Student

ob -b ob -b ob -b -b -b
w.u w.u w.u .uob w.u

ob
ww ww ww www w w
h.c om h.c om h.co

m
h.c om .c om
b-b b-b - b b-b -bh
w .uch9
o
w.u
o
w .uob w.u
o
w .u ob
ww w w ww ww ww
Student: ___________________________________________________________________________
m m m m
h.co h.co h.co h.co h.c om
b - b b- b b - b -b b-b
o .uo for advertising. w.uo ob o
w w.u1. Marketing is another
w wword w.u w.u
w True False w ww ww w w
h.c om h.com h.c om h.c om h.co

m
o b-b .uob
- b
o b-b o b-b o b- b
w w.u2. Marketing is the process
w w w.u the conception, pricing,
w of planning and executing w w.upromotion and distribution
w w.u of
w w w w w
goods and services to facilitate exchanges that satisfy individual and organizational objectives.
True False
b h .com b h.com bh.co

m
h.c om h.c om
.uo b- o b- .uo b-
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
3. Transportation is one of the eight functions of marketing.
True False
.c om h.co
m
h.c om h.c om h.c om
ob -bh b- b b-b b-b b-b
w .u w .uo w.u
o
w.u
o
w .uo
ww ww ww ww ww
4. One of the eight functions of marketing is risk.
True False
.c om .com h.c om .com h.c om
ob -bh ob-
bh
b-b b- b h
b-b
w.u w.u w .uo w .uo w .uo
ww ww ww ww ww
5. The facilitating marketing function includes transportation and storage.
True False
m om om om om
bh.co -bh
.c h.c h.c -bh
.c
.uob
-
.u ob .uo b-b o b-b ob
ww w w w.u w .u
w ww ww ww ww
6. The process of dividing the total market into several groups whose members have similar characteristics is
called targetmmarketing.
.co
True-bhFalse b h .com b h .com b h .com b h .com
- - - -
w .uob w .uob w .uob w.u
ob
w .uob
ww ww ww w w ww
7. Target marketing
m is selecting whichm groups an organization can m serve profitably. .com
. c o .c o . c o h.c om
True-bhFalse -bh -bh -bh
.uob .uob .uob ob .uo b-b
w w w w.u w
ww ww ww ww ww
8. Segmentation of a market by income is a type of demographic segmentation.

True bh .com
False b h .com b h .com bh .com h.com
uob
.
-
uob
-
. uob
-
. uob
-
.uo b-b
w w w w. w
ww ww ww ww ww
m .com om om .com
bh.co bh h.c h.c h
.uo b - ob- ob-b ob-b .uo b- b
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
9. Dividing the market by geographic area is called demographic segmentation.
.com
True False
h .com
h .com h.c om .c om
b-b b-b -bh b-b -bh
w .uo w.u
o
w .uob w.u
o
w .u ob
ww w w ww ww ww
10. Segmentation by lifestyle, values, attitudes and interests is called psychographic segmentation.
.com
True False
h .com
h .com
h bh .com h.c om
.uo b-b .uo b-b o b-b ob- o b-b
w w w.u w.u w.u
ww ww w w ww w w
11. Targeting smaller but profitable market segments and designing or finding products and services for them is
b .com
called niche
h marketing.
b h.com b h .com b h .com bh .com
ob- False
.uTrue .uob
-
.uob
-
.uob
-
.uob
-
w w w w w
ww ww ww ww ww
m m m m m
- h.co
12. Abmarketing
- h.coto keep individual customers
strategy with abgoal
- bh.co over time by offering
- b
o new products thath.co
h.cthem b
. ob meet their requirements
exactly
u . uob is called relationship
. u b
ocustomization. . u ob . u ob-
w w w w w
ww True False ww ww ww ww
b h .com b h .com b h .com b h .com h.c om

obA- business can fill the.uneeds
.u13. ob- of every group, leading -
.uob to its success. .uob
-
.uo b-b
w w w w w
b h .com bh .com b h .com b h .com b h .com

-
obHyundai - - b- b-
w .u14. .uob between ages 18 and
targets consumers
w w
obto
.u34 .uoThis
compete with Honda.
w is an example ofw.uo
ww geographic segmentation.
ww ww ww ww
True False
m om om om om
bh.co -bh
.c h.c h.c -bh
.c
.uob
-
ww w w w.u ww
.u
w ww ww ww
15. Mountain City Coffeehouse & Creamery in Frostburg, MD offers a daily special of fresh and w healthy ethnic
vegetarian creations for its customers. Its customers are health and nutrition conscious. Mountain City
Coffeehousecomis using benefit segmentation
com to segment its bmarket.
com com com
True b h . b h . h . b h . b h .
b- False
.uo .uob- .uob- o b- b-
.uo
w w w w.u w
ww ww ww w w ww
b h .com offers about 1500

16. Fridgedoor.com
b h om
.crefrigerator b h .com
magnets for sale
b h .coamrelatively small bh.com
on the Internet. It targets
ob- of people who enjoy
group
.uTrue . u b- type of product. Fridgedoor.com
othis . u ob- . u b-
is practicing nicheomarketing.
. u ob-
w False w w w w
ww ww ww ww ww
bh .com b h .com b h .com bh .com h.com

.u17.
- goal of relationshipomarketing
obThe .u b
- is to continually -
.uobacquire new customers.
.uob
-
.uo b-b
w w w w w
m .com om om .com
bh.co bh h.c h.c h
.uo b - o b- o b-b o b-b .uo b- b
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
18. Frequent-flyer programs are an example of relationship marketing.
.com
True False
h h.com .com h.c om .c om
b-b b-b -bh b-b -bh
w .uo w.u
o
w .uob w.u
o
w .u ob
ww w w ww ww ww
19. The consumer decision-making process has four steps.
True Falseom om om .com om
bh.c bh.c bh.c b h
b-b
h.c
.u ob- .u ob- .uob
- ob- o
ww ww ww w.u w.u
w w w ww w w
20. Learning involves changes in an individual's behavior resulting from previous experiences and information.
.com
True hFalse
b h.co
b
m
h.co
b
m
h.co
m
h.co
m
ob- ob- ob- ob -b ob-
b
.u . u w.u w.u . u
w ww ww
w
ww w w ww
w
21. Another name for cognitive dissonance is buyer's remorse.

.com
True bhFalse bh.c
om
bh.c
om h.c om h.c om
.uob
-
.uob
-
.uob- .uo b-b .uo b-b
w w w ww w w
w ww w ww ww
22. B2B marketers

m include manufacturers,
m retailers and the government.
.c o
True-bhFalse bh . c o
b h .com h.c om h.c om
ob -
.uob ob - o b-b .uo b-b
w.u w w.u w.u w
ww ww ww ww ww
23. The number

m of customers in the.cB2B
h .co h om market is relatively
h
few compared to the U.S. households
.com h.com
in the
h .com
consumer
b market. b b b b
ob- ob- ob- ob- ob-
w.uTrue False w.u w.u w.u w.u
ww ww ww ww ww
h. com . com com

bh. influence. . com .c om
24.bA
o -bconsumer o -bhinternally, without any
makes decisions
b o b -outside o b -bh ob -bh
.u .u .u .u .u
w ww True False ww
w www ww w ww
w
h .com h .com h .com h.com .com

25. b
obB2B
- sales are always made b
- through an intermediary. - b b-b -bh
w .uTrue False w .uob w .uob w.u
o
w .u ob
ww ww ww w w ww
bh .com b h .com b h .com b h .com b h .com

26. -
obThere -
is much more emphasis - thanoinb-B2B markets. -
w .uTrue w . uob on personal selling
w . uoinbconsumer markets w . u w . uob
ww False ww ww ww ww
bh .com b h .com b h .com bh .com b h .com

- buying proceduresohave
obB2B - b- - -
w .u27. w .u b closer relationships
w .uobetween
w .uob than consumer buying
marketers and buyers
w .uobhas.
m .com om om .com
bh.co bh h.c h.c h
.uo b - o b- o b-b ob-b .uo b- b
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
28. B2B products are much less complex than those sold to consumers.
.com
True False
h .com
h .com h.c om .c om
b-b b-b -bh b-b -bh
w .uo w.u
o
w .uob w.u
o
w .u ob
ww w w ww ww ww
29. In B2B packaging is a marketing tool.
.com
True False
h .com
h h .com h.com h.c om
.uo b-b .uo b-b o b- b
ob-
b
o b-b
w w w.u w.u w.u
ww ww w w ww w w
30. The 4Ps are product, price, place and promotion.

.com
True hFalse h.co
m
h.c om h.c om h.co
m
o b-b .uob
-b
.uo b-b o b-b .uo b- b
w w.u w w w.u w
w ww ww ww ww
31. A total product offer consists of everything that consumers evaluate when deciding whether to purchase a
com
good borh.service. b h.com bh .com b h .com b h .com
ob- False
.uTrue .uob
-
.uob
-
.uob
-
.uob
-
w w w w w
ww ww ww ww ww
m m m m m
- h.coresearch is the analysis
32. Market
b - bh.cofomarkets to determine
- b .co
hopportunities - b h.coand to find the
and challenges - b h.co
ob ob ob ob ob
ww.uinformation needed towmake
w.u good marketing decisions.
w w.u w w.u w w.u
w True False w w w w
b h .com bh .com b h .com b h.com b h .com

-
obBrand ob-combination of factors b- - -
w .u33. loyalty referswto.uthe w .uothat .uoabgiven brand name. w.uob
people associate with
w
h .com h .com h .com h.c om .c om

b
obA- total product offer may - b - b b-b -bh
w.u34. w .uobinclude the store's surroundings.
w .uob w.u
o
w .u ob
h.c om h .com h.c om h.com .c om

o b-b o b- b
o b-b o b-b ob -bh
w w.u35. A focus group is awtype
w.u of primary research.ww.u w w.u w .u
w w w w ww
True False
m om om om om
bh.co h.c h.c bh.c h.c
o b - o b-b b-b
.uo happens to sales and ob- uo b-b
w w.u36. The product life cycle
w w.uis a theoretical modelwofwwhat w
u
w.profits for a product w.over
class
w
w w w w w
time.
True False
bh .com h.c om h .com h.co
m
h.c om
.uo b- .uo b-b .uo b- b
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
37. Price leadership is demand based.
.com
True False
h .com
h h.co
m
h.c om .c om
b-b b-b - b b-b -bh
w .uo w.u
o
w .uob w.u
o
w .u ob
ww w w ww ww ww
38. Cellular phones and DVD players are in the maturity stage of the product life cycle.
.com
True False
h .com
h .com h .com
bh h.c om
.uo b-b .uo b-b o b-b ob- o b-b
w w w.u w.u w.u
ww ww w w ww w w
39. Airlines follow demand-based pricing.

.com
True hFalse h.co
m
h.c om h.c om h.co
m
o b-b .uob
-b
w w.u w w w.u w
w ww ww ww ww
40. The break-even point is how many of a product would have to be sold in order to make a neither a profit nor
a loss.bh.co
m .com .com .com .com
b h bh b h b h
ob- False
.uTrue .uob
-
.uob
-
.uob
-
.uob
-
w w w w w
ww ww ww ww ww
m m m m m
- b h.co
41. __________, one of the eight
- b .co
hfunctions h.comarket research to determine
of marketing,-buses - b h.co the needs of the -bh.co
ob ob ob ob ob
ww.ucustomer. w w.u w w.u w w.u w w.u
w w
________________________________________ w w w

-
obPackaging - b- - -
w .u42. w .uob are two ways to inform
and advertising w .uocustomers .uobor to engage in __________,
about a product
w w .uob
ww one of the eight functions
ww of marketing. ww ww ww
________________________________________
m om om om om
bh.co -bh
.c h.c h.c -bh
.c
.uob
-
ww w w w.u ww
.u
w ww ww ww w
43. The wine maker who must wait a year or more for the wine to age correctly needs long-term __________,
one of the eight functions of marketing.
________________________________________
com com com com om
h. h. h. h. .c
b-b b-b b-b b-b b -bh
w .uo w .uo w .uo w.u
o
w .u o
ww ww ww w w ww
44. Marketers must analyze competitors' __________ (one of the eight functions of marketing) so that he or she
is prepared m changes in the business
.cofor .comenvironment. .com .com .com
bh b h b h b h b h
ob- ob-
________________________________________ ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
bh .com is the process of

45. __________
b h .com the total marketbhinto
dividing m
.coseveral .com have similar bh.com
groups whose members
bh
ob-
.ucharacteristics. .uob
-
.uob
-
.uob
-
.uob
-
w w w w w
ww ________________________________________
ww ww ww ww
m .com om om .com
bh.co bh h.c h.c h
.uo b - o b- ob-b ob-b .uo b- b
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
46. Selecting which groups an organization can serve profitably is called __________.
.com .com
________________________________________
h h .com .com .c om
b-b b-b -bh b-b
h -bh
w .uo w.u
o
w .uob w.u
o
w .u ob
ww w w ww ww ww
47. __________ is a marketing strategy with a goal to keep individual customers over time by offering them
b .comthat exactly meet btheir
new products
h h
m
.corequirements. b h .com b h.com b h .com
ob- -
u________________________________________
uob uob
-
uob
-
uob
-
w. w. w. w. w.
ww ww ww ww ww
b .comsmaller but profitable

48. Targeting
h b h om segments and designing
.cmarket b h .com or finding products
b h omservices for them ish.com
.cand b
.u ob- __________.
called . u ob- . uob- . u ob- . uob-
w w w w w
ww ________________________________________
ww ww ww ww

m
h.c om h.c om
o b- o b- o b-
.uo b-b .uo b-b
w w.u49. Upscale, moderatewand
w.ubudget conscious arewthree
w.u types of __________
w wsegments. w
w ________________________________________
w w w ww
b h .com bh .com b h .com b h .com b h .com

-
obA(n) b- that an individual.uuses
ob- as a reference point.in b- formation of his or .her -
w .u50. .uogroup
__________ iswthe w w uothe w uob
ww beliefs, attitudes, values
ww or behavior. ww ww ww
________________________________________

ob -bh ob-
bh
b-b b- b h
b-b
ww ww ww ww ww
51. __________ is the set of values, attitudes and way of doing things that is transmitted from one generation to
another in a given society.
________________________________________
om om om om om
.c .c h.c h.c .c
ob -bh ob -bh b-b b-b b -bh
.u .u .uo w.u
o .u o
www ww
w
ww
w
ww ww
w
52. __________ is the set of values, attitudes and ways of doing things that results from belonging to a certain
ethnic group,
comreligious group, racial cgroup
om or other group with cowhich
m one closely identifies.com com
b h . b h .
________________________________________ b h . b h . b h .
.uo b- .uo b- .uo b- o b- b-
.uo
w w w w.u w
ww ww ww w w ww
b .com is a type of psychological

53. __________
h b h .com conflict that canb h .comafter a purchase and
occur
b h
m same as buyer's .com
.iscothe bh
.u ob-
remorse.
. u ob- . u ob- . u ob- . u ob-
w w w w w
ww ________________________________________
ww ww ww ww
bh .com b h .com b h .com bh .com h.com

.u54.
-
ob__________ is the firstuo b- in the consumer decision-making
. step .uob
- process.
.uob
-
.uo b-b
w w w w w
ww ________________________________________
ww ww ww ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
55. Examples of American __________ include an emphasis on education, freedom and diversity.
.com .com
________________________________________
h h .com .com .c om
b-b b-b -bh b-b
h -bh
w .uo w.u
o
w .uob w.u
o
w .u ob
ww w w ww ww ww
56. Marketers often reassure consumers after they make a large purchase that they have made to right choice in
b .cotomreduce __________.
an attempt
h b h.com b h .com b h.com b h .com
ob- -
u________________________________________
uob uob
-
uob
-
uob
-
w. w. w. w. w.
ww ww ww ww ww
b .com refers to the process

57. __________
h b h
moverseeing all the aspects
.coof b h .com of marketing a particular
b h .comproduct or servicebh.com
- purpose of attractingoand
obthe - - - -
w.ufor w .u b retaining customers.
w .uob w .uob w .uob
ww ________________________________________
ww ww ww ww

m
h.c om h.c om
o b- o b- o b- o b-b o b-b
w w.u58. The __________ w
consists
w.u of everything thatwconsumers
w.u evaluate when deciding
w w.u whether to purchase
w w.ua good
w or service. w w w w
________________________________________
.c om h.co
m
ob -bh o b- b
o b-b o b-b o b-b
w .u w.u w.u w.u w.u
w w w
w analysis of markets to w
59. __________ is the w w
w challenges and to find the
determine opportunities and w
w information
needed to make good marketing decisions.
________________________________________
m m
.c o h.co h.c om .com h.c om
ob -bh ob - b b-b b- b h
b-b
ww ww ww ww ww
60. __________ is the creation of real or perceived product differences.
________________________________________
om om om om om
.c .c h.c h.c .c
ob -bh ob -bh b-b b-b b -bh
.u .u .uo w.u
o .u o
www ww
w
ww
w
ww ww
w
61. Location, brand awareness and image are important differentiators for marketers of __________ goods and
services. com com com com com
b h . b h .
________________________________________ b h . b h . b h .
.uo b- b-
.uo b-
.uo b-o b- .uo
w w w w.u w
ww ww ww w w ww
62. Godiva m
.cochocolates, Rolex watches.comand expensive cigars are m
.coproducts .com no reasonable bh.com
perceived as having
b h b h b h b h
ob-
substitute. They are classified
.uob
- __________ consumer
as
.u________________________________________ .uob
-goods.
.uob
-
.uob
-
w w w w w
ww ww ww ww ww
bh .com b h .com b h .com bh .com b h .com

- __________ is a product
- - - -
w .u63.
obA(n)
w .uob that a store advertises
w .uob at or below cost to wattract
.uob people to the store.w.uob
ww ________________________________________
ww ww ww ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
64. __________ can be defined as the proportion of sales made by a company versus the total number of sales
b .com product.
for that particular
h b h .com b h .com b h .com b h .com
ob- ob-
________________________________________ ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
bh .com means to pricebbased

65. __________
h.com b h
m
on demand. A product.cisodesigned
b h com and meets the bh.com
so it satisfies .needs
ob- margins desired by.the
.uprofit
-
uobcompany. .uob
-
.uob
-
.uob
-
w w w w w
ww ________________________________________
ww ww ww ww
b h .com b h.com b h .com b h .com bh .com

- four stages of the product
obThe - - growth, maturity and - -
w.u66. w .uob life cycle are introduction,
w .uob w .uob __________. w .uob
ww ________________________________________
ww ww ww ww

m
h.c om h.c om
o b- o b- b-
uo price high to recoverwthe b-b
.uocosts of developing the uo b-b
w w.u67. When a manufacturer ww.uof HDTVs decides towset w.the w w w.sets
w while there's little competition,
w it is using a __________
w pricing strategy.
w w
________________________________________
.c om h.co
m
h.c om h.com h.c om
ob -bh o b- b
o b-b o b-b o b-b
w .u w.u w.u w.u w.u
w w w w
68. To discourage competitors from entering w w w w
with a similar product andwto attract more customers,wa firm would
most likely use __________ pricing.
________________________________________
m m
.c o h.co h.com .com h.c om
ob -bh ob - b b-b b- b h
b-b
ww ww ww ww ww
69. Department stores are most likely to have higher regular prices but then have many special sales during
which the o
prices are lowered. These odepartment stores are mostomlikely using a __________ pricing strategy.
h .c m h .c m
________________________________________
b b b h .c b h .com b h .com
ob- b- o b-
.uo b- o b- o
w w.u w.u w w.u w.u
w ww ww ww ww
70. __________
com is the process of planning
com and executing bthe cconception,
om pricing, promotion
com and distribution of com
goods b h . b h . h . b h . b h .
- and services to facilitate- exchanges that satisfyoindividual
- and organizational - objectives. -
w .uA.obManagement w .uob w .u b w .uob w .uob
ww B. Strategy ww ww ww ww
C. Marketing
D. Leadership m m m m m
h.co
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ob ob ob ob ob
w.u w.u w.u w.u w.u
ww ww ww w w ww
71. Which of the following is one of the functions of marketing?
bh .com
A. Transportation
b h .com b h .com bh.co
m
h.com
-
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future human resource
.uC.obLead the company towprofitability
.uob .uob
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.uo b-b
w w w.u w
ww ww ww w w ww
D. Establish the vision of the organization
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
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ob
ww ww ww www w w
72. The wine maker who ages her wine for up to a year is concerned with which function of marketing?
A. Buying
b h .com b h .com bh .com b h .com b h .com
-
B. Selling - - - -
w .uC.obTransportation w.uob w .uob w .uob w .uob
ww ww ww ww ww
D. Storage
m .com .com .com om

bh.co b h b h b h h.c
o b - o b- b-
.uo is concerned withwwhich ob- o b-b
w w.u73. A neighborhood grocer
w w.u who guarantees fresh
w w
produce w
.u function of marketing?
w w.u
w w w w w
A. Selling
B. Storage
C. Quality
b h .com b h.com h.c om h.c om h.co
m
-
.uD.obRisk .uob
-
w w w w.u w
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74. Which
b h .coofmthe following statements
b h.comabout marketing isbtrue?
h .com b h .com h.c om
-
.uA.obMarketing assures that
-
obcorrect
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-
.uob of goods is available
quality and quantity ob-purchase
.ufor .uo b-b
w w w w w
ww B. Marketing has a wfinancial
w aspect to it ww ww ww
C. Marketers are responsible for some measure of risk
D. All of the above are true
.com h.co
m
w .u w .uo w.u
o
w.u
o
w .uo
ww ww ww ww ww
75. Selecting with groups an organization can serve profitably is called ______________.
A. Market segmentation
B. Targeth om
.cmarketing h .com h .com h.com h.c om
- b - b - b - b b-b
w .uC.obRelationship marketing
w .uob w .uob w .uob w .uo
ww D. Marketing management ww ww ww ww

-
obTargeting ob- b- ob- ob- is
w.u76. smaller but
w .uprofitable w .uoand
market segments .uproducts
designing or finding
w .uthem
and services for
w
ww called ___________________.
ww ww ww ww
A. Market segmentation
B. Niche marketing
h .com marketing h .com h.c om h.com .c om
C. b
Relationship
- b - b b-b b-b -bh
w .uD.o Marketing management
w .uob w .uo w.u
o
w .u ob
w w w
w ww w w ww
bh . com b h .com b h . com b h . com b h . com

77.
ob__________
- is a marketing
ob- strategy with a goal.u
tookeep
b- individual customers over
- time by offering them -
w .unew products that exactly
w .umeet their requirements.
w w .uob w .uob
ww ww
A. Relationship marketing
ww ww ww
B. Marketing management
om
C. Niche.cmarketing
h h .com h .com h.co
m
h.com
- b b b b b-b
D.obTarget
.u
marketing ob-
.u .uo b- o b -
.uo
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
.uo b - ob- ob-b o b-b .uo b- b
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
78. Campbell has expanded its product line to appeal to a number of different tastes. Campbell noticed the
population m
.cogrowth .com in cities across
in the Latino community the m
.conation, m bean soup that
so it introduced.acored .com
b h b h b h b h b h
ob- appeal to the Latino
would
.uCreole . u b- It also noticed the
omarket. . u b-
ogrowth in the American South
. u obmarket so it introduced
. u ob-a
w soup to appeal w w w w
ww wwto those people. By providing
ww different tasting soups ww for different populations wwof the U.S.
Campbell is practicing _________________.
A. Advertising
B. Market m
.cosegmentation .com .com .com .com
b h
- marketing
C. Niche - b h - b h -b h - b h
w .uD.obDistribution management
w .uob w .uob w .uob w .uob
ww ww ww ww ww
b h .com b h.com b h .com b h .com bh.co

m
- first step in the consumer
obThe - - - -
w.u79. w .uob decision-making
w uob is ______________.
.process w .uob w .uo b
ww A. Alternative evaluation
ww ww ww ww
B. Information search
C. Problem recognition
m .com m om om
h.co decision
D. Purchase h h.co h.c h.c
.uo b-b o b- b
.uo b- b
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
80. __________ involves changes in an individual's behavior resulting from previous experiences and
b .com
information.
h bh .com b h .com b h .com b h .com
- - - - -
w .uA.obLearning w .uob w .uob w .uob w .uob
ww B. Culture ww ww ww ww
C. Cognitive dissonance
D. Perception m m m m m
bh .co bh .co .co h.co .co
ob- ob- -bh - b
ob-
bh
w .u w . u w .uob w.u
ob
w.u
ww ww ww ww ww
81. A(n) __________ is the group that an individual uses as a reference point in the formation of his or her
beliefs, attitudes,
m values or behavior.
A. Market
bh . c o
segment b h .com b h .com b h .com b h .com
- - - - -
w.uB.obReference group w.uob w .uob w .uob w .uob
ww C. Collective groupww ww ww ww
D. Formative group
h.c om h .com h.c om h.c om .c om

b-b b- b b-b b-b b -bh
o
w .u o
ww ww ww w w
82. Which of the following is an influence on the consumer's decision-making process? ww
A. Family
B. Previous experience
h . com h .com h . com h . com h.c om
C. The
- marketing mix
b - b b b b-b
.uD.obAll of the above are w .uob on the consumer's ob-
.udecision-making .uob
-
.uo
w w w influences w w process
ww w
w w w w ww

m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
.uo b - o b- ob-b o b-b .uo b- b
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
83. Another name for buyer's remorse is _______________________.
.comdissonance
A. Cognitive
h h .com h .com h .com .c om
- b
B. Cognitive assimilation ob- b - b - b -bh
w .uC.obNormative dissonance w .u w .uob w .uob w .u ob
ww ww ww ww ww
D. Affective dissonance
m .com .com .com om

ob - o b- b- ob-
.uoof doing things that iswtransmitted o b-b
w w.u84. __________ is thewset
w.uof values, attitudes and
w wway w
.u from one w.u to
generation
w
w w w w w
another in a given society.
A. Generational rules
.com
B. Subculture
b h b h.com h.c om h.c om h.co
m
-
.uC.obCulture .uob
-
w w w w.u w
ww D. Ethnicity ww ww ww ww

m
h.c om h.c om
b-
85.
o Automobile dealers may b-
.uosend positive press articles b-
.uo about the particularwcar b-b
.uotheir customers bought .and
uo b-b
w w.uoffer product guarantees
w wto the customers. Theyw w w w w
w w w most likely do this in anwattempt to reduce the customers'
w
________________________.
A. Cognitive dissonance
B. Negative
b h .com
word-of-mouth bh.co
m
-
.uC.obCost of the car .uob
- o b-b o b-b .uo b-b
w w w.u w.u w
ww D. Time used in thewpurchase
w process ww ww ww
b h .com bh .com b h .com b h.com h.c om

.u86.
-
obWhich b-
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of the following
-
.uob is true?
about B2Bwmarkets .uo b- .uo b-b
w w w w
ww A. B2B markets have wwunlimited potential customers
ww ww ww
B. B2B products are always bought without customization
C. B2B buyers m are trained
D. There
h . c o
are impersonal .com
relationships
h between marketers and
h om
.cB2B buyers h.c om .c om
ob - b
ob - b - b b-b -bh
w.u w.u w .uob w.u
o
w .u ob
w w ww ww ww ww
87. __________ refers to the processoof overseeing all the aspects of marketing a particular product or service
forbtheb h .com of attracting andbretaining
purpose h .c m customers. bh.com b h .com b h .com
- - - - -
w .uA.o Marketing managementw .uob w .uob w .uob w .uob
ww B. Customer management ww ww ww ww
C. Relationship marketing
D. Market osegmentation
m om om om om
bh.c bh.c bh.c -bh
.c bh.c
ob- .uob
-
.uob
- o b .uob
-
w.u w w w .u w
ww ww ww ww ww

m
h.com
.uob- .uob-b .uo b- b
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
88. The __________ consists of everything that consumers evaluate when deciding whether to purchase a good
or service.
-
A. Product line - - - -
w .uB.obProduct mix w.uob w .uob w .uob w .uob
ww ww ww ww ww
C. Total product offer
D. Product life cycle
m .com .com .com om
.uo b -
.uo b- o b- ob- o b-b
w w w.u w.u w.u
ww ww w w ww w w
89. Which of the following is a potential component of a total product offer?
A. Brand name
b .com
B. Convenience
h b h.com b h .com b h .com bh.co
m
- - - - -
w.uC.obGuarantee w .uob w .uob w .uob w .uo b
ww D. All of the abovewarew part of the total product
wwoffer ww ww

m
h.c om h.c om
90. b-
o __________ is research b-
othat a marketer creates;.u
that b-
o is, the marketer implements b-b
o the collection of the.udata
o b-b
w w.ufirsthand. w w.u w w w w.u w w
w w w w w
A. Primary research
B. Secondary research
m
.coresearch m om om om
C. Unique
b h bh.co h.c h.c h.c
-
.uD.obFirsthand research .uo b- ob-b o b-b .uo b-b
w w w.u w.u w
ww ww ww ww ww
o m o m m m m
91. A(n)
- b h.c__________ is a group
- bh.cproducts
of - b h.cosimilar or intended -for
that are physically b
o
h.acsimilar market. - b h.co
ob ob ob ob ob
w w.uA. Product mix w w.u w w.u w w.u w w.u
w w
B. Total product offer w w w
C. Product line
D. Product group
m m m m m
bh .co .co .co .co .c o
ob- -bh ob-
bh
ob-
bh -bh
. u .uob w.u w.u .u ob
w ww ww
w
ww ww ww
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92. __________ is the creation of real or perceived product differences.
A. Productoassimilation
m
h .c differentiation h .com h .com h .com .c om
B. bProduct
- b - b - b - b -bh
w .uC.o Product demarcationw.uob w .uob w.uob w .u ob
ww D. Product discriminationww ww ww ww
m om om om om
o b - o b-b o b-b ob- .uo b-b
w w.u93. Which of the following
w w.u goods or services iswmost
w.u likely a specialty good .uservice?
wor w
w w w
A. The cardiologist you choose after having a heart attack
ww ww
B. The clothes you buy
bh .com
C. Groceries
m
h.com
.u
- movies you see
D.obThe ob-
.u ob-
.u o b -
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
.uo b - ob- o b-b o b-b .uo b- b
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
94. The __________ is a theoretical model of what happens to sales and profits for a product class over time.
b .comof innovation
A. Diffusion
h b h .com bh .com b h .com b h .com
-
B. Product life cycle - - - -
w .uC.obGrowth of products w.uob w .uob w .uob w .uob
ww ww ww ww ww
D. Time value of innovation
m .com .com .com om

o b - b-
.uo is _____________________.
o b- ob- o b-b
w w.u95. The last stage in the
w wPLC w w.u w.u w.u
w w w ww w w
A. Decline
B. Maturity
.com
C. Completion
b h b h.com h.c om h.com h.co
m
-
.uD.obClosure .uob
-
w w w w.u w
ww ww ww ww ww
b h .com is the procedure

96. __________
b h
m one or more dominant
.cowhich
by
bh .comfirms set the pricing
b h com that all
.practices b h .com
ob-
.ucompetitors ob-
in an industry.ufollow. .uob
-
.uob
-
.uob
-
w w w w w
ww A. Affirmative pricing ww ww ww ww
B. Target costing
C. Price leadership
D. First com pricing
bh.mover bh.c
om
bh.c
om
bh.c
om
bh.c
om
ob- ob- ob- ob- ob-
w.u ww
.u w.u w.u ww
.u
ww w ww ww w
97. A firm generally

m has several objectives
m in mind when setting ma pricing strategy including m which of the
following?
b h . c o
bh . c o
b h . c o
b h. c o
b h .com
- - - - -
w .uA.obBuilding traffic w .uob w .uob w .uob w .uob
ww B. Furthering socialwobjectives
w ww ww ww
C. Achieving greater market share
D. All of themabove may be pricing objectives
m m m m
bh .co .co .co .co .c o
ob- -bh ob-
bh
ob-
bh -bh
. u .uob w.u w.u .u ob
w ww ww
w
ww ww ww
w
98. When a product is in the mature stage of the product life cycle, one pricing strategy that is often followed is
______________________________.
m
A. bA-b h.co strategy
skimming b h .com b h .com b h .com b h .com
- - - -
w .uB.o Adjusting the price to
w uob competition
.meet w .uob w .uob w .uob
ww C. Further reduce the wwprice ww ww ww
D. Consider a price increase
m om om om om
.uob -
.uob-b .uo b-b ob- .uo b-b
w w w w.u w
ww ww
99. Describe the eight functions of marketing.
ww ww ww
bh .com h.com h .com h.co

m
h.com
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
100. Define market segmentation and explain three of the methods marketers use to segment the market.
h.c om h.c om h.co
m
h.c om .c om
b-b b-b - b b-b -bh
w .uo w.u
o
w .uob w.u
o
w .u ob
ww w w ww ww ww
m .com .com .com om

.uo b -
w w w.u w.u w.u
ww ww w w ww w w
101. Explain the major differences between B2B markets and consumer markets.

m
o b-b .uob
- b
w w.u w w w.u w
w ww ww ww ww

m
h.c om h.c om
.uo b- o b- .uo b-
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
102. List the goals of packaging.
.c om h.co
m
w .u w .uo w.u
o
w.u
o
w .uo
ww ww ww ww ww

ob -bh ob-
bh
b-b b- b h
b-b
ww ww ww ww ww
103. Explain the steps in the new-product development process.
m om om om om
bh.co -bh
.c h.c h.c -bh
.c
.uob
-
ww w w w.u w .u
w ww ww ww ww

o .u o
ww ww ww w ww
w
104. Determine the break-even point for a coffee shop that sells lattes. The fixed costs are rent andwutilities of
$600 per month and the variable costs are $1 per latte. The price of the latte is $3. Be sure to show your work
including the
ombreak-even formula youom used to arrive at your answer.
om om om
h.c h.c h.c bh.c h.c
.uo b-b .uo b-b .uo b-b ob- .uo b-b
w w w w.u w
ww ww ww ww ww

m
h.com
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
h.c om h.c om h.co

m
h.c om .c om
b-b b-b b b-b -bh
.uch9 Key -
w
o
w.u
o
w .uob w.u
o
w .u ob
ww w w ww ww ww
b h .com b h.com b h .com b h.com h.c om

-
.u1.o(p.b 284) Marketing is another
-
.uobword for advertising.w.uob
- ob- o b-b
w w w.u w.u
ww FALSE ww ww ww w w

m
b-b
Dias - Chapter 09 #1
o .uob
- b
w w.u Learning Goal: Define marketing and its eight functions
w w w.u w
w ww
Level of Learning: Knows basic terms and facts
ww ww ww
2. (p. 284) Marketing

com is the process ofcplanning
om and executing thecoconception,
m pricing, promotion
com and distribution com
of goodsb h . b h. bh . b h . b h .
ob- and services to facilitate
.uTRUE .uob
- exchanges that satisfy
.uob
-individual and organizational
.uob
- objectives.
.uob
-
w w w w w w w w w w
w w w w w
.c om
Dias - Chapter 09 #2 h.co
m
b -bh b- b
Learning Goal: Define marketing and its eight functions
o b-b b-b b-b
w .u w .uo
Level of Learning: Knows basic terms and facts w.u
o
w.u
o
w .uo
ww ww ww ww ww
3. (p. 284) Transportation
m is one of the eight
m functions of marketing.
TRUE b h . c o
bh . c o
b h .com b h.com h.c om
.uob
- -
.uob
-
.uob .uo b- .uo b-b
w w w w w
ww ww ww ww ww
m
h.co
Level of Learning: Knows basic terms and facts .c om h.c om h.c om .c om
- b -bh b-b b-b -bh
.uob .u ob .uo w.u
o .u ob
w ww ww
w
ww
w
ww ww
w
4. (p. 286) One of the eight functions of marketing is risk.
TRUE
o
w .u o
ww Dias - Chapter 09 #4 ww ww w w ww
m om om om om
o b -
.uo b-b o b-b ob- .uo b-b
w w.u5. (p. 284) The facilitating
w wmarketing w.utransportation and storage.
function includes
w w.u w
w FALSE w w ww ww
bh .com b h .com b h .com bh.co

m
h.com
ob- -Chapter 09 #5
.uDias b-
uoeight .uo b- o b -
.uo b-b
w w
Learning Goal: Define marketing and.its functions w w.u w
ww Level of Learning: Understands
wwconcepts and principles ww w w ww
Rationale: Transportation and storage are part of the physical distribution piece of marketing.
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
6. (p. 287) The process of dividing the total market into several groups whose members have similar characteristics
b com marketing.
is called.target
h b h .com bh .com b h .com b h .com
ob-
FALSE ob- ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
m .com .com .com om
bh.co
Learning Goal: Understand market segmentation and name the types of segmentation
b h b h b h h.c
- b-
.uo b .uo o b- ob- o b-b
w w w.u w.u w.u
ww ww w w ww w w
7. (p. 287) Target marketing is selecting which groups an organization can serve profitably.
TRUE
h. com com . com h. com h. h.co
m
o b-b ob-bh b-b b-b b- b
w.u w .u w .uo w.u
o
w .uo
w w ww ww ww ww

m
h.c om h.c om
o b- o b- .uo b-
o b-b .uo b-b
w w.u8. (p. 287) Segmentationwof
w.aumarket by income iswa wtype of demographic w.u
segmentation.
w w
w w w w ww
TRUE
b h .com bh.co
m
ob- -Chapter 09 #8
.uDias .uo b-
.uo b-b o b-b .uo b-b
w w w w.u w
ww w w
w segmentation and name the typeswof segmentation
Learning Goal: Understand market ww ww
. com
bhDividing h. com h. .com com h.c om
9. (p.
o b -287) the market b
o
by-bgeographic area is called
o b -bdemographic o b -bh
segmentation. b-b
.u .u .u .u .uo
www FALSE ww w ww w ww w ww
w
m om om om om
h.co
b -bh
.c h.c h.c -bh
.c
.uob
- b b-b
.u o .uo o b-b ob
ww
w w w.u w .u
w ww ww ww ww
10. (p. 287) Segmentation by lifestyle, values, attitudes and interests is called psychographic segmentation.
om om om om om
TRUE
- bh.c bh.c bh.c bh.c -bh
.c
.uob .u ob- .u ob- .uob
-
.u ob
w w ww ww ww w
w w w w ww
m om om om om
h.co
b h.c h.c bh.c h.c
.uo b -
.uo b-b .uo b-b ob- .uo b-b
w w w w.u w
ww ww ww ww ww
11. (p. 289) Targeting smaller but profitable market segments and designing or finding products and services for
them is called niche marketing.
TRUE .com .com .com .com om
h h h h h.c
.uo b-b .uo b-b .uo b-b o b-b .uo b-b
w w w w.u w
ww ww ww w w ww
m
.com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
12. (p. 289) A marketing strategy with a goal to keep individual customers over time by offering them new
products.cthat
h omexactly meet their requirements
h .com .com customization. bh.com
is called relationship
h h .com
FALSE- b - b - b - - b
w .uob .uob w .uob w .uob .uob w w
ww ww ww ww ww
m .com .com .com om
bh.co
b h b h b h h.c
- b-
w w w.u w.u w.u
ww ww w w ww w w
13. (p. 286) A business can fill the needs of every group, leading to its success.
FALSE m m m
h.c o h.co h.c o h.c om h.co
m
o b-b .uob
- b
w w.u w w w.u w
w ww ww ww ww
Level of Learning: Understands concepts and principles
b .com b h.com bh.co

m
h.c om h.c
Rationale: Because consumer groups differ greatly in age, education level, income and taste, a business usually cannot fill the needs of every group. Thus it must first
h om
.uo b- o b- .uo b-
decide which groups to serve and then develop products and services specially tailored to their needs.
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
14. (p. 287) Hyundai targets consumers between ages 18 and 34 to compete with Honda. This is an example of
geographic segmentation.
FALSE b h .com bh .com b h .com b h .com b h .com
ob - - - - -
w.u w .uob w.u
ob
w.u
ob
w .uob
ww ww ww ww ww
om .com
.c h.c om .com h.c om
-bh h h
b b-b b b-b
ob ob- .uo .uo b-
Rationale: Hyundai targets consumers between ages 18 and 34 to compete with Honda and Toyota. Segmentation of a market by age , income and education level or
.uo
w.u w.u
other such characteristics is demographic segmentation. w w w
ww ww ww ww ww
15. (p. 288) Mountain

m City Coffeehouse m & Creamery in Frostburg, m MD offers a daily special m of fresh and healthy
ethnic b h . c o
vegetarian creations for its
b h . c o
customers. Its customers b .
are
h c o
health and nutrition . c o
conscious.
b h Mountain City b h .com
ob-
.uCoffeehouse
-
.uobsegmentation to segment
is using benefit b- market.
.uoits .uob
-
.uob
-
w w w w w
ww TRUE ww ww ww ww

b
Diasb- -Chapter 09 #15 - b - b b-b -bh
w .uLearning w .uob and name the types of segmentation
o Goal: Understand market segmentation
w .uob w.u
o
w .u ob
wwconcepts and principles ww w w ww
Rationale: Benefit segmentation is determining which benefits are preferred (healthy and nutritious food) and using those benefits to promote a product (through the
daily special).
m om om om om
o b - o b-b o b-b o ob- b-b
w w.u16. (p. 289) Fridgedoor.comwoffers
w.u about 1500 refrigerator
w w.umagnets for sale on w thewInternet.
.u It targets a relatively
w w.u
w small group of people w who enjoy this type of w w
product. Fridgedoor.com is practicing niche marketing.w
TRUE

m
h.c om
o
.uDiasb- o b-b o b- b
o b - b
.uo b-b
w w.u w.u w.u w
ww - Chapter 09 #16 w w
Learning Goal: Understand market w w ww
Rationale: Targeting smaller buy profitable market segments and designing or finding products and services for them is called niche marketing. Fridgedoor.com is
m
reaching a very specific niche market.
.com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
17. (p. 289) The goal of relationship marketing is to continually acquire new customers.
FALSE .com om om om om
bh bh.c bh.c bh.c -bh
.c
.u ob- .uob
- ob- ob- ob
ww ww w.u w.u w .u
w w ww ww ww
m .com
.com .com om
h.co h h h
Rationale: The goal of relationship marketing is to keep individual customers over time by offering them new products th at exactly meet their requirements.
b b b b h.c
.uo b -
w w w.u w.u w.u
ww ww w w ww w w
18. (p. 289) Frequent-flyer programs are an example of relationship marketing.
TRUE
m
o b-b .uob
- b
w w.u w w w.u w
w Dias - Chapter 09 #18 ww ww ww ww
.com .com m om om
Rationale: Relationship marketing is a marketing strategy with a goal to keep individual customers over time by offering them new products that exactly meet their
b h b h h.co h.c
requirements. Airlines, rental car companies and hotels have frequent-user programs through which local customers can earn special services and awards.
b h.c
.uo b- o b- .uo b-
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
19. (p. 290) The consumer decision-making process has four steps.
FALSE
.c om h.co
m
w .u w .uo w.u
o
w.u
o
w .uo
ww Dias - Chapter 09 #19 ww ww ww ww
Learning Goal: Explain the process consumers go through when purchasing products and how consumer markets differ from business-to-business markets

ob(p.- 290) Learning involves
.u20. b-
.uochanges in an individual's
b-
.uobehavior resulting from
ob-
.uprevious experiences and.uob
-
w w w w w
ww information. ww ww ww ww
TRUE
h .com .c om h.c om h.c om .c om
- b -bh b-b b-b -bh
w.uob w .u ob
w .uo w.u
o
w .u ob
w w Dias - Chapter 09 #20 ww ww ww ww
Learning Goal: Explain the process consumers go through when purchasing products and how consumer markets differ from busines s-to-business markets

o b-b b- b b-b b-b b -bh
w.u21. (p. 291) Another name .uocognitive dissonance w
wfor uo
is .buyer's remorse.
w.u
o
w .u o
w w TRUE w w w w w w ww

Diasb- -Chapter 09 #21 - - b- busines s-to-business markets.uob-
w w .uob go through when purchasing
o Goal: Explain the process consumers
.uLearning w uob and how consumer marketswdiffer
.products .uofrom w
ww Level of Learning: Knows basic
ww terms and facts ww ww ww

m
h.com
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
22. (p. 292) B2B marketers include manufacturers, retailers and the government.
TRUE .com .com .com om om
h h -bh h.c -bh
.c
.uo b-b o b-b .uob o b-b ob
w w.u w w.u w .u
ww w w ww ww ww
m
.com .com .com om
o b - o b- o b- o ob- b-b
w w.u w w.u w w.u w w.u w w.u
w w of customers in the B2Bwmarket is relatively few w
23. (p. 292) The number w
compared to the U.S. households in the
consumer market.
TRUE m
h.c o h.com h.c om h.c om h.co
m
o b-b .uob
- b
w w.u w w w.u w
w ww ww ww ww

m
h.c om h.c om
o b- o b- o o b- b-b .uo b-b
w w.u24. (p. 291; Figure 9.3) A consumer
w w.u makes decisions w w.u
internally, without any w.uinfluence.
outside
w w
w w w w ww
FALSE
b h .com bh.co
m
ob- -Chapter 09 #24
.uDias .uo b-
.uo b-b .uo b-b.uo b-b
w w w w w
ww w w
w consumers go through when purchasing
Learning Goal: Explain the process w
w products and how consumer markets w
w differ from busines s-to-businesswmarkets
Rationale: A consumer has several outside influences on his or her decision making including psychological, marketing mix, so ciocultural and situational influences.

ob(p.- 293) B2B sales are always
.u25.
- -
.uob made through an intermediary.
.uob .uo b- .uo b-b
w w w w w
ww FALSE ww ww ww ww

w w .uob go through when purchasing
.uLearning w uob and how consumer marketswdiffer
.products .uofrom w
wwconcepts and principles ww ww ww
Rationale: B2B sales tend to be direct. Manufacturers sell products, such as tires, directly to auto manufacturers, but tend to use intermediaries, such as wholesalers
and retailers, to sell to ultimate consumers.
h.c om .com h.c om h.c om om

b-b b- b h
b-b b - bh.c b-b
o o o o o
w.u26. (p. 293) There is muchwmore
.u emphasis on personal
w.uselling in consumer markets
w.u than in B2B markets.
w.u
ww FALSE ww ww ww ww

w .uLearning w .uob go through when purchasing
w uob and how consumer marketswdiffer
.products .uofrom
ww Level w
of Learning: Understandswconcepts and principles w w w w w ww
Rationale: There is much more emphasis on personal selling in B2B markets than in consumer markets. Whereas consumer promotio ns are based more on advertising,
B2B sales are based on direct selling because there are fewer customers who demand more personal service.

m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
27. (p. 293; Figure 9.4) B2B buying procedures have closer relationships between marketers and buyers than
consumer
h om has.
.cbuying h .com h .com h .com .c om
ob-
TRUE b
ob-
b
ob-
b
ob-
b
ob -bh
w.u w.u w.u w.u w .u
ww ww ww ww ww
m .com .com .com om
bh.co
b h b h b h h.c
- b-
w w.u w.u w.u
Rationale: Figure 9.4 describes the buying procedures of B2B markets and consumer markets. It indicates that B2B markets have closer relationships between
w
ww marketers and buyers. ww w w ww w w
28. (p. 293; cFigure

b h . om9.4) B2B productsbare
h.cmuch
om less complex thanhthose
b .comsold to consumers.bh.com bh.co
m
ob-
FALSE ob- ob- ob- .uo b-
w.u w .u w .u w.u w
ww ww ww ww ww
.com .com h.co
m
h.c om
b h b h b h.c om
.uo b- o b-
.uo b-
.uo b-b .uo b-b
w w.u
Rationale: Figure 9.4 describes the products purchased by B2B and consumer markets. The products bought by B2B markets require technical, complex products.
w w w
ww w
Consumer products are less technical.
w ww ww ww
29. (p. 294) cInom

b h . B2B packaging is abmarketing
h .com tool. h.c om h.c om h.c om
FALSE
ob- ob- o b-b o b-b .uo b-b
w.u w .u w.u w.u w
ww ww ww ww ww
om .com om .com
.c h.c h.c om
-bh ob-
bh
ob b-b b- b h
b-b
w.u w.u .uo .uo
Rationale: Packaging tends to be more functional in B2B, rather than designed as a marketing tool, as with consumer markets.
w w w .uo
ww ww ww ww ww
30. (p. 294) The 4Ps are product, price, place and promotion.
TRUEh.com h.co
m
h.co
m
h.c om .c om
ob-
b -b b-b b-b -bh
. u .uob .uo w.u
o .u ob
www ww
w
ww
w
ww ww
w
Learning Goal: Describe the various aspects that go into the product element of marketings 4Ps
om
h.c h .com h.c om h.c om .c om
o .u o
ww ww ww w tow w ww
31. (p. 294) A total product offer consists of everything that consumers evaluate when deciding whether
purchase a good or service.
TRUE om om om om om
w w w w.u w
ww ww ww ww ww

m
h.com
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
32. (p. 296) Market research is the analysis of markets to determine opportunities and challenges and to find the
information
b h .com b h com
needed to make good .marketing decisions.
b h .com b h .com b h .com
ob-
TRUE ob- ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
m .com .com .com om
bh.co
b h b h b h h.c
- b-
w w w.u w.u w.u
ww ww w w ww w w
33. (p. 301) Brand loyalty refers to the combination of factors that people associate with a given brand name.
FALSE m m m m m
h.c o h.co h.c o h.c o h.co
o b-b .uob
- b
w w.u w w w.u w
w ww ww ww ww

m
h.c om h.c om
o b- .uo b- uo b
o- b-b .uo b-b
w w.u34. (p. 295; Figure 9.5) A total
w wproduct offer may w.the
include
w store's w.u
surroundings.
w w
w w w w ww
TRUE
b h .com bh.co
m
ob- -Chapter 09 #34
.uDias .uo b-
.uo b-b o b-b .uo b-b
w w w w.u w
ww Learning Goal: Describe thew w w
welement of marketings 4Ps
various aspects that go into the product ww ww
Rationale: The total product offer consists of those things that are important to customers sometimes far beyond the product itself. Figure 9.5 shows store surroundings
as a potential component of a total product offer.

ob-
.u35. . uob
-
. uob
-
.uo b- .uo b-b
w w
(p. 297) A focus group w w w
ww ww is a type of primary research.
ww ww ww
TRUE

b
ob- -Chapter 09 #35 - b - b b-b -bh
w.uDias w .uob w .uob w.u
o
w .u ob
ww Learning Goal: Describe thewvarious
w aspects that go into the productwelement
w of marketings 4Ps ww ww
Rationale: Primary research is research that a marketer creates; that is, the marketer implements the collection of the data firsthand. Primary research is usually
conducted in the form of a survey or a focus group.

o b-b o b- b
o o b-b b-b ob -bh
w.u36. (p. 305) The productwlife
w.ucycle is a theoretical w w.u of what happens to w
model w.uand profits for a product
sales w .u
w w w w w ww class
over time.
TRUE
m om om om om
.uo b -
w w w w.u w
Learning Goal: Describe the different types of pricing that should be considered in marketing products

m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
37. (p. 307) Price leadership is demand based.
FALSE .com .com m om om
h h h.co h.c -bh
.c
.uo b-b o b-b .uob
- b
o b-b ob
w w.u w w.u w .u
ww w w ww ww ww
m
.com .com .com om
o b - o b- o b- o ob- b-b
w w.u w w.u w w.u w w.u w w.u
w w
38. (p. 307; Figure 9.9) Cellular w
phones and DVD players w of the product life cycle.
are in the maturity stage w
TRUE

m
o b-b .uob
- b
w w.uDias - Chapter 09 #38 w w w.u w
w ww ww
Learning Goal: Describe the different types of pricing that should be considered in marketing products ww ww
Rationale: Figure 9.9 shows the four stages of the product life cycle and provides examples of products that are in each stage. Cell phones and DVD players are shown
.com .com m om om
in the maturity stage of the product life cycle.
b h b h bh.co h.c h.c
o b- o b- o b-
.uo b-b .uo b-b
w w.u w w.u w w.u w w
w w demand-based pricing.
39. (p. 307) Airlines follow w ww ww
FALSE
.c om h.co
m
w .u w .uo w.u
o
w.u
o
w .uo
ww Dias - Chapter 09 #39
ww ww
Learning Goal: Describe the different types of pricing that should be considered in marketing products ww ww
Rationale: Competition-based pricing is a strategy based on what all the other competitors are doing. Pricing depends on customer loyalty, perceived differences and
om .com om .com
the competitive climate. Price leadership is the procedure by which one or more dominant firms set the pricing practices that all competitors in an industry follow.
.c h.c h.c om
-bh h h
Airlines use price leadership, a type of competition-based pricing strategy.
b b-b b b-b
ob ob- .uo .uo b- .uo
w.u w.u w w w
ww ww ww ww ww
40. (p. 308) The break-even point is how many of a product would have to be sold in order to make a neither a
profit nor a loss.
TRUEh.com h .com h .com h .com h .com
b- b b- b b- b b- b b-b
o o .uo o o
w w.u w.u w w.u w.u
w ww ww ww ww
om .com
h.c h h.c om h.c om .c om
b-b b- b b-b b-b
Rationale: A break-even point shows how many products have to be sold to break even. Then, beyond that point, profit begins.
b -bh
o
w .u o
ww ww ww w w ww
41. (p. 284) __________, one of the eight functions of marketing, uses market research to determine the needs of
the customer.
Buying b h .com b h .com b h .com b h .com b h .com
- - - - -
w .uob w .uob w .uob w.u
ob
w .uob
ww ww ww ww ww
.com
bh h.c om h .com h.co
m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
42. (p. 284) Packaging and advertising are two ways to inform customers about a product or to engage in
__________,
h .comone of the eight functions
h .comof marketing. bh.com h .com .c om
ob-
sellingb
ob-
b
ob- ob-
b
ob -bh
ww ww ww ww ww
m .com .com .com om
bh.co
b h b h b h h.c
.uo
- b-
b .uo o b- ob- o b-b
w w w.u w.u w.u
ww ww w w ww w w
43. (p. 284) The wine maker who must wait a year or more for the wine to age correctly needs long-term
__________,mone of the eight functions mof marketing.
storageb h . c o
b h. c o
m
ob - - - - -
w.u w .uob w .uob w.u
ob
w .uo b
w w ww ww ww ww
.com .com m om om
h
b b h bh.co h.c h.c
.uo b- o b- .uo b-
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
44. (p. 286) Marketers must analyze competitors' __________ (one of the eight functions of marketing) so that he
or she is prepared for changes in the business environment.
m m m m m
marketing
-bh.coinformation h.co b h.co -b h.co h.co -b -b
ob ob- ob ob ob
ww.u w . u w.u w.u w.u
w ww w w w w ww
om .com
-bh ob-
bh
b-b b- b h
b-b
Rationale: There are many tasks marketing professionals must complete in order to successfully sell products and services to consumers. Marketers must use marketing
ob
w.u w.u .uo .uo
information to be prepared to change the message and the product or service to continue to sell in a changed environment.
w w w .uo
ww ww ww ww ww
45. (p. 286) __________ is the process of dividing the total market into several groups whose members have
b .com
similarhcharacteristics.
b h .com b h .com b h .com b h .com
ob- segmentation .uob-
.uMarket .uob
-
.uob
-
.uob
-
w w w w w
ww ww ww ww ww

h.c om .com
h h.c om h.c om .c om
b-b b- b
Level of Learning: Knows basic terms and facts b-b b-b b -bh
o
w .u o
ww ww ww w w ww
46. (p. 287) Selecting which groups an organization can serve profitably is called __________.
target marketing
om om om om om
w w w w.u w
ww ww ww ww ww

m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
47. (p. 289) __________ is a marketing strategy with a goal to keep individual customers over time by offering
them new .co m
products that exactly meet m requirements. .com
.cotheir .com .com
b h b h bh b h b h
ob-
Relationship marketing ob- ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
m .com .com .com om
bh.co
b h b h b h h.c
- b-
w w w.u w.u w.u
ww ww w w ww w w
48. (p. 289) Targeting smaller but profitable market segments and designing or finding products and services for
them is called m __________.
niche b h . c o
marketing b h.com b h .com b h .com bh .com
ob - - - - -
ob
w .uob
w w ww ww ww ww
.com .com m om om
h
b b h bh.co h.c h.c
.uo b- o b- .uo b-
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
49. (p. 288; Figure 9.2) Upscale, moderate and budget conscious are three types of __________ segments.
lifestyle
.c om h.co
m
w .u w .uo w.u
o
w.u
o
w .uo
om .com om .com
Rationale: Figure 9.2 lists some methods marketers use to segment the market along with sample variables and typical segments . Upscale, moderate and budget
.c h.c h.c om
-bh h h
conscious are typical segments based on lifestyle.
b b-b b b-b
w.u w.u w w w
ww ww ww ww ww
50. (p. 290) A(n) __________ is the group that an individual uses as a reference point in the formation of his or her
beliefs, attitudes, values or behavior.
m m m m m
reference
-b h.cogroup h.co -b h.co -b h.co h.co -b -b
.uob w.u
ob
w.u
ob
w.u
ob
w.u
ob
www w w ww w w w w
Learning Goal: Explain the process consumers go through when purchasing products and how consumer marke ts differ from business-to-business markets
om
o .u o
ww ww ww w w
w one ww
51. (p. 291) __________ is the set of values, attitudes and way of doing things that is transmitted from
generation to another in a given society.
Culture om om om om om
w w w w.u w
ww ww ww ww ww

m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
52. (p. 291) __________ is the set of values, attitudes and ways of doing things that results from belonging to a
b .comgroup, religious group,

certain ethnic
h b h
m group or other group
.coracial bh .comwith which one closely
b h
m
.coidentifies. b h .com
ob-
Subculture ob- ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
m .com .com .com om
bh.co
b h b h b h h.c
- b-
w w w.u w.u w.u
ww ww w w ww w w
53. (p. 291) __________ is a type of psychological conflict that can occur after a purchase and is the same as
buyer's remorse.
m
Cognitive
b h .codissonance b h.com b h .com b h .com bh .com
ob- ob- ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
.com .com m om om
h
b b h bh.co h.c h.c
.uo b- o b- .uo b-
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
54. (p. 291; Figure 9.3) __________ is the first step in the consumer decision-making process.
Problem recognition
.c om h.co
m
w .u w .uo w.u
o
w.u
o
w .uo

ob(p.- 291) Examples of American
.u55.
-
.uob __________ include b-
.uoan emphasis on
-
.uobfreedom and diversity.
education, .uob
-
w w w w w
ww culture ww ww ww ww

ob- -Chapter 09 #55
.uDias
-
.uob go through when purchasing
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.products b-
.uofrom .uob
-
w Learning Goal: Explain the w
process consumers w busines s-to-business w
markets
ww Level of Learning: Understandswwconcepts and principles ww ww ww
Rationale: Culture is the set of values, attitudes and way of doing things that is transmitted from one generation to another in a given society. The American culture, for
example, emphasizes education, freedom and diversity.
h.c om h .com h.c om .c h.c om om

o b-b o b- b
o o b-b ob -bh b-b
w.u56. (p. 291) Marketers often.u
ww reassure consumerswafter
.u .u
ww they make a large purchase
ww that they have made
.u
wtowright
ww choice in an attemptwto reduce __________. w w
cognitive dissonance or buyer's remorse
m om om om om
.uo b -
w w w w.u w
ww Dias - Chapter 09 #56 ww ww ww
Learning Goal: Explain the process consumers go through when purchasing products and how consumer markets differ from b usiness-to-business markets
ww
Rationale: Consumers who make a major purchase, such as a car, may have doubts about whether they got the best product at the best price. Marketers must reassure
.com om .com
such consumers after the sale that they made a good decision, thus reducing cognitive dissonance or buyers remorse.
bh h.c h h.co
m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
57. (p. 294) __________ refers to the process of overseeing all the aspects of marketing a particular product or
service for m purpose of attracting.cand
.cothe om retaining customers. .com .com .com
b h b h bh b h b h
ob-
Marketing management ob- ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
m .com .com .com om
bh.co
b h b h b h h.c
- b-
w w w.u w.u w.u
ww ww w w ww w w
58. (p. 294) The __________ consists of everything that consumers evaluate when deciding whether to purchase a
good or service.
m
h.co offer
total-bproduct b h.com b h .com b h .com bh .com
ob - - - -
ob
w .uob
w w ww ww ww ww
.com .com m om om
h
b b h bh.co h.c h.c
.uo b- o b- .uo b-
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
59. (p. 296) __________ is the analysis of markets to determine opportunities and challenges and to find the
information needed to make good marketing decisions.
m m m m om
Marketing
-b h.co research h.co h.co h.co h.c
.uob .uo b-b o b-b o b-b .uo b-b
w w w.u w.u w
ww ww ww ww ww
om .com
ob -bh ob-
bh
b-b b- b h
b-b
ww ww ww
60. (p. 298) __________ is the creation of real or perceived product differences. ww ww
Product differentiation
- b -bh b-b b-b -bh
w.uob w .u ob
w .uo w.u
o
w .u ob
h.c om .com h.c om h.c om om

b-b b- b h
b-b b - bh.c b-b
o o o o o
w.u61. (p. 298) Location, brand
w.uawareness and image are .important
wu differentiators for
w.u marketers of __________
w.u goods
ww and services. ww ww ww ww
convenience
m om om om om
o
.uDiasb - o b-b o b-b ob- .uo b-b
w - Chapter 09 #61 w.u w.u w.u w
ww Learning Goal: Describe thew
w w
Rationale: Convenience goods and services are products that the consumer wants to purchase frequently and with a minimum of e ffort, such as candy, gum, milk,
snacks and the like. Location, brand awareness and image are important differentiators for marketers of convenience goods and services.

m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
62. (p. 299) Godiva chocolates, Rolex watches and expensive cigars are products perceived as having no
reasonable m
.cosubstitute. .com as __________ bconsumer
They are classified .com goods. .com .c om
b h b h h b h -bh
ob-
specialty ob- ob- ob- ob
ww ww ww ww ww
m .com .com .com om
bh.co
b h b h b h h.c
- b-
w w.u w.u w.u
Rationale: Specialty goods and services are consumer products with unique characteristics and brand identity. These products are perceived as having no reasonable
w
ww ww w
substitute and include Rolex watches, Godiva chocolates and expensive cigars.
w ww w w
63. (p. 303) cA(n)

b h . om __________ is abproduct
h.comthat a store advertises
b h .cat
om or below cost to attractcpeople
b h . om to the store. bh.com
ob-leader
loss ob- ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
.com .com h.co
m
b h b h b h.c om h.c om
.uo b- o b-
.uo b-
.uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
64. (p. 303) __________ can be defined as the proportion of sales made by a company versus the total number of
sales for thatmparticular product.
Market b h co
.share bh .com b h .com b h .com b h .com
-
ob - - - -
w.u w .uob w.u
ob
w.u
ob
w .uob
ww ww ww ww ww
om .com om
.c h.c .com h.c om
-bh h h
b b-b b b-b
w.u w.u w w w
ww ww ww ww ww
65. (p. 307) __________ means to price based on demand. A product is designed so it satisfies needs and meets the
profit margins desired by the company.
.com
Targethcosting h.co
m
h.co
m
h.co
m
h.co
m
-b -b -b -b -b
.uob w.u
ob
w.u
ob
w.u
ob
w.u
ob
www w w ww w w w w
om
o .u o
ww ww ww www ww
66. (p. 307; Figure 9.9) The four stages of the product life cycle are introduction, growth, maturity and __________.
decline
m om om om om
.uo b -
w w w w.u w
ww Dias - Chapter 09 #66 ww ww
ww ww

m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
67. (p. 309) When a manufacturer of HDTVs decides to set the price high to recover the costs of developing the
sets while m little competition,.citom
.cothere's is using a __________.c om strategy.
pricing .com .com
b h b h bh b h b h
ob-
skimming ob- ob- ob- ob-
w.u w.u w.u w.u w.u
ww ww ww ww ww
m .com .com .com om
bh.co
b h b h b h h.c
- b-
w w.u w.u w.u
Rationale: A skimming price strategy is one in which a new product is priced high to make optimum profit while theres little competition. This also allows the firm to
w
ww ww w
recover the costs of developing the sets while there is little competition.
w ww w w
68. (p. 309) cTo

b h . omdiscourage competitors
b h.cofrom
m entering with a similar
b h .comproduct and to attract
b h .cmore
om customers, a firm h.com
b
would
ob- most likely use __________ob- pricing. ob- ob- ob-
.u . u . u . u . u
w ww penetration ww w ww w ww ww w w
h .com
b b h.com bh.co
m
h.c om h.c om
b- b- b-
.uo o .uo .uo b-b .uo b-b
w w.u
Level of Learning: Understands concepts and principles w w w
ww w w ww ww
Rationale: Penetration strategy is a pricing strategy in which a product is priced low to attract more customers and discourage competitors. ww
69. (p. 310)

h om
.cDepartment stores are most
h
m to have higher regular
.colikely h .com prices but then have h com special sales bh.com
.many
b b b b
obwhich the prices are
.uduring b-
.uolowered. These department -
.uobstores are most likely
-
uob a __________ pricing
.using .uob
-
w w w w w
ww strategy. ww ww ww ww
high-low
b h .com bh .com h.c om h.com h.c om

ob- ob- .uo b-b .uo b- b
.uo b-b
w.uDias - Chapter 09 #69 w.u w w w
ww Learning Goal: Describe thew w w
different types of pricing that should bewconsidered in marketing products w w ww
Rationale: Department stores and other retailers most often use a high-low pricing strategy. The idea is to have regular prices that are higher than those at stores using
EDLP, but also to have many special sales in which the prices are lower than those of competitors.
b h .com b h .com b h .com b h .com b h .com

- - - - -
w.uob w .uob w .uob w .uob w .uob
ww 70. (p. 284) __________
wwis the process of planning
wwand executing the conception,
ww pricing, promotionwand
w
distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.
A. Management
B. Strategy
- - - - -
w .uC.obMarketing w .uob w .uob w.uob w .uob
ww D. Leadership ww ww ww ww
m om om om om
-
.uo b .uo b-b .uo b-b ob- .uo b-b
w Learning Goal: Define marketing and its eight functions
w w w.u w
ww ww
ww ww ww

m
h.c om
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
71. (p. 284) Which of the following is one of the functions of marketing?
.com
A. Transportation
- b
B. Assess b
- demand
future human resource - b - b -bh
w .uC.obLead the company towprofitability
.uob w .uob w .uob w .u ob
ww ww ww ww ww
D. Establish the vision of the organization
m .com .com .com om

.uDiasb -
o - Chapter 09 #71 .uo b- o b- ob- o b-b
w w w.u w.u w.u
ww ww
w w ww w w
om
h.cThe wine maker who-ages om om om om
72. (p.-b284)
b b bh.cher wine for up to b bh.cis concerned with which
a -year
b
.c
-bh function of marketing?
b-bh
.c
o o o o o
w.uA. Buying w.u w.u w.u w.u
ww B. Selling ww ww ww ww
C. Transportation
D. Storageom om om om om
bh .c bh.c .c bh.c bh.c
ob- - -bh - -
w . u w .uob w .uob w .uob w .uob
ww ww ww ww ww
.c om h.co
m
h.c om h.c om
Rationale: Sometimes companies are not ready to bring products directly to the consumer. Consider a wine maker who must wait a year or more for the wine to age
h.c om
correctly and be ready to sell. Because of the long-term storage required for the product, a winery must plan for the cost of storage as well as the cost of insurance in
w .u .uo
case damage occurs while the wine is being stored.
w w.u
o
w.u
o
w .uo
ww ww ww ww ww
73. (p. 285) A neighborhood grocer who guarantees fresh produce is concerned with which function of marketing?
A. Selling
- - - - -
w .uB.obStorage w .uob w .uob w .uob w .uob
ww C. Quality ww ww ww ww
D. Risk

b
ob- -Chapter 09 #73 ob -bh b-b b-b b -bh
w.uDias w .u w .uo w.u
o
w .u o
w w wwand its eight functions
Learning Goal: Define marketing ww ww ww
Rationale: Quality and quantity: Companies must understand the quality standards of the product they offer in order to meet or exceed customer expectations. A
neighborhood grocer, for example, must be constantly concerned with the quality of produce it sells. If the produce is not of high quality, it is unlikely that customers
h.c
will come back. om h .com h.c om h.c om .c om
o
w .u o
ww ww ww w w ww
74. (p. 285 - 286) Which of the following statements about marketing is true?
A. Marketing assures that the correct quality and quantity of goods is available for purchase
b h .comhas a financial aspect

B. Marketing
b h .ctoom
it
b h .com b h .com h.c om
-
C. Marketers are responsible
.uD.obAll of the above are w . u
- some measure of riskob-
obfor . u . u ob- .uo b-b
w w w w
ww ww true ww ww ww
h .com
b h.c om h .com h.co
m
h.c om
.uo b- .uo b-b
.uo b- b
o b - b
.uo b-b
w w
Level of Learning: Understands concepts and principles w w.u w
ww ww ww w w ww
Rationale: There are eight functions of marketing, including: (1) quality and quantity, (2) risk, (3) financial, (4) marketing information, (5) buying, (6) selling, (7)
transportation and (8) storage.
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
75. (p. 287) Selecting with groups an organization can serve profitably is called ______________.
A. Market m
.cosegmentation .com .com .com .com
- b
B. Targeth marketing - b h - bh - b h - b h
w .uC.obRelationship marketingw .uob w .uob w .uob w .uob
ww ww ww ww ww
D. Marketing management
m .com .com .com om

.uDiasb -
w w w.u w.u w.u
ww ww w
w ww w w
76. (p.-b289)
om
h.cTargeting smaller but-bprofitable
h.c om
market segments .c om
h.c and services for-bh.c
om om
o b o b o b -bhand designing or finding
o b -bproducts ob
w w.uthem is called ___________________.
w w.u w w.u w w.u w w.u
w A. Market segmentationw w w w
B. Niche marketing
h
D. Marketing
b .commanagement b h.com bh .com b h .com b h .com
- - - - -
w .uob w.u
ob
ww w w ww ww ww
om m
.c h.co h.c om h.c om h.c om
ob -bh
b- b b-b b-b b-b
w .u w .uo w.u
o
w.u
o
w .uo
ww ww ww ww ww
77. (p. 289) __________ is a marketing strategy with a goal to keep individual customers over time by offering
them new products that exactly meet their requirements.
b .com marketing
A. Relationship
h bh .com b h .com b h.com b h .com
- - - - -
w .uB.obMarketing management w .uob w .uob w .uob w .uob
ww C. Niche marketingww ww ww ww
D. Target marketing

b
ob- -Chapter 09 #77 ob -bh o b-b o b-b ob -bh
w.uDias w .u w.u w.u w .u
w w w w
Learning Goal: Understand market ww ww

78.
ob(p.- 286 - 287) Campbell has expanded
- its product line to appeal
- to a number of different
b- tastes. Campbell.unoticed
ob-
w .uthe population growth w
in uobLatino community inwcities
.the .uob across the nation, so
w .ituo
introduced a red bean w
soup that
ww ww ww ww ww
would appeal to the Latino market. It also noticed the growth in the American South market so it introduced a
Creole soup to appeal to those people. By providing different tasting soups for different populations of the U.S.
Campbell
h om
.cis .com
practicing _________________.
h h .com h .com h .com
- b
A. Advertising - b - b -b - b
w .uB.obMarket segmentationw.uob w .uob w .uob w .uob
ww ww ww ww ww
C. Niche marketing
D. Distribution management
m
h.com
o b - b
.uo b-b
w w w w.u w
Rationale: The process of dividing the total market into several groups whose members have similar characteristics is called market segmentation.
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
79. (p. 290) The first step in the consumer decision-making process is ______________.
.com evaluation
A. Alternative
- b
B. Information search - b - b - b -bh
w .uC.obProblem recognitionw.uob w .uob w .uob w .u ob
ww ww ww ww ww
D. Purchase decision
m .com .com .com om

.uDiasb -
w w w.u w.u w.u
ww ww
w w ww w w
om
h.c__________ involves-bchanges
80. (p.-b290)
om
h.c in an individual's-bbehavior
h.c om
.c experiences and bh.c
resulting from previous
om om
b b b b -bh -
w
o
.uinformation. w .u o
w .uo
w .u o
w .uob
ww A. Learning ww ww ww ww
B. Culture
C. Cognitive dissonance
h .com
D. Perception
b b h.com b h .com b h .com b h .com
- - - - -
w .uob w.u
ob
ww w w ww ww ww
om m om om
.c h.co h.c h.c h.c om
ob -bh
b- b b-b b-b b-b
w .u w .uo w.u
o
w.u
o
w .uo
ww ww ww ww ww
81. (p. 290) A(n) __________ is the group that an individual uses as a reference point in the formation of his or her
beliefs, attitudes, values or behavior.
A. Market m
.cosegment .com .com .com .com
- b h - bh - b h - b h - b h
w .uB.obReference group w.uob w .uob w .uob w .uob
ww C. Collective groupww ww ww ww
D. Formative group

b
w.uDias w .u w.u w.u .u
w w w w
w consumers go through when purchasing
Learning Goal: Explain the process
w
w products and how consumer markets ww
w differ from busines s-to-businesswmarkets

82. (p.- 291; Figure 9.3) Which of o
the-following is an influence -on the consumer's decision-making
- process? -
w .uA.obFamily w .u b w .uob w .uob w .uob
ww ww ww ww ww
B. Previous experience
C. The marketing mix
omabove are influences .on
D. All of.cthe m consumer's decision-making
cothe .com process om om
b-b
h
b-b
h
b-b
h bh.c b-b
h.c
.uo .uo .uo ob- .uo
w w w w.u w
ww ww ww ww ww
.com om .com m om
bh h.c h h.co h.c
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
83. (p. 291) Another name for buyer's remorse is _______________________.
.comdissonance
A. Cognitive
- b
B. Cognitive assimilation ob- b - b - b -bh
w .uC.obNormative dissonance w .u w .uob w .uob w .u ob
ww ww ww ww ww
D. Affective dissonance
m .com .com .com om

.uDiasb -
w w w.u w.u w.u
ww ww w ww
w w w
om
h.c__________ is the set-bofh.values,
c om .c om om om
84. (p.-b291)
b b
attitudes and way
b bh.c
-bhof doing things thatoisb-transmitted from one
b-bh
.c
o o o o
w.ugeneration to anotherwinwa.ugiven society. w.u w.u w.u
ww A. Generational rules w ww ww ww
B. Subculture
C. Cultureom
h
D. Ethnicity
b .c b h .com bh .com b h .com b h .com
- - - - -
w .uob w.u
ob
ww w w ww ww ww
om m om om
.c h.co h.c h.c h.c om
ob -bh
b- b b-b b-b b-b
w .u w .uo w.u
o
w.u
o
w .uo
ww ww ww ww ww
85. (p. 291 - 292) Automobile dealers may send positive press articles about the particular car their customers
bought and offer product guarantees to the customers. They most likely do this in an attempt to reduce the
customers' m
.co________________________..com .com .com .com
- b h - bh - b h - b h - b h
w .uA.obCognitive dissonancew.uob w .uob w .uob w .uob
ww B. Negative word-of-mouth ww ww ww ww
C. Cost of the car
D. Time used in the purchase process
m om om om om
bh.co -bh
.c h.c h.c -bh
.c
.uob
-
ww w w w.u w .u
w Dias - Chapter 09 #85
ww ww ww ww
om .com om om
Rationale: Cognitive dissonance is a type of psychological conflict that can occur after a purchase and is the same as buyers remorse. Consumers who make a major
h.c h h.c h.c .c om
purchase such as a car, may have doubts about whether they got the best product at the best price. An auto dealer may send positive press articles about the particular
w .uo
dissonance. w .uo w .uo w.u
o
car a consumer purchased. The dealer may also offer product guarantees and provide certain free services to the customer to reduce the customers cognitive
w .u o
ww ww ww w w ww
86. (p. 293; Figure 9.4) Which of the following statements about B2B m markets is true?
A. B2B b h com have unlimitedbpotential
.markets h .com customers b h .co b h .com h.c om
-
.uB.obB2B products are always b-
.uobought .uob
-
.uob
-
.uo b-b
w w without customization
w w w
ww C. B2B buyers are w w
trained ww ww ww
D. There are impersonal relationships between marketers and B2B buyers

m
h.c om
o b - b
.uo b-b
w w w w.u w
Rationale: Figure 9.4 compares B2B and consumer buying behavior. The figure states that B2B buyers are trained, there are relatively few potential customers and
m
B2B products frequently require customization.
.com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww www w w
87. (p. 294) __________ refers to the process of overseeing all the aspects of marketing a particular product or
service for m purpose of attracting.cand
.cothe om retaining customers. .com .com .com
- b h
A. Marketing management ob- b h - bh - b h - b h
w .uB.obCustomer management w .u w .uob w .uob w .uob
ww ww ww ww ww
D. Market segmentation
m .com .com .com om
.uo b -
w w w.u w.u w.u
ww Dias - Chapter 09 #87 ww w w ww w w
h.c om h.com h .com h .com h .com

b-b b
ob- of everything that
o (p. 294) The __________.uconsists
.u88. b- b
.uoconsumers b- b
.uodeciding
evaluate when
-
.uob a
whether to purchase
b
w w w w w
ww good or service. ww ww ww ww
A. Product line
B. Productomix
C. Total
b h c m offer
.product b h.com bh.co
m
h.c om h.c om
-
.uD.obProduct life cycle w.uob
-
.uo b-
.uo b-b .uo b-b
w w w w w w
w w ww ww ww
.c om
h.co
m
ob -bh b- b b-b
b-b b-b
w .u .uo
w w.u
o
w.u
o
w .uo
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89. (p. 295; Figure 9.5) Which of the following is a potential component of a total product offer?
A. Brand h om
.cname h .com h .com h.com h.c om
- b - b - b - b b-b
w .uB.obConvenience w .uob w .uob w .uob w .uo
ww C. Guarantee ww ww ww ww
D. All of the above are part of the total product offer
h .com .c om h.c om h.com .c om

b
w w Learning Goal: Describe thew
w w

90.
ob(p.- 297) __________ is research
- that a marketer creates;
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- the collection ofob
the
-
w .udata firsthand. w .uob w .uob w .uob w .u
ww ww ww ww ww
A. Primary research
B. Secondary research
C. Unique m
.coresearch om om om om
bh h.c h.c bh.c h.c
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-
D.obFirsthand research
w w w w.u w
ww ww ww ww ww
bh .com h.c om .com

h h.co
m
h.com
b- b-b
.uo .uo .uo b- b
o b - b
.uo b-b
w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
91. (p. 297) A(n) __________ is a group of products that are physically similar or intended for a similar market.
A. Product m
.comix .com .com .com .com
b h
- product offer
B. Total - b h - bh - b h - b h
w .uC.obProduct line w.uob w .uob w .uob w .uob
ww ww ww ww ww
D. Product group
m .com .com .com om

.uDiasb -
w w w.u w.u w.u
ww ww w
w ww w w
om
h.c__________ is the creation
.c om om om h.co
m
92. (p.-b298)
b b -bh of real or perceived
b bh.c differences. b-bh.c
-product b- b
o o o o .uo
w w.uA. Product assimilationw w.u w w.u w w.u w
w w
B. Product differentiation w w ww
C. Product demarcation
D. Productodiscrimination
m om om om om
h.c h.c h.c h.c h.c
.uo b-b o b-b .uo b-b .uo b-b .uo b-b
w w.u w w w
ww w w ww ww ww
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m
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w 93. (p. 261 - 262) Which of w .uo o
w.u is most likely a specialty
o
w.u good or service? ww.u
o
w w w w the following goods or
w w
services w w w
A. The cardiologist you choose after having a heart attack
B. The clothes you buy
b h .com
C. Groceries
bh .com b h .com b h.com h.c om
-
.uD.obThe movies you see .uob
-
.uob
-
.uo b- .uo b-b
w w w w w
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m
om om om om
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b h.c -bh
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- ob
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ww w w w.u w .u
Rationale: Specialty goods and services are consumer products with unique characteristics and brand identity. Because these p roducts and services are perceived as
w ww ww ww ww
having no reasonable substitute, the consumer puts forth a special effort to purchase them. Services provided by medical specialists such as a cardiologist are specialty
services.

94.
ob(p.- 305) The __________.uisoba-theoretical model of.what-happens to sales and profits
- for a product class over
-
w .utime. w w uob w .uob w .uob
ww ww ww ww ww
A. Diffusion of innovation
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C. Growth
bh .coofmproducts b h .com h.c om
bh.c
om h.c om
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D.obTime
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w w w w.u w
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h h.co
m
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ob
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95. (p. 307; Figure 9.9) The last stage in the PLC is _____________________.
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- b
B. Maturity - b - b - b -bh
w .uC.obCompletion w .uob w .uob w .uob w .u ob
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D. Closure
m .com .com .com om

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w w w.u w.u w.u
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om
h.c__________ is the procedure
96. (p.-b307)
om
.c by which one or more .c om
h.c practices that all-bh.c om om
o b ob -bh o b -bh dominant firms setobthe
-bpricing ob
w w.ucompetitors in an industry
w w.ufollow. w w.u w w.u w w.u
w A. Affirmative pricingw w w w
B. Target costing
C. Price leadership
D. Firstb h com pricing
.mover b h.com bh .com b h .com b h .com
- - - - -
w .uob w.u
ob
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om m om
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ob -bh
b- b b-b b-b b-b
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o
w.u
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97. (p. 302 - 303) A firm generally has several objectives in mind when setting a pricing strategy including which of
the following?
A. Building
b h .com traffic
bh .com b h .com b h.com b h .com
- - - - -
w .uB.obFurthering social objectives
w .uob w .uob w .uob w .uob
ww C. Achieving greater wwmarket share ww ww ww
D. All of the above may be pricing objectives

b
w w Learning Goal: Describe thew
w w
different types of pricing that should bewconsidered in marketing products w
w ww
Rationale: A firm generally has several objectives in mind when setting a pricing strategy including (1) achieving a target return on investment or profit, (2) building
traffic, (3) achieving greater market share, (4) creating an image, (5) furthering social objectives.
o b-b b- b b-b b-b b -bh
w.u98. (p. 305; Figure 9.8) When uo
wa.product w .uo w.uo w .u o
w w w w w
is in the mature w
w stage of the product life ww that is
w cycle, one pricing strategy
often followed is ______________________________.
A. A skimming strategy
.comthe price to meet competition
B. Adjusting
bh b h .com b h .com bh.c
om h.c om
-
.uC.obFurther reduce the price
.uob
-
.uob
- ob- .uo b-b
w w w w.u w
ww D. Consider a pricewincrease
w ww ww ww

m
h.com
b-
.uo .uo b-b .uo b- b
o b - b
.uo b-b
w Learning Goal: Describe the different types of pricing that should be considered in marketing products
w w w.u w
ww ww
Level of Learning: Understands concepts and principles ww w w ww
Rationale: When a product is in the mature stage of the product life cycle, Figure 9.8 suggests a strategy that is often followed is a further price reduction.
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
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99. Describe the eight functions of marketing.

ob-eight functions of marketing
.uThe
-
.uob are: .uob
-
.uob
-
.uob
-
w w w w w
ww Buying: Consists ofwinventing
w and developingwor
w procuring products to w
fitwthe needs of the customer.
wwThese
needs are determined through market research.
Selling: When customers are informed of a product, selling is taking place and it can be done through many
methods;h om
.cpackaging and advertising
h.cotomthe consumers arebtwo h om
.capproaches. h .com h .com
b b b b
ob-
.uTransportation: Obviously ob- must be transported
.ugoods b- the factory to the final
.uofrom
-
.uobplace they will be sold ob-
.uvia
w w w w w
ww some mode of transportation. ww Transportation w is w
much more complicatedwtoday w because many companies ww are
producing products overseas and bringing them to the United States to sell.
Storage: Sometimes companies are not ready to bring products directly to the consumer. Consider a wine maker
who must m a year or more for the
.cowait m to age correctly and
.cowine m ready to sell. Because
.cobe .coofmthe long-term bh.com
b h b h b h b h
ob- required for the product,
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.uob a winery must plan
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obthe
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.uoin
w w w w w
ww case damage occurswwhile w the wine is being stored.ww ww ww
Quality and quantity: Companies must understand the quality standards of the product they offer in order to
meet or exceed customer expectations. A neighborhood grocer must constantly be concerned with the quality of
produce
m If the produce is not
.itcosells. .coofmhigh quality, it is b .comthat customers will
unlikely .comback. Likewise, the
come .com
b h b h h b h b h
ob- wants to ensure the.uquantity
.ugrocer ob- of an item needed
-
.uotob satisfy the consumer uob
-
.demand. .uob
-
w w w w w
ww Financial: There needs ww to be methods and procedures
ww for payment to those wwwho provided the product, ww often the
wholesalers and other suppliers. Also, the price that suppliers and wholesalers charge for the products to the
company will in turn affect the company's pricing of its products to the consumers.
.com transporting and bselling
Risk:bBuying,
h h .com products bear somebriskh .cotomthe marketer. Marketers
b h .com must take possible bh.co
m
ob- into consideration, such
.urisks
-
.uobas consumers not being b- to buy the goods.uorobservices
.uowilling
-
.uob
-
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w w w w w
ww or competitors offering ww products that are less w w
expensive ww
or of higher quality. ww
Marketing information: There are many tasks marketing professionals must complete in order to successfully
sell productsmand services to consumers. m Some of these tasks.cinclude m setting prices, determining m how sales of .com
.
the product c o or service will help . c o
companies meet their financial oobjectives, reviewing . c
marketo research and -bh
ob -bh o b -bh o b-bh o b -bh ob
w w.uanalyzing competitors'ww marketing
.u information. Based
w w.u on the changing events w w.inu the business environment,w w.u a
w marketer must be preparedw to change the messagew and the product or service w accordingly. w
h .com .c om h.c om h.com .c om

b
Dias - -Chapter 09 #99 -bh b-b b-b -bh
w.uob w .u ob
w .uo w.u
o
w .u ob
w w ww ww ww ww
100. Define market segmentation and explain three of the methods marketers use to segment the market.

ob- segmentation is the
Market -
process of dividing the total -
obmarket - whose members haveob-
into several groups,
w .usimilar characteristics. w .uob should explain any
[Students w .uthree of the following.]w .uob
Geographic w.u
segmentation
ww ww ww ww ww is
dividing the market by geographic area (cities, counties, states, regions, etc.) Demographic segmentation is
segmentation by age, income and education level, race, profession or religion. Psychographic segmentation is
b .comby lifestyle, values,

segmentation
h b h .com and interests. Benefit
attitudes
b h .comsegmentation is determining
b h .com which benefits are
b h .com
-
preferred - to promote a product.
and using those benefits - - is separating the market
-
w .ubyobusage (volume of product
w .uobuse) or how often a w . uob Volume (usage) segmentation
w . uob w . uob
ww ww ww product is used. ww ww
h .com
b h.c om h .com h.co
m
h.com
o b - b
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w w w w.u w
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m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
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101. Explain the major differences between B2B markets and consumer markets.

b- number of customers
.u1.oThe b-the B2B market is relatively
.uoin
-
.uob few. That is, compared
-
.uob to the 70 million or .so
uob
-
w w w w w
ww households in the U.S.
ww consumer market, there
wware relatively few construction
ww firms, factories or mining
ww
operations, among others.
2. The size of business customers is relatively large. That is, a few large organizations account for most of the
b .comand production of bvarious
employment
h h.comgoods and services. b h .com b h .com b h .com
b- markets tend to be.ugeographically
.u3.oB2B ob- -
.uobFor example, oil fields
concentrated. ob- to be concentrated .inuothe
.utend b-
w w w w w
ww Southwest and in Alaska.
ww Consequently, marketing ww efforts may be concentratedww ww
on a particular geographic area.
Distribution problems can be minimized by locating warehouses near industrial centers.
4. Business buyers are generally considered more rational (as opposed to emotional) than ultimate consumers
(who may m more in impulse.cbuying)
.coengage om in their selectionh.of m and services; they
cogoods m specifications and .com
.couse
b h b h b b h bh
.u ob- more carefully weigh
often . u b- total product offer, including
othe . uob- quality, price and.uservice.
ob- . uob-
w wwdirect. Manufacturerswsell wwproducts, such as tires,wdirectly
ww to auto manufacturers, w
ww 5. B2B sales tend towbe ww but
tend to use intermediaries, such as wholesalers and retailers, to sell to ultimate consumers.
6. There is much more emphasis on personal selling in B2B markets than in consumer markets. Whereas
consumerh om
.cpromotions are basedbmoreh .com
on advertising, B2Bbsales
h .com .combecause there are bh.com
are based on direct bselling
h
b
ob- customers who demand
.ufewer
-
.uob more personal service. .uob
-
.uob
-
.uob
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w w w w w
ww ww ww ww ww
om
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m
ob -bh o b- b
o b-b o b-b b-b
w .u w.u w.u w.u w .uo
w w w
w packaging.
102. List the goals of ww ww ww
1. Protect the
omgoods inside, standhup under handling and storage, be tamperproof, deter theft and yet be easy to
open h
and
b .cuse. b .com b h .com b h .com b h .com
b-
.u2.oAttract .uob
-
.uob
-
.uob
-
.uob
-
w the buyer's attention.
w w w w
ww 3. Describe the contents ww and give informationwabout w
the contents. ww ww
4. Explain the benefits of the product inside.
5. Providecoinformation
m on warranties, warnings and other consumer
com com matters. com com
b
6. Give h . b h . b h . b h . b h .
b- some indication of
.u7.oProvide
price,
ob- value and uses. .uob-
.uand .uob
-
.uob
-
w w the dimensions
w w weight of the actual
w w package. w w w w
w w w w w
h.c om
Dias - Chapter 09 #102 h .com h.c om h.com .c om
o
w .u o
ww ww ww w w ww
m om om om om
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m
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o b - b
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w w w w.u w
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m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
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ob
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103. Explain the steps in the new-product development process.

ob-phases a company might
.uThe
- ob- up with a new product
.uobgo through in orderwto.ucome
-
.uobthat meets the need of.its
uob
-
w w w w
ww customers is called w
the
w product development process.
ww These phases include
ww idea generation, product
wwscreening,
product analysis, development, testing and commercialization. First, companies must generate ideas for a new
product. These new ideas can come from employees or even suppliers. Second, through product screening
companies m look at the new ideas
.cocan .coinmterms of profit potential
.comand marketability of h m product. After this .com
.conew
the
bh b h b h b -bh
. u ob- some products may.unot
phase, ob-be developed any further.
. u ob-Product analysis involves
. u ob-number crunching to.usee
obthe
w w w ww numbers look good, w
ww cost of making the product
ww versus the sales forecasts
ww of that product. If w product wwthe idea is
fully developed and perhaps a prototype is made. Often, companies will use market research to ask customers
their opinions on the new product. Once they receive these options, they may decide to make some changes to
m .com .com to the general public. m m
b h.co before the product is hcommercialized
the product
b
and madehavailable
b h.co -b h.co b
u ob- u ob- ob- ob ob-
ww
. w . w.u w.u w . u
w ww ww w w ww

m
h.c om h.c om
o b- o b- b-
.uothat sells lattes. The w b-b
.uocosts are rent and utilities
o b-b
w w.u104. Determine the break-even
w w.u point for a coffee w
shop
w w
fixed
w w.u of
w $600 per month andwthe variable costs are $1 w
per latte. The price of the w
latte is $3. Be sure to showwyour work
including the break-even formula you used to arrive at your answer.
. com
= h________ . com . com h.c om h.c om
BEP
o b -b o -bh_________
Total fixedbcost
o b -bh o b-b b-b
w.uPrice of 1 unit-Variable .u .u w.u .uo
ww BEP = __________w$600 wwcost of 1 unit w ww ww ww
w
per month ______
$3-$1
BEP = $600/2 or 300 units(lattes) perom
month
.com
bh .c bh .com h h.com h.c om
.u ob- . uob- .uo b-b .uo b- b
.uo b-b
w w w w w
ww ww ww ww ww
m om om om om
bh.co -bh
.c h.c h.c -bh
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-
ww w w w.u w .u
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o
w .u o
ww ww ww w w ww
m om om om om
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w w w w.u w
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m
h.com
o b - b
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w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
h.c om h.c om h.co

m
h.c om .c om
b-b b-b b b-b -bh
.uch9 Summary -
w
o .uo .uob w.u
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w.uons w w.u w.u w.u
ww 104 Dias - Chapter 09
ww w w ww w w
14 Learning Goal: Define marketing and its eight functions
17 Learning
. m Describe the different typescoofmpricing that should be considered
coGoal: . com
. in marketing products
.com .com
- b h b h
- aspects that go into the product - b h - b h - bh
.u26obLearning Goal: Explain thewprocess
.uob consumers go through when obelement uob uob
19 Learning Goal: Describe the various of marketings 4Ps
w w .upurchasing w . w .
ww iness markets
ww ww wwconsumer markets differ fromwbusiness-to-bus
products and how w
22 Learning Goal: Understand market segmentation and name the types of segmentation
m Knows basic terms andcfacts
coLearning:
62 Level of
. om
. .com .com .com
b h b
- of Learning: Understandsoconceptsh bh b h b h
.u1obRationale: A break-even point
36 Level b- and principles
.ushows . uob
-
. uob
-
. uob
-
w w w w w
ww ww how many products w
wwbeyond that point, profit begins.
w have to be sold to break even. Then, ww
1 Rationale: A consumer has several outside influences on his or her decision making including psychological, marketing mix, sociocultural a
nd situational influences.
.com
1 Rationale:
orhprofit,
nt-b
om in mind when setting ahpricing
A firm generally has several objectives
(2) building traffic, (3) -achieving
omstrategy including (1) achieving
bh.c greater market share, (4)-creating
b .c an image, (5) furthering social
b h coam target return on investme
.objectives. b h .com
ob ob - -
w.u1 Rationale: A skimmingwprice
w.ustrategy is one in which a new w .uobis priced high to make optimum
product
ob ob
w.u profit while theres little competition.
w.u T
w w w to recover the costs of developing
his also allows the firm
w w
w the sets while there is little competition.
w w w
1 Rationale: B2B sales tend to be direct. Manufacturers sell products, such as tires, directly to auto manufacturers, but tend to use intermediari
es, such as wholesalers and retailers, to sell to ultimate consumers.
m m m m m
- b h.coBecause consumer groups-bdiffer
1 Rationale: h.cogreatly in age, education level,
- b .co and taste, a business usually
hincome - b
o fill the needs of every h.co
h.ccannot b
obgroup. Thus it must first decideowhich
b groups to serve and then develop
ob products and services specially
obtailored to their needs. ob-
w.u1 .u
w is determining which benefits
w .u w .u w .u
ww ww
Rationale: Benefit segmentation ww are preferred (healthy and nutritious
ww food) and using those benefits
ww to promot
e a product (through the daily special).
1 Rationale: Cognitive dissonance is a type of psychological conflict that can occur after a purchase and is the same as buyers remorse. Consu
m a major purchase such as.ca ocar,
mers whoomake
.cpositive mmay have doubts about whether om omprice. An
they got the best product at the best
.cThe .cguarantees
auto dealer m om
h
aybsend press articles about the
b h h
particular car a consumer purchased.
b h
dealer may also offer product
b and provide certabh.c
- - ob- - -
w .uobin free services to the customer
.uotobreduce the customers cognitive
w .udissonance.
w .uob
w .uob
w
ww ww pricing is a strategy basedwonwwhat all the other competitorswarewdoing. Pricing depends on customer
1 Rationale: Competition-based ww loyalty, p
erceived differences and the competitive climate. Price leadership is the procedure by which one or more dominant firms set the pricing prac
tices that all competitors in an industry follow. Airlines use price leadership, a type of competition-based pricing strategy.
1 Rationale: m
.comust comthe sale
Consumers who make a major purchase,
.after om about whether they got the
such as a car, may have doubts
.cdecision, om
.best product at the best price.
cdissonance .com
- b h
Marketers reassure such - b h
consumers that they made a
- b h
good thus reducing b h
cognitive
- or buyers remorse- b h
w .uob. .uob .uob .uob .uob
ww ww ww
w goods and services are productswthat the consumer wants to purchase
1 Rationale: Convenience
ww ww
w frequently and with a minimumwof effort, such
as candy, gum, milk, snacks and the like. Location, brand awareness and image are important differentiators for marketers of convenience go
ods and services.
b h com
1 Rationale:
. b h . comand way of doing thingsbthat
Culture is the set of values, attitudes
h . m
cisotransmitted b h
m in a given society. .com
from one generation.ctooanother
h
- American culture, for example,
bThe
.u1o uob- emphasizes education, freedomband
- diversity.
uo b-
uo b-b uo
w Rationale: Department w w. and other retailers most oftenwuse
stores w.a high-low pricing strategy. The . is to have regular prices that w
widea are. higher
ww w w w w
than those at stores using EDLP, but also to have many special sales in which the prices are lower than those of competitors. w w
1 Rationale: Figure 9.2 lists some methods marketers use to segment the market along with sample variables and typical segments. Upscale, m
oderate and budget conscious are typical segments based on lifestyle.
om
.c Figure 9.4 compares B2Bband c
h.consumerom .c om .c om p bh.c
om
o b -bh customers
1 Rationale:
otential and B2B o b - frequently
products require o b -bhfigure states that B2B buyers
buying behavior. The
customization. o b - h there are relatively few
arebtrained,
o b -
w .u .uw .u w .u w .u w
ww 1 Rationale: Figure 9.4w w
describes w markets and consumer markets.
wB2B
the buying procedures of wwIt indicates that B2B markets have
wwcloser relat
ionships between marketers and buyers.
1 Rationale: Figure 9.4 describes the products purchased by B2B and consumer markets. The products bought by B2B markets require technic
omproducts. Consumer products areom
al, complex
h.c h.c
less technical. omh.c om h.c h .com
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w w.u w.u w.u w
ww ww ww ww ww
ob
ww ww ww w ww w w
1 Rationale: Figure 9.9 shows the four stages of the product life cycle and provides examples of products that are in each stage. Cell phones an
d DVD players
m are shown in the maturity stagemof the product life cycle. m m
.co .co .co .co .com
-bh Hyundai targets consumers
1 Rationale: bhbetween ages 18 and 34 to compete
ob-characteristics is demographic
h bh of a market by age, incom
b-b with Honda and Toyota..uSegmentation
ob- -bh
w .uobe and education level or other.usuch .uosegmentation. .uob
ww ww
1 Rationale: Packagingwtends to be more functional in B2B,
ww
w rather than designed as a marketing ww
w tool, as with consumer markets.w ww
1 Rationale: Penetration strategy is a pricing strategy in which a product is priced low to attract more customers and discourage competitors.
1 Rationale: m
Primary research is research that a m
marketer creates; that is, the marketer
m implements the collection .ofcothemdata firsthand. Primary
h.cois usually conducted in the form
research h.cofoa survey or a focus group. h.co h h.c om
.u1ob-b b-b b-b
.uoCompanies must understandwthe.uquality
o standards of the product they ob-
b
o b-b
w Rationale: Quality and quantity:
ww w.u offer w.ucusto
in order to meet or exceed
ww mer expectations. A w neighborhood grocer, for example,w w be constantly concerned withwthewquality
must of produce it sells. If the
w w
produce is no
t of high quality, it is unlikely that customers will come back.
1 Rationale: Relationship marketing is a marketing strategy with a goal to keep individual customers over time by offering them new products
ommeetservices
that exactly
h.cspecial om
their requirements. Airlines,
and awards. bh.c
rental car companies and hotels o m frequent-user programs through
have omwhich local customers c h.com
- anbearn
- bh.c bh.c b
.u1obRationale: Sometimes companies
.uobare not ready to bring products ob- to the consumer. Consider
.udirectly b-
.uaowine
-
.uoorbm
maker who must wait awyear
w w w w
ww ww
ore for the wine to age ww of the long-term storage required
correctly and be ready to sell. Because ww for the product, a winery mustwplan
w for the c
ost of storage as well as the cost of insurance in case damage occurs while the wine is being stored.
1 Rationale: Specialty goods and services are consumer products with unique characteristics and brand identity. Because these products and se
rvices are m
.coperceived m
.cosubstitute,
as having no reasonable
.com
the consumer puts forth m provided by medi .com
.coServices
a special effort to purchase them.
cal
- b h
specialists such as a cardiologist
- b h
are specialty services. - bh - b h -bh
w .u1obRationale: Specialty goodswand b
.uoservices uobunique characteristics and w
w.with
are consumer products
b
.uoidentity.
brand These products are w .uob
perceived
ww w w
w substitute and include Rolex watches,
as having no reasonable w Godiva chocolates and expensive w
w cigars. w w
1 Rationale: Targeting smaller buy profitable market segments and designing or finding products and services for them is called niche marketi
ng. Fridgedoor.com is reaching a very specific niche market.
m m m m m
- b h.coThe goal of relationship -marketing
1 Rationale:
bh.co is to keep individual customers
- b
o time by offering them newh.products
h.cover - b co that exactly meet theibh.co
obr requirements. ob ob ob ob-
w.u of w
.u .u
ww groups whose members have w .u
wwsegment
.u
ww 1 ww
Rationale: The process dividing the total market intow
several wwsimilar characteristics is called w
market
ation.
1 Rationale: The total product offer consists of those things that are important to customers sometimes far beyond the product itself. Figure 9.5
h . omsurroundings as a potential component

shows store
c h . c om of a total product offer. om
h . c h. com h . com
- b
1 Rationale: There are eight functions b
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- and quantity, (2) risk, (3) financial,
- (4) marketing information, o
(5) b- b
w .uobuying, (6) selling, (7) transportation
w .uob and (8) storage. w .uob w .uob w .u b
ww ww ww ww ww
1 Rationale: There are many tasks marketing professionals must complete in order to successfully sell products and services to consumers. Ma
rketers must use marketing information to be prepared to change the message and the product or service to continue to sell in a changed envi
ronment.
m
.coThere is much more emphasis m
copersonal selling in B2B markets m
o in consumer markets. Whereas m
oconsumer promotions are b h.co m
1 Rationale:
- bhmore - b h.based
on
- b h.cthan - b h.cmore personal service. ob-b
obased on advertising, B2B ob
sales are on direct selling ob
because there are fewer customers ob
who demand
w.u1 ww
.u .u
wwdistribution piece of marketing.ww
.u w.u
ww Rationale: Transportation
w and storage are part of the physical
w w ww
1 Rationale: When a product is in the mature stage of the product life cycle, Figure 9.8 suggests a strategy that is often followed is a further pri
ce reduction.

o
w .u o
ww ww ww w w ww
m om om om om
.uo b -
w w w w.u w
ww ww ww ww ww

m
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o b - b
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w w w w.u w
ww ww ww w w ww
m .com om om .com
bh.co bh h.c h.c h
w w.u w.u w.u w
ww ww ww ww ww

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8. Segmentation of a market by income is a type of demographic segmentation.

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21. Another name for cognitive dissonance is buyer's remorse.

22. B2B marketers

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30. The 4Ps are product, price, place and promotion.

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97. A firm generally

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2. (p. 284) Marketing

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