MKTG 3110- ch 5 test

The buying center consists of key decision makers from both the buying organization and the supplier.

false

A business buyer is considering a change in product specifications, terms, and possibly suppliers. This buying situation is referred to as a(n) ________.

modified rebuy

According to Sigmund Freud's theory, a person's buying decisions are ________.

affected by subconscious, hidden motivations

A(n) ________ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

attitude

________ is the degree to which an innovation may be tried on a limited basis.

divisability

A(n) ________ becomes a motive when it is directed toward a particular stimulus object.

drive

Reference group influence on consumer buying behavior varies across products and brands.

true

) ________ are the most affluent and brand conscious demographic segment in the United States.

asians

opinion leaders

people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others. Marketers try to identify opinion leaders for their products and direct marketing efforts toward them

________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

perception

Hallmark's classic "When you care enough to send the very best" slogan appeals to which need category in Maslow's hierarchy?

social

According to Maslow's hierarchy of needs, which of the following is most likely an esteem need?

status

________ is a discomfort caused by postpurchase conflict.

cognitive dissonance

Which of the following is a commercial source of product information?

dealer web sites

buzz marketing

involves enlisting or even creating opinion leaders to serve as "brand ambassadors" who spread the word about a company's products

Which of the following is a personal factor that influences a consumer's buying behavior?

life-cycle change

Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disadvantages of his new riding mower as he learned more about other riding mowers available in the same price range. Bill is in which of the following stages of the buyer decision process?

post purchase behavior

Personal sources of information normally inform the buyer, but commercial sources legitimize or evaluate products for the buyer

false

The business buying process tends to be shorter and less formal than the consumer buying process.

false

Tom usually buys new devices such as PDAs, DVRs, and MP3 players only after his friends and family start owning these devices. In this case, Tom is an innovator.

false

When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the evaluation of alternatives process.

false

which of the following is a social factor that influences consumer buying behavior?

family

Which of the following is most likely a true statement about social class?

social classes show distinct product preferences in areas such as clothing

A(n) ________ reflects the general esteem given to the different roles of a person by society

status

A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n) ________.

straight rebuy

What is the most important consumer buying organization in society?

the family

Identify and describe the stages in the adoption process of a new product.

Consumers go through five stages in the process of adopting a new product. In the awareness stage, consumers become aware of the new product but lack information about it. Then, consumers seek information about the new product in the interest stage. In the evaluation stage, consumers consider whether trying the new product makes sense. Consumers try the product on a limited basis in the trial stage. Finally, consumers decide to make full use of the product in the adoption stage.

small groups

Many small groups influence a person's behavior. Groups that have a direct influence and to which a person belongs are called membership groups. Reference groups serve as direct or indirect points of comparison or reference in forming a person's attitudes or behaviors. An aspirational group is one to which the individual wishes to belong. Reference groups expose a person to new behaviors and lifestyles, influence a person's attitudes and self-concept, and create pressures to conform that may affect the person's product and brand choices.

Describe the steps of the buyer decision process.

The buyer decision process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior.

Which of the following statements about buying centers is true?

The buying center is not a fixed and formally identified unit within a buying organization.

need recognition

The buying process starts with need recognition — the buyer recognizes a problem or need. The need can be triggered by internal stimuli when one of the person's normal needs — for example, hunger or thirst — rises to a level high enough to become a drive. A need can also be triggered by external stimuli.

Identify the product characteristics that influence the rate of adoption of a product. Explain how each characteristic affects the rate of adoption

The five most important product characteristics that influence the rate of a product's adoption are relative advantage, compatibility, complexity, divisibility, and communicability. Relative advantage is the degree to which an innovation appears superior to existing products; the greater the perceived relative advantage, the sooner the product will be adopted. Compatibility is the degree to which the innovation fits the values and experiences of potential consumers; high compatibility leads to quick adoption. Complexity is the degree to which the innovation is difficult to understand or use; the greater the complexity, the slower the adoption rate. Divisibility is the degree to which the innovation may be tried on a limited basis; the higher the divisibility, the slower the rate of adoption. Finally, communicability is the degree to which the results of using the innovation can be observed or described to others; high communicability lends itself to a higher rate of adoption

GenX, a manufacturer of sport motorcycles, is seeking a new supplier of motorcycle headlamps and brake lights. After searching trade directories, GenX invites five different suppliers to make formal presentations about how their solutions can create greater value for GenX than competing solutions. GenX is currently in the ________ stage of the business buying decision process.

proposal solicitation

A shoe company's ads feature the members of a popular country music band. Product sales increase significantly among the band's fans. From the fans' viewpoint, the band is a ________.

reference group

Describe the major factors that influence business buyers.

Business buyers are heavily influenced by factors in the current and expected economic environment, such as levels of primary demand, the economic outlook, and the cost of money. Business buyers are also affected by supply of key materials and technological, political, and competitive developments in the environment. Finally, culture and customs can strongly influence business buyer reactions to the marketer's behavior and strategies, especially in the international marketing environment. The business buyer must watch these factors, determine how they will affect the buyer, and try to turn environmental challenges into opportunities. Organizational factors are also important. Each buying organization has its own objectives, strategies, structure, systems, and procedures, and the business marketer must understand these factors well. The buying center usually includes many participants who influence each other, so interpersonal factors also influence the business buying decision process. Each participant in the business buying decision process brings in personal motives, perceptions, and preferences. These individual factors are affected by personal characteristics such as age, income, education, professional identification, personality, and attitudes toward risk.

cultural factors that influence consumer behavior

Culture is the most basic cause of a person's wants and behavior. Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important market segments. Social classes are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Unlike nationality or ethnic subculture, social class is determined by a combination of many variables, such as occupation, income, education, and wealth. Social scientists have identified seven social classes within the American culture, ranging from upper class to lower class.

Describe the buying behavior, characteristics, and media habits of different subcultures in the United States.

Many subcultures make up important market segments, and marketers often design products and marketing programs tailored to their needs. Examples of three such important subculture groups are Hispanic American, African American, and Asian American consumers.

evaluation of alternatives

Marketers need to know about evaluation of alternatives, that is, how the consumer processes information to arrive at brand choices. Unfortunately, consumers do not use a simple and single evaluation process in all buying situations. Instead, several evaluation processes are at work. The consumer arrives at attitudes toward different brands through some evaluation procedure.

Explain Maslow's hierarchy of needs

Maslow suggested that our unfulfilled needs motivate us and that our needs are arranged in a hierarchy. That hierarchy includes these needs: physiological, safety, social, esteem, and self-actualization. Maslow suggested that we fulfill the lower-level, basic needs first before moving up the hierarchy. Until more important, basic needs such as safety are fulfilled, an individual has little interest in higher-level needs such as esteem and self-actualization. When that need is satisfied, it will stop being a motivator, and the person will then try to satisfy the next most important need. For example, starving people (physiological need) will not take an interest in the latest happenings in the art world (self-actualization needs) nor in how they are seen or esteemed by others (social or esteem needs) nor even in whether they are breathing clean air (safety needs). But as each important need is satisfied, the next most important need will come into play.

What are personality traits, and how do they affect purchase behavior?

Personality refers to the unique psychological characteristics that distinguish a person or group. Personality is described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness

In the context of the business buying decision process, what is a buying center? Explain why it presents a major marketing challenge

The buying center is the decision-making unit of a buying organization. The buying center consists of all the individuals and units that play a role in the business purchase decision-making process, including the actual users of the product or service, those who make the buying decision, those who influence the buying decision, those who do the actual buying, and those who control buying information. The buying center is not a fixed and formally identified unit within the buying organization. Instead, it is a set of buying roles assumed by different people for different purchases. Within the organization, the size and makeup of the buying center varies for different products and buying situations. The variable nature of the buying center makes it a major marketing challenge. The business marketer must learn who participates in each decision, each participant's relative influence, and what evaluation criteria each decision participant uses. Sometimes identifying the decision maker is difficult or even impossible, as no one single person may make the purchasing decision.

Explain the major types of buying situations

There are three major types of buying situations. In a straight rebuy, the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department. In a modified rebuy, the buyer wants to modify product specifications, prices, terms, or suppliers. A company buying a product or service for the first time faces a new task situation. In such cases, the greater the cost or risk, the larger the number of decision participants and the greater the company's efforts to collect information. The new task situation is the marketer's greatest opportunity and challenge. The marketer not only tries to reach as many key buying influences as possible, but also provides help and information. The buyer makes the fewest decisions in the straight rebuy and the most in the new task decision.

social roles and status

Within groups, including families, the position of an individual is defined by role and status. A role consists of the activities people are expected to perform according to the persons around them, while status is the general esteem given to that role. People tend to choose products that fit their roles and status

postpurchase behavior

After purchasing the product, the consumer will either be satisfied or dissatisfied and will engage in postpurchase behavior of interest to the marketer. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The larger the gap between expectations and performance, the greater the consumer's dissatisfaction

information search

An interested consumer may or may not search for more information. If the consumer's drive is strong and a satisfying product is near at hand, he or she is likely to buy it then. If not, the consumer may store the need in memory or undertake an information search related to the need.

Discuss the advantages and disadvantages of e-procurement?

Business-to-business e-procurement yields many benefits. First, it shaves transaction costs and results in more efficient purchasing for both buyers and suppliers. E-procurement reduces the time between order and delivery. And an online-powered purchasing program eliminates the paperwork associated with traditional requisition and ordering procedures and helps an organization keep better track of all purchases. Finally, beyond the cost and time savings, e-procurement frees purchasing people from a lot of drudgery and paperwork. In turn, it frees them to focus on more strategic issues, such as finding better supply sources and working with suppliers to reduce costs and develop new products. The rapidly expanding use of e-procurement, however, also presents some problems. For example, at the same time that the Internet makes it possible for suppliers and customers to share business data and even collaborate on product design, it can also erode decades-old customer-supplier relationships. Many buyers now use the power of the Internet to pit suppliers against one another and search out better deals, products, and turnaround times on a purchase-by-purchase basis.

purchase decision

In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. The first factor is the attitudes of others. The second factor is unexpected situational factors. The consumer may form a purchase intention based on factors such as expected income, expected price, and expected product benefits. However, unexpected events may change the purchase intention.

In a straight rebuy, a buyer reorders something without any modifications.

true

Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand?

brand personality

________ involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company's products.

buzz marketing

word-of-mouth influence

can have a powerful impact on consumer buying behavior. The personal words and recommendations of trusted friends, associates, and other consumers tend to be more credible than those coming from commercial sources. Most word-of-mouth influence happens naturally: Consumers start chatting about a brand they use or feel strongly about one way or the other. Often, however, rather than leaving it to chance, marketers can help to create positive conversations about their brands

family

can strongly influence buyer behavior and are the most important consumer buying organization in society. Marketers are interested in the changing roles and influence of each family member, particularly as male and female purchasing roles evolve and children wield more purchasing influence.

Which of the following sources of product information can marketers control completely?

commercial

________ is the degree to which the results of using an innovation can be observed or described to others.

communicability

GE operates a company trading site where it posts purchasing needs, invites bids, negotiates terms, and places orders. This is an example of a(n) ________.

company buying site

________ is the degree to which an innovation fits the values and experiences of potential consumers.

compatibility

Electric cars are not considerably different or difficult to drive relative to gas-powered cars. However, this is not aligned with the perceptions or conceptual concerns held by the public about the new technology. This will likely slow the adoption rate due to the ________ of the innovation.

complexity

The McDonald's corporate brand name and golden arches can be classified as ________ that may potentially stimulate an individual's attention and decision about whether or not to dine at the restaurant

cues

A child in the United States is exposed to many values including achievement and success, freedom, individualism, hard work, and material comfort. These are symbolic of American ________.

culture

In reverse auctions, companies put their purchasing requests online and invite suppliers to bid for their business.

true

Fred's faith in Asics, his favorite brand of running shoes, makes him consider other offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. Fred is an opinion leader in his social networking community and best described as a(n) ________.

early adopter

A marketing firm has been assigned the task of watching trends in spending, personal income, savings, and interest rates. The marketing firm is most likely gathering information about consumers' ________.

economic situations

In which of the following stages of the adoption process does a consumer consider whether trying a new product makes sense?

evaluation

Devon is in the market for a new car. She is seriously considering either a Honda Civic or Toyota Corolla because they both have excellent quality and safety ratings and are comparable in price. Devon is in the ________ stage of the buyer decision process.

evaluation of alternatives

) Early mainstream adopters are opinion leaders in their communities and adopt new ideas early but carefully

false

A business buyer typically makes the greatest number of decisions in a straight rebuy situation and the fewest in a new-task situation.

false

Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find a coat in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process

information search

In which of the following stages of the adoption process does a consumer seek information about a new product?

interest

________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

lagging adopters

Which of the following is a psychographic characteristic of a consumer?

lifestyle

When Goodyear sells replacement tires to final consumers, its potential market includes millions of car owners around the world. But its fate in business markets depends on getting orders from only a handful of large automakers. This represents the difference in ________ between business and consumer markets.

market structure

A baby boomer decides to purchase a BMW to impress others with her success. This illustrates the importance of understanding the role of ________ in the marketing process.

motive

Which of the following is the first stage of the buyer decision process?

need recognition

Simone bought two bottles of wine from two vineyards in Bordeaux. When asked for an opinion on the quality of the wines, she later mentioned that the Pontet Canet tasted like alcoholic grape juice, but the Chateau Margaux had a crisp taste that she really enjoyed. Which of the following stages of the buyer decision process do Simone's remarks reflect?

post purchase behavior

Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market. When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?

problem recognition

During which stage of the business buying decision process is a buyer most likely to conduct value analysis by carefully studying components to determine if they can be redesigned, standardized, or made less expensively?

product specification

Interpersonal factors are a major influence on business buyer behavior

true

It's advisable for a company to fit its products into existing attitude patterns rather than attempt to change them.

true

Jeff is in the process of buying a new car. He carefully analyzes the features that he wants in a car, and perceives significant differences in price, quality, and features among three of his favorite models. He rates the models on each factor and ranks them in the order of his preference. To which of the following stages of the buyer decision process will Jeff most likely proceed next?

purchase decision

________ is the degree to which an innovation appears superior to existing products.

relative advantage

In a straight rebuy, a buyer ________.

reorders something without any modifications

Which of the following is the means by which companies post purchase requests online and invite suppliers to bid for their business?

reverse auctions

________ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands.

selective retention

Which of the following needs in Maslow's hierarchy is generally satisfied last?

self-actualization

A small increase in consumer demand can cause a large increase in business demand.

true

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

________ refers to the unique psychological characteristics that distinguish a person or group.

personality

Which of the following is most likely the final stage of the business buying decision process?

supplier performance review

People use the same products and services as they progress through each life-cycle stage.

false

The most effective sources of information about a product tend to be ________.

personal

Explain how the decision process in the business market and consumer market differ.

Business buyers usually face more complex buying decisions than do consumer buyers. Business purchases often involve large sums of money, complex technical and economic considerations, and interactions among many people at many levels of the buyer's organization. Because the purchases are more complex, business buyers may take longer to make their decisions and are likely to use a more formalized buying process. In the business buying decision process, the buyer and seller are often much more dependent on each other.

Explain why business demand is considered a derived demand. Provide an example.

Business demand is a derived demand because it ultimately derives from the demand for consumer goods. If consumer demand for an end product drops, business demand for all of the components used in that product will also drop. Similarly, when consumer demand for a product increases, business demand for all of the components of that product also increases. For example, tires in the original equipment market for automobiles is derived from consumer demand for new cars.

Corning produces Gorilla Glass screens that are used in the production of laptops, tablets, and smartphones. Corning promotes its product to final consumers to increase business demand for digital devices made with the specialized, toughened glass. This illustrates ________.

derived demand

A company buying a product with modified specifications faces a new-task situation

false

According to Maslow's theory, safety and social needs must be fulfilled after self-actualization needs.

false

Early mainstream adopters are venturesome and typically try new ideas at some risk

false

________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.

opinion leaders

Which of the following is considered a major influence on business buyer behavior?

organizational factors

) Alice is shopping for a new car, and she has narrowed her decision to a Honda Accord and a Toyota Camry. Both sedans have similar features and prices, but Alice decides to purchase the Honda based on her intuition. Which of the following situations would most likely cause Alice to experience postpurchase dissonance?

the price of the toyota camry falls due to an increase in demand

Many marketers now embrace a ________ strategy, integrating ethnic and cross-cultural perspectives within their mainstream marketing.

total market

A business marketer normally deals with far fewer buyers than a consumer marketer.

true

A role consists of the activities people are expected to perform according to the people around them.

true

Business-to-business e-procurement lowers purchasing costs and reduces the time between order and delivery

true

In vendor-managed inventory, buyers share sales information directly with key suppliers

true

Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe.

true

Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables.

true

Subcultures are groups of people with shared value systems based on common life experiences and situations

true

The larger the gap between expectations and performance of a product, the greater a consumer's dissatisfaction.

true