Chapter 11

Business Essentials, 11e (Ebert/Griffin)
Chapter 11 Marketing Processes and Consumer Behavior
1) What is the term for the process of creating, communicating, and delivering value to
customers while managing customer relationships in ways that benefit the organization and its
stakeholders?
A) Financial planning
B) Controlling
C) Operations management
D) Marketing
E) Demographic profiling
Answer: D
Explanation: D) Marketing involves processes that go beyond making advertisements and
promoting sales through social networks.
Difficulty: Moderate
AACSB: Application of knowledge
Objective: 11.1: Explain the concept of marketing and identify the five forces that constitute the
external marketing environment.
2) Which of the following occurs between similar products and is based on buyers' perceptions
of the benefits of products offered by particular companies?
A) International competition
B) Substitute competition
C) Brand competition
D) Benefit competition
E) Placement competition
Answer: C
Explanation: C) Brand competition is based on buyers' perceptions of the benefits of products
offered by particular companies.
3) What are the tangible and intangible qualities that a company builds into its products?
A) Features
B) Requirements
C) Benefits
D) Safety devices
E) Guarantees
Answer: A
Explanation: A) It is important to remember that features may also provide benefits, thereby
influencing value.
Difficulty: Easy
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4) What type of goods includes raw materials used to produce other products?
A) Substitute products
B) Industrial goods
C) Consumer goods
D) Marketing goods
E) Disposable goods
Answer: B
Explanation: B) Industrial goods are physical items used by companies to produce other
products.
Difficulty: Easy
5) What are products with intangible features such as professional advice?

A) Personal goods
B) Services
C) Industrial goods
D) Psychographics
E) Reseller goods
Answer: B
Explanation: B) Services are products having nonphysical features such as information,
expertise, or an activity that can be purchased.
6) What type of marketing is used to build long-term relationships with customers?

A) Industrial marketing
B) Relationship marketing
C) Social marketing
D) Economic marketing
E) Consumer marketing
Answer: B
Explanation: B) Relationship marketing emphasizes building lasting relationships with
customers and suppliers. Loyalty banking programs are one example.
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7) What is data warehousing?
A) A marketing strategy that creates sales agreements that stipulate product delivery
B) The process of dividing a market into categories of customer types
C) The study of consumer needs and wants and the way in which sellers can best meet them
D) The process of collecting, storing, and retrieving data in electronic files
E) A customer identification strategy that targets potential buyers
Answer: D
Explanation: D) The compiling and storage of data provides the raw materials from which
marketers can extract information that could enable them to better know their customers and
supply more of what they need or want.
Difficulty: Easy
8) Companies who use ad campaigns to raise public awareness of important issues such as
texting while driving are working with what type of environment?
A) Political-legal
B) Sociocultural
C) Technological
D) Competitive
E) Demographic
Answer: A
Explanation: A) Political activities, both foreign and domestic, have profound effects on
marketing.
9) Marketing managers often support the activities of political action committees (PACs). In
doing this, which environment are they attempting to influence?
A) Competitive
B) Economic
C) Technological
D) Political-legal
E) Geo-demographic
Answer: D
Explanation: D) When companies contribute to political candidates and support the activities of
PACs maintained by their respective industries, they are attempting to influence the political-
legal environment.
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10) A company decides to introduce a line of crackers made with organically grown grains and
vegetables. What environmental trend is the company responding to?
A) Competitive
B) Sociocultural
C) Political-legal
D) Economic
E) Technological
Answer: B
Explanation: B) Changes in social values encourage companies to develop and promote new
products for both individual consumers and industrial consumers in a myriad of ways.
11) What do organizations use to build better, stronger information connections with clients?
A) Customer relationship management (CRM)
B) Data warehousing
C) Industrial marketing
D) Possession utility
E) Data mining
Answer: A
Explanation: A) Customer relationship management (CRM) is an organized method that an
enterprise uses to build better information connections with clients, so managers can develop
stronger enterprise-client relationships.
AACSB: Analytical thinking
12) Which of the following is used to automate the analysis of customer information and how
might they be influenced by marketers?
A) Data mining
B) Brand competition
C) Customer relationship management
D) Relationship marketing
E) Data warehousing
Answer: A
Explanation: A) Data mining automates the massive analysis of data by using computers to sift,
sort, and search for previously undiscovered clues about what customers look at and, react to and
how they might be influenced.
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13) What type of utility is practiced by those companies who allow marketers to have a voice in
product design and identifying features customers want?
A) Time
B) Possession
C) Form utility
D) Value
E) Place
Answer: C
Explanation: C) With form utility, marketing has a voice in designing products with features that
customers want.
14) What is created when the ownership of a product, including the setting of selling prices,
terms of credit, and ownership documentation is transferred to a customer?
A) Place utility
B) Time utility
C) Value utility
E) Form utility
Answer: D
Explanation: D) Marketing creates a possession utility by transferring product ownership to
customers by setting selling prices, setting terms for customer credit payments, and providing
ownership documents.
15) The ability of a good or service to satisfy a need is considered to be its

A) benefit.
B) utility.
C) value.
D) market.
E) sociocultural environment.
Answer: B
Explanation: B) To understand how marketing creates value for customers, we need to know the
kind of benefits that buyers get from a firm's goods or services. Those benefits provide
customers with utility, the ability of a product to satisfy a human want or need.
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16) When a domestic marketer competes against foreign firms to sell products of a similar
nature, what type of sales competition is created?
A) Brand
B) Substitute
C) International
D) Competitive
E) Social
Answer: C
Explanation: C) International competition matches the products of domestic marketers against
those of foreign competitors. The intensity of international competition has been heightened by
the formation of alliances, such as the European Union and the North American Free Trade
Agreement (NAFTA).
17) Marketing consists primarily of advertising a product or service.

Answer: FALSE
Explanation: Marketing is a process of creating, communicating, and delivering value to
customers and for managing customer relationships in ways that benefit the organization and its
stakeholders.
Difficulty: Easy
18) Benefits add value by providing features that increase the customer's satisfaction.
Answer: FALSE
Explanation: Features are the tangible or intangible items in the value package that add benefits
that increase the customer's satisfaction.
Difficulty: Easy
19) The formula for value is benefits divided by costs.

Answer: TRUE
Explanation: Further, benefits include not only the functions of the product, but also the
emotional satisfaction associated with owning, experiencing, or possessing it.
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20) Marketing concepts can be extended to the promotion of ideas.
Answer: TRUE
Explanation: Examples include ads in theaters that remind us to respect copyrighted materials
and ads that stress the advantages of avoiding fast food.
21) Economic conditions greatly influence marketing plans for product offerings.
Answer: TRUE
Explanation: Economic conditions determine spending patterns by consumers, businesses, and
governments. Conditions influence marketing plans for product offerings, as well as pricing and
promotional strategies.
22) Time utility is created by a sales agreement that stipulates where products will be delivered
to customers.
Answer: FALSE
Explanation: Time utility creates a marketing sales agreement that stipulates when products will
be delivered to customers, whereas place utility creates sales agreements that stipulate where
products will be delivered to customers.
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23) Explain the elements that comprise the marketing environment.
Answer: The marketing environment is comprised of everything outside of an organization's
boundaries that might affect it including the political-legal, sociocultural, technological,
economic, and competitive environments. Rules, regulations, and legislation make up the
political-legal environment. Most industries are affected in some way by political-legal elements.
The sociocultural environment includes changes in social values, consumer preferences,
language, demographics, etc. The technological environment has had a profound impact on the
marketing environment with the invention of new technologies that completely change our
lifestyles. The economic environment includes such factors as inflation, interest rates, and
recession; because they determine spending patterns by consumers, businesses, and
governments, economic factors influence marketing plans for product offerings, pricing, and
promotional strategies. The competitive environment encompasses all organizations that supply
or provide similar products. All players in the competitive environment compete for consumers'
purchasing power.
Difficulty: Easy
24) Describe the three types of competition faced by marketers.

Answer: The three types of competition faced by marketers include substitute products, brand
competition, and international competition. Substitute products may not look alike, or they may
seem very different from one another, but they can fulfill the same need. Brand competition
occurs between similar products, such as the auditing services provided by the large accounting
firms of Ernst & Young and KPMG. Brand competition is based on buyers' perceptions of the
benefits of products offered by particular companies. International competition matches the
products of domestic marketers against those of foreign competitors. After identifying which
type of competition is present, the marketer can then develop a strategy for attracting more
customers.
Difficulty: Difficult
25) What is the term for a detailed strategy for focusing marketing efforts on consumers' needs
and wants?
A) Marketing mix
B) Marketing manager
C) Product differentiation
D) Product development
E) Marketing plan
Answer: E
Explanation: E) Marketing strategy begins when a company identifies a consumer need and
develops a product to meet it.
Difficulty: Easy
Objective: 11.2: Explain the purpose of a marketing plan and identify its main components.
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26) What part of the marketing mix includes communicating information about products and is
the most visible component of the marketing mix?
A) Product
B) Promotion
C) Price
D) Place
E) Psychographics
Answer: B
Explanation: B) Promotion is the most highly visible element of the marketing mix. Promotion
involves all of the various techniques used for communicating information about products and
services.
Difficulty: Easy
27) What is used to guide the detailed activities of the marketing plan ensuring the goals of the
plan are accomplished?
A) Marketing strategy
B) Product differentiation
C) Marketing objectives
D) Distribution policy
E) Marketing mix
Answer: C
Explanation: C) Marketing objectives are the goals the marketing plan intends to accomplish
and are the foundation that guides all of the detailed activities in the plan.
28) What specific issues do marketing strategies help marketers determine?

A) The goals the marketing plan intends to accomplish
B) The marketing objectives of what marketer will accomplish
C) The mix of goods or services to fill a customer's needs or wants
D) The marketing activities a business will use to achieve marketing goals
E) The features that will differentiate a product from competitors
Answer: D
Explanation: D) The marketing strategy identifies the planned marketing program—all the
marketing activities that a business will use to achieve its marketing goals and when those
activities will occur.
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29) Why does a marketing strategy utilize the marketing mix, which includes product, price,
place, and promotion?
A) To control the organization's resources to support marketing activities
B) To transfer goods or services to customers
C) To develop a clear strategy for planning and implementing marketing activities
D) To plan the organization's marketing toward supporting the organization's overall mission
E) To satisfy customers in target markets
Answer: E
Explanation: E) Marketing strategy also includes four basic components of the marketing mix—
product, pricing, place, and promotion—that marketing managers use to satisfy customers in
target markets. The specific activities for each of the Four Ps are designed differently to best
meet the needs of each target market.
30) Which of the following represents a feature or image that makes one product different from
its competitors?
A) Marketing strategy
C) Place distribution
D) Personal selling
E) Product positioning
Answer: B
Explanation: B) Producers often promote particular features of products to distinguish them in
the marketplace. Product differentiation is the creation of a feature or image that makes a product
differ enough from existing products to attract customers.
31) What is the overall effect when a good or service is priced higher than competitors?
A) There will be an implication of higher quality standards.
B) There will be greater demand for the product.
C) Sales will start slow, but increase over time.
D) There will be a larger market size, but smaller profit.
E) There will be a smaller market and smaller profit.
Answer: A
Explanation: A) High prices usually limit market size but increase profits per unit. High prices
may also attract customers by implying that a product is of high quality.
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32) How do organizations determine how to move products to customers?
A) Promotion
B) Marketing mix
C) Place (or distribution)
D) Marketing managers
E) Personal selling feedback
Answer: C
Explanation: C) In the marketing mix, place (or distribution) refers to where and how customers
get access to the products they buy.
33) How do companies offer one-time direct inducements to buyers when promoting goods or
services?
A) Personal selling
B) Premiums
C) Public relations campaigns
D) Integrated marketing
E) Advertising
Answer: B
Explanation: B) Premiums (usually free gifts), coupons, and package inserts are all sales
promotions meant to tempt consumers to buy products.
34) What is the term for the communication efforts that are designed to build goodwill and build
favorable attitudes in consumers?
A) Sales promotion
B) Advertising
C) Promotion
D) Public relations
E) Personal selling
Answer: D
Explanation: D) Public relations include all communication efforts directed at building
goodwill. It seeks to build favorable attitudes in the minds of the public toward the organization
and its products.
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35) When selling industrial goods and services, using representatives who are trained to
understand the needs of each customer is a key component of
A) advertising.
B) personal selling.
C) sales promotions.
D) publicity.
E) interactive marketing.
Answer: B
Explanation: B) Many products (such as insurance, custom-designed clothing, and real estate)
are best promoted through personal selling, person-to-person sales. Industrial goods and services
rely significantly on personal selling. Industrial sellers emphasize personal selling by trained
representatives who understand the needs of each customer.
36) What are the tangible products bought strictly for personal use?
A) Consumer goods
B) Services
C) Relationship goods
D) Data
E) Industrial goods
Answer: A
Explanation: A) Products that are consumer goods are tangible goods that you, the consumer,
may buy for personal use. Firms that sell goods to consumers for personal consumption are
engaged in consumer marketing, also known as business-to-consumer (B2C) marketing.
37) Product differentiation is selecting the best price at which to sell a product.
Answer: FALSE
Explanation: Product differentiation is the creation of a feature or image that makes a product
differ enough from existing products to attract consumers.
Difficulty: Easy
38) The goals of the marketing plan are the foundations for the marketing objectives.
Answer: TRUE
Explanation: Marketing objectives are the goals the marketing plan intends to accomplish, and
the foundation that guides all of the detailed activities in the plan. The marketing objectives exist
solely to support the company's overall business mission and typically focus on maintaining or
enhancing the organization's future competitive position in its chosen markets.
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39) The product mix includes consideration of product, pricing, place, and promotion.
Answer: FALSE
Explanation: Marketing strategy includes four basic components (often called the "Four Ps") of
the marketing mix: product, pricing, place, and promotion that marketing managers use to satisfy
customers in target markets.
Difficulty: Easy
40) A feature or image that makes a product different from existing products is called product
differentiation.
Answer: TRUE
Explanation: Product differentiation is the creation of a feature or image that makes a product
differ enough from existing products to attract customers.
Difficulty: Easy
41) Describe the elements of the marketing mix. What is their collective role?
Answer: The elements of the marketing mix include product, price, promotion, and place.
Product includes goods, services, or ideas designed to fill a consumer need or want. Meeting
consumer needs often means changing existing products to keep pace with emerging markets and
competition; many marketers focus on differentiating their product(s) from those of competitors.
Pricing a product involves the selection of the best price at which to sell the product. Prices must
support a variety of costs within the organization. Further, both low and high price strategies can
be effective in different situations. Place or distribution refers to the proper placement of
products in the market. Place decisions including transportation warehousing, and inventory
control are all about getting the product from the producer to the consumer. Promotion is the
most highly visible component of the marketing mix. Promotion refers to the techniques for
communicating information about products. Promotion involves activities surrounding
advertising, sales promotions, publicity, and public relations. Collectively, the marketing mix
allows a marketer to better relate to the identified target market. Based on the characteristics of
the target market, the marketer will build the marketing mix elements around the target market.
42) Why is product development a challenge for marketers?

Answer: Faced with competition and shifting consumer preferences, no firm can count on a
single successful product to carry it forever. Even products that have been popular for decades
need ongoing renewal. The factor of constant change makes conceiving and developing new
products a challenge for marketers.
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43) Why is product placement an effective marketing tool?
Answer: Product placement is effective because the message is delivered in an attractive setting
that holds the consumer's interest. Product placement is a promotional activity that can be found
in movies, TV, and magazines.
44) Why is it important for a company to develop new products?

Answer: Changing technology, changing wants and needs of customers, and changing economic
conditions create the desire for something new and the ability to create new offerings. Faced with
competition and shifting consumer preferences, no firm can count on a single product to carry it
forever. Even products that have been popular for decades need renewal. These outside pressures
present challenges for all areas of marketing including the development of new products.
45) Which is usually the first step in the marketing strategy that allow marketers to focus efforts
on a particular group of people or organizations?
A) Distribution
C) Target market selection
D) Pricing
E) Integration
Answer: C
Explanation: C) Selecting target markets is usually the first step in the marketing strategy.
Objective: 11.3: Explain market segmentation and how it is used in target marketing.
46) For marketers, what type of variables are lifestyles, opinions, interests, and attitudes?
A) Geographic variables
B) Demographic variables
C) Psychographic variables
D) Product use variables
E) Labor market variables
Answer: C
Explanation: C) Psychographics are particularly important to marketers because, unlike
demographics and geographics, they can be changed by marketing efforts.
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47) What does the process of positioning involve?
A) Hiring only employees who have the strongest credentials
B) Designing a company's products to appeal to target customers
C) Focusing on only one component of the marketing mix
D) Disregarding customers' reactions to a company's products
E) Reorganizing employees according to seniority
Answer: B
Explanation: B) By definition, positioning is the process of developing a unique marketing mix
that best satisfies a target market.
48) What market segment is based on where the target market lives and how location affects
their lifestyle?
A) Demographic
B) Behavioral
C) Positional
D) Geographic
E) Psychographic
Answer: D
Explanation: D) Geographic variables are the geographic units from countries to neighborhoods,
that researchers consider in a strategy of geographic segmentation.
Difficulty: Easy
49) Which of the following describe(s) measurable traits about a consumer, such as income,
gender, or marital status?
A) Psychographics
B) Geographics
C) Geo-demographics
D) Behavior
E) Demographics
Answer: E
Explanation: E) Demographic segmentation is a strategy used to separate consumers by
demographic variables. Demographic variables describe populations by identifying traits, such as
age, income, gender, ethnic background, marital status, race, religion, and social class.
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50) How does behavioral segmentation identify target markets?
A) Behavioral variables
B) Demographics
C) Marketing research
D) Geographics
E) Psychographics
Answer: A
Explanation: A) Behavioral segmentation uses behavioral variables to market items including
such areas as heavy users, situation buyers, or specific purpose.
51) What can marketers use to attempt to separate consumers based on identifying traits such as
age or income?
A) Demographic variables
B) Geographic segmentation
C) Product positioning
D) Integrated marketing
E) Demographic segmentation
Answer: E
Explanation: E) Demographic segmentation is a strategy used to separate consumers by
demographic variables.
52) Which of the following is the combination of traits used to identify consumers and act as a
common segmentation tool?
A) Psychographic variables
B) Behavioral variables
C) Marketing variables
D) Geo-demographic variables
E) Primary variables
Answer: D
Explanation: D) Geo-demographic variables are a combination of geographic and demographic
traits and are becoming the most common segmentation tools. Segmentation is more effective
because the greater number of variables defines the market more precisely.
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53) What type of segmentation is more effective because of the greater number of variables and
has consequently become the most common segmentation tool?
A) Demographic segmentation
B) Psychographic segmentation
C) Behavioral segmentation
D) Marketing segmentation
E) Geo-demographic segmentation
Answer: E
Explanation: E) As the name implies, geo-demographic segmentation is a combination strategy.
Segmentation is more effective because the greater number of variables defines the market more
precisely.
54) What would marketers utilize if they wanted to identify markets where customers had a
certain lifestyle, personality, or attitude?
A) Place utility
B) Geographic segmentation
C) Psychographic segmentation
E) Behavioral segmentation
Answer: C
Explanation: C) Markets can also be separated into a psychographic segmentation according to
such psychographic variables as lifestyles, interests, personalities, and attitudes.
55) What process is used by marketers to communicate the nature of a product to a target
segment?
A) Product positioning
B) Target marketing
C) Promotion
D) Product differentiation
E) Personal influence
Answer: A
Explanation: A) Once marketers identify a target segment, they can begin marketing products
for that segment. The process of fixing, adapting, and communicating the nature of the product
itself is called product positioning.
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56) What can be utilized to ensure a company's marketing and nonmarketing efforts are
compatible?
A) Market segmentation
B) Integrated marketing strategies
C) Target marketing
D) Public relations
E) Personal selling
Answer: B
Explanation: B) An integrated marketing strategy ensures the Four Ps blend together so they are
compatible with one another and with the company's nonmarketing activities.
57) Geographic variables describe populations by identifying traits, such as age, income, gender,
ethnic background, marital status, race, religion, and social class.
Answer: FALSE
Explanation: Geographic variables are the geographical units from countries to neighborhoods
that may be considered in a segmentation strategy.
Difficulty: Easy
58) Target marketing requires dividing a market into categories of customer types or segments.
Answer: TRUE
Explanation: Some firms market products to more than one segment of the population.
59) A description such as single, age 20-34, earning $30,000 a year is an example of a
psychographic variable.
Answer: FALSE
Explanation: Demographic variables identify populations by age, income, gender, ethnic
background, marital status, race, religion, and social class. Psychographic variables include
lifestyles, interests, personalities, and attitudes.
Difficulty: Easy
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60) Psychographics cannot be changed by marketing efforts.
Answer: FALSE
Explanation: Psychographics are particularly important to marketers because, unlike
demographics and geographics, they can be changed by marketing efforts. For example, some
companies have overcome consumer resistance by promoting the safety and desirability of using
credit rather than depending solely on cash.
61) Explain the difference between demographic variables and psychographic variables.
Answer: Demographic variables describe populations by identifying traits, such as age, income,
gender, ethnic background, marital status, race, religion, and social class. Psychographic
variables are lifestyles, interests, and attitudes. Psychographic variables are important to
marketers because, unlike demographic variables, they can be changed by marketing efforts.
62) Explain how marketers identify different market segments.

Answer: In identifying market segments, researchers look at a number of different influences on
consumer behavior. Some of the variables used for segmentation are geographic, demographic,
and psychographic variables. Geographic variables are geographical units that may be considered
in developing a segmentation strategy. Demographic variables describe populations, identifying
traits such as age, income, gender, etc. Psychographic variables are lifestyles, opinions, interests,
and attitudes. Two other segments include geo-demographic and behavioral segments.
63) What are target markets? Explain the role that target markets play in market segmentation.
Answer: Target markets are groups of people with similar wants and needs. Target marketing
requires market segmentation, which is dividing a market into categories of customer types or
segments. Once companies identify market segments, they may adopt a variety of marketing
strategies that appeal to each segment.
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64) Which tool used for gaining decision-making information identifies what customers want
and how to fulfill those wants?
A) Market segmentation
B) Market research
C) Promotion
D) Public relations
E) Integrated marketing strategy
Answer: B
Explanation: B) Marketing research is the study of what customers need and want and how best
to meet those wants.
Objective: 11.4: Discuss the purpose of marketing research and compare the four marketing
research methods.
65) What is the goal of market research?

A) To identify stakeholders and how to best meet their needs
B) To gain goodwill with consumers by utilizing public relations
C) To increase competitiveness by clarifying relationships that affect the marketing decisions
D) To conduct studies on customer responses to the marketing mix
E) To determine which research method will deliver the most effective results
Answer: C
Explanation: C) Ultimately, the goal of market research is to increase competitiveness by
clarifying the interactions among a firm's stakeholders (including customers), marketing
variables, environmental factors, and marketing decisions.
research methods.
66) When is conducting market research generally most effective?

A) When entering international markets
B) When sales begin to drop
C) When competitors release newer, competitive products.
D) When developing new products or altering existing products
E) When a new product is ready to be released
Answer: D
Explanation: D) Market research can occur at almost any point in a product's life cycle.
However, typically it is used in developing new or altered products.
research methods.
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67) When conducting market research, what type of data is used when existing data is
unavailable or inadequate?
A) Secondary
B) Demographical
C) Global
D) Psychographic
E) Primary
Answer: E
Explanation: E) When secondary sources are unavailable or inadequate, researchers must obtain
primary data, new data from newly performed research.
research methods.
68) Which type of market research allows for an electronic history of consumers?
A) Observation
B) Primary research
C) Surveys
D) Focus groups
E) Experimentation
Answer: A
Explanation: A) Observation involves watching and recording consumer behavior. Today,
information technology systems including live camera feeds and computer recordings allow
marketers to observe consumer preferences rapidly and with great accuracy.
research methods.
69) When gathering opinions about consumer decisions, what type of research tool would be
most beneficial if the issue is not overly complex?
A) Observation
B) Primary research
C) Surveys
D) Focus groups
E) Experimentation
Answer: C
Explanation: C) One way to get useful information is by taking surveys, a method of collecting
data in which the researcher interacts with people to gather facts, attitudes, or opinions, either by
mailing out or e-mailing questionnaires, by telephone calls, or by conducting face-to-face
interviews.
research methods.
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70) What is the advantage of utilizing focus groups for research?
A) They easily generate comparison data with competitors' products.
B) They offer fact based information on products.
C) They are more structured and are easier to analyze.
D) They allow for more in-depth discussion on complex issues.
E) They are less costly and time consuming.
Answer: D
Explanation: D) In a focus group, participants are gathered in one place, presented with an issue,
and asked to discuss it. This technique allows researchers to explore issues too complex for
questionnaires and can produce creative solutions.
research methods.
71) What is the process where marketers can compare the response of similar people under
different circumstances?
A) Observation
B) Surveying
C) Focus group studies
D) Experimentation
E) Questionnaires
Answer: D
Explanation: D) Experimentation compares the responses of the same or similar people under
different circumstances.
research methods.
72) Marketing research is the study of behavioral variables.

Answer: FALSE
Explanation: Marketing research is the study of what customers need and want and how best to
meet those needs and wants. Marketing is a powerful tool for gaining decision-making
information.
research methods.
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73) Primary data is data already available from previous research.
Answer: FALSE
Explanation: Secondary data are already available from previous research. When secondary
sources are unavailable or inadequate, researchers must obtain primary data, new data from
newly performed research.
research methods.
74) What is the study of the decision process by which customers come to purchase and consume
products?
A) Marketing
B) Segmentation
C) Resource management
D) Consumer behavior
E) Acculturation
Answer: D
Explanation: D) To understand consumer behavior, marketers draw heavily on such fields as
psychology and sociology. The result is a focus on four major influences on consumer behavior:
(1) psychological, (2) personal, (3) social, and (4) cultural. By identifying which influences are
most active in certain circumstances, marketers try to explain consumer choices and predict
future buying behavior.
Objective: 11.5: Describe the consumer buying process and the key factors that influence that
process.
75) What type of behavior do consumers exhibit by regularly purchasing products because they
are satisfied with the performance of the product?
A) Psychological influences
B) Need recognition
C) Brand loyalty
D) Emotional motives
E) Consumer activism
Answer: C
Explanation: C) Such people are less subject to influence and are more likely to stick with
preferred brands. Brand loyalty is a pattern of repeated consumer purchasing based on
satisfaction with a product's performance.
process.
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76) Which of the following is the LEAST important influence on consumer behavior?
A) Psychological factors
B) Personal factors
C) Social factors
D) Technological factors
E) Cultural factors
Answer: D
Explanation: D) The influences that are most active in explaining consumers' choices and
predicting future buying behaviors are psychological factors, personal influences, social
influences, and cultural influences.
process.
77) What is the name for the influences that include the "way of living" that distinguishes one
large group from another?
A) Psychological
B) Personal
C) Social
D) Domestic
E) Cultural
Answer: E
Explanation: E) Cultural influences also include subculture and social class.
process.
78) What is the term that describes what happens after the sale to ensure consumers buy the
product again?
A) Postpurchase evaluation
B) Prepurchase evaluation
C) Rational motives
D) Emotional motives
E) Evoked set
Answer: A
Explanation: A) Marketers want consumers to be happy after buying products so that they are
more likely to buy them again. Because consumers do not want to go through a complex decision
process for every purchase, they often repurchase products they have used and liked. Unhappy
buyers are not likely to purchase the same product(s) again and are much more apt to broadcast
their experiences than are satisfied customers.
process.
24
79) Accessing a Web site in search of magazine articles about a product before its purchase is an
example of what part of the consumer buying process?
A) Post-purchase evaluation
B) Problem solving
C) Information seeking
D) Purchasing the product
E) Recognizing a need
Answer: C
Explanation: C) The search is not always extensive, but before making major purchases, most
people seek information from personal sources, public sources, and experiences of friends and
family.
process.
80) Which consumer influence includes perceptions, ability to learn, and attitudes?
A) Psychological
B) Personal
C) Social
D) Loyalty
E) Cultural
Answer: A
Explanation: A) Psychological influences include an individual's motivations, perceptions,
ability to learn, and attitudes.
process.
81) Family members and friends can have a strong impact on consumer choices when acting as
A) psychological influences.
B) personal influences.
C) social influences.
D) loyalty influences.
E) cultural influences.
Answer: C
Explanation: C) Social influences include family, opinion leaders (people whose opinions are
sought by others), and such reference groups as friends, coworkers, and professional associates.
process.
25
82) Which of the following best defines the way of living that distinguishes one large group from
another?
A) Consumer
B) Subculture
C) Social class
D) Culture
E) Demographic
Answer: D
Explanation: D) Cultural influences include culture (the way of living that distinguishes one
large group from another), subculture (smaller groups with shared values), and social class (the
cultural ranking of groups according to such criteria as background, occupation, and income).
process.
83) How do consumers develop opinions and beliefs about a set of products they will consider
buying?
A) Through evaluation of alternatives
B) Through emotional motives
C) Through need recognition
D) Through post-purchase evaluation
E) Through information seeking
Answer: E
Explanation: E) Having recognized a need, consumers often seek information. From this
information search, consumers develop an evoked set (or consideration set), which is the group
of products they will consider buying.
process.
84) Which of the following is greatly influenced by nonobjective factors such as sociability,
imitation and aesthetics?
A) Emotional motives
B) Post-purchase evaluation
C) Rational motives
D) Evaluation of alternatives
E) Need recognition
Answer: A
Explanation: A) Emotional motives involve nonobjective factors and include sociability,
imitation of others, and aesthetics.
process.
26
85) When making a purchase decision, decisions that include logical evaluation, cost, and quality
are what type of decisions?
A) Evoked
B) Rational
C) Comparison
D) Consideration set
E) Emotional
Answer: B
Explanation: B) Rational motives involve the logical evaluation of product attributes including
cost, quality, and usefulness. Emotional motives involve nonobjective factors and include
sociability, imitation of others, and aesthetics.
process.
86) If a buyer is unhappy with their purchase decision, what are they more likely to do than those
who are happy with their purchase decision?
A) Use a different decision-making process.
B) Continue to purchase the same product until a replacement is found.
C) Tell others.
D) Rely more on rational motives.
E) Develop a more limited evoked set of purchase options.
Answer: C
Explanation: C) Not all consumers are satisfied with their purchases. These buyers are not likely
to purchase the same product(s) again and are much more apt to broadcast their experiences than
are satisfied customers.
process.
87) Rational motives involve nonobjective factors and include sociability, imitation of others,
and aesthetics.
Answer: FALSE
Explanation: Rational motives involve the logical evaluation of product attributes including
costs, quality, and usefulness.
process.
27
88) Focus groups allow researchers to observe a group of participants gathered in one place
while they explore issues associated with a product.
Answer: TRUE
Explanation: In a focus group, participants are gathered in one place, presented with an issue,
and asked to discuss it. This technique allows researchers to explore issues too complex for
questionnaires and can produce creative solutions.
process.
89) Personal influences on consumer behavior include lifestyle, personality, and economic status.
Answer: TRUE
Explanation: Personal influences include lifestyle, personality, and economic status.
process.
90) Consumers with less brand loyalty are usually satisfied with a products performance over
time.
Answer: FALSE
Explanation: Some consumers exhibit high brand loyalty because they are satisfied with product
performance. Such people are less subject to influence and stick with preferred brands.
process.
91) Describe psychological, personal, social, and cultural influences on consumer behavior.
Answer: Marketers try to explain consumer choices and predict future buying behaviors based
on psychological, personal, social, and cultural influences. Psychological influences include an
individual's motivations, perceptions, ability to learn, and attitudes. Personal influences include
lifestyle, personality, and economic status. Social influences include family, opinion leaders
(people whose opinions are sought by others), and such reference groups as friends, coworkers,
and professional associates. Cultural influences include culture (the way of living that
distinguishes one large group from another), subculture (smaller groups, such as ethnic groups,
with shared values), and social class (the cultural ranking of groups according to such criteria as
background, occupation, house type, and income).
process.
28
92) Explain each step in the consumer buying process.
Answer: The consumer buying process begins with problem/need recognition. At this point, the
consumer likely knows there is a product or service available in the marketplace that will fulfill
the problem or need. The consumer then seeks information. This process is not always extensive,
but before making major purchases, most people seek information from personal sources, public
sources, and experience. After seeking information, the consumer has come up with some
alternatives; the next step is to evaluate those alternatives. When making a product or service
choice, most consumers evaluate alternatives based on price, availabilities, guarantees, etc. A list
of pros and cons is often developed for each alternative. Finally, the consumer chooses from
among the alternatives when making the purchase decision. Post purchase evaluation includes
the consumer's perceptions about the product or service after the purchase. At this point, the
consumer feels a certain level of satisfaction or dissatisfaction with the purchase.
process.
93) Which of the following is the BEST example of a B2B market transaction?
A) A college student buys dorm furniture from an on-campus store.
B) A group of teenage girls buy new clothes for the upcoming school year.
C) A high-school coach borrows sports equipment from a neighboring school.
D) A dentist provides free toothbrushes to patients.
E) A chain of ice cream parlors regularly purchases napkins from the same supplier.
Answer: E
Explanation: E) Often buyers in B2B markets purchase directly from sellers, as opposed to
consumer markets where products typically go through many wholesalers before the product is
delivered to the end user.
Objective: 11.6: Discuss the four categories of organizational markets and the characteristics of
business-to-business (B2B) buying behavior.
94) What are B2B buyer-seller situations often based on?

A) Frequent and enduring buyer-seller relationships
B) Incidental buyer-seller interactions
C) Buyers and sellers with limited training
D) Short-term buyer-seller relationships
E) Commercial buyer-seller networks
Answer: A
Explanation: A) In contrast, consumer-seller relationships are often impersonal, short-lived, one-
time interactions.
29
95) Who are the firms who provide goods and services that are used by the purchasing public?
A) Services markets
B) Industrial markets
C) Reseller markets
D) Government markets
E) Institutional markets
Answer: A
Explanation: A) The services companies market encompasses the many firms that provide
services to the purchasing public.
96) Before products reach consumers, what market, consisting of wholesalers and retailers, do
products pass through?
A) Services markets
B) Industrial markets
C) Reseller markets
D) Government markets
E) Institutional markets
Answer: C
Explanation: C) Before products reach consumers, products pass through a reseller market
consisting of intermediaries including wholesalers and retailers who buy and resell finished
goods.
97) What do organizations use to build relationships among users?

A) Institutional marketing
B) Web-driven revenue
C) Negotiations
D) Social networking media
E) Reseller relationships
Answer: D
Explanation: D) Social networking as used by marketers today refers to communications that
flow among people and organizations interacting through an online platform that facilitates
building social relations among its users.
30
98) How do marketers best use viral marketing?
A) To increase use of social media networks
B) To identify needs in the international market
C) To promote public relations
D) To improve branding
E) To foster excitement for stimulating sales
Answer: E
Explanation: E) Viral marketing is a form of marketing that relies on social networking and the
Internet to spread information like a virus from person to person. The marketing purpose may be
to increase brand awareness, to promote new product ideas, or to foster excitement for
stimulating sales.
99) Which of the following is an advantage of using viral marketing and social networking?
A) Marketers can reach a wider audience at a lower cost.
B) Consumers can post opinions and feedback about products.
C) New markets are easier to identify.
D) Companies have more control over what the public experiences.
E) Companies can respond to and eliminate negative reviews.
Answer: A
Explanation: A) Viral marketing and social networking can lead to consumer awareness faster
and with wider reach than traditional media messages–and at a lower cost.
100) When attempting to market a domestic product in an international market, what typically
has to happen?
A) The product must be priced higher because of currency exchange rates.
B) The product must have major redesign work done.
C) The home country distribution system must be retrained for the international market.
D) The product must have an existing close competitor in the intended market.
E) The advertising campaign must be consistent with those used in the home country.
Answer: B
Explanation: B) Frequently, domestic products require a major redesign for buyers in foreign
markets.
31
101) How can marketers best develop product promotion in a new, international market?
A) Centered on product usage
B) Centered on price and innovation
C) Centered on cultural values and local customs
D) Centered on using a "hard-sell" campaign
E) Centered on home country values and customs
Answer: C
Explanation: C) Managers must carefully match product promotions to local customs and
cultural values to successfully promote sales and avoid offending customers.
102) How can companies reduce the cost and delays involved in entering new markets?
A) By selling items at a loss when determining international pricing
B) By redeveloping the product from scratch to better meet consumer needs in the new market
C) By avoiding the traditional U.S.-based marketing mix
D) By utilizing existing international distribution systems
E) By establishing new and unique promotions for the new market.
Answer: D
Explanation: D) In some industries, including consumer products and industrial equipment,
delays in starting new international distribution networks can be costly, so companies with
existing distribution systems often enjoy an advantage. Many companies have avoided time
delays by buying existing businesses with already established distribution and marketing
networks.
103) Which of the following do firms use to enhance public relations and branding while
stimulating chatter about a product within a target market?
A) Consumer-seller relationships
B) Segmentation
C) Company specialist
D) Corporate blogs
E) Enduring buyer-seller relationships
Answer: D
Explanation: D) Marketers are using corporate blogs increasingly for public relations, branding,
and otherwise spreading messages that stimulate chat about products to target markets.
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104) The institutional market is made up of businesses that buy goods to be converted into other
products or that are used up during production.
Answer: FALSE
Explanation: The institutional market consists of nongovernmental organizations such as
hospitals, churches, museums, and charities that also use supplies and equipment, as well as
legal, accounting, and transportation services.
105) The B2B market includes industrial, reseller, and government/institutional markets.
Answer: TRUE
Explanation: Taken together, these markets create about $27 trillion globally in business
annually—more than two times the amount done in the U.S. consumer market.
106) The reseller market includes farmers, manufacturers, and some retailers.
Answer: FALSE
Explanation: The reseller market consists of intermediaries, including wholesalers and retailers,
that buy and resell finished goods.
107) B2B sellers rarely have long-term relationships with buyers.

Answer: FALSE
Explanation: In contrast, industrial situations often involve frequent and enduring buyer-seller
relationships.
33
108) Discuss the three categories of B2B markets.
Answer: The three categories of B2B markets are industrial, reseller, and
government/institutional. The industrial market includes businesses that buy goods to be
converted into other products and goods that are used up during production. The reseller market
consists of intermediaries, including wholesalers and retailers, who buy the finished goods and
resell them. Federal, state, and local governments and institutions, which consist of
nongovernmental organizations, such as hospitals, churches, museums, and charitable
organizations, make up the final category of organizational markets. The B2B market is a larger
market than the U.S. consumer market.
109) How does a realistic market potential estimate affect small business success?
A) It allows small business owners to know how to modify a product for consumers.
B) It allows small business owners to have a clear picture of their target segments.
C) It allows for better use of social media based marketing efforts.
D) It increases the ability to be flexible in pricing strategy.
E) It provides a more accurate understanding of fixed and variable costs.
Answer: B
Explanation: B) Some new products and firms are doomed at the start because few customers
want or need what they have to offer. Many fail to estimate realistic market potential, and some
offer new products before they have clear pictures of their target segments.
Objective: 11.7: Discuss the marketing mix as it applies to small business.
110) In what area can a small business create an advantage over larger competitors?
A) Value
B) Price
C) Response time
D) Marketing
E) Shipping costs
Answer: C
Explanation: C) A smaller company may be able to address customers' needs more quickly and
efficiently with an added personal touch.
34
111) When a small business identifies themselves and their products with local groups and
events, what aspect of marketing are they pursuing?
A) Price
B) Promotion
C) Product
D) Public relations
E) Place
Answer: B
Explanation: B) Successful small businesses plan for promotional expenses as part of start-up
costs. Some hold down costs by using less expensive promotional methods, like publicity in local
newspapers and online messaging. Small businesses may also identify themselves and their
products with associated groups, organizations, and events.
112) What do most small business fail to estimate correctly, often resulting in the business
failing?
A) Price
B) Promotion
C) Product
D) Public relations
E) Place
Answer: A
Explanation: A) Haphazard pricing can sink a firm with a good product. Small business pricing
errors usually result from a failure to estimate operating expenses accurately.
113) Companies with an existing distribution network are at a disadvantage in the global context.
Answer: FALSE
Explanation: Established distribution networks are so crucial in the international context that
some companies buy companies with existing networks to leverage a competitive advantage.
114) Discuss the issues of international promotion.

Answer: Occasionally, an ad campaign may be appropriate for global use. However, often U.S.
promotional tactics don't succeed abroad. International marketers must be aware that cultural
differences can cause negative reactions to improperly advertised products. Product promotions
must be carefully matched to local customers and cultural values.
35
115) What advantages do smaller companies have over larger competitors when it comes to the
distribution aspect of the marketing mix?
Answer: A smaller company may be able to address customers' needs more quickly and
efficiently with an added personal touch. A small company may be able to address a consumer's
needs more quickly.
116) Identify the ways small businesses can benefit from an understanding of the marketing mix.
Answer: Small businesses need to understand the marketing mix, products, pricing, distribution,
and promotion. Small businesses need a thorough understanding of what customers want. Small
business pricing errors usually result from a failure to estimate operating expenses accurately,
but when small businesses set prices by carefully assessing costs, many earn satisfactory profits.
Small business distribution is the ability of many small businesses to attract and retain customers
depending partly on the choice of location, especially for new service businesses. Small business
promotion includes holding down costs by using less expensive promotional methods, like
publicity in local newspapers or identifying themselves and their products with associated
groups, organizations, and events.
36

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Business Essentials, 11e (Ebert/Griffin)

Chapter 11 Marketing Processes and Consumer Behavior

5) What are products with intangible features such as professional advice?

6) What type of marketing is used to build long-term relationships with customers?

15) The ability of a good or service to satisfy a need is considered to be its

17) Marketing consists primarily of advertising a product or service.

19) The formula for value is benefits divided by costs.

24) Describe the three types of competition faced by marketers.

28) What specific issues do marketing strategies help marketers determine?

42) Why is product development a challenge for marketers?

44) Why is it important for a company to develop new products?

62) Explain how marketers identify different market segments.

65) What is the goal of market research?

66) When is conducting market research generally most effective?

72) Marketing research is the study of behavioral variables.

94) What are B2B buyer-seller situations often based on?

97) What do organizations use to build relationships among users?

107) B2B sellers rarely have long-term relationships with buyers.

114) Discuss the issues of international promotion.

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