Marketing Chapter 5
When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ________.
generating person-to-person brand conversations
According to the video, Goodwill has often had to cut prices due to poor ______ conditions.
economic
Which of the following needs in Maslow's hierarchy is generally satisfied first?
Physiological needs
IMG World provides college students with new, relevant media, making which stage of the consumer buyer behavior process easier for the consumer?
information search
___________________ consists of many different people who play multiple roles in the buying process.
The buying center
The most basic determinant of a person's wants and behavior are embedded in a consumers __________.
culture
According to the video, some individuals living in trendy neighborhoods choose to shop at Goodwill boutiques in order to find fashionable clothing and "shabby chic" furniture. According to Maslow's theory of __________, such shoppers are likely seeking to satisfy social or esteem needs.
motivation
Which of the following is NOT one of the typical advantages of e-procurement systems?
Improving customer-supplier relationships
Which of the following is NOT a social factor influencing consumer buying behavior?
Cognitive dissonance
Which of the following is likely to slow the adoption of a new technology?
Conceptual complexity
Consumers obtain information from numerous sources. Which of the following involves dealer and manufacturer websites, packaging, and displays?
Commercial sources
Which of the following refers to the degree to which an innovation fits the values and experiences of potential consumers?
Compatibility
Which of the five characteristics identified has an inverse relationship with an innovation's rate of adoption, meaning as this characteristic increases, the rate of adoption is slower?
Complexity
Large tropical fish tanks are a significant investment for Caffè Gustoso's owners. The proposals ranged from $10,000 to $25,000 for the installation of the two large tanks. The budget for the fish tank installation was initially set at $20,000, but one of the partners feels that additional money could be found in the budget. The owners are quite concerned about the tanks leaking and thus are looking for a long warranty. The Naperville location is scheduled to open in 5 weeks. The primary evaluative criteria for this purchase are price, installation time, and warranty period. Given the three suppliers, which supplier do you recommend that Caffè Gustoso choose?
Exotic Fish Supplies It a presented proposal that was under budget, installed two weeks prior to the grand opening, with a reasonably long warranty.
Which of the following is often considered a key business marketing strategy for winning and holding accounts?
systems selling
Goodwill adapts its store formats and merchandise plans to match the innovativeness and disposable income of shoppers in nearby neighborhoods. For instance, customers of its boutique store in the Haight-Ashbury neighborhood of San Francisco are more likely to demonstrate greater __________ for trendy fashions.
great rate of adoption
Students purchasing items with the college logo most likely represent consumers involved in which type of buying behavior?
habitual
What is the nature of demand in business markets?
Demand in business markets is derived demand.
________________ is one problem with business-to-business e-procurement.
Suppliers being pitted against one another
____________________ is a characteristic important in influencing an innovation's rate of adoption and described by the degree to which the innovation may be tried on a limited basis.
Divisibility
Your first job is to settle the dispute between the owners. To settle the dispute, you need to ensure that both owners understand the primary differences between consumer transactions and business transactions. As you work on your explanation, you reflect on the characteristics that make business transactions different than consumer transactions. How would you describe the demand for business products?
Inelastic: Demand for business goods tends to be me more inelastic than demand for consumer goods.
Depending on the complexity of the purchase, firms may use a buying center to complete a transaction. Buying centers vary in size and composition but generally cover six roles: initiator, user, gatekeeper, influencer, decider, and buyer. Drag the description of the responsibility to the role to which it belongs.
Initiator One of the owner's spouses recently visited an upscale coffee shop in San Francisco whose internal walls were created out of fish tanks. She wants to replicate the relaxing feeling in the Naperville location. User Customers who come into Caffè Gustoso's Naperville location will benefit from the relaxing ambience the fish tanks will create. Gatekeeper Caffe Gustoso's secretary collects, sorts, and organizes all of the fish tank catalogs and bids submitted In response to the request for fish tank proposals. Influencer Before the fish tank specifications were finalized, the owners talked to a tropical fish retaller to gain some Information and Inspiration about what fish to acquire for the tanks. Decider The co-owners of Caffe Gustoso review the proposals submitted by the tropical fish companies and choose a finalist. Buyer With the winning proposal identified, cafe purchasing agent competes the transaction by placing the order and negotiating delivery and installation
Which of the following are tradition-bound, suspicious of changes, and adopt the innovation only when it has become something of a tradition itself?
Lagging adopters
You explain that because business demand is more inelastic, demand for business goods is not strongly correlated with price. Therefore, business suppliers are often able to increase price without negatively affecting demand. Therefore, it is critically important that we address price during the contract negotiation. The owners are still not convinced. You decide to add to your argument by discussing the differences in supplier choice. Which of the following arguments would strengthen your case?
Less supplier choice: Business buyers tend to have far fewer choices in suppliers than the ultimate consumers do.
Which of the following statements regarding the business market is correct?
Many sets of business purchases are made for one set of consumer purchases.
With the coffee bean purchase process finalized, you turn your attention to the coffee cups, both ceramic and paper. All Caffè Gustoso cups proudly display the Caffè Gustoso logo with "Chicago Loop" printed below the logo. The owners feel strongly that the Naperville location cups need to have a similar look, but with Naperville in place of Chicago Loop under the logo. Given the change to the cup design, how would you recommend handling this purchase?
Modified rebuy -They want to change the logo for the cups, which requires a modification of the existing purchase specifications.
You decide to make one more argument to highlight the difference between consumer purchases and business purchases. How would you describe the business buying process as compared to the consumer buying process? Select two options from the choices below
More formalized: Business buying tends to be more formalized than consumer buying. Longer and slower. Business buying tends to be longer and slower than consumer buying.
What is the first step of the buyer decision process?
Need recognition
Which of the following lists the five steps of the buyer decision process in the correct order?
Need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior
In your next meeting with the owners, you discuss the differences between the Downtown Loop and Naperville stores. The Naperville stores will have twice the square footage as the Chicago Loop stores. To take advantage of the additional square footage, Caffè Gustoso plans on creating relaxation lounges in the new Naperville locations. Unlike the small Chicago Loop stores, the Naperville relaxation lounges will be equipped with plush seating, a water wall, and large tropical fish tanks. The focal point of the relaxation room will be the fish tanks; therefore, this will be the first purchase for the new space. How would you recommend handling the purchase of the tropical fish tanks?
New buy -The purchase of the fish tanks is a new task for the owners because they have no previous experience purchasing tropical fish tanks.
Which of the following is a personal characteristic influencing a consumer's buying behavior?
Occupation
Marketers of brands understand that they must figure out how to reach ___________________ that can exert social influence on others.
Opinion leaders
The business buying process can be a complex and complicated process with eight basic stages. Which of the following is the first stage in this process?
Problem Recognition
A few months after the grand opening of the Naperville store, Caffè Gustoso's owners want to determine whether the fish tanks were a good investment. In the final stage of the business buyer decision process, the owners review the supplier's performance, which includes the installation, maintenance, and warranty response of the fish tank vendor. Additionally, the owners want to determine the ROI for the fish tanks. What data do you recommend the owners collect for this analysis?
Spending: The owners should determine the average transaction per customer in the Naperville location as compared to average coffee shop transactions. the goal is to turn a profit and a key factor for driving profit is revenue.
Caffè Gustoso's owners finally agree that there is a significant difference between consumer and business transactions, and they decide to enlist your help for the new store purchases. Since the Naperville store will be offering the same high-quality coffee menu selections as offered in the downtown location, the owners plan on purchasing the beans from the same suppliers that they currently use. The owners feel strongly that they must offer a product that tastes the same regardless of the location where the consumer buys the coffee. Given the fact that the same coffee beans will be purchased from an existing supplier, how do you recommend treating this purchase?
Straight rebuy - because the coffee beans will be purchased without modification
______________________ determines if a buyer is satisfied or dissatisfied with a purchase.
The relationship between the consumer's expectations and the product's perceived performance
According to the model of buyer behavior, what is in a buyer's "black box"?
The buyer's characteristics and decision process
_________ refers to the practice of integrating ethnic themes and cross-cultural practices within a company's mainstream marketing.
Total market strategy
IMG World's products and services are geared toward colleges and students, the students of which may be considered young achievers. This designation can be best described as which influential factor of consumer buying behavior?
age and life stages
According to the video, Goodwill adjusts its merchandising and store formats in Northern California to better match the __________ of individuals living within those neighborhoods, as expressed by their respective daily activities, interests, and opinions.
lifestyle
A popular football player at a college who is able to influence the buying decisions of fans would best be described as a(n) __________.
opinion leader influence
The video suggests that a key challenge for Goodwill's marketers is to change the view of many consumers that secondhand stores are musty, low-class operations with poor-quality merchandise. This exemplifies the psychological concept of __________, which is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
perception
A purse company's ads feature the members of a popular housewives reality show. Product sales increase significantly among fans. From fans' viewpoint, the housewives reality show is a ______________.
reference group