Business Essentials 6th Canadian Edition by Ebert Test Bank

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Business Essentials 6th Canadian Edition by Ebert Test Bank

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CHAPTER 12
UNDERSTANDING MARKETING PROCESSES AND CONSUMER BEHAVIOUR

MULTIPLE CHOICE QUESTIONS. Choose the one alternative that best completes the statement or answers the question.

1)Which of the following is correct with regard to the opening case entitled Lululemon: A Clear Marketing Strategy, Even in Trying Times?
A)Lululemon is strongly focused on being an effective retailer and nothing more B)Lululemons mission is to have the largest market share in the yoga-inspired athletic gear market
C)In maintaining its tight focus, Lululemon does not offer yoga classes even though it sells yoga-inspired clothing
D)Lululemon does not have an ecommerce site
E)Lululemons products are expensive and the company is unapologetic about that
Answer: E
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

2)________ is the process of planning and executing the development, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
A)Promotion
B)Relationship marketing
C)Marketing
D)Market strategy
E)Market segmentation
Answer: C
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

3)Products that are purchased by individuals for their personal use are
A)consumer goods.
B)consumable goods.
C)personal goods.
D)industrial goods.
E)market goods.
Answer: A
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

4)When the whole firm is coordinated to profitably achieve the goal of serving its present and potential customers, this is known as
A)marketing segmentation.
B)demographics.
C)the marketing concept.
D)marketing.
E)product differentiation.
Answer: C
Diff: 2
Skill: Recall
Objective: 12.1
A-Heading: What is Marketing?

5)The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives is called
A)publicity.
B)marketing.
C)relationship marketing.
D)idea promotion.
E)advertising.
Answer: B
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What is Marketing?

6)According to the marketing concept
A)the firm must coordinate its marketing and non-marketing activities.
B)customer satisfaction is the firms only objective.
C)maximum short-run profit is the firms only objective.
D)the marketing department should function independently of the rest of the firm.
E)the finance area becomes critically important because ways must be found to pay for all the marketing research activity that is necessary.
Answer: A
Diff: 2
Skill: Recall
Objective: 12.1
A-Heading: What is Marketing?

7)Value is determined by comparing a products ________________; the formula requires dividing ____________.
A)costs and benefits; benefits by costs
B)price and quality; price by quality
C)price and durability; durability by price
D)quality and durability; quality by durability
E)availability and price; price by availability
Answer: A
Diff: 3
Skill: Recall
Objective: 12.1
A-Heading: What is Marketing?

8)Products which are purchased by end users for their personal use are _________ goods, while products which are purchased by companies for production purposes are _________ goods.
A)industrial; consumer
B)capital; accessory
C)consumer; industrial
D)high utility; low utility
E)none of these
Answer: C
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What is Marketing?

9)Which phrase best captures the essence of relationship marketing?
A)Emphasis on price
B)Emphasis on quality
C)Emphasis on long-term relationships with customers
D)Emphasis on reliable source of supply of products
E)Emphasis on profitable operations
Answer: C
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What is Marketing?

10)Which phrase best captures the essence of relationship marketing?
A)Emphasis on quality
B)Emphasis on intensive distribution
C)Emphasis on long-term relationships with customers
D)Emphasis on exclusive distribution
E)Emphasis on profitable operations
Answer: C
Diff: 2
Skill: Application
Objective: 12.1
A-Heading: What is Marketing?

11)Advertisements that alert people to the dangers of smoking are an example of
A)idea marketing.
B)consumer marketing.
C)service marketing.
D)relationship marketing.
E)industrial marketing.
Answer: A
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What is Marketing?

12)Sales of raw materials, mainframe computers, and office supplies are an example of
A)consumer marketing.
B)relationship marketing.
C)industrial marketing.
D)service marketing.
E)idea marketing.
Answer: C
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What is Marketing?

13)What kind of business activity is a business engaged in when it makes hydraulic filters for a manufacturing company?
A)Consumer marketing
B)Disaggregate marketing
C)Market planning
D)Industrial marketing
E)Product differentiation
Answer: D
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What is Marketing?

14)Which term is used to identify products that are used by companies to produce other products?
A)Target markets
B)Consumer goods
C)Relationship marketing
D)Industrial goods
E)Service marketing
Answer: D
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What is Marketing?

15)One of the results of adopting the marketing concept is that the firm
A)develops a strong production orientation.
B)spends more money on marketing.
C)hires more top leaders for research and development.
D)spends more time determining what customers want.
E)becomes much more profit oriented.
Answer: D
Diff: 2
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

16)The ________ philosophy says that the entire firm is coordinated to serve its present and potential customers at a profit.
A)marketing concept
B)marketing functions
C)marketing mix
D)product mix
E)marketing research
Answer: A
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

17)The strategy for gearing marketing activities to meet consumer needs and wants and to do so profitably is
A)relationship marketing.
B)the marketing concept.
C)the marketing plan.
D)the marketing mix.
E)market research.
Answer: B
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What is Marketing?

18)Products that are purchased by firms to produce other products are
A)production goods.
B)company goods.
C)consumer goods.
D)industrial goods.
E)market goods.
Answer: D
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

19)Coffee, cold medicine, cologne, cars, and toothpaste are examples of
A)consumable goods.
B)market goods.
C)consumer goods.
D)industrial goods.
E)personal goods.
Answer: C
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

20)Conveyors, coal, transistors, steel, and wheat are examples of
A)industrial goods.
B)consumer goods.
C)company goods.
D)production goods.
E)market goods.
Answer: A
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

21)Marketing of insurance, airlines, investment counsellors, and health clinics are examples of
A)relationship marketing.
B)industrial marketing.
C)service marketing.
D)idea marketing.
E)consumer marketing.
Answer: C
Diff: 2
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

22)Marketing strives to provide all forms of utility except
A)form
B)time
C)place
D)ownership
E)benefit
Answer: E
Diff: 2
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

23)Advertising to make people more aware of the hazards of drinking and driving is an example of
A)industrial marketing.
B)relationship marketing.
C)service marketing.
D)idea marketing.
E)consumer marketing.
Answer: D
Diff: 2
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

24)Which of the following is not one of the major types of marketing?
A)Idea marketing
B)Telemarketing
C)Consumer marketing
D)Service marketing
E)Industrial marketing
Answer: B
Diff: 2
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

25)Ads for soft drinks, cars, toys, and soap are examples of
A)consumer marketing.
B)relationship marketing.
C)service marketing.
D)industrial marketing.
E)idea marketing.
Answer: A
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

26)The marketing concept
A)focuses on building products that provide value to customers.
B)excludes input from the Human Resources department.
C)means building a competitive advantage through product differentiation.
D)means that the whole firm is coordinated to achieve one goal: customer satisfaction.
E)does not include the finance department.
Answer: D
Diff: 2
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

27)Value compares a products benefits with its ________.
A)utility
B)price
C)satisfaction
D)costs
E)convenience
Answer: D
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

28)Sales of janitorial services, mainframe computers, and office supplies to other manufacturers are examples of
A)industrial marketing.
B)service marketing.
C)relationship marketing.
D)consumer marketing.
E)idea marketing.
Answer: A
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

29)Which of the following is not a consumer good?
A)Toothpaste
B)Car
C)Steel
D)Cold medicine
E)Perfume
Answer: C
Diff: 2
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

30)What kind of activity is a business firm engaged in when it sells its products to another business firm?
A)Marketing research
B)International marketing
C)Aggregate marketing
D)Consumer marketing
E)Industrial marketing
Answer: E
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

31)What kind of business activity is a grocery store engaged in when it sells meat to a homemaker?
A)Consumer marketing
B)Disaggregate marketing
C)Product differentiation
D)Industrial marketing
E)Market planning
Answer: A
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

32)Which of the following terms is used to identify products that are used by companies to produce other products?
A)Service marketing
B)Industrial goods
C)Target markets
D)Consumer goods
E)Disaggregate products
Answer: B
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

33)A business firm that sells its product to another business firm is engaged in
A)consumer marketing.
B)industrial marketing.
C)international marketing.
D)relationship marketing.
E)marketing research.
Answer: B
Diff: 1
Skill: Recall
Objective: 12.1
A-Heading: What Is Marketing?

34)Harley-Davidson offers social incentives through the Harley Owners Group (H.O.G.), the largest motorcycle club in the world. This is an example of
A)industrial marketing.
B)relationship marketing.
C)consumer marketing.
D)marketing research.
E)international marketing.
Answer: B
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

35)If Brighten Your World Inc. sells its light bulbs to the Jacobs Motor Company to be used in all of their cars as headlights, Brighten Your World is engaging in what type of marketing activity?
A)Marketing research
B)Consumer marketing
C)Relationship marketing
D)Aggregate marketing
E)Industrial marketing
Answer: E
Diff: 1
Skill: Application
Objective: 12.1
A-Heading: What Is Marketing?

36)Which of the following is correct with regard to the box entitled Guelph Thinks Green?
A)A group of students at the University of Guelph is trying to develop household items from garbage
B)The city of Guelph is one of the leading cities in Canada in the green movement
C)Plastic breaks down in landfills very quickly
D)A company called Green World Solutions is developing biodegradable waste bags
E)Savings that can be achieved by limiting plastic bag consumption are limited to the retail industry
Answer: D
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

37)Who has the responsibility for developing the plan to introduce a new product, service, or idea?
A)Quality assurance manager
B)Marketing manager
C)Production manager
D)Planning manager
E)Warehouse manager
Answer: B
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

38)Which of the following is not one of the four principal elements of marketing?
A)Place
B)Product
C)Pricing
D)Promotion
E)Productivity
Answer: E
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

39)Which of the following is one of the four Ps of the marketing mix?
A)Psychographics
B)Product
C)Performance
D)Productivity
E)Probing (market research)
Answer: B
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

40)Which of the following is not one of the elements of marketing?
A)Pricing
B)Production
C)Product
D)Distribution
E)Promotion
Answer: B
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

41)Who has the responsibility for developing the plan to introduce a new product, service, or idea?
A)The quality assurance manager
B)The marketing manager
C)The sales manager
D)The production manager
E)The public relations manager
Answer: B
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

42)The 4 Ps of marketing include all of the following except
A)product.
B)place.
C)price.
D)promotion.
E)profit.
Answer: E
Diff: 1
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

43)The ________ is a good, service, or idea that is marketed to fill consumer needs and wants.
A)product
B)place
C)profit
D)promotion
E)price
Answer: A
Diff: 1
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

44)When Frigidaire offered appliances in colours other than the standard white, it was modifying its
A)place.
B)profit.
C)promotion.
D)price.
E)product.
Answer: E
Diff: 2
Skill: Application
Objective: 12.2
A-Heading: What Is Marketing?

45)A TD Canada Trust advertisement that emphasized non-traditional extended banking hours is an example of
A)product differentiation.
B)market research.
C)industrial marketing
D)relationship marketing
E)market segmentation
Answer: A
Diff: 2
Skill: Application
Objective: 12.2
A-Heading: What Is Marketing?

46)Which of the following is one of the four Ps of the marketing mix?
A)Product differentiation
B)Price
C)Profit
D)Production
E)Productivity
Answer: B
Diff: 3
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

47)________ choices determine basic design of the product offered to consumers.
A)Productivity
B)Product
C)Promotion
D)Place
E)Price
Answer: B
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

48)A detailed and focused strategy for gearing marketing activities to meet consumer needs and wants is called a ________ .
A)promotion plan
B)product positioning
C)sales plan
D)marketing plan
E)marketing mix
Answer: D
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

49)Which item identifies the goods, services, or ideas that attempt to fulfill consumers wants?
A)Inventory
B)Inventory control line items
C)Merchandise items
D)Utility
E)Products
Answer: E
Diff: 1
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

50)________ is the creation of a product or product image that differs enough from existing products to attract consumers.
A)New product development
B)Product differentiation
C)Advertising
D)Product promotion
E)Product modification
Answer: B
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

51)When Maytag created the perception that its products were more reliable (by showing a lonely repair person with nothing to do) it was using a(n) ________ strategy.
A)product differentiation
B)promotion
C)every-day-low-prices
D)new product development
E)market segmentation
Answer: A
Diff: 2
Skill: Application
Objective: 12.2
A-Heading: What Is Marketing?

52)What results are expected from a successful product differentiation program?
A)The manner in which the product functions must be changed
B)Differentiation requires that prices be mid-level in order to generate a high volume of sales
C)Customer response to the product will change
D)Differentiation requires that prices be high in order to generate a high volume of sales
E)Promotional plans will not change
Answer: C
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

53)Which term is used to identify the creation of a product or product image that is different enough from existing products to attract consumers?
A)Product management
B)Promotion
C)Product development
D)Product diversification
E)Product differentiation
Answer: E
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

54)What results should be expected if a firm uses a low price strategy for its products?
A)Low prices lead to a larger volume of sales
B)Low prices represent mid-level quality to consumers
C)Low prices represent low quality to consumers
D)Profits per unit are higher
E)Low prices lead to a lower volume of sales
Answer: A
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

55)________ must support the firms operating costs, administrative costs, research costs and marketing costs such as advertising and sales salaries.
A)Product differentiation
B)Price
C)Product
D)Place
E)Promotion
Answer: B
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

56)In the selling of nails, ________ is likely to be of little consequence, but in the selling of toys, it is likely to be crucial.
A)promotion
B)product
C)place
D)price
E)profit
Answer: A
Diff: 2
Skill: Application
Objective: 12.2
A-Heading: What Is Marketing?

57)Which element of the marketing mix is illustrated by the use of premiums, trading stamps, and coupons meant to encourage consumers to buy more of a product?
A)Price
B)Promotion
C)Production
D)Place
E)Productivity improvements
Answer: B
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

58)Which of the following is not one of the promotional tools of a marketing manager?
A)Sales promotion
B)Market segmentation
C)Advertising
D)Personal selling
E)Publicity
Answer: B
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

59)Mass customization is an important production method to marketers because ________.
A)it promotes loyal customers
B)it allows marketers to provide products that satisfy specific needs of consumers
C)it speeds the production cycle, providing time utility to customers
D)its focus on delivering quality products leads to customer satisfaction
E)it ensures profitability
Answer: B
Diff: 2
Skill: Application
Objective: 12.2
A-Heading: What Is Marketing?

60)________ is the most highly visible component of the marketing mix.
A)Promotion
B)Place
C)Profit
D)Product
E)Price
Answer: A
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

61)________ is the part of the marketing mix concerned with getting the product from the producer to the consumer.
A)Place
B)Price
C)Promotion
D)Profit
E)Product
Answer: A
Diff: 1
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

62)Making decisions about how to ship a product, about warehousing, and about inventory control techniques are part of
A)profit.
B)place.
C)product.
D)promotion.
E)price.
Answer: B
Diff: 1
Skill: Recall
Objective: 12.2
A-Heading: What Is Marketing?

63)Hansen Trucking Company transports detergent from a loading dock in Toronto to a supermarket shelf in Sherbrooke. This is a(n) ________ element of the marketing mix.
A)ownership
B)form
C)time
D)product
E)place
Answer: E
Diff: 2
Skill: Application
Objective: 12.2
A-Heading: What Is Marketing?

64)It is the middle of August, and Bob has been driving for the last three hours without air conditioning. He is hot and thirsty, and would like to find something cold to drink. Bob would consider ________ the most important element in the marketing mix for a soft drink marketer.
A)promotion
B)profit
C)place
D)price
E)product
Answer: C
Diff: 1
Skill: Application
Objective: 12.2
A-Heading: What Is Marketing?

65)Al is typically responsible for planning and implementing all of the activities that result in the transfer of goods or services to customers. Al is a ________ manager.
A)product
B)production
C)marketing
D)sales
E)logistics
Answer: C
Diff: 1
Skill: Application
Objective: 12.2
A-Heading: What is Marketing?

66)The four factors in the marketing mix are
A)advertising, sales promotion, publicity, and public relations.
B)marketing managers, a marketing plan, relationship marketing, and profit.
C)price, place, promotion, and product.
D)profit, price, place, and promotion.
E)demographics, psychographics, geographics, and product-use.
Answer: C
Diff: 1
Skill: Recall
Objective: 12.2
A-Heading: What is Marketing?

67)Which of the following is correct with regard to the elements in the marketing mix?
A)Of the four elements, product is generally least important
B)The elements are all equally important, regardless of the product being sold
C)Price plays a small role in fresh meat, but a relatively larger role in selling newspapers
D)Distribution is not very important in marketing gasoline, but it is important for lumber
E)Promotion is vital in selling toys, but much less important in selling nails
Answer: E
Diff: 3
Skill: Recall
Objective: 12.2
A-Heading: What is Marketing?

68)What is the fundamental goal of product differentiation?
A)To increase profit margins
B)To set the companys products apart from competitive products in the market
C)To maximize market share
D)To more effectively market to industrial consumers
E)To more effectively market to certain demographic segments of the market
Answer: B
Diff: 1
Skill: Recall
Objective: 12.2
A-Heading: What is Marketing?

69)Which of the following is correct with regard to price?
A)It refers only to the actual amount of money that consumers pay for a product
B)It is generally the second-most important element in the marketing mix
C)In some cases, high prices will actually attract customers by implying that the product is unusually good
D)It is more important for industrial goods than it is for consumer goods
E)All of these
Answer: C
Diff: 2
Skill: Recall
Objective: 12.2
A-Heading: What is Marketing?

70)Campbell Soups use of the red and white label is a way of achieving
A)product differentiation.
B)publicity.
C)relationship marketing.
D)industrial marketing.
E)market segmentation.
Answer: A
Diff: 2
Skill: Application
Objective: 12.2
A-Heading: What is Marketing?

71)Other things being equal, what results should be expected if a firm uses a low price strategy for a product?
A)A higher volume of sales
B)A lower volume of sales
C)Consumers will perceive the product as having high quality
D)Profits per unit will be higher
E)Production costs will increase
Answer: A
Diff: 2
Skill: Application
Objective: 12.2
A-Heading: What is Marketing?

72)If you were the manager for Track & Wheels, a local backhoe dealer, which promotion would likely be the best method to sell high-priced backhoes?
A)Product placement
B)Price placement
C)Product differentiation
D)Personal selling
E)New product development
Answer: D
Diff: 2
Skill: Application
Objective: 12.2
A-Heading: What is Marketing?

73)Which term is used to identify the division of a market into categories of customer types?
A)Industrial marketing
B)Marketing mix
C)Customer marketing
D)Market segmentation
E)Market de-categorization
Answer: D
Diff: 2
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

74)Groups of people with similar wants and needs that can be expected to show interest in the same products are called
A)customers.
B)prospects.
C)homogeneous segments.
D)potential customers.
E)target markets.
Answer: E
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

75)When Readers Digest identified and classified its readers into young-adults, computer owners, and professionals/managers it was using
A)prospect identification.
B)potential customer categorizing.
C)customer identification.
D)product differentiation.
E)market segmentation.
Answer: E
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

76)When GM offers compact cars, vans, trucks, luxury cars, and sports cars with various features at various price levels, it is trying to provide a vehicle for every
A)prospect.
B)potential customer.
C)market segment.
D)customer.
E)market.
Answer: C
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

77)Purple Moon markets adventure software to pre-teen girls. This is an example of
A)relationship marketing.
B)mass customization.
C)product differentiation.
D)customer identification.
E)market segmentation.
Answer: E
Diff: 1
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

78)When Binney and Smith, the makers of Crayola, began marketing the brand Crayola IQ to the so-called tweens group, the company was practising
A)product differentiation.
B)mass customization.
C)industrial marketing.
D)market segmentation.
E)customer identification.
Answer: D
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

79)What is a target market?
A)Teenagers ages 13 to 18 who enjoy fast food
B)Men who are taller and heavier than average
C)The percent of market share the firm wants to achieve
D)A group of people with similar wants who are expected to show interest in the same products
E)The percentage of total revenue generated by one product
Answer: D
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

80)The blue jean market is quite varied, and people wear them for different reasons and for different purposes. There are fashion jeans, work jeans, truck-driving jeans, cowboy jeans, etc. To serve this market better, many firms now practice
A)mass marketing strategy.
B)regional marketing.
C)market segmentation.
D)diversified marketing.
E)multi-marketing.
Answer: C
Diff: 2
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

81)Information about where people live and how they spend their money is used to segment the markets by
A)religion and social class.
B)demographics.
C)geographic variables.
D)age and income patterns.
E)product-use.
Answer: C
Diff: 2
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

82)In order to target a particular part of the market, the marketing manager must
A)focus on international markets.
B)direct attention to the Canadian market and forget about international markets.
C)divide the total market into different segments.
D)introduce products which will satisfy the needs of the total market.
E)develop a reliable method of transporting goods and services to the customers.
Answer: C
Diff: 2
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

83)The best way to segment the market for umbrellas is probably by
A)geographics.
B)product-use.
C)psychographics.
D)random selection.
E)demographics.
Answer: A
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

84)Segmenting a market by postal codes is an example of segmentation by
A)geographics.
B)demographics.
C)psychographics.
D)product-use.
E)random selection.
Answer: A
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

85)The best segmentation for small drug stores or dry cleaners would be
A)geographic.
B)demographic.
C)random selection.
D)product-use.
E)psychographic.
Answer: A
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

86)Which of the following is not one of the variables considered when segmenting a market?
A)Demographic variables
B)Psychographic variables
C)Product differentiation
D)Product-use variables
E)Geographic variables
Answer: C
Diff: 2
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

87)________ is segmentation by such traits as age, income, gender, ethnicity, and marital status.
A)Random selection
B)Demographics
C)Psychographics
D)Product-use
E)Geographics
Answer: B
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

88)Target customers for one business are classified as 20 to 34 years old, married with children, and earning $25 000 to $34 999 a year. These customers have been classified by
A)geographic.
B)random selection.
C)psychographics.
D)demographics.
E)product-use.
Answer: D
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

89)Which market segment is used when a business firm uses information such as age, income, gender, ethnic background, and martial status?
A)Demographic
B)Photographic
C)Product-use variables
D)Psychographic
E)Geographic
Answer: A
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

90)Which of the following would not be considered a demographic variable?
A)Age
B)Postal code
C)Income level
D)Education
E)Family size
Answer: B
Diff: 2
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

91)Which of the following would not be considered a demographic variable?
A)Attitude
B)Religion
C)Gender
D)Income level
E)Race
Answer: A
Diff: 2
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

92)Which of the following is least likely to be used to segment markets?
A)Height
B)Age
C)Education
D)Race
E)Nationality
Answer: A
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

93)Which of the following is not one of the psychographic variables?
A)Religion
B)Interests
C)Opinions
D)Motives
E)Attitudes
Answer: A
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

94)Which segment of a market will consider consumer characteristics such as their motives, opinions, interests, and attitudes?
A)Consumographic variables
B)Geographic variables
C)Psychographic variables
D)Product-use variables
E)Demographic variables
Answer: C
Diff: 2
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

95)People with similar wants and needs constitute ___________, which clearly requires ___________.
A)a demographic market segment; market segmentation
B)target market; market segmentation
C)target market; relationship marketing
D)a geographic market segment; relationship marketing
E)a psychographic market segment; relationship marketing
Answer: B
Diff: 3
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

96)For newlyweds who want to honeymoon in the Bahamas, Sunshine Travel should consider this group as their
A)homogeneous segments.
B)potential customers.
C)target market.
D)prospects.
E)customers.
Answer: C
Diff: 1
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

97)The process of dividing a market into categories of customers by age is called
A)product-use market segmentation.
B)relationship marketing.
C)geographic market segmentation.
D)psychographic market segmentation.
E)demographic market segmentation.
Answer: E
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

98)The importance of ________ in marketing can be seen in the example of the introduction of Crayola IQ colour pencils because crayons were seen as too babyish by 8 to 12 year olds.
A)language
B)geography
C)demographics
D)history
E)psychology
Answer: C
Diff: 1
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

99)Multicultural marketing is part of market segmentation by __________
A)psychographics
B)demographics
C)geography
D)product-use
E)attitudes
Answer: B
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

100)Which of the following should be considered in the demographic variables for market segmentation?
A)How the product will be used (e.g., athletic footwear vs. dress shoes)
B)Interests, attitudes, and opinions of consumers
C)Income levels, marital status
D)Trends in population shifts
E)Where people live
Answer: C
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

101)When consumer characteristics such as life styles, opinions, interests, and attitudes are used, which basis of segmentation is evident?
A)Geographic
B)Psychographic
C)Product positioning
D)Demographic
E)Product-use
Answer: B
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

102)________ are particularly important to marketers because marketers can, through marketing efforts, sway consumers likes and dislikes.
A)Demographics
B)Geographics
C)Marital status and age
D)Psychographics
E)Product-use
Answer: D
Diff: 3
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

103)After a recent downturn in sales, the British company Burberry is using ________ to reposition itself as a global luxury brand.
A)geographic variables
B)brand loyalty
C)demographic variables
D)psychographic variables
E)none of these are correct
Answer: D
Diff: 1
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

104)Women who purchase clothes for office wear would be segmented using which variable?
A)Level of income
B)Demographic
C)Geographic
D)Product-use
E)Psychographic
Answer: D
Diff: 3
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

105)Companies in Poland have succeeded in overcoming consumer resistance to credit by promoting the safety and desirability of using credit rather than depending solely on cash. This is an example of the use of a __________ variable in market segmentation.
A)level of income
B)demographic
C)geographic
D)product-use
E)psychographic
Answer: E
Diff: 3
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

106)Jennifer has recently bought two pairs of shoes. One pair was for casual wear and the other was for jogging. Jennifer bought these shoes on the basis of which segmentation variable?
A)Level of income
B)Demographic
C)Geographic
D)Product-use
E)Psychographic
Answer: D
Diff: 3
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

107)The Ford Focus is promoted to consumers on the basis of economy, while the Porsche is promoted on the basis of high performance. This is an example of
A)relationship marketing.
B)product positioning.
C)product differentiation.
D)mass customization.
E)psychographic segmentation.
Answer: B
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

108)Which of the following is correct with regard to market segmentation?
A)A group of people who share an age or income level category will typically have similar spending habits
B)Compared with English Canadians, French Canadians attend ballet less frequently, travel more often, and eat less chocolate
C)Tim Hortons has adapted to the needs and expectations of Quebeckers even though it has done very little to adapt its product line to the Quebec market
D)Research shows that psychographic variables work better than geographic or product-use variables
E)All of these
Answer: C
Diff: 3
Skill: Recall
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

109)A group of people in Canada buy all Express Yourself fashion products because they feel the clothes relate to their rebel lifestyle. What kind of segmentation would best help you define this group of individuals?
A)Intrinsic segmentation
B)Psychographic segmentation
C)Demographic segmentation
D)Geographic segmentation
E)Product-use variables segmentation
Answer: B
Diff: 2
Skill: Application
Objective: 12.3
A-Heading: Target Marketing and Market Segmentation

110)Which of the following is not a step in the market research process?
A)Select a research method
B)Collect data
C)Prepare a report
D)Study the current situation
E)Implement the recommendations
Answer: E
Diff: 2
Skill: Recall
Objective: 12.4
A-Heading: Market Research

111)Primary data are
A)data gathered for primary areas of the firm, like marketing and production.
B)based on facts gathered from library research.
C)based on data newly collected for a specific research purpose.
D)any of the above, depending upon why the marketer is doing the research.
E)gathered by consulting Statistics Canada publications.
Answer: C
Diff: 2
Skill: Recall
Objective: 12.4
A-Heading: Market Research

112)Which of the following is not an example of secondary data?
A)Genealogical records found at the local library
B)Data published by Statistics Canada
C)Brochures published by provincial tourism departments and cited in a university study of travel
D)Surveys filled out by current students on how they selected their college or university
E)Information available from published sources like the Canada Yearbook
Answer: D
Diff: 1
Skill: Recall
Objective: 12.4
A-Heading: Market Research

113)Assume that you went to a shopping mall to determine peoples attitudes toward a new peanut butter and pickle flavour ice cream. You would be collecting ________ data.
A)census
B)interview
C)primary
D)psychographic
E)secondary
Answer: C
Diff: 2
Skill: Application
Objective: 12.4
A-Heading: Market Research

114)What does primary data mean when used in the context of marketing research?
A)Information that is already available as a result of earlier research by the firm
B)Data which is of importance for marketing decisions
C)Information available from published sources like the Canada Yearbook
D)The proposal for a new product by the R & D staff
E)New research which must be conducted by the firm
Answer: E
Diff: 2
Skill: Recall
Objective: 12.4
A-Heading: Market Research

115)As a consultant to Procter & Gamble, John Smith often views and monitors consumers to determine their buying habits. This research method is known as
A)observation.
B)experimentation.
C)consumer behaviour analysis.
D)focus group research.
E)surveying.
Answer: A
Diff: 2
Skill: Application
Objective: 12.4
A-Heading: Market Research

116)The study of what buyers need and how best to meet those needs is known as
A)marketing.
B)market research.
C)psychographics.
D)market segmentation.
E)market stimulation.
Answer: B
Diff: 1
Skill: Recall
Objective: 12.4
A-Heading: Market Research

117)When is market research used most frequently?
A)When a new or altered product is being considered
B)When a product is out of stock
C)When the promotional campaign is first under way
D)When the product is fully stocked in each of the distribution centres
E)When determining the reason for a products failure
Answer: A
Diff: 2
Skill: Recall
Objective: 12.4
A-Heading: Market Research

118)Where does the five-step market research process begin?
A)Analyze data
B)Collect data
C)Recommend solutions
D)Study of the current situation
E)Select research method
Answer: D
Diff: 1
Skill: Recall
Objective: 12.4
A-Heading: Market Research

119)The information that Statistics Canada provides on the Canadian economy is an example of
A)secondary data.
B)statistical variance analysis.
C)primary data.
D)a demographic variable.
E)product research.
Answer: A
Diff: 1
Skill: Application
Objective: 12.4
A-Heading: Market Research

120)What is the last step in the market research process?
A)Observe consumers
B)Collect data
C)Study the current situation
D)Prepare a report
E)Select a research method
Answer: D
Diff: 1
Skill: Recall
Objective: 12.4
A-Heading: Market Research

121)Marketing research is
A)the study of consumer needs and wants, and the ways in which sellers can best meet them.
B)the process of collecting, storing, and retrieving data in electronic files.
C)the process of fixing, adapting, and communicating the nature of the product itself.
D)the process of dividing a market into categories of customer types.
E)a marketing strategy that emphasizes long-lasting relationships with customers.
Answer: A
Diff: 2
Skill: Recall
Objective: 12.4
A-Heading: Market Research

122)Rondell Corp. is involved in a market research program. They have already studied the current situation to discover customer needs and what is being done to meet those needs. What should they do next?
A)Collect data
B)Select a research method
C)Analyze the data
D)Conduct a focus group
E)Prepare a report
Answer: B
Diff: 2
Skill: Application
Objective: 12.4
A-Heading: Market Research

123)Sherrie wants to complete a research project; unfortunately, she has no idea where to begin. You advise her to begin by
A)designing a questionnaire.
B)collecting data.
C)selecting a research method.
D)studying the current situation.
E)analyzing data.
Answer: D
Diff: 1
Skill: Application
Objective: 12.4
A-Heading: Market Research

124)Secondary data are
A)statistics and information that are available as a result of previous research.
B)based on data newly collected for a specific research purpose.
C)based on information gathered by someone else, but not yet published.
D)any of the above, depending upon why the marketer is doing the research.
E)data gathered for secondary areas of the firm like marketing research and accounting.
Answer: A
Diff: 1
Skill: Recall
Objective: 12.4
A-Heading: Market Research

125)Sherrie wants to save money and time on her research project. You recommend she use
A)observation.
B)focus groups.
C)primary data she collects herself.
D)secondary data.
E)experiments.
Answer: D
Diff: 2
Skill: Application
Objective: 12.4
A-Heading: Market Research

126)What is the first step in the market research process?
A)Observe consumers
B)Form a focus group
C)Collect data
D)Study the current situation
E)Select a research method
Answer: D
Diff: 1
Skill: Recall
Objective: 12.4
A-Heading: Market Research

127)Your boss has empowered you to complete a research project to determine if your company should expand its product line. Your boss only wants to see the final step of the market research process, which is
A)the primary data.
B)a report that includes alternative solutions and recommendations.
C)the study of the current situations.
D)the secondary data.
E)a description of the research method you used.
Answer: B
Diff: 2
Skill: Application
Objective: 12.4
A-Heading: Market Research

128)While Sylvia has not asked teenage consumers any questions, she has noted that they purchase green nail polish, as opposed to purple. Which research method has Sylvia used?
A)Nominal scaling
B)Focus groups
C)Observation
D)Survey
E)Experimentation
Answer: C
Diff: 2
Skill: Application
Objective: 12.4
A-Heading: Market Research

129)When Procter & Gamble sent video crews into 80 U.K. households to capture peoples daily routines and how they used products, they were using
A)video mining.
B)observation.
C)experimentation.
D)focus groups.
E)surveys.
Answer: C
Diff: 2
Skill: Application
Objective: 12.4
A-Heading: Market Research

130)When UPS asked customers how the company could improve its service, UPS was using
A)video mining.
B)observation.
C)experimentation.
D)focus groups.
E)surveys.
Answer: E
Diff: 2
Skill: Application
Objective: 12.4
A-Heading: Market Research

131)Which of the following is correct with respect to surveys?
A)Questionnaires are not generally necessary in surveys
B)The accuracy of surveys is routinely very high
C)When using surveys, a random sample is usually better than a representative sample of consumers
D)Online surveys are growing in popularity because the company gets immediate results
E)All of these
Answer: D
Diff: 2
Skill: Recall
Objective: 12.4
A-Heading: Market Research

132)After asking people about their desired scent experience, Procter & Gamble developed Febreze Scentstories, a product that gives off 5 different scents every 30-minutes. They did this after using what approach to data gathering?
A)Video mining
B)Observation
C)Experimentation
D)Focus groups
E)Surveys
Answer: D
Diff: 3
Skill: Application
Objective: 12.4
A-Heading: Market Research

133)The local radio station wants to find out how it can increase the size of its listening audience. As a marketing consultant, your best advice is to complete research via
A)an experiment.
B)a focus group.
C)a survey.
D)observation.
E)it is not possible to tell given the information provided.
Answer: C
Diff: 3
Skill: Application
Objective: 12.4
A-Heading: Market Research

134)A moderator-led discussion about a product or service is called ________.
A)psychoanalysis
B)experimentation
C)a focus group
D)video mining
E)observation
Answer: C
Diff: 1
Skill: Recall
Objective: 12.4
A-Heading: Market Research

135)Sally spent the day in the local grocery store passing out free samples of a new potato chip. Sally gave every second customer the new chip with dip and every other customer the new chip without dip. What type of research was Sally conducting?
A)Observation
B)Primary and secondary data collection
C)Experimentation
D)Survey
E)Focus groups
Answer: C
Diff: 3
Skill: Application
Objective: 12.4
A-Heading: Market Research

136)________ is the study of the decision process by which customers come to purchase and consume products.
A)Customer buying logic
B)Purchase decision model
C)End-user purchase behaviour
D)Consumer behaviour
E)Buyer behaviour
Answer: D
Diff: 1
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

137)The influence category which includes lifestyle is __________, while the category that includes an individuals motivations is _________.
A)personal; psychological
B)psychological; social
C)cultural; social
D)social; cultural
E)social; psychological
Answer: A
Diff: 3
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

138)Which category of influences on consumer behaviour includes lifestyle, personality, and economic status?
A)Social
B)Personal
C)Past experience
D)Psychological
E)Cultural
Answer: B
Diff: 1
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

139)Which category of influences on consumer behaviour includes family, opinion leaders, friends, co-workers, and associates?
A)Social
B)Cultural
C)Personal
D)Psychological
E)Past experience
Answer: A
Diff: 1
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

140)Which category of influences on consumer behaviour includes ethnic groups, social class, occupation, and income?
A)Past experience
B)Psychological
C)Social
D)Cultural
E)Personal
Answer: D
Diff: 1
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

141)Based on a product review in a magazine, Rob decided on which product to buy. He is demonstrating the impact of
A)psychological influences.
B)cultural influences.
C)past experience influences.
D)social influences.
E)personal influences.
Answer: D
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

142)In consumer behavior, ________ influences include the way of living that distinguishes one large group and one ethnic group from each other.
A)cultural
B)psychological
C)social
D)personal
E)none of the above
Answer: A
Diff: 2
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

143)Scott is an intelligent, conservative programmer. His clothes purchases are typically darker in colour and not the current fad. This is an example of
A)past experience influences.
B)cultural influences.
C)social influences.
D)personal influences.
E)psychological influences.
Answer: D
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

144)Bob, due to a strong work ethic, has worked his way up the ladder and would be considered middle class which is reflected in his recent purchases. This is an example of
A)psychological influences.
B)social influences.
C)personal influences.
D)cultural influences.
E)past experience influences.
Answer: D
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

145)An individuals motivations, perceptions, ability to learn, and attitudes are part of which influence in consumer behaviour?
A)Personal
B)Social
C)Cultural
D)Past experience
E)Psychological
Answer: E
Diff: 1
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

146)On the first day of your new job, you notice that your wardrobe is not up to company standards. You are at the ________ stage.
A)problem recognition
B)purchase decision
C)post-purchase evaluation
D)information seeking
E)evaluation of alternatives
Answer: A
Diff: 2
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

147)What is the first step in the consumer buying process?
A)Post-purchase evaluation
B)Information seeking
C)Evaluation of alternatives
D)Purchase decision
E)Problem/need recognition
Answer: E
Diff: 1
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

148)Needing some new clothes, you ask one of your co-workers where he shops. That evening you check the newspapers for sales. You are in the ________ stage.
A)information seeking
B)post-purchase evaluation
C)problem recognition
D)purchase decision
E)evaluation of alternatives
Answer: A
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

149)You are checking out some stores to see what they have in personal computers. You also are reviewing Consumer Reports and several computer magazines. You are in the ________ stage.
A)problem recognition
B)post-purchase evaluation
C)evaluation of alternatives
D)purchase decision
E)information seeking
Answer: E
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

150)Michael decides that he cannot afford the cost of a new set of tires for his car until after payday. Which state of the consumer buying process is he in?
A)Problem recognition
B)Evaluation of alternatives
C)Purchase decision
D)Information seeking
E)Post-purchase evaluation
Answer: C
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

151)Before making your final decision on that new computer you write down all the features, prices, and warrantees of the different products youve seen. You are in the ________ stage.
A)problem recognition
B)post-purchase evaluation
C)purchase decision
D)information seeking
E)evaluation of alternatives
Answer: E
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

152)The buying process begins when the customer
A)seeks information.
B)evaluates the purchase.
C)makes a purchase decision.
D)recognizes a problem or need.
E)evaluates alternatives.
Answer: D
Diff: 2
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

153)Accessing a Web site in search of magazine articles about a product before its purchase is an example of what part of the consumer-buying model?
A)Post-purchase evaluation
B)Information seeking
C)Need recognition
D)Purchasing the product
E)Evaluation of alternatives
Answer: B
Diff: 3
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

154)A buy decision that involves the logical evaluation of product attributes, such as cost, quality, and usefulness, is based on
A)emotional motives.
B)production motives.
C)psychological motives.
D)rational motives.
E)pricing motives.
Answer: D
Diff: 2
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

155)A buy decision that involves non-objective factors and can lead to irrational decisions is based on
A)management motives.
B)emotional motives.
C)pricing motives.
D)social motives.
E)rational motives.
Answer: B
Diff: 2
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

156)To help you decide which new suit to purchase for your job interview, you ask a trusted friend to give you her opinion on each of the suits youre looking at. You are in the ________ stage.
A)post-purchase evaluation
B)purchase decision
C)evaluation of alternatives
D)information seeking
E)problem recognition
Answer: C
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

157)As you go to the store to write a cheque for the new professional suit youre going to buy, you consider what ties and shirts would go well with it. You are in the ________ stage.
A)evaluation of alternatives
B)purchase decision
C)problem recognition
D)post-purchase evaluation
E)information seeking
Answer: B
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

158)After checking out the prices of the new cars, Susie has elected to buy a used car. She is in the ________ stage.
A)information seeking
B)problem recognition
C)purchase decision
D)evaluation of alternatives
E)post-purchase evaluation
Answer: C
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

159)Rob has decided to buy a new computer based on the relatively low costs, the features he can get, the warranty that comes with the computer, and the overall usefulness it will provide. He has made his decision based on
A)rational motives.
B)irrational motives.
C)subjective motives.
D)analytical motives.
E)emotional motives.
Answer: A
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

160)As Bill enters the store he notices a shirt that he likes and decides to buy it even though he came into the store looking for pants. He has made a(n) ________ decision.
A)rational
B)emotional
C)illogical
D)subjective
E)logical
Answer: B
Diff: 1
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

161)Which is a rational motive for the decision to make a purchase?
A)A purchase which is based on motives such as aesthetics or sociability
B)Purchasing a pair of slacks because your friend looks great wearing the same kind of slacks
C)An evaluation of the attributes of the product, for example, cost, quality, usefulness
D)A decision to buy chewing gum while waiting in the checkout line
E)Purchasing a chocolate milkshake because you like the taste
Answer: C
Diff: 2
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

162)What is the last stage of the consumer buying process model?
A)Evaluate alternatives
B)Post-purchase evaluation
C)Purchase decision
D)Problem recognition
E)Respond to market analysis survey questionnaire
Answer: B
Diff: 2
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

163)As you are driving down the road in your new Chevrolet, you notice that a new Ford has stopped beside the road and has its hazard lights blinking. You smile but decide to stop anyway to help out. You are in the ________ stage.
A)problem recognition
B)information seeking
C)purchase decision
D)evaluation of alternatives
E)post-purchase evaluation
Answer: E
Diff: 3
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

164)When you obtain your first job after graduation, your new income may let you purchase items that were once too expensive. You would be in what stage of the consumer buying process?
A)Purchase decision
B)Information seeking
C)Evaluation of alternatives
D)Post-purchase evaluation
E)Problem/need recognition
Answer: E
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

165)You and your spouse decide that the sports car you currently own is not going to be suitable for travelling with your new baby Amy. Which consumer buying stage are you in?
A)Purchase decision
B)Post-purchase evaluation
C)Problem recognition
D)Information seeking
E)evaluation of alternatives
Answer: C
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

166)Which of the following is correct with regard to rational and emotional purchase motives?
A)Emotional purchase motives generally lead to post-purchase unhappiness
B)Rational motives are normally used for industrial goods purchases, while emotional motives are normally used for consumer goods purchases
C)Research shows that rational motives are more commonly used by men, while emotional motives are more commonly used by women
D)Emotional motives are used when purchasing services, while rational motives are used when purchasing goods
E)None of these
Answer: E
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

167)If you are in the market for a new set of skis, you probably have some idea of who provides the best skis and how they differ. You may have accumulated some of this knowledge during the information-seeking stage and combined it with what you knew before. The next stage for you is to
A)evaluate alternatives.
B)seek information.
C)buy a new pair of skis.
D)recognize the problem.
E)post-purchase evaluation.
Answer: A
Diff: 2
Skill: Application
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

168)________ marketing, also known as buzz marketing, can be beneficial, but it can also be the most devastating since the business cannot control it.
A)Brand loyalty
B)Special events
C)Word of mouth
D)Billboard
E)Celebrity
Answer: C
Diff: 1
Skill: Recall
Objective: 12.5
A-Heading: Understanding Consumer Behaviour

169)Which of the following products had to be adapted for sale in foreign markets?
A)Budweiser beer
B)Coca-Cola
C)Marlboro cigarettes
D)Personal computers
E)All of these
Answer: D
Diff: 2
Skill: Recall
Objective: 12.6
A-Heading: The International Marketing Mix

170)When a firm is considering entering the international market with

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