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Chapter 9Decision Support Systems and Marketing Research

1. Everyday information about developments in the marketing environment that managers use to prepare
and adjust marketing plans is referred to as:
a. competitive intelligence
b. marketing information
c. decision support information
d. marketing research
e. observation

This describes marketing information, and accurate and timely information is the lifeblood of marketing
decision making.

PTS: 1 REF: 139 OBJ: 09-1 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Knowledge

2. A(n) _____ is an interactive, flexible, computerized information system that enables managers to obtain
and manipulate information as they are making decisions.
a. expert system
b. marketing information system
c. artificial intelligence system
d. marketing decision support system
e. database marketing system

This is the definition of a marketing decision support system.

PTS: 1 REF: 139 OBJ: 09-1 TOP: AACSB Technology
KEY: CB&E Model Strategy MSC: BLOOMS Knowledge

4. A true marketing decision support system possesses all of the following characteristics EXCEPT:
a. flexible
b. discovery oriented
c. interactive
d. accessible
e. synergistic

A true marketing decision support system is interactive, flexible, discovery oriented, and accessible.

5. _____ is the creation of a large computerized file of customers and potential customers profiles and
purchase patterns.
a. Electronic targeting
b. Sampling procedure specification
c. Database marketing
d. Competitive data mining
e. Consumer behavior marketing


This is the definition of database marketing.

6. _____ is the process of planning, collecting, and analyzing data relevant to a marketing decision. The
results of this analysis are then communicated to management.
a. Data collection
b. Artificial intelligence
c. Decision support
d. Marketing research
e. Single-source research

This is the definition of marketing research.

PTS: 1 REF: 140 OBJ: 09-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Research MSC: BLOOMS Knowledge

10. Marketing research has three functional roles. These roles are:
a. normative, descriptive, and explanatory
b. predictive, normative, and persuasive
c. descriptive, diagnostic, and predictive
d. flexible, interactive, and discovery-oriented
e. descriptive, explanatory, and predictive

The three roles are descriptive, diagnostic, and predictive.

PTS: 1 REF: 140 OBJ: 09-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Research MSC: BLOOMS Knowledge

21. In contrast to marketing research problems, management decision problems are:
a. action oriented
b. pervasive
c. narrower in scope
d. synergistic
e. information oriented

The marketing research problem is information oriented, but the management decision problem is action

PTS: 1 REF: 141 OBJ: 09-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Research MSC: BLOOMS Comprehension

23. Data previously collected for purposes other than the one at hand are an important source of information
as the researcher defines the problem. These data are called _____ data.
a. single-source
b. secondary
c. primary

d. consensual
e. convenience

This is the definition of secondary data.

25. Trade groups, commercial publications, and government departments can be used as sources of:
a. secondary data
b. consensual information
c. primary data
d. artificial intelligence
e. marketing audits

Innumerable outside sources of secondary information exist, such as trade and industry associations,
business periodicals, and government departments and agencies.

33. The research design specifies:
a. follow-up procedures for the research
b. the information that will be found
c. how the final report will be written
d. how the information gathered will be used to predict external environmental changes
e. the research questions to be answered

The research design specifies which research questions must be answered, how and when the data will be
gathered, and how the data will be analyzed.

34. Information collected for the first time for the purpose of solving a particular problem under investigation
is called _____ data.
a. primary
b. secondary
c. dichotomous
d. observation
e. convenience

This is the definition of primary data.

PTS: 1 REF: 142 OBJ: 09-3 TOP: AACSB Reflective Thinking
KEY: CB&E Model Research MSC: BLOOMS Knowledge

37. What is the chief advantage of primary data?
a. Low cost compared to secondary data
b. Relevance to the problem at hand
c. Availability to any interested party for use
d. Accessibility through computerized databases
e. Avoiding interviewer biases


Primary data are information collected for the first time for the purpose of solving a particular problem
under investigation.


41. The most popular method for gathering primary data is _____, in which a researcher interacts with people
to obtain facts, opinions, and attitudes.
a. heuristic oriented
b. survey research
c. experiments
d. observation research
e. single-source research

Survey research takes several forms and is the most popular method for gathering primary data.

42. In-home personal interviews:
a. offer high-quality data at a high cost
b. offer the ability to obtain high-quality data at a low cost
c. are becoming increasingly more popular
d. are less expensive than mall intercepts
e. offer information of moderate quality but at a low cost

The cost of interviewer time and mileage is high, but these interviews yield high-quality information.

43. Which type of survey research method involves interviewing people in the common areas of shopping
a. Telephone interviews
b. Panel surveys
c. Mall intercept interview
d. Centralized interviews
e. Interactive research

This is the definition of a mall intercept interview.

50. Telephone interviews offer:
a. speed in gathering data
b. a potential for reaching all households
c. few nonresponses
d. the ability to collect large amounts of complex data
e. the lowest-cost method for obtaining data

Telephone interviews are one of the fastest means for collecting data. See Exhibit 9.2.

75. _____ research depends on watching what people do.
a. Anonymous viewership
b. Observation
c. Interactive
d. Personal scanner
e. Survey


Observation research is a method that relies on four types of observation: people watching people, people
watching an activity, machines watching people, and machines watching an activity.

89. A(n) _____ sample is characterized by every element in the population having a known statistical
likelihood of being selected.
a. irregular
b. probability
c. nonprobability
d. convenience
e. piggyback

This is the definition of a probability sample.

93. A _____ sample is any sample in which little or no attempt is made to obtain a representative cross
section of the population.
a. frame
b. random
c. probability
d. nonprobability
e. representational

This is the definition of a nonprobability sample.

94. Nonprobability samples:
a. require more expensive marketing research than probability sampling
b. include any sample in which little is done to obtain a representative cross section of the
c. by definition must be representative of the population
d. often start out with random numbers to ensure selection of subjects is truly random
e. offer an easy method for determining sampling error

A nonprobability sample is any sample in which there is little or no attempt to obtain a representative
cross section of the population.

103. Which of the following is a type of probability sample?
a. Judgment sample
b. Convenience sample
c. Random sample
d. Quota sample
e. Snowball sample

A random sample is a type of probability sample in which every member of the population has a known
and equal chance of selection. The other types of samples are nonprobability samples. See Exhibit 9.4.

116. All of the following are advantages associated with the use of Internet surveys EXCEPT:
a. decreased costs
b. ability to contact hard-to-reach respondents
c. reduced measurement error
d. ability to get survey results much more rapidly

e. ability to personalize the survey

Measurement error is not an advantage associated with the use of Internet surveys.

118. All of the following are advantages associated with online focus groups EXCEPT:
a. good participation rates
b. cost-effectiveness
c. narrow geographic scope
d. accessibility
e. honesty of respondents

Online focus groups offer a broad geographic scope.

123. Marketing research should not be undertaken when:
a. the perceived costs are greater than the projected benefits
b. there are no secondary data in existence to guide the project definition
c. it will take a long time to complete
d. the actual costs are less than the forecasted benefits
e. the perceived costs are the same as the forecasted benefits

Research should be undertaken only when the expected value of the information is greater than the cost of
obtaining it.

PTS: 1 REF: 154-155 OBJ: 09-6 TOP: AACSB Reflective Thinking
KEY: CB&E Model Research MSC: BLOOMS Analysis

124. An intelligence system that helps managers assess their competition and vendors in order to become more
efficient and effective competitors is called:
a. competitive research
b. competitive intelligence
c. industrial espionage
d. an audit
e. differential competitive advantage

This is the definition of competitive intelligence.

MSC: BLOOMS Synthesis

Chapter 11Developing and Managing Products

2. New-to-the-world products, where the product category itself is new, are also called:
a. discontinuous innovations
b. moderate innovations
c. slow-diffusing products
d. venture products
e. creative offerings

These products create an entirely new market.

13. _____ occurs when an existing product is targeted toward new market segments. It is another type of
new-product development because the product is new to that segment.
a. Brainstorming
b. Diffusing
c. Repositioning
d. Screening
e. Reciprocity

Repositioned products are existing products targeted at new markets or market segments, or ones
repositioned to change the current markets perception of the product.

14. Companies that are most likely to succeed in the development and introduction of new products typically
are characterized by all of the following EXCEPT:
a. establish an environment conducive to achieving new-product objectives
b. make the long-term commitment needed to support innovation and new-product
c. capitalize on experience to achieve and maintain competitive advantage
d. use a company-specific approach, driven by corporate objectives and strategies, with a
well-defined new-product strategy at its core
e. introduce ten new products every year

Introducing a specific number of new products each year is not one of the factors identified for success.

16. The first stage of the new-product development process is:
a. screening and concept testing
b. establishing the new-product strategy
c. exploring opportunities
d. developing a business analysis
e. the building of a prototype

See Exhibit 11.1. New-product strategy is the first subset of the organizations new-product development
plan. It specifies what roles new products play in the organizations overall plan and describes goals.


18.Which of the following is the LEAST likely source for new-product ideas?
a. A companys distributors
b. Its customers
c. Its employees
d. Its financial lenders
e. Its competitors

Customers, employees, distributors, and competitors are interacting with the marketplace and may have
ideas for goods to serve customer needs. The bank from which the company gets its debt financing is the
least likely alternative here.

20. The process of converting applications for new technologies into marketable products is called:
a. basic research
b. product modification
c. marketing development
d. product development
e. correlation analysis

Product development is a marketing strategy that entails the creation of marketable new products.

21. _____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible
without considering the practicality of the ideas.
a. New-product brain dumping
b. Screening
c. A focus group interview
d. Brainstorming
e. Diffusion

The goal of brainstorming is to get a group to think of unlimited ways to vary a product or solve a
problem, no matter how ridiculous it may seem.

24. Which of the following stages of the new-product development process is the first filter, which serves to
eliminate new-product ideas that are inconsistent with the organizations new-product strategy or are
obviously inappropriate for some other reason?
a. Applied diffusion
b. Introductory diffusion
c. Business analysis
d. Test marketing
e. Idea screening

Most new-product ideas are rejected at this stage, called the idea screening stage.

25. At what stage of the new-product development process are most new-product ideas rejected?
a. Test marketing
b. Diffusion
c. Business analysis
d. Idea screening

e. Idea generation

Screening is the stage when the bulk of the ideas are rejected for being incompatible or impractical.

30. _____ evaluate new-product ideas usually before any prototype has been created.
a. Concept tests
b. Simulated market tests
c. Market tests
d. User tests
e. Venture analyses

Concepts test are often used at the screening stage to rate concept (or product) alternatives.

PTS: 1 REF: 175 OBJ: 11-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Product MSC: BLOOMS Knowledge

34. In the _____ stage of new-product development, the technical feasibility of manufacturing the new
product is examined as a prototype is produced.
a. screening
b. development
c. market testing
d. concept testing
e. business analysis

During the development stage, the technical feasibility of manufacturing the product at a reasonable cost
is thoroughly examined. This stage can be long and expensive and can involve a great deal of testing.
Products are often modified after the testing.

35. A team-oriented approach to new-product development is referred to as:
a. simultaneous product development
b. synergistic product development
c. commercialized product development
d. synchronized product development
e. parallel product development

The development process works best when all the involved areas (research and development, marketing,
engineering, production, and even suppliers) work together rather than sequentially, a process call
simultaneous product development.

37. _____ is a limited introduction of a product and a marketing program to determine the reactions of
potential customers in a market situation.
a. Use testing
b. Test marketing
c. Concept testing
d. Laboratory testing
e. Discontinuous innovation


After products and marketing programs have been developed, they are usually tested in the marketplace
using test marketing, which is the limited introduction of a product and a marketing program to determine
the reactions of potential customers in a market situation.

39. A(n) _____ typically entails showing members of the products target market advertising and other
promotional materials for several products, including the test product. These people are then taken to a
mock or real store, where their purchases are recorded.
a. adoption-rate test
b. real test market
c. concept test
d. simulated (laboratory) market test
e. consumer juried test

This is a description of a simulated (laboratory) market test.

PTS: 1 REF: 177-178 OBJ: 11-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Product | CB&E Model Research MSC: BLOOMS Knowledge

40. The maker of Purell hand sanitizer tested consumers reactions to its Purell Sanitizing Wipes by getting
consumers to look through a newspaper with grocery store ads, make out a grocery list, and then shop
in a mock store filled with real products, including the new product. This is an example of a(n):
a. adoption-rate test
b. simulated (laboratory) market test
c. concept test
d. use test
e. juried consumer test

Simulated (laboratory) market tests typically entail showing members of the target market advertising for
a variety of products and then monitoring purchase behavior in a mock or real store.

PTS: 1 REF: 177-178 OBJ: 11-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Product MSC: BLOOMS Application

41. Which of the following has been found to be an efficient substitute for traditional methods of conducting
test markets?
a. Product sampling
b. Simulated product adoption
c. Online test marketing
d. Simulated diffusion
e. Market concentration

The text describes Proctor & Gambles online test marketing.

42. The final stage in the new-product development process is:
a. product testing
b. market testing

c. commercialization
d. product prototyping
e. simulated marketing

Commercialization is the decision to market a product.

43. During the _____ stage of the new-product development process, production starts, inventories are built
up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion
a. commercialization
b. product testing
c. market analysis
d. product prototyping
e. simulated marketing

The commercialization stage is the decision to market a product and sets several task in motion.

46. A product that is perceived as new by a potential adopter, whether the product is new to the world or
simply new to the individual, is called a(n):
a. innovation
b. diffusion
c. discontinuous product
d. laggard
e. simulated new product

An innovation is a product perceived as new by a potential adopter.

48. The process by which the adoption of an innovation spreads is referred to as:
a. diffusion
b. circulation
c. transmission
d. dissemination
e. dispersion

This is the definition of diffusion.

50. _____ are eager to try new ideas and products. They typically have higher incomes, are better educated,
and are more cosmopolitan than other categories of adopters.
a. Early adopters
b. Innovators
c. Early majority
d. Late majority
e. Laggards

These are characteristics of innovators, who are almost obsessed with trying new ideas and products.

55. All of the following are categories of adopters in the diffusion process of innovations EXCEPT:

a. laggards
b. innovators
c. early majority
d. early adopters
e. doubters

The five categories of adopters are innovators, early adopters, early majority, late majority, and laggards.

58. The _____ adopt a product because most of their friends have already done so, and their adoption is
usually the result of pressure to conform because they rely on group norms.
a. laggards
b. early adopters
c. early majority
d. innovators
e. late majority

ANS: E PTS: 1 REF: 180 OBJ: 11-4
TOP: AACSB Reflective Thinking KEY: CB&E Model Product | CB&E Model Strategy
MSC: BLOOMS Knowledge

63. Which is the last adopter category to adopt an innovation?
a. Late majority
b. Laggards
c. Late diffusers
d. Reluctant adopters
e. Traditionalists

Laggards represent the final 16 percent to adopt an innovation. By the time they adopt an innovation, it
has probably become outmoded and replaced by something else.

64. All of the following are product characteristics influencing the rate of adoption EXCEPT:
a. complexity
b. compatibility
c. relative advantage
d. observability
e. distribution

While it is a marketing factor that may influence the rate of adoption of a new product, distribution is not
a product factor influencing the rate of adoption.

65. Which product factor influencing the rate of adoption represents the degree of difficulty involved in
understanding and using a new product?
a. Complexity
b. Compatibility
c. Relative advantage
d. Observability

e. Trialability

The more complex the product, the slower is its diffusion.

67. Which product characteristic affecting the rate of adoption represents the degree to which the new product
is consistent with existing values and product knowledge, past experiences, and current needs?
a. Complexity
b. Compatibility
c. Relative advantage
d. Observability
e. Trialability

Products that are compatible with others will gain from existing product knowledge, past experiences, and
current needs.

71. The product characteristic affecting the rate of adoption characterized by the degree to which a product is
perceived as superior to existing substitutes is:
a. compatibility
b. complexity
c. relative advantage
d. product differentiation
e. competitive advantage

The relative advantage is the degree to which a product is perceived to be superior to existing substitutes.

76. The degree to which a product can be used on a limited basis represents which product characteristic
influencing the rate of adoption?
a. Complexity
b. Trialability
c. Observability
d. Relative advantage
e. Sampling

Trialability is the degree to which a product can be tried on a limited basis.

81. All the brands that satisfy a particular type of need such as shaving products, laundry detergent, soft
drinks, and furniture make up a(n):
a. product life cycle stage
b. primary group
c. adopter category
d. product category
e. reference group

This is the definition of a product category.

PTS: 1 REF: 181 OBJ: 11-5 TOP: AACSB Reflective Thinking
KEY: CB&E Model Product MSC: BLOOMS Comprehension

85. The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage.
a. growth
b. decline
c. introductory
d. maturity
e. commercialization

Because losses often occur during the introductory stage, profits first appear in the growth stage.

87. At the beginning of the maturity stage of the product life cycle, sales typically:
a. become flat and do not change
b. increase at an increasing rate
c. decrease at a decreasing rate
d. decrease at an increasing rate
e. increase at a decreasing rate

In the maturity stage, sales are still increasing, but the rate of increase has slowed down.

89. In which stage of the product life cycle do marginal competitors start dropping out of the market?
a. Introduction
b. Growth
c. Maturity
d. Decline
e. Shake-out

In the maturity stage, sales increase at a decreasing rate, and as prices and profits continue to fall,
marginal competitors start dropping out of the market.


Chapter 6Consumer Decision Making

2. The steps of the consumer decision-making process in order are:
a. need recognition, alternative aggregation, reevaluation, purchase decision, postpurchase
b. need positioning, stimulus response reactions, evaluation of alternatives, purchase
decision, postpurchase behavior
c. need positioning, alternative aggregation and divestment, purchase decision, postpurchase
d. information search, need positioning, evaluation of alternatives, product trial, purchase
decision, postpurchase satisfaction
e. need recognition, information search, evaluation of alternatives, purchase, and
postpurchase behavior

See Exhibit 6.1.

3. Which step in the consumer decision-making process is a result of an imbalance between actual and
desired states?
a. Evaluation of alternatives
b. Want recognition
c. Purchase
d. Need recognition
e. Postpurchase behavior

Need recognition is the result of an imbalance between actual and desired states.

5. Which of the following is any unit of input affecting one or more of the five senses: sight, smell, taste,
touch, and hearing?
a. Tactic
b. Need
c. Stimulus
d. Want
e. Desire

Stimuli can be either internal, such as occurrences you experience, or external, which are influences from
an outside source. Both affect one or more of the five senses.

11. After a need or want is recognized, a consumer may search for information about the various alternatives
available to satisfy it. This occurs during which part of the consumer decision-making process?
a. Evaluation of alternatives
b. Information search
c. Cognitive dissonance
d. Consideration stage
e. Product identification


After recognizing a need or want, consumers search for information about the various alternatives
available to satisfy it.

14. Which of the following is an information source that is not associated with advertising or promotion?
a. External
b. Nonmarketing-controlled
c. Marketing-controlled
d. Unbiased
e. Primary

Nonmarketing-controlled information sources do not originate with marketers promoting the product.

15. An external information search is especially important when:
a. there is a great deal of past experience
b. there are high costs associated with making an incorrect decision
c. the cost of gathering information is high
d. buying frequently purchased, low-cost items
e. there is little risk of making an incorrect decision

If a consumer perceives a purchase to involve high risk (financial, social, etc.), an external search will
lower the risk by providing more information.

20. All of the following influence the extent to which an individual conducts an external search for
information EXCEPT:
a. perceived risk
b. knowledge
c. prior experience
d. social class
e. level of interest

Social class wouldnt necessarily affect the amount of information search a consumer would conduct.

21. A group of brands, resulting from an information search, from which a buyer can choose is referred to as
the buyers:
a. evoked set
b. primary set
c. inert set
d. complete set
e. justifiable set

A buyers evoked set is the set of alternatives from which a buyer can choose; also called consideration

25. Extending a well-known and respected brand name from one product category to another product
category is referred to as:
a. brand stretching
b. brand extensions

c. brand bouncing
d. brand transfer
e. brand building

Brand extensions are common a way companies employ categorization to their advantage.

30. All of the following are ways consumers can reduce cognitive dissonance EXCEPT:
a. justifying the decision
b. seeking new information
c. sending a letter to the marketer
d. avoiding contradictory information
e. returning the product

Cognitive dissonance is the inner tension that a consumer experiences after recognizing an inconsistency
between behavior and values or opinions.

31. How can marketers reduce consumers cognitive dissonance?
a. Offer guarantees
b. Offer sales promotions
c. Avoid contradictory information
d. Change the product
e. Ignore it

Cognitive dissonance is an inner tension that a consumer experiences after recognizing an inconsistency
between behavior and values or opinions, and marketers can reduce it by sending a postpurchase thank
you or letter, displaying product superiority in ads, or offering guarantees.

32. _____ is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of
consumer behavior.
a. Economic value
b. Involvement
c. Opportunity cost
d. Temporal cost
e. Perceived level of personal risk

This is the definition of involvement.

33. The types of products people purchase using routine response behavior are typically:
a. frequently purchased, low-cost items
b. frequently purchased, high-cost items
c. infrequently purchased, low-cost items
d. infrequently purchased, high-cost items
e. all types of items, regardless of price or frequency of purchase

Routine response behavior is the type of decision making exhibited by consumers buying frequently
purchased, low-cost goods and services.


34. _____ is characterized by low involvement, a short time frame, an internal-only information search, and
low costs.
a. Limited decision making
b. Routine response behavior
c. Emotional buying
d. Intensive decision making
e. Temporally-limited behavior

ANS: B See Exhibit 6.2.

37. The type of decision making that requires a moderate amount of time for gathering information and
deliberating about an unfamiliar brand in a familiar product category is referred to as:
a. routine response behavior
b. limited decision making
c. extensive decision making
d. uninvolved decision making
e. affective decision making

This is the definition of limited decision making.

41. When a consumer is purchasing an unfamiliar, expensive product or an infrequently bought item, he or
she is practicing:
a. extensive decision making
b. cognitive harmonizing
c. limited problem solving
d. strategic behavior
e. stimulus discrimination

This is the definition of extensive decision making.

45. All of the following factors directly influence consumers level of involvement in the purchase process
a. consumers age
b. previous experience with the product
c. financial risk associated with the product
d. social visibility of the purchased item
e. perceived risk of negative consequences as a result of the purchase

Age is a demographic variable that doesnt necessarily influence a consumers level of involvement.

54. An enduring belief that a specific mode of conduct is personally or socially preferable to an alternative
mode of conduct is called a(n):
a. lifestyle
b. self-concept
c. attitude
d. value
e. perception


This is the definition of a value.

55. Homogeneous groups of people who share elements of the overall culture as well as unique elements of
their own group are called:
a. autonomous personal units
b. probability samples
c. subcultures
d. normative groups
e. dissociative groups

58. A(n) _____ is a group of people in a society who are considered nearly equal in status or community
esteem, who regularly socialize among themselves both formally and informally, and who share
behavioral norms.
a. extended family
b. subculture
c. dissociative group
d. social class
e. procreational family

This is the definition of social class.

60. Social influences on consumer buying decisions include:
a. society, culture, and family
b. reference groups, society, opinion leaders, and family
c. personality, lifestyle, and reference groups
d. reference groups, opinion leaders, and family
e. lifestyle, reference groups, and family

Lifestyle and personality are individual influences. Culture and society are cultural factors.

61. A group in society, such as family, friends, or a professional organization, that influences an individuals
purchasing behavior is called a(n):
a. reference group
b. conformist group
c. opinion group
d. social group
e. influential group

This is the definition of reference group.

62. Reference groups can be categorized very broadly as either:
a. primary or secondary
b. persuasive or nonpersuasive
c. direct or indirect
d. positive or negative
e. personal or nonpersonal

The two categorizations of reference group are direct and indirect.

65. A value or attitude deemed acceptable by a group is called a(n):
a. expectation
b. reference
c. aspiration
d. opinion
e. norm

Norms are considered acceptable behavior by a given reference group.

68. Which category of reference groups represents groups in which a consumer does not have membership?
a. Direct
b. Indirect
c. Primary
d. Secondary
e. Incomplete

Indirect reference groups are groups consumers do not belong to, but they might aspire to belong to one
(aspirational group) or not want to be associated with one (nonaspirational group).

71. Opinion leaders are:
a. wealthy, well-educated individuals
b. experts on all high-involvement consumer goods
c. usually the same individuals for all social classes
d. people who influence others
e. easy to locate and target

Opinion leaders are individuals who influence the opinions of others.

74. Cultural values and norms are passed down to children through the process of:
a. accumulation
b. encroachment
c. assimilation
d. socialization
e. manifestation

Children are socialized to learn the culture within which they are raised.

77. All of the following are individual factors influencing consumer buying decisions EXCEPT:
a. gender
b. age
c. family
d. personality
e. life cycle stage


A persons buying decisions are influenced by personal characteristics that are unique to each individual,
such as gender; age and life cycle stage; and personality, self-concept, and lifestyle. Family is a social
factor influencing consumer buying decisions.

78. _____ is an orderly series of stages in which consumers attitudes and behavioral tendencies change
through maturity, experience, and changing income and status.
a. Socialization
b. The wheel of consumerism
c. The family life cycle
d. Lifestyle consumption
e. Acculturation

Families go through an orderly series of stages, and consumption attitudes and behaviors are influenced
by ones stage in the series.

79. An individuals _____ is a composite of psychological makeup and environmental forces. It includes
peoples underlying dispositions, especially their most dominant characteristics.
a. acculturation
b. socialization
c. personality
d. autonomy
e. attitude

This describes personality, which is a way of organizing and grouping the consistencies of an individuals
reactions to situations.

80. _____ is how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-
a. Socialization
b. Personality
c. Socialization
d. Normalization
e. Self-concept

This is the definition of self-concept.

81. Which of the following represents the way an individual actually perceives himself or herself?
a. Personal image
b. Ideal self-image
c. Real self-image
d. Lifestyle image
e. Defined self-image

Self-image can be real, which is how a consumer actually perceives himself or herself, or ideal, which is
the way an individual would like to be.

83. The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
is called:

a. identification
b. retention
c. comprehension
d. perception
e. cognitive adaptation

This is the definition of perception.

93. Ranked from the lowest to the highest level, Maslows hierarchy of needs model includes:
a. safety, esteem, social, physiological, and self-actualization needs
b. physiological, social, esteem, economic, and self-actualization needs
c. psychological, safety, economic, esteem, and social needs
d. physiological, safety, social, esteem, and self-actualization needs
e. safety, economic, social, esteem, and self-development needs

See Exhibit 6.6.

94. According to Maslows hierarchy of needs model, the first needs most people would try to satisfy are
their _____ needs.
a. safety
b. physiological
c. economic
d. esteem
e. derived

The needs in order of lowest to highest are: physiological, safety, social, esteem, and self-actualization.

107. _____ is the learned ability to differentiate between similar objects such as packages of different brands
of aspirin.
a. Incentive discrimination
b. Stimulus generalization
c. Selective perception
d. Selective generalization
e. Stimulus discrimination

This is describing stimulus discrimination, which is a learned ability to differentiate among similar

109. Which of the following is an organized pattern of knowledge that an individual holds as true about his or
her world?
a. Belief
b. Value
c. Affect
d. Attitude
e. Descriptor

This is the definition of a belief.

111. _____ are learned tendencies to respond consistently toward a given object.
a. Motivational cues
b. Cultures
c. Lifestyles
d. Perceptions
e. Attitudes

This is the definition of attitudes.

112. An attitude toward a product is:
a. easy to change
b. a persons point of view about the product
c. the same as a belief
d. the same as intention to buy
e. of short duration

Point of view is a simpler way to state learned tendency to respond consistently. Both denote an

Chapter 7Business Marketing

2. A product is defined as a business product rather than a consumer good on the basis of its:
a. intended use
b. physical characteristics
c. price
d. distribution method
e. tangible attributes

The key characteristic distinguishing business products from consumer products is intended use, not
physical characteristics.

7. All of the following are current roles of the Internet in business marketing EXCEPT:
a. reduce costs
b. eliminate distributors
c. build channel partnerships and trust
d. brand building and development
e. integrate online and traditional media

See Exhibit 7.2

PTS: 1 REF: 105 OBJ: 07-2 TOP: AACSB Reflective Thinking
KEY: CB&E Model Strategy MSC: BLOOMS Analysis

18. A particular segment of the business market includes those individuals and organizations that purchase
goods and services for the purpose of making a profit. They achieve this goal by using purchased goods
and services to make other goods, to become part of other goods, or to facilitate the daily operations of
the organization. This group is called the _____ segment of the business market.
a. institution
b. reseller
c. wholesaler
d. producer
e. government

This describes the producer segment of business customers.

23. Businesses that buy finished goods and sell them for a profit are called:
a. inventory carriers
b. producers
c. distribution networks
d. resellers
e. business facilitators

The reseller market includes retail and wholesale businesses that buy finished goods and resell them for a

26. The U.S. government is:
a. not a business market segment
b. the worlds largest single customer
c. an organization accounting for over 50 percent of the U.S. gross national product
d. mainly a military equipment purchaser
e. using one centralized purchasing office for the entire government

The U.S. federal government is the worlds largest customer. The other alternatives do not apply because
various branches of the government have separate purchasing departments, and billions of dollars are
spent on food, clothing, desks, and other standard supply items (not just military hardware).

27. One segment of the business market has primary goals that differ from the ordinary business goals such as
profit, market share, or return on investment. This segment includes many schools, churches, and civic
clubs. Which business market is this?
a. Institutions
b. OEMs
c. Services
d. Providers
e. Resellers

Institutions such as schools, churches, and hospitals have service or activity goals but not profit goals and
are an important business market.

31. The government uses a system called NAICS to classify North American business establishments.
NAICS stands for:
a. Non-American Industry Classification System
b. North and South American Institutional Coding Services
c. Non-American Industrial Corporation System
d. North American Institution Code System
e. North American Industry Classification System

The North American Industry Classification System (NAICS) is an industry classification system for
classifying North American business establishments.

34. Managers can use the NAICS data to:
a. create a more focused mission statement
b. eliminate risk
c. classify consumer behavior
d. identify potential new customers
e. determine purchase motives

NAICS data can be converted to market potential estimates, market share estimates, and sales forecasts. It
can also be used for identifying potential new customers.


35. All of the following are demand characteristics of business markets EXCEPT:
a. inelastic demand
b. fluctuating demand
c. joint demand
d. stable demand
e. derived demand

Business markets are characterized by derived demand, inelastic demand, joint demand, and fluctuating

36. The demand for consumer goods often affects the demand for business products. This characteristic of
business markets is called _____ demand.
a. elastic
b. inelastic
c. fluctuating
d. derived
e. joint

The demand for business products is called derived demand because organizations buy products to be
used in producing their customers products.

40. When two or more items are used in combination to produce a final product, they are said to have _____
a. derived
b. inelastic
c. joint
d. fluctuating
e. elastic

This is the definition of joint demand.

43. When demand for a product is _____, an increase or decrease in the price of the product will not
significantly affect demand for the product.
a. responsive
b. elastic
c. inelastic
d. derived
e. bundled

This is the definition of inelastic demand.

52. The distribution structure in business marketing typically:
a. includes at least one wholesaler
b. is direct
c. is complex and multistage
d. uses a three-step channel
e. uses retail distributors


Direct channels, where manufacturers market directly to users, are much more common in business
markets than in consumer markets.

53. _____ is commonplace in business marketing and can sometimes occur over several months.
a. Negotiation
b. Need mediation
c. Customerization
d. Purchase arbitration
e. Disintermediation

Negotiating is common in business marketing.

54. If a business needs a particular good or service and decides to look among its own customers for a
provider of that good or service, the business is:
a. working to create purchase arbitration
b. opening itself up to prosecution for illegal activities
c. acting unethically
d. trying to eliminate derived demand barriers
e. practicing reciprocity

Reciprocity is the practice of business purchasers choosing to buy from their own customers.

58. _____ is the primary promotional method for the sale of all business products.
a. Direct mail
b. Advertising
c. Personal selling
d. Public relations
e. Trade promotions

Business sales tend to be large in dollar amounts and quantities and may require negotiation; thus, they
may rely heavily on the salespersons ability to communicate and work with the customer.

59. All of the following are considered types of business products EXCEPT:
a. raw materials
b. convenience goods
c. major equipment
d. accessory equipment
e. component parts

The types of business products are major equipment, accessory equipment, raw materials, component
parts, processed materials, supplies, and business services