A) supplies. B) natural products. C) modified rebuy orders. D) accessory equipment. E) component parts and materials. | Ans: A | Medium | LO: 4 | Pg. 206 | Definitional | 201. Allan Clapp is a purchasing agent for Deep River Mfg. Co. He regularly buys items such as nails, light bulbs, brooms, and sweeping compounds. In other words, he buys: A) components. B) supplies. C) installations. D) professional services. E) accessory equipment. | Ans: B | Easy | LO: 4 | Pg. 206 | Application | 202. When business buyers purchase items such as grease, electricity, typing paper, and paper clips, they are buying: A) accessory equipment. B) operating supplies. C) components. D) repair supplies. E) maintenance supplies. | Ans: B | Medium | LO: 4 | Pg. 206 | Application | 203. Regarding business supplies, which of the following is NOT true? A) Maintenance items are to business buyers as convenience products are to final consumers. B) Supplies do not become part of a final product, but they are expense items. C) Buyers of important operating supplies are likely to be particularly concerned about dependability. D) Operating supplies are frequently called "accessories." E) A seller of repair supplies is likely to face fewer competitors than a seller of operating supplies. | Ans: D | Hard | LO: 4 | Pg. 206 | Comprehension | 204. Regarding supplies, A) new-task buying is typical with most purchases. B) only one supplier is generally available. C) branding is not important for maintenance and small operating supplies. D) All of the above are true. E) None of the above is true. | Ans: E | Medium | LO: 4 | Pg. 206 | Comprehension | 205. Operating supplies typically: A) need technical and experienced personal contacts, probably at top-management level. B) need widespread distribution or prompt delivery. C) need technical contacts to determine specifications required, but widespread contacts usually are not necessary. D) need skillful personal selling by producer. E) None of the above is correct. | Ans: B | Hard | LO: 4 | Pg. 205 | Comprehension | 206. Business professional services: A) may not be purchased outside the firm if they are needed regularly. B) support a firm's operations. C) are offered by a growing number of specialists. D) are generally treated as expense items. E) All of the above are true. | Ans: E | Medium | LO: 4 | Pg. 206 | Comprehension | 207. Drue Valentine is a management consultant who helps manufacturers improve their quality-control procedures for new products. Drue is selling: A) supplies. B) components. C) accessories. D) MROs. E) professional services. | Ans: E | Easy | LO: 4 | Pg. 206 | Application | 208. Which of the following business products are usually treated as expense items? A) component parts and materials B) raw materials C) professional services D) supplies E) all of the above | Ans: E | Easy | LO: 4 | Pg. 204-206 | Definitional | 209. Regarding business products, which of the following is NOT true? A) Availability may be more important than low price to a buyer of repair items. B) Quality of service may be more important than low price to a buyer of professional services. C) A broad product assortment may be more important than low price to a buyer of supply items. D) All of the above are true. E) None of the above is true. | Ans: D | Medium | LO: 4 | Pg. 206 | Comprehension | 210. A ______________ is a word, letter, or group of words or letters. A) UPC B) FTC C) trademark D) SIC E) brand name | Ans: E | Easy | LO: 5 | Pg. 206 | Definitional | 211. Which of the following is(are) TRUE? A) "Service mark" refers to all means of product identification. B) A "trademark" must be attached to a product to be legally protected. C) "Branding" refers to the use of symbols to identify a product--but does not include brand names. D) "Brand name" is a word, letter, or group of words or letters. E) All of the above are true. | Ans: D | Hard | LO: 5 | Pg. 206 | Integrating | 212. Which of the following is(are) TRUE? A) A "service mark" is to a service what a "trademark" is to a physical good. B) "Trademark" refers to all means of product identification. C) A "trademark" must be attached to a product to be legally protected. D) All of the above are true. E) None of the above are true. | Ans: A | Hard | LO: 5 | Pg. 206 | Integrating | 213. Branding is good for some CONSUMERS because it: A) makes shopping easier. B) provides dependable guides to product quality. C) helps assure regular satisfaction. D) All of the above. E) None of the above. | Ans: D | Easy | LO: 5 | Pg. 207 | Comprehension | 214. Branding can help BRANDERS because it: A) may lower promotion costs. B) can improve the company's image. C) encourages repeat buying. D) may develop customer loyalty. E) All of the above. | Ans: E | Easy | LO: 5 | Pg. 207 | Comprehension | 215. Branding: A) is especially helpful with a low quality product. B) is handled by manufacturers, but not intermediaries. C) helps consumers, but it is bad for the firm because it increases expenses. D) is more likely to be successful if demand for the general product class is strong enough to allow a profitable price. E) None of the above is true. | Ans: D | Medium | LO: 5 | Pg. 207 | Comprehension | 216. Which of the following is NOT favorable to successful branding? A) Consistent quality can be maintained. B) Access to favorable shelf locations is very limited. C) Economies of scale should be possible. D) The product is easy to identify by brand or trademark. E) Dependable and widespread availability should be possible. | Ans: B | Medium | LO: 5 | Pg. 207 | Comprehension | 217. Which of the following conditions would NOT be favorable to branding? A) Dependable and widespread availability is possible B) Economies of scale in production C) Fluctuations in product quality due to inevitable variations in raw materials D) Product easy to identify by brand or trademark E) Demand is strong so the price can be high enough to be profitable | Ans: C | Easy | LO: 5 | Pg. 207 | Self-Test | 218. Which of the following would NOT be favorable for successful branding? A) Product is hard to identify by brand or trademark. B) Widespread availability in the market. C) Economies of scale in production and distribution. D) The product offers the best value for the price. E) Product quality is be easy to maintain. | Ans: A | Medium | LO: 5 | Pg. 207 | Application | 219. Which of the following would NOT be favorable to successful branding? A) The product offers superior customer value B) Product quality fluctuates due to variations in raw materials C) Dependable and widespread availability D) Economies of scale in production E) Favorable shelf locations are available | Ans: B | Easy | LO: 5 | Pg. 207 | Application | 220. Which of the following statements about branding is TRUE? A) Customers are willing to buy by brand only when it assures "top quality." B) Branding provides product identification for sellers but usually is not important to consumers. C) What brand is familiar often varies from one country to another. D) All of the above. E) None of the above. | Ans: C | Medium | LO: 5 | Pg. 207,210 | Comprehension | 221. ______________ means potential customers won't buy a brand--unless its current image is changed. A) Brand preference B) Brand rejection C) Brand insistence D) Brand recognition E) Brand nonrecognition | Ans: B | Easy | LO: 5 | Pg. 208 | Definitional | 222. Roberto Vasquez has never owned a Samsung TV, but his parents owned one and were not at all satisfied. As a result, Roberto won't even consider buying a Samsung. As far as Roberto is concerned, Samsung has achieved brand ______________. A) preference. B) recognition. C) nonrecognition. D) rejection. E) insistence. | Ans: D | Medium | LO: 5 | Pg. 208 | Application | 223. Anita Seagroves visits the local Healthy Glow spa, but dislikes the dirty dressing area and refuses to go back. This is an example of A) reciprocity. B) trademarking. C) brand rejection. D) heterogeneous shopping. E) brand nonrecognition. | Ans: C | Easy | LO: 5 | Pg. 208 | Application | 224. ______________ means a brand is not recognized by final customers at all. A) Brand nonrecognition B) Brand rejection C) Brand insistence D) Brand recognition E) Brand preference | Ans: A | Easy | LO: 5 | Pg. 208 | Definitional | 225. Nonrecognition of the brand name of a firm's product is likely to be LEAST important for: A) Coal B) Photographic film C) Lubricating oils for machinery D) Cold tablets E) Replacement auto repair parts | Ans: A | Easy | LO: 5 | Pg. 208 | Self-Test | 226. ______________ means potential customers remember a particular brand. A) Brand preference B) Brand non-recognition C) Brand insistence D) Brand recognition E) Brand rejection | Ans: D | Easy | LO: 5 | Pg. 208 | Definitional | 227. ______________ means target customers will generally choose a particular brand over other brands--perhaps out of habit or past experience. A) Brand nonrecognition B) Brand preference C) Brand insistence D) Brand rejection E) Brand recognition | Ans: B | Easy | LO: 5 | Pg. 208 | Definitional | 228. Beth Sahadi usually buys Sassoon shampoo because she likes its smell. But this morning her local drugstore was out of Sassoon, so she decided to buy another highly advertised brand that was on sale because she really needed to wash her hair that night. For Beth, Sassoon has probably achieved brand: A) preference. B) insistence. C) nonrecognition. D) rejection. E) extinction. | Ans: A | Medium | LO: 5 | Pg. 208 | Application | 229. Carlotta Issa is shopping for a new pair of jeans. She has had good experiences with Jordache jeans in the past and is looking for Jordache now. She probably will buy Jordache if she finds some that are at least as good-looking as competitive jeans. This is a good example of: A) brand rejection. B) brand recognition. C) brand remembrance. D) brand preference. E) brand insistence. | Ans: D | Easy | LO: 5 | Pg. 208 | Application | 230. ______________ means potential customers insist on a firm's branded product and are willing to search for it. A) Brand insistence B) Brand preference C) Brand nonrecognition D) Brand rejection E) Brand recognition | Ans: A | Easy | LO: 5 | Pg. 209 | Definitional | 231. Darrell Everwine read a review about a new computer program that appealed to him very much. He decided to try to find the program. However, the new program was in short supply--although other brands with similar features were available. Darrell had to try seven shops before he finally found the program in stock. For Darrell, this program achieved brand: A) preference. B) insistence. C) rejection. D) nonrecognition. E) recognition. | Ans: B | Medium | LO: 5 | Pg. 209 | Application | 232. Applying the text's list of characteristics of a good brand name, which of the following would be the poorest example of a good brand name? A) Pizza Hut. B) King Kong Chewing Gum. C) DieHard flashlights. D) General Electric TVs. E) L'eggs hosiery. | Ans: B | Easy | LO: 5 | Pg. 209 | Application | 233. Which of the characteristics of a good brand name is missing in the following proposed name: "Gnucheo" candy? A) Simple B) Short C) Not offensive D) Always timely E) Easy to pronounce | Ans: E | Medium | LO: 5 | Pg. 209 | Application | 234. Which of the following statements is true? A) Consumer demand for a specific brand at a profitable price helps build brand equity. B) Brand equity is likely to be higher if retailers are eager to stock the brand. C) The value of a brand to its current owner is called brand equity. D) It is usually difficult and expensive to build brand recognition. E) All of the above are true. | Ans: E | Easy | LO: 5 | Pg. 210 | Comprehension | 235. The law which focuses on the protection of trademarks and brand names is A) the Lanham Act. B) the Magnuson-Moss Act. C) the Uniform Product Code Act. D) the Federal Fair Packaging and Labeling Act. E) None of the above. | Ans: A | Medium | LO: 5 | Pg. 210 | Comprehension | 236. Which of the following statements about trademarks is TRUE? A) Trademarks must always be registered in their home country only. B) In the U.S., common law protects the rights of the owners of brand names and trademarks. C) The Lanham Act requires that all trademarks be registered. D) Registering under the Lanham Act is often a first step to protecting a trademark to be used in foreign markets. E) Both B and D are true. | Ans: E | Hard | LO: 5 | Pg. 210-11 | Comprehension | 237. Trademarks A) can be legally protected in the U.S. under the Lanham Act. B) cannot be registered with a government agency in the U.S. C) are legally protected in the United States, but not in any other countries. D) and trademark infringement are aggressively policed by a special agency of the U.S. Government. E) None of the above is true. | Ans: A | Easy | LO: 5 | Pg. 210 | Comprehension | 238. Which of the following statements about the Lanham Act is true? A) It spells out what kind of brand names can be protected. B) Registration under the Lanham Act only applies to licensed brands. C) The Lanham Act makes registration of a brand name mandatory. D) Registering under the Lanham Act does not help protect a trademark to be used in foreign markets. E) All of the above are true statements. | Ans: A | Easy | LO: 5 | Pg. 210-11 | Self-Test | 239. A trademark or brand name can become public property if: A) the owner doesn't renew the registration each year. B) it becomes a common descriptive word for the product. C) the owner doesn't register it under the Lanham Act. D) it is sold in international markets. E) All of the above. | Ans: B | Medium | LO: 5 | Pg. 211 | Application | 240. A producer that is selling all its products under one brand name is using ______________ brand. A) a family B) a generic C) a licensed D) a national E) an individual | Ans: A | Easy | LO: 5 | Pg. 211 | Definitional | 241. Use of family brands A) may involve several firms--if one licenses its brand. B) is common among both producers and intermediaries. C) can provide customers with cues about the quality of new products. D) can be efficient, since the brand name will carry over in the firm's advertising. E) All of the above are true. | Ans: E | Medium | LO: 5 | Pg. 211 | Comprehension | 242. A producer of high quality stereo component equipment has developed a new line of very inexpensive, low quality "rack systems" to sell through discount stores. It probably should not use its current ______________ brand for the new line. A) dealer B) licensed C) middleman D) family E) generic | Ans: D | Medium | LO: 5 | Pg. 211 | Application | 243. Which of the following would be MOST LIKELY to use individual brands rather than a family brand for its products? A) Manufacturer of knives and scissors for "top quality" market B) Manufacturer of canned pet food and sandwich spread for final consumers C) Manufacturer of sweeping compounds, brooms, and mops for business firms D) Manufacturer of flour for the "mass market" E) Manufacturer of packaged potato chips and crackers. | Ans: B | Easy | LO: 5 | Pg. 211 | Application | 244. Sears uses a _______________ brand when it uses the same brand name for several products. In contrast, General Motors, by using different brands for each car line, uses ______________ brands. A) individual, generic B) generic, family C) manufacturer, dealer D) national, local E) family, individual | Ans: E | Easy | LO: 5 | Pg. 211 | Application | 245. Products which have no brand other than the identification of their contents are called A) generic products. B) local brands. C) regional brands. D) licensed products. E) dealer brands. | Ans: A | Easy | LO: 5 | Pg. 211 | Definitional | 246. "Manufacturer brands" are: A) also called family brands. B) often called private brands. C) called licensed brands. D) those having national distribution. E) sometimes called national brands. | Ans: E | Easy | LO: 5 | Pg. 212 | Definitional | 247. A "dealer brand" is sometimes called a ______________ brand. A) national B) local C) manufacturer D) private E) regional | Ans: D | Easy | LO: 5 | Pg. 212 | Definitional | 248. Dealer brands, compared to manufacturer brands, usually offer wholesalers and retailers: A) less risk. B) higher gross margins. C) faster turnover at reduced selling costs. D) products which are presold to target customers. E) more prestige. | Ans: B | Easy | LO: 5 | Pg. 212 | Self-Test | 249. Food Lion (a large supermarket chain that emphasizes "low prices") sells a dealer brand of frozen green beans. Here, A) the producer of the green beans probably does a lot of advertising. B) a trademark cannot be used. C) a similar manufacturer brand is likely to be given less shelf space. D) the price to the consumer will probably be higher than for competing manufacturer brands. E) None of the above. | Ans: C | Medium | LO: 5 | Pg. 213 | Application | 250. Which of the following is true? A) Manufacturer brands usually have national distribution while dealer brands are only distributed locally. B) Dealer brands are always priced lower than manufacturer brands. C) Dealer brands may be distributed as widely or more widely than many manufacturer brands. D) Dealer brands are distributed only by chain-store retailers. E) All of the above are true. | Ans: C | Hard | LO: 5 | Pg. 212 | Integrating | 251. Sears' Kenmore brand of appliances sold in all Sears stores illustrates two kinds of brands. A) dealer and family brands. B) local and national brands. C) generic and family brands. D) licensed and dealer brands. E) manufacturer and family brands. | Ans: A | Easy | LO: 5 | Pg. 211-12 | Application | 252. The "battle of the brands" refers to competition between: A) manufacturers and middlemen. B) retailers and wholesalers. C) retailers and other retailers. D) wholesalers and other wholesalers. E) manufacturers and other manufacturers. | Ans: A | Easy | LO: 5 | Pg. 212 | Definitional | 253. The current status of the "battle of the brands" is that: A) dealer brands will seek narrower distribution in the future. B) retailers now control the marketplace. C) the vast majority of consumers clearly prefer manufacturer brands over dealer brands. D) manufacturers are gaining on middlemen. E) competition has reduced the gap in prices. | Ans: E | Medium | LO: 5 | Pg. 213 | Comprehension | 254. Which of the following statements regarding the "battle of the brands" is true? A) It is pretty well over as the manufacturer brands now control the marketplace. B) Middlemen have no real advantages in the battle of the brands. C) If the present trend continues, manufacturer brands will disappear. D) Manufacturer brands have been losing ground to dealer brands. E) The battle of the brands has increased the differences in price between manufacturer brands and dealer brands. | Ans: D | Easy | LO: 5 | Pg. 212-13 | Self-Test | 255. A good marketing manager knows that: A) packaging suppliers are usually a poor source of information. B) packaging costs generally reduce the customer value a consumer receives. C) packaging costs should be kept to a minimum. D) good packaging can tie the product to the rest of a marketing strategy. E) All of the above are true. | Ans: D | Easy | LO: 6 | Pg. 213 | Self-Test | 256. A carefully designed package may: A) raise total distribution cost. B) provide more "promotion" effect--and at a lower cost--than advertising. C) enhance the product by making it easier or safer to use. D) offer product information that helps consumers buy. E) All of the above are true. | Ans: E | Medium | LO: 6 | Pg. 213-14 | Comprehension | 257. Which of the following statements about the strategic importance of packaging is FALSE? A) A package may have more promotional impact than a firm's advertising efforts. B) A new package can become the major factor in a new marketing strategy by significantly improving the product. C) Packaging is concerned with promoting, protecting, and enhancing. D) Better packaging always raises total distribution costs. E) A package should satisfy not only the needs of consumers but also those of business and organizational customers. | Ans: D | Easy | LO: 6 | Pg. 214 | Self-Test | 258. Packaging A) can serve as a useful enhancement tool. B) can increase costs to the consumer. C) can serve as a useful promotional tool. D) is concerned with protecting the product in shipping and on the shelf. E) All of the above are true. | Ans: E | Medium | LO: 6 | Pg. 213-14 | Comprehension | 259. Packaging A) objectives should primarily focus on promoting the product at the point of purchase. B) is important to manufacturers, but not retailers. C) decisions should be based on what package will result in the lowest possible cost to the consumer. D) All of the above are true. E) None of the above is true. | Ans: E | Easy | LO: 6 | Pg. 213-14 | Comprehension | 260. Which of the following statements about packaging is TRUE? A) Better packaging almost always increases total distribution cost. B) A package should satisfy not only the needs of final consumers but also those of middlemen customers. C) A package doesn't have much promotion impact at retail stores. D) A good package can aid in the promotion effort, but it's not as effective as advertising. E) All of the above are true. | Ans: B | Hard | LO: 6 | Pg. 213-14 | Comprehension | 261. Which of the following statements about packaging is TRUE? A) The number of package sizes for similar products from different manufacturers is increasing dramatically, because most firms realize that this makes direct comparisons among brands harder. B) There is very little government regulation of packaging, except for drug products. C) A good package can sometimes provide more promotional impact that advertising. D) All of the above are true. E) None of the above is true. | Ans: C | Hard | LO: 6 | Pg. 213 | Integrating | 262. The Federal Fair Packaging and Labeling Act: A) was created due to consumer criticism of packaging and labeling. B) calls on government agencies and industry to try to reduce the number of packaging sizes. C) requires that consumer goods be clearly labeled in understandable terms. D) all of the above. E) A and B only. | Ans: D | Easy | LO: 6 | Pg. 214 | Definitional | 263. The Federal Fair Packaging and Labeling Act: A) requires that consumer goods be clearly labeled in understandable terms--to give more information. B) requires informative labeling of food products regarding nutrients, taste, and texture. C) requires informative labeling of food products regarding fat content. D) requires a reduction in the number of package sizes. E) All of the above. | Ans: A | Hard | LO: 6 | Pg. 214 | Comprehension | 264. The national law which is primarily concerned with regulating product warranties is A) the Lanham Act. B) the Magnuson-Moss Act. C) the Uniform Product Code Act. D) the Federal Fair Packaging and Labeling Act. E) None of the above. | Ans: B | Medium | LO: 7 | Pg. 215 | Comprehension | 265. The Magnuson-Moss Act requires that: A) all firms provide written warranties for all products. B) a warranty must be clearly written, if one is offered. C) all warranties be strong warranties. D) all warranties be for at least one year. E) all of the above. | Ans: B | Easy | LO: 7 | Pg. 215 | Self-Test | 266. The Magnuson-Moss Act: A) requires that all warranties be "full." B) says that all firms must offer written warranties for all products. C) requires that all warranties cover at least a one-year period. D) says that producers must provide a clearly written warranty if they choose to offer any warranty. E) All of the above. | Ans: D | Medium | LO: 7 | Pg. 215 | Self-Test | 267. If a firm offers a written warranty, it A) must be labeled either "full" or "limited." B) must be available to buyers before the sale. C) shouldn't be "deceptive" or "unfair" per FTC guidelines. D) may help create a new strategy. E) All of the above are true. | Ans: E | Easy | LO: 7 | Pg. 215 | Comprehension | 268. If a firm offers a service guarantee, it A) can be effective in creating repeat customers. B) takes on more risk than offering a warranty on a physical product. C) can be expensive if its employees are apathetic. D) All of the above are true. E) Only A and C are true. | Ans: D | Easy | LO: 7 | Pg. 215 | Comprehension | Reference: Sunny Day Foods Use this information to answer questions (below) that refer to Sunny Day Foods (SDF). For six months Kim Wu has been working for Sunny Day Foods (SDF), a f

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86. Economists' economic-buyer theory assumes that: A) income data are very useful for predicting consumer behavior. B) buyers logically compare choices in order to maximize their satisfaction. C) consumers should purchase only low-priced products. D) All of the above. E) None of the above. | Ans: B | Medium | LO: 1 | Pg. 116 | Comprehension | 87. The statement, "Of course people will buy our product--each of its features is better than the competition," most closely reflects which consumer behavior concept? A) psychographics B) reference groups C) needs D) competitive advantage E) the economic-buyer theory | Ans: E | Easy | LO: 1 | Pg. 116 | Self-Test | 88. The economists' view of buyers A) puts a great deal of emphasis on differences in buying behavior related to individual differences among consumers. B) is based on the idea that consumers value time and select the first alternative they learn about. C) assumes that they always buy the lowest-price alternative. D) emphasizes psychological variables rather than social influences. E) None of the above is true. | Ans: E | Medium | LO: 1 | Pg. 116 | Comprehension | 89. Which of the following is NOT an economic need? A) Dependability in use B) Hunger C) Economy of use D) Convenience E) Efficiency in use | Ans: B | Easy | LO: 1 | Pg. 116 | Application | 90. "Discretionary income:" A) is a family's income AFTER taxes. B) is a measure of a family's total purchasing power. C) is the amount of income spent on durable goods. D) is a family's income AFTER paying taxes and paying for necessities. E) both B and C are true. | Ans: D | Easy | LO: 1 | Pg. 117 | Self-Test | 91. Discretionary income is defined as: A) total market value of goods and services produced. B) gross domestic product per capita. C) income available after taxes. D) income available before taxes. E) income available after taxes and "necessities." | Ans: E | Easy | LO: 1 | Pg. 117 | Definition | 92. The amount of income a family has left after paying taxes and paying for its necessities is called its ______________ income. A) personal. B) discretionary. C) marginal. D) family. E) modified. | Ans: B | Easy | LO: 1 | Pg. 117 | Definitional | 93. The amount of income a family has left after paying taxes and paying for its necessities is called its ______________ income. A) discretionary B) family C) marginal D) personal E) modified | Ans: A | Easy | LO: 1 | Pg. 117 | Definition | 94. A young working couple earned $50,000 last year. Of that, they paid $16,000 in taxes and $15,000 in rent, food, insurance and other necessities. Their discretionary income for the year was: A) $35,000. B) $50,000. C) $19,000. D) $34,000. E) $15,000. | Ans: C | Medium | LO: 1 | Pg. 117 | Application | 95. Juliana Xavier was just promoted to marketing manager for her company. She also gets a big raise with the promotion. Because her discretionary income will increase, which of the following products is MOST likely to benefit? A) furnace repairs. B) automobile insurance. C) a CD stereo system. D) medical services. E) grocery staples. | Ans: C | Medium | LO: 1 | Pg. 117 | Application | 96. As the owner of a DVD rental store, Veronica Hostas has an income of $72,000. She pays $30,000 per year in taxes and another $22,000 per year in grocery bills, house mortgage, and car payment. Last year she spent an additional $4,000 on a two-week vacation at a Club Med in Rio de Janerio. What was Veronica's discretionary income last year? A) $20,000. B) $4,000. C) $42,000. D) $26,000. E) $50,000. | Ans: A | Medium | LO: 1 | Pg. 117 | Application | 97. Hugh Leastmoon has an annual income of $75,000 a year. He pays $25,000 in taxes, and spends another $15,000 on his home, car, food, and other "necessities." Last year, he decided to really enjoy his annual vacation, so he spent $5,000 to go skiing in Austria. What was Hugh's discretionary income last year? A) $20,000 B) $ 5,000 C) $35,000 D) $30,000 E) $50,000 | Ans: C | Medium | LO: 1 | Pg. 117 | Application | 98. Julio Alberdi is a marketing analyst and made $28,000 last year. He paid $5,000 in taxes, and spent another $10,000 for food, housing, a car, and other "necessities." Julio's discretionary income was: A) $28,000 B) $13,000 C) $23,000 D) $18,000 E) There is not enough information to tell. | Ans: B | Medium | LO: 1 | Pg. 117 | Application | 99. Samantha Alcala's salary as a sales rep was $32,000 last year. She earned an additional $10,000 in sales commissions. Her tax bill was $14,000 and bills covering other necessities such as food, housing, and transportation amounted to $11,000. Samantha's discretionary income last year was: A) $17,000. B) $11,000. C) $32,000. D) $28,000. E) $42,000. | Ans: A | Medium | LO: 1 | Pg. 117 | Application | 100. The 20 percent of U.S. families with the highest incomes receive: A) about the same total income as the next highest 20 percent. B) about twice as much income, on average, as the lowest 20 percent group. C) almost 80 percent of the total income D) almost 50 percent of the total U.S. income. E) only about 20 percent of the total U.S. income. | Ans: D | Hard | LO: 1 | Pg. 118 | Comprehension | 101. About what percentage of TOTAL U.S. income goes to the 20 percent of families with the top incomes? A) About 75 percent B) About 95 percent C) About 15 percent D) About 25 percent E) About 50 percent | Ans: E | Hard | LO: 1 | Pg. 118 | Definitional | 102. The percentage of U.S. families with incomes of $100,000 and over in 2004 received __________ percent of total income. A) About 50 B) About 75 C) 10-15 D) About 25 E) Less than 5 | Ans: A | Hard | LO: 1 | Pg. 118 | Definitional | 103. With respect to income, government data indicate that: A) the top 5 percent get more than 40 percent of total income. B) the bottom 5 percent get about 20 percent of total income. C) the median income for U.S. families is about $40,000. D) there are only a few families in the United States with incomes over $60,000. E) None of the above is a true statement. | Ans: E | Easy | LO: 1 | Pg. 118-19 | Self-Test | 104. The median family income in the U.S. in 2004 was about: A) $24,000 B) $34,000 C) $54,000 D) $74,000 E) $94,000 | Ans: C | Easy | LO: 1 | Pg. 119 | Definition | 105. The economic buyer model: A) is seen as too simplistic by most marketing managers. B) assumes that consumers are affected by psychological variables and social influences. C) suggests that men and women behave differently as buyers. D) assumes that buyers don't have enough information to make logical choices--and as a result buy products that are not a good value. E) None of the above is correct. | Ans: A | Medium | LO: 1 | Pg. 119 | Comprehension | 106. According to the text, the economic-buyer theory A) says that most consumers do not know the economic value of products they purchase. B) explains why people behave the way they do. C) includes psychological variables and social influences. D) is too simplistic to explain consumer behavior. E) assumes that consumers always buy the lowest price alternative. | Ans: D | Easy | LO: 1 | Pg. 119 | Self-Test | 107. Which of the following would be most helpful for predicting why a final consumer selects one of several similar brands? A) population data B) consumer spending patterns C) behavioral science theories D) consumer income E) all would be equally helpful | Ans: C | Easy | LO: 1 | Pg. 119 | Comprehension | 108. Which of the following is NOT a psychological variable? A) culture. B) personality. C) learning. D) perception. E) attitudes. | Ans: A | Easy | LO: 2 | Pg. 119 | Definitional | 109. Which of the following is NOT a psychological variable? A) Attitudes B) Social class C) Motivation D) Learning E) Perception | Ans: B | Easy | LO: 2 | Pg. 119 | Definitional | 110. Regarding consumer motivation, the text states that: A) needs are the basic forces which motivate people to do something. B) all needs and wants are caused by drives. C) wants are learned needs. D) the terms "needs" and "wants" mean the same thing. E) both A and C. | Ans: E | Easy | LO: 2 | Pg. 119 | Self-Test | 111. Marci Bello is status-oriented. When she buys clothing she only considers items with well-known "labels" that her friends will notice. This behavior illustrates A) satisfying a need. B) satisfying a want. C) satisfying a belief. D) the "economic buyer" model of buyer behavior. E) All of the above are equally good answers. | Ans: B | Medium | LO: 2 | Pg. 119 | Comprehension | 112. When a consumer actually purchases a particular product it is the direct result of a A) need. B) want. C) drive. D) desire for physical well-being. E) None of the above is more true than the others. | Ans: C | Hard | LO: 2 | Pg. 119 | Definitional | 113. Good marketing managers know that A) marketing strategies can't influence consumer "wants." B) marketers can't create internal drives in consumers. C) it is not that difficult to develop a marketing strategy that gets consumers to do what they don't want to do. D) All of the above are true. E) None of the above is true. | Ans: B | Medium | LO: 2 | Pg. 119 | Comprehension | 114. Which of the following statements about "needs" is true? A) A higher level need may develop before lower level needs are all satisfied. B) If lower level needs are reasonably satisfied, those at higher levels become more dominant. C) A particular product may satisfy more than one need at the same time. D) We can never completely satisfy all of our needs. E) All of the above are true. | Ans: E | Easy | LO: 2 | Pg. 120-21 | Self-Test | 115. When studying consumer needs, a marketer should: A) know that total consumer satisfaction is not likely. B) try to understand how the marketing mix can satisfy a set of needs, rather than only one. C) realize that he or she cannot create needs, merely identify them. D) all of the above. E) none of the above. | Ans: D | Medium | LO: 2 | Pg. 119-21 | Comprehension | 116. According to the "hierarchy of needs" model, the first needs most people try to satisfy are their ______________ needs. A) safety B) personal C) physiological D) social E) any of the above | Ans: C | Easy | LO: 2 | Pg. 121 | Application | 117. Ranked from lowest level to highest level, the "hierarchy of needs" model includes: A) personal, social, safety, and physiological needs. B) physiological, safety, social, and personal needs. C) safety, personal, social, and physiological needs. D) social, personal, safety, and physiological needs. E) physiological, safety, personal, and social needs. | Ans: B | Medium | LO: 2 | Pg. 121 | Definitional | 118. The text discusses a four-level hierarchy of needs. Which of the following is NOT included in that model? A) social needs. B) psychological needs. C) safety needs. D) physiological needs. E) personal needs. | Ans: B | Easy | LO: 2 | Pg. 121 | Definitional | 119. Which of the following statements about "hierarchy of needs" is FALSE? A) As soon as lower level needs are reasonably satisfied, those at higher levels become more dominant. B) A higher level need may develop before lower level needs are satisfied. C) The order in which needs are satisfied always follows a definite pattern--with lower level needs being satisfied first. D) A particular product may satisfy more than one need at a time. E) All of the above are true. | Ans: C | Hard | LO: 2 | Pg. 121 | Comprehension | 120. A marketing manager who wants to apply the "hierarchy of needs" model should keep in mind that: A) most consumers are already satisfied and promotion will be needed to "create a need." B) the same marketing mix might satisfy two or more levels of need. C) not enough attention is focused on physiological needs. D) "social needs" focus on the psychological variables in consumer behavior. E) None of the above is true. | Ans: B | Medium | LO: 2 | Pg. 121 | Comprehension | 121. Psychological theories of motivation and needs suggest that: A) lower-level needs must be completely satisfied before higher-level needs become important. B) a particular good or service might satisfy different levels of needs at the same time. C) all consumers satisfy needs in the same order. D) self-esteem is an example of a social need. E) All of the above are true statements. | Ans: B | Easy | LO: 2 | Pg. 121 | Self-Test | 122. Which of the following is NOT one of the selective processes? A) selective perception. B) selective distribution. C) selective exposure. D) selective retention. E) All of the above are selective processes. | Ans: B | Easy | LO: 2 | Pg. 122 | Definitional | 123. The fact that our eyes and minds seek out and notice only information that interests us is called: A) conscious cognition. B) selective exposure. C) selective retention. D) preconscious perception. E) selective perception. | Ans: B | Easy | LO: 2 | Pg. 122 | Definitional | 124. Camille Issa has itchy eyes and a stuffy nose, and suddenly becomes aware of many TV ads for allergy products that she never noticed before. This illustrates: A) selective exposure. B) selective perception. C) selective retention. D) reinforced cognition. E) None of the above. | Ans: A | Medium | LO: 2 | Pg. 122 | Application | 125. Carmen Corley is planning to buy a pair of running shoes. Recently, she has been noticing more Adidas advertising in magazines. This is an example of: A) a physiological need. B) dissonance. C) need satisfaction. D) selective exposure. E) a consumer expectation. | Ans: D | Easy | LO: 2 | Pg. 122 | Self-Test | 126. When consumers screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs, this is called: A) selective retention. B) selective exposure. C) selective perception. D) selective dissonance. E) selective cognition. | Ans: C | Easy | LO: 2 | Pg. 122 | Definition | 127. When consumers screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs, this is called: A) cognitive perception. B) selective perception. C) selective retention. D) conscious perception. E) selective exposure. | Ans: B | Easy | LO: 2 | Pg. 122 | Definitional | 128. On his way to a GM dealership to pick up a new truck he has purchased, Luke Bigfist hears a Ford ad that says that Ford trucks have more power than Chevy trucks. Luke thought that the ad said that the Chevys had more power. This illustrates A) selective perception. B) learning. C) selective retention. D) reinforcement. E) selective exposure. | Ans: A | Medium | LO: 2 | Pg. 122 | Application | 129. Consumers remembering only what they want to remember is called: A) conscious response. B) selective retention. C) selective exposure. D) cognitive learning E) selective perception. | Ans: B | Easy | LO: 2 | Pg. 122 | Definitional | 130. Which of the following is an example of using a cue to attract consumers? A) using a label with red, white, and blue colors to stir patriotic feelings. B) adding lemon scent to a soap. C) using a package that looks like the one for a popular brand. D) adding pine scent to a cleansing fluid. E) All of the above are examples. | Ans: E | Easy | LO: 2 | Pg. 123 | Application | 131. When Taco Bell shows a large close-up of a chicken taco in a television ad, they are: A) encouraging selective retention. B) hoping to encourage extensive problem solving by the audience. C) appealing to the social needs of the audience. D) appealing to the economic needs of the audience. E) using a cue to encourage a particular response to the hunger drive. | Ans: E | Easy | LO: 2 | Pg. 123 | Self-Test | 132. A grocery store sprays an aerosol scent that smells like fresh baked bread near its packaged bakery items. This is A) a case of a manager developing a need. B) likely to have no effect because selective retention will eliminate any effect of the smell. C) a case of linking a response with a drive. D) an example of trying to link a cue with a marketing mix. E) a violation of the selective processes. | Ans: D | Medium | LO: 2 | Pg. 123 | Application | 133. Which of the following statements about learning is NOT correct? A) Satisfaction with a product purchase is reinforcement. B) Repeated reinforcement is likely to lead to routine buying. C) A marketing manager can use a package as a "cue." D) Reinforcement in the learning process weakens the relationship between a cue and a response. E) Almost all consumer behavior is learned. | Ans: D | Easy | LO: 2 | Pg. 123 | Comprehension | 134. Which of the following statements about the learning process is TRUE? A) A cue is a strong stimulus which drives an individual. B) Learning occurs only when a drive is satisfied. C) Cues are the causes of drives. D) Reinforcement strengthens the relationship between a cue and a response. E) All of the above are true. | Ans: D | Hard | LO: 2 | Pg. 123 | Comprehension | 135. The order of the steps in the learning process is: A) drive, cue, response, reinforcement. B) cue, response, drive, reinforcement. C) cue, response, reinforcement, drive. D) drive, response, reinforcement, cue. E) reinforcement, drive, cue, response. | Ans: A | Medium | LO: 2 | Pg. 123 | Definitional | 136. Which of the following is NOT a major step in the learning process? A) Dissonance B) Drive C) Response D) Cues E) Reinforcement | Ans: A | Easy | LO: 2 | Pg. 123 | Definitional | 137. Attitudes are: A) things we believe strongly enough to be willing to take some action. B) more action-oriented that beliefs. C) reasonably enduring points of view about something. D) usually thought of as involving liking or disliking. E) All of the above. | Ans: E | Medium | LO: 2 | Pg. 124 | Definitional | 138. An attitude is: A) the same as an "intention to buy." B) a person's point of view about something. C) easy to change. D) the same as a belief. E) All of the above. | Ans: B | Easy | LO: 2 | Pg. 124 | Definitional | 139. An attitude: A) is easily changed. B) is a person's point of view toward something. C) is the same as opinion and belief. D) is a reliable indication of intention to buy. E) All of the above are true statements. | Ans: B | Easy | LO: 2 | Pg. 124 | Self-Test | 140. The statement, "I like Southwest Air," is an example of a(n): A) belief B) intention C) attitude D) drive E) none of the above | Ans: C | Easy | LO: 2 | Pg. 124 | Application | 141. The statement, "Almond Joy is made with real almonds" is an example of: A) a belief B) an intention C) an attitude D) none of the above | Ans: A | Medium | LO: 2 | Pg. 124 | Application | 142. The statement, "I plan to see the new Tom Hanks movie," is an example of: A) a drive B) reinforcement C) an attitude D) a belief E) an intention | Ans: E | Medium | LO: 2 | Pg. 124 | Application | 143. Some marketers stretch the meaning of "attitude" to include: A) intention to buy. B) needs. C) beliefs. D) psychographics. E) actual purchasing behavior. | Ans: A | Easy | LO: 2 | Pg. 124 | Definitional | 144. Regarding consumer buying behavior, A) attitudes affect the selective processes and learning. B) many consumers with a favorable attitude toward a product may have no intention to buy it. C) beliefs are less action-oriented than attitudes. D) All of the above are true. E) None of the above is true. | Ans: D | Easy | LO: 2 | Pg. 124 | Comprehension | 145. Consumers' attitudes can be learned from: A) exposure to the attitudes of others. B) promotion which is directed toward them. C) previous experiences. D) All of the above could be true. E) None of the above. | Ans: D | Easy | LO: 2 | Pg. 124 | Comprehension | 146. When dealing with consumer attitudes, marketers should know that: A) it is usually easier to change a negative attitude about a product than to reinforce a positive attitude. B) consumer attitudes tend to be enduring. C) attitudes are very good predictors of how people will behave. D) all of the above. E) none of the above. | Ans: B | Hard | LO: 2 | Pg. 124 | Comprehension | 147. Which of the following would be the most difficult task facing a marketing manager? A) discover the attitudes of the firm's target market. B) change existing negative attitudes. C) create new attitudes toward his or her brand. D) promote existing attitudes. E) strengthen existing positive attitudes. | Ans: B | Medium | LO: 2 | Pg. 124 | Comprehension | 148. An expectation is A) an event that a person likes to remember. B) a positive cue. C) an unfulfilled need. D) an outcome that a person looks forward to. E) None of the above. | Ans: D | Easy | LO: 2 | Pg. 125 | Definitional | 149. Personality affects people's behavior, but A) it is the least useful of all the social influences. B) it is impossible to observe in an actual situation. C) personality traits haven't been much help in predicting which specific products or brands people actually buy. D) takes too much research effort to measure economically. E) none of the above is true. | Ans: C | Medium | LO: 2 | Pg. 126 | Comprehension | 150. The AIO items used in life-style analysis include: A) activities, intentions, and opinions. B) attitudes, intentions, and opinions. C) attitudes, income, and opinions. D) activities, interests, and opinions. E) attitudes, interests, and opinions. | Ans: D | Medium | LO: 2 | Pg. 126 | Definitional | 151. Psychographics or life-style analysis analyzes an individual's: A) opinions. B) demographics. C) activities. D) interests. E) All of the above. | Ans: E | Easy | LO: 2 | Pg. 126 | Definitional | 152. Which of the following is NOT a social influence in consumer buying? A) Social class B) Beliefs C) Family D) Reference groups E) Culture | Ans: B | Medium | LO: 3 | Pg. 127 | Definitional | 153. Which of the following dimensions affect family spending? A) income B) age of children C) age D) marital status E) all of the above | Ans: E | Easy | LO: 3 | Pg. 127 | Comprehension | 154. Regarding the family life cycle, singles and younger couples without children A) are more willing to try new products and brands. B) tend to be carefree shoppers who are not very price-conscious. C) often wait to buy basic durable goods until they have children. D) feel more financially squeezed than couples with young children. E) All of the above are true. | Ans: A | Easy | LO: 3 | Pg. 127 | Self-Test | 155. Of the following, which are the most receptive to new products and new brands? A) families with small children. B) older people with no children. C) families with teenagers. D) families whose children are grown. E) younger people with no children. | Ans: E | Easy | LO: 3 | Pg. 127 | Definitional | 156. Of the following, which are the most receptive to new products and new brands? A) Young people B) Senior citizens C) Empty-nesters D) Middle-aged people E) All are equally receptive. | Ans: A | Easy | LO: 3 | Pg. 127 | Definitional | 157. Ivan and Jan Ali were married last year, at age 24. They have no children and both are currently working. Couples like Ivan and Jan: A) are likely to be a poor target for firms that are trying to market a new brand or new product concept. B) usually focus on buying durables--such as furniture and appliances. C) usually don't spend money on discretionary purchases. D) All of the above are true. E) None of the above is true. | Ans: B | Medium | LO: 3 | Pg. 127 | Comprehension | 158. "Empty nesters": A) are divorced people without children. B) are people over 65 who live alone. C) often have high incomes and fewer required expenses. D) are singles and couples without children--who have much discretionary income. E) None of the above is true. | Ans: C | Medium | LO: 3 | Pg. 128 | Comprehension | 159. Which of the following statements is true? A) Divorced families usually have more discretionary income than traditional families. B) Singles and young couples are more willing to try new products. C) Empty nesters are frequently big spenders. D) All of the above are true statements. E) B and C are true statements, but not A. | Ans: E | Easy | LO: 3 | Pg. 127-28 | Comprehension | 160. Peter Janca noticed during a weekly grocery shopping that 7-Up was on sale. Even though he could have saved money with the 7-Up, Peter bought Mountain Dew because that's the brand his children prefer. Peter was responding to: A) selective exposure. B) dissonance. C) marketing influence. D) social influence. E) a drive. | Ans: D | Easy | LO: 3 | Pg. 128 | Application | 161. Current consumer research suggests that the family's purchasing agent is now: A) the husband. B) the children. C) the wife. D) it varies, depending on the product and the family. | Ans: D | Easy | LO: 3 | Pg. 128 | Comprehension | 162. The social class system in the U.S. A) does not affect how people spend, but does affect how they save. B) often groups people with different incomes in the same social class. C) is based on a person's educational level. D) is more rigid than in Europe and Asia. E) does not affect people's attitudes. | Ans: B | Medium | LO: 3 | Pg. 128 | Comprehension | 163. According to the text, your social class level does not depend directly on your: A) type and location of housing. B) income level. C) occupation. D) education. E) Any of the above. | Ans: B | Easy | LO: 3 | Pg. 129 | Definitional | 164. According to the text, social class in the U.S. is usually measured in terms of: A) income. B) occupation, education, and housing arrangements. C) income, occupation, and education. D) race, religion, and occupation. E) income, occupation, and religion. | Ans: B | Easy | LO: 3 | Pg. 129 | Definition | 165. "Social class" in the U.S. is usually measured in terms of: A) race, religion, and occupation. B) occupation, education, and type and location of housing. C) income. D) income, occupation, and education. E) income, occupation, and religion. | Ans: B | Medium | LO: 3 | Pg. 129 | Definitional | 166. Which of the following statements about social class is NOT true? A) The various classes tend to have different attitudes. B) The various classes tend to spend, save, and borrow money differently. C) People with the same income level may be in different social classes. D) In the U.S., the social class system is less rigid than in most other countries. E) In the U.S., the system for measuring social class is based mainly on a person's income. | Ans: E | Easy | LO: 3 | Pg. 129 | Self-Test | 167. Which of the following statements about social class is false? A) The various classes tend to have different attitudes. B) The various classes tend to save money in different ways. C) Income by itself can be a pretty good measure of social class. D) The various classes tend to have different beliefs. E) The various classes tend to borrow money in different ways. | Ans: C | Medium | LO: 3 | Pg. 129 | Comprehension | 168. A good marketing manager knows that A) a consumer's reference group may consist of people with whom the consumer has no face-to-face contact. B) most consumers have only one reference group. C) a consumer's family is not a reference group. D) reference groups usually have the most influence on purchases of products which are not easily seen by others. E) None of the above is true. | Ans: A | Medium | LO: 3 | Pg. 129 | Comprehension | 169. Reference-group influence would be WEAKEST for determining which particular ______________ a person buys. A) watch B) cosmetics C) clothing D) laundry soap E) car | Ans: D | Easy | LO: 3 | Pg. 129 | Self-Test | 170. Reference group influence is likely to have the strongest effect on the particular BRAND of ______________ purchased. A) dishwasher detergent B) frozen peas C) batteries D) watch E) Reference group influence would be about the same for each of these products. | Ans: D | Hard | LO: 3 | Pg. 129 | Application | 171. Reference group A) influence is so strong that a person normally has only one reference group. B) influence is greatest for older people. C) influence is equally strong for all products and brands. D) members may not even know the people who influence their values and attitudes. E) Both B and C are true. | Ans: D | Hard | LO: 3 | Pg. 129 | Comprehension | 172. Daisy Gazale was interested in a new set of golf clubs. She discussed the various types with some knowledgeable friends and relied on their advice. Daisy's friends were acting as: A) an economic influence. B) routinized decision-makers. C) a social class. D) a lifestyle group. E) a reference group. | Ans: E | Medium | LO: 3 | Pg. 129 | Comprehension | 173. Opinion leaders: A) are usually better educated. B) are usually wealthier. C) are people who influence others. D) are rarely actually involved in product-related discussions with the people who "follow" them. E) All of the above. | Ans: C | Medium | LO: 3 | Pg. 130 | Definitional | 174. Opinion leaders A) for one subject are also usually opinion leaders for other subjects too. B) are usually wealthier and better educated than their followers. C) can really help a marketing mix by providing favorable word-of-mouth publicity. D) All of the above are true. E) None of the above is true. | Ans: C | Easy | LO: 3 | Pg. 130 | Comprehension | 175. Consumer buying behavior is affected by: A) opinion leaders. B) social class. C) physiological, safety, social, and personal needs. D) reference groups. E) all of the above. | Ans: E | Easy | LO: 3 | Pg. 121-30 | Application | 176. The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people is called their: A) personal environment. B) culture. C) motivation. D) learned set. E) opinion set. | Ans: B | Easy | LO: 3 | Pg. 130 | Definitional | 177. With respect to culture and consumer behavior, A) culture is the whole set of beliefs, attitudes and ways of doing things of a reasonably homogeneous set of people. B) culture may exert many subtle influences on other aspects of consumer behavior. C) different cultural subgroups are likely to require different marketing mixes. D) all of the above are correct. E) none of the above is correct. | Ans: D | Easy | LO: 3 | Pg. 130-31 | Self-Test | 178. Compared to U.S. averages, Hispanic Americans: A) tend to be older B) are on average much older. C) tend to be younger. D) are about the same age. | Ans: C | Easy | LO: 3 | Pg. 130 | Definitional | 179. Compared to whites in the U.S., the average birthrate of Hispanic Americans is: A) slightly lower. B) much lower. C) higher. D) about the same. | Ans: C | Easy | LO: 3 | Pg. 130 | Definition | 180. Which of the following statements by marketing managers is NOT logical and true? A) "We are planning to appeal more to Hispanic consumers, since this group has surged and will soon be over 15 percent of the population." B) "We're building supermarkets that will appeal to Hispanic consumers; it's a big investment, but the Hispanic population in the U.S. is now about 48 million and growing fast." C) "We are adapting our diaper promotion to target African American and Hispanic parents, since the birthrate in those groups is higher than for whites." D) "We will target Asian Americans in San Francisco since they comprise over 20 percent of its population." E) "We are going to appeal to the African American group because it is a large, homogeneous target market." | Ans: E | Hard | LO: 3 | Pg. 130-31 | Comprehension | 181. The ethnic composition of a market can be important to marketing managers because A) treating all members of an ethnic group as one target market is often misleading. B) about 1 out of 5 families speak a language other than English at home. C) the geographic distribution of ethnic groups varies across the country. D) All of the above are true. E) None of the above is true. | Ans: D | Medium | LO: 3 | Pg. 130-31 | Comprehension | 182. Which of the following statements about ethnic groups in the U.S. is FALSE? A) The birthrates of Hispanics, African Americans, and Asian Americans are all higher than that of whites. B) Hispanics are the largest minority group. C) The median ages of Hispanics, African Americans, and Asian Americans are all lower than that of whites. D) Asian Americans have the highest median family income. E) Already, more than 75 percent of American children are Hispanic, African American, or Asian American. | Ans: E | Medium | LO: 3 | Pg. 130-31 | Comprehension | 183. Which of the following is NOT an accurate statement about ethnic groups in the United States? A) People from different ethnic groups may be influenced by different cultural variables. B) One out of five families speaks a language other than English at home. C) African-Americans outnumber Hispanics in the U.S. by two to one. D) Ethnic groups are growing at a faster rate than the population as a whole. E) Already, more than 36 percent of American children are Black, Hispanic, or Asian. | Ans: C | Easy | LO: 3 | Pg. 130-31 | Self-Test | 184. A college student on her way to take an exam remembers that she doesn't have a pencil with an eraser--which the instructor asked everyone to bring. The store where she stops doesn't have regular pencils--but it does sell Scripto mechanical pencils priced at $2.95. That is what she buys. This case illustrates the affect of: A) personal environment. B) culture. C) purchase situation. D) learned set. E) dissonance. | Ans: C | Easy | LO: 4 | Pg. 132 | Application | 185. Which of the following is NOT an important problem-solving step for a consumer trying to satisfy a need? A) search for information B) identify alternatives C) set criteria D) evaluate alternatives E) none of the above (i.e., all are important steps) | Ans: E | Medium | LO: 5 | Pg. 133 | Comprehension | 186. Which of the following in NOT one of the levels of consumer problem solving discussed in the text? A) Dissonance problem solving B) Routinized response behavior C) Extensive problem solving D) Limited problem solving E) None of the above, i.e. all four are discussed. | Ans: A | Easy | LO: 5 | Pg. 133-34 | Definitional | 187. Behavioral scientists recognize different levels of consumer problem solving. Which of the following is not one of these levels? A) Routinized response behavior B) Limited problem solving C) Rational problem solving D) Extensive problem solving E) All of the above are recognized levels of problem solving. | Ans: C | Easy | LO: 5 | Pg. 133-34 | Self-Test | 188. Extensive problem solving probably would be required by a recent college graduate in the purchase of: A) living room furniture. B) a color TV set. C) a new home. D) a sports car. E) all of the above. | Ans: E | Easy | LO: 5 | Pg. 133 | Application | 189. Extensive problem solving probably would NOT be required by young newly-marrieds in the purchase of: A) a stereo system. B) soft drinks. C) a home. D) a DVD player. E) a car. | Ans: B | Easy | LO: 5 | Pg. 133 | Application | 190. Limited problem-solving probably would NOT be required in the purchase of: A) running shoes. B) an encyclopedia. C) new suit. D) coffee maker. E) fast-food restaurant meal. | Ans: E | Easy | LO: 5 | Pg. 133 | Application | 191. Limited problem solving probably would be required by "empty-nesters" in the purchase of: A) sports clothes. B) restaurant's services. C) plumbing repair service. D) a replacement garbage disposer. E) all of the above. | Ans: E | Medium | LO: 5 | Pg. 133 | Application | 192. Simon Piedra went to a grocery store to buy his favorite brand of ice cream. However, the store was temporarily out of that brand, so he looked over the other familiar brands and decided to try a well advertised brand. This case illustrates: A) Routinized response behavior B) Intensive problem solving C) Limited problem solving D) Extensive problem solving | Ans: C | Medium | LO: 5 | Pg. 133 | Application | 193. Routinized response behavior by consumers A) is most likely when past purchases of similar products have not satisfied the needs. B) is more likely when previous behavior has not yet been reinforced. C) is most common for purchases where the consumer has much experience in how to meet a need. D) increases the time required to make a purchase decision. E) is likely in a new purchase situation. | Ans: C | Medium | LO: 5 | Pg. 134 | Comprehension | 194. Which of the following is LEAST likely to be an example of routinized response behavior? A) buying a Coke. B) purchasing a new pair of shoes. C) buying soap at a convenient supercenter. D) buying a burrito at Taco Bell. E) filling the car with gasoline. | Ans: B | Easy | LO: 5 | Pg. 134 | Application | 195. Routinized response behavior probably would be used by many consumers in the purchase of: A) soap. B) canned fruit. C) salt. D) milk. E) all of the above. | Ans: E | Easy | LO: 5 | Pg. 134 | Application | 196. Which of the following products probably would result in the lowest involvement purchase for most consumers? A) Paper towels B) Summer vacation C) CD player D) Sweater E) Cough syrup | Ans: A | Easy | LO: 5 | Pg. 134 | Application | 197. Lori Morro just bought a cellular telephone for her car after spending several weeks considering all the possibilities. She likes the new phone, but is still wondering if another brand at a slightly higher price would have been better. This is an example of: A) the relationship between drives, cues, and reinforcement. B) dissonance. C) reference group influence. D) stimulus-response reaction. E) routinized response behavior. | Ans: B | Medium | LO: 5 | Pg. 134 | Application | 198. Dissonance A) discourages a consumer from considering further information once a purchase has been made. B) is likely to result in a consumer buying the same product next time. C) is more likely to occur with low involvement products. D) is less likely to occur when a consumer has repeatedly purchased the same product. E) occurs in the adoption process after a consumer becomes interested in a product. | Ans: D | Medium | LO: 5 | Pg. 134 | Comprehension | 199. Dissonance is a: A) tension caused by uncertainty about the rightness of a decision. B) conflict between opinion leaders. C) confirmation in the learning process. D) kind of belief. E) form of social influence. | Ans: A | Easy | LO: 5 | Pg. 134 | Definitional | 200. Dissonance is: A) a type of cue. B) a form of laziness commonly observed among low-income consumers. C) a type of positive reinforcement. D) tension caused by uncertainty about the rightness of a decision. E) none of the above. | Ans: D | Easy | LO: 5 | Pg. 134 | Self-Test | 201. The "adoption process" suggests that: A) confirmation must come before the decision to adopt or reject. B) evaluation usually comes before trial and decision. C) the decision to reject may follow confirmation. D) confirmation comes from a satisfactory evaluation. E) decision usually follows trial and confirmation. | Ans: B | Hard | LO: 5 | Pg. 134-35 | Comprehension | 202. Which of the following is NOT one of the steps of the "adoption process?" A) Involvement B) Awareness C) Interest D) Evaluation E) Trial | Ans: A | Easy | LO: 5 | Pg. 134-35 | Definitional | 203. Which of the following gives the correct ORDERING of the steps in the "adoption process?" A) Interest, awareness, trial, decision, evaluation, dissonance B) Awareness, interest, evaluation, trial, decision, confirmation C) Awareness, interest, trial, evaluation, decision, dissonance D) Awareness, interest, trial, decision, evaluation, confirmation E) Awareness, interest, evaluation, decision, trial, confirmation | Ans: B | Hard | LO: 5 | Pg. 134-35 | Definitional | 204. Consumers go through six steps when deciding to accept or reject a new idea. In this adoption process: A) the confirmation step follows the decision step. B) the evaluation step follows the trial step. C) the awareness step follows the interest step. D) all of the above are correct. E) none of the above is correct. | Ans: A | Medium | LO: 5 | Pg. 134-35 | Self-Test | 205. Denis Marlowe has noticed several television commercials for LookYourBest--a new brand of shampoo. While washing his hair, he thinks about what would happen if he replaced his current shampoo with LookYourBest. What stage in the adoption process has Denis reached? A) evaluation B) feedback C) decision D) interest E) awareness | Ans: A | Medium | LO: 5 | Pg. 134-35 | Application | 206. A marketing manager for a new brand of bar soap decides to mail free samples to consumers. The logic for using this approach is best explained by A) the "economic buyer" model. B) the stimulus-response model. C) the typical consumer's adoption process. D) the need to reduce dissonance. E) the high level of problem solving required with such a product. | Ans: C | Medium | LO: 5 | Pg. 134-35 | Application | 207. In developing marketing mixes for consumers in international markets, marketing managers should: A) generalize from one culture to another. B) use their intuition. C) know about the specific social and intrapersonal variables. D) follow their beliefs. E) All of the above. | Ans: C | Easy | LO: 3 | Pg. 136 | Self-Test | 208. When planning strategies for international markets, keep in mind that: A) a marketing manager must rely primarily on intuition because there is usually little available information about the social and cultural influences on buying behavior. B) the effects of cultural influences on consumers are usually obvious, if you just take the time to think about the buying situation. C) cultural changes may make outdated stereotypes even more misleading. D) All of the above are true. E) Only B and C are true. | Ans: C | Easy | LO: 3 | Pg. 136 | Comprehension | 209. The present state of our knowledge about consumer behavior is such that: A) the behavioral sciences provide the marketing manager with a complete explanation of the "whys" of consumer behavior. B) a marketing manager usually must blend intuition and judgment with findings from the behavioral sciences to explain and predict consumer behavior. C) relevant market dimensions can be easily identified and measured using "psychographics." D) marketing research can't tell us much more about specific aspects of consumer behavior. E) All of the above are true statements. | Ans: B | Easy | LO: 5 | Pg. 137 | Self-Test | 210. The present state of our knowledge about consumer behavior is such that: A) relevant market dimensions can be easily identified and measured using AIO. B) we still must rely heavily on intuition and judgment to explain and predict consumer behavior. C) the behavioral sciences provide a marketing manager with a complete explanation of the "whys" of consumer behavior. D) a marketing manager can rely almost completely on the text's integrating framework--to explain and predict buying behavior. E) All of the above are true. | Ans: B | Medium | LO: 5 | Pg. 137 | Comprehension |

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