Deck 5: Analyzing Consumer and Business Markets

Question 1

Explain the differences between a role and status.

Answer 1

A role consists of the activities a person is expected to perform. Each role carries a status. For example, a senior vice-president has more status than a sales manager.

Question 2

Anne is a frequent purchaser of Yoplait strawberry yogurt. For once, she decides to try a different flavored yogurt. Instead of trying out the flavors offered by competing brands, Anne selects a different flavor offered by Yoplait. Here, her past experience with the brand prompts her to make the choice. Anne's behavior can be best described as ________.

A) fallacy of proposition
B) associative networking
C) generalization
D) heuristic thinking
E) self-actualization

Answer 2

C

Question 3

An example of a subculture would be a person's geographic region.

Answer 3

True

Question 4

The associative network memory model views long-term memory as ________.

A) a subliminal perception
B) the interplay of drives
C) a strong internal stimulus impelling action
D) a temporary and limited repository of information
E) a set of nodes and links

Question 5

What is a reference group? Describe three different types of reference groups that can have an impact on a consumer's purchasing behavior.

Question 6

When Ketan went to college he had a burning desire to join a social fraternity; for Ketan, the fraternity would be a dissociative group.

Question 7

Amtex Electronics, a consumer products brand, frequently advertises its products inside supermarkets and retail stores to promote the process of memory ________ and stimulate purchase.

A) verification
B) retrieval
C) decoding
D) formation
E) augmentation

Question 8

________ portrays the "whole person" interacting with his or her environment.

A) Attitude
B) Personality
C) Lifestyle
D) Self-concept
E) Subculture

Question 9

________ is the tendency to interpret information in a way that will fit our preconceptions.

A) Selective retention
B) Cognitive dissonance
C) Selective distortion
D) Subliminal perception
E) Selective embellishment

Question 10

Sigmund Freud assumed that the psychological forces shaping people's behavior are largely unconscious, and that people cannot fully understand their motivations.

Question 11

________ refers to a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli.

A) Image
B) Personality
C) Psychological transformation
D) Lifestyle
E) Acculturation

Question 12

Brand personality is the specific mix of human traits that may be attributed to a particular brand.

Question 13

The family is the most important consumer buying organization in society, and family members constitute the most influential primary reference group. We can distinguish between two family categorization in the buyer's life. Name the two families and their impact on buying behavior.

Question 14

Marketers who target consumers on the basis of their ________ believe that they can influence purchase behavior by appealing to people's inner selves.

A) time famine
B) sophistication
C) money constrain
D) social class
E) core values

Question 15

When State Farm uses consumer research to create a mental map of consumers that indicates that consumers perceive State Farm as conservative, safe, responsive, and convenient, they are interested in subliminal perceptions.

Question 16

________ is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

A) Target marketing
B) Mind mapping
C) Consumer activism
D) Consumer behavior
E) Product differentiation

Question 17

________ can work to the advantage of marketers with strong brands when consumers make neutral or ambiguous brand information more positive.

A) Selective attention
B) Selective distortion
C) Selective retention
D) Selective choice
E) Selective embellishment

Question 18

Joe is a computer service technician. People in his neighborhood usually depend on his suggestions for purchasing any computer accessory or hardware, as they believe that he has access to far more information on computer technology than the average consumer. The neighbors are also aware that Joe has the required knowledge and background for understanding the technical properties of the products. Within this context, Joe can be called a(n) ________.

A) transactional leader
B) opinion leader
C) role model
D) gate-keeper
E) international marketer

Question 19

The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior constitute a ________.

A) culture
B) subculture
C) social class
D) family
E) group

Question 20

The starting point for understanding consumer behavior is the ________ model in which marketing and environmental stimuli enter the consumer's consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions.

A) self-reliance
B) self-perception
C) psychogenic
D) stimulus-response
E) projective

Question 21

People can emerge with different perceptions of the same object because of three perceptual processes. List and briefly describe these processes.

Question 22

Perception depends only on the physical stimuli experienced by the person.

Question 23

A consumer tells another consumer, "Every time I eat at Big Bill's Steakhouse, I get poor service." Whether this is True or not, it is the consumer's perception. This is an example of consumers basing future predictions on the quickness and ease with which a particular example of an outcome comes to mind. This scenario would be an illustration of the ________ heuristic.

A) discrimination
B) differentiation
C) availability
D) screening
E) representativeness

Question 24

The milder information search state where a person simply becomes more receptive to information about a product is called ________.

A) active information search
B) information search
C) heightened attention
D) purchase decision
E) dynamic information search

Question 25

Frederick Herzberg developed a two-factor theory that distinguishes dissatisfiers and satisfiers. How does Herzberg's theory affect sellers' marketing strategy?

Question 26

Every consumer must pass through all five stages of the buying process when in a buying situation.

Question 27

Prospect theory maintains that consumers frame decision alternatives in terms of gains and losses according to a value function.

Question 28

________ are a person's enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea.

A) Discriminations
B) Values
C) Beliefs
D) Feelings
E) Attitudes

Question 29

As a consumer gathers information about purchase alternatives, the number of alternatives decreases as he advances through four sets of brands before reaching a decision. What are those four sets?

Question 30

Explain the differences between a belief and an attitude.

Question 31

Brands that meet consumers' initial buying criteria are called the ________ set.

A) total
B) awareness
C) consideration
D) choice
E) decision

Question 32

How is the expectancy-value model used in the evaluation of alternatives as a consumer engages in a buying process?

Question 33

The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their ________.

A) needs
B) wants
C) desires
D) brand beliefs
E) consuming attitudes

Question 34

The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs according to importance.

Question 35

Even if consumers form brand evaluations, two general factors can intervene between the purchase intention and the purchase decision: one is unanticipated situational factors; what is the other factor?

A) amount of purchasing power
B) attitudes of others
C) short-term memory capabilities
D) ability to return merchandise
E) the self-concept

Question 36

A key driver of sales frequency is the product ________ rate.

A) consumption
B) disposal
C) refusal
D) utility
E) option

Question 37

The anchoring and adjustment heuristic comes in to play when consumers base their predictions on the quickness and ease with which a particular example of an outcome comes to mind.

Question 38

________ are rules of thumb or mental shortcuts in the decision process.

A) Attitudes
B) Beliefs
C) Heuristics
D) Discriminations
E) Biases

Question 39

When a marketer tries to alter consumers' beliefs about her company's brand to get the consumers to rethink a purchase decision, she is using ________.

A) psychological repositioning
B) competitive depositioning
C) positioning
D) repositioning
E) biased positioning

Question 40

Abraham Maslow sought to explain why people are driven by particular needs at particular times. Describe Maslow's hierarchy of needs. How does Maslow's theory help marketers?

Question 41

Explain how fluctuating demand impacts business markets differently from consumer markets.

Question 42

Heuristics can come into play when consumers forecast the likelihood of future outcomes or events. How does a consumer use an anchoring and adjustment heuristic?

Question 43

Describe the differences between a straight rebuy, a modified rebuy, and a new-task purchase.

Question 44

Describe the practices of systems buying and systems contracting.

Question 45

If you performed the role of the ________ in a buying center, you would be the person that has the power to prevent sellers or information from reaching other members of the buying center.

A) initiator
B) influencer
C) decider
D) gatekeeper
E) approver

Question 46

The business buyer makes the fewest decisions in the straight rebuy situation and the most in the new-task situation.

Question 47

Pittsburgh-based Consol Energy's coal business largely depends on orders from utilities and steel companies which, in turn, depend on broader economic demand from consumers for electricity and steel-based products like automobiles and appliances because of ________.

A) fluctuating demand
B) derived demand
C) professional purchasing
D) multiple buying influences
E) multiple sales calls

Question 48

Explain the concept of derived demand.

Question 49

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________.

A) straight rebuy
B) modified rebuy
C) new task
D) secondary purchase
E) procure-to-pay

Question 50

Small sellers to a buying center should first concentrate their marketing efforts on reaching ________.

A) approvers
B) initiators
C) influencers
D) users
E) initiators

Question 51

Business markets have several characteristics that contrast sharply with those of consumer markets. Name and briefly characterize five of those characteristics.

Question 52

________ is composed of all parties who participate in the purchasing decision-making process and share common goals and risks associated with their decisions.

A) The buying center
B) The marketing sales team
C) Strategic management
D) Engineering support
E) The logistics center

Question 53

Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________.

A) inelastic demand
B) direct purchasing
C) decision framing
D) a modified rebuy
E) a straight rebuy

Question 54

In a ________ purchasing situation, the buyer wants to make some change to existing product specifications, prices, delivery requirements, or other terms.

A) new rebuy
B) regular buy
C) straight rebuy
D) modified rebuy
E) new task

Question 55

The business market is essentially the same market as the consumer market.

Question 56

If you were an upper-level marketing executive of a large seller of trucks, which of the following strategies would be most appropriate in reaching buying center targets?

A) Concentrate on key buying influencers.
B) Use multilevel in-depth selling.
C) Use trade-based promotions.
D) Concentrate sales efforts on the support staff.
E) Move all operations to the Internet.

Question 57

Which of the following is True for business marketers?

A) They deal with more and larger buyers than consumer marketers.
B) They deal with more and smaller buyers than consumer marketers.
C) They deal with fewer and larger buyers than consumer marketers.
D) They deal with fewer and smaller buyers than consumer marketers.
E) They deal with the same kind of buyers as consumer marketers.

Question 58

________ refers to the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.

A) Marketing channels
B) Organizational buying
C) Corporate retailing
D) Brand auditing
E) Inventory control

Question 59

In which of the following is a person performing the role of an influencer?

A) Dan decides on the product requirements and makes the final choice of suppliers.
B) Luke has the authority to pick out the supplier and negotiate the terms of purchase.
C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives.
D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG.
E) Dana authorizes the actions of the deciders and buyers in LKG.

Question 60

The demand for business goods is ultimately derived from the demand for raw materials.

Question 61

In a buying center, people who authorize the proposed actions of deciders or buyers are initiators.

Question 62

List the seven roles of people in a buying center.

Question 63

In the buying center, several people can occupy a given role such as user or influencer, and one person may play multiple roles.

Question 64

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________.

A) channel consolidation
B) systems buying
C) vertical buying
D) horizontal buying
E) supply buying

Question 65

The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________.

A) maintenance, repair, and operating (MRO)
B) product value analysis (PVA)
C) vendor managed inventories (VMI)
D) supplier performance management (SPM)
E) supplier added value effort (SAVE)

Question 66

The "customer is king" category of buyer-seller relationship is relatively simple, and one in which routine exchanges with moderately high levels of cooperation and information exchange occur.

Question 67

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________.

A) basic buying and selling
B) contractual transaction
C) collaborative
D) customer supply
E) customer is king

Question 68

What are the methods available to the buyer to review the performance of the chosen supplier? What advantage does performance review offer to the buyer?

Question 69

In reordering office supplies, the only stages that the buyer passes through are the product specification stage and the ________ stage.

A) problem recognition
B) general need description
C) order-routine specification
D) supplier search
E) performance review

Question 70

In the ________ category of buyer-supplier relationship, although bonded by a close, cooperative relationship, the seller adapts to meet the customer's needs without expecting much adaptation or change on the part of the customer in exchange.

A) contractual transaction
B) cooperative system
C) collaborative
D) mutually adaptive
E) customer is king

Question 71

Explain the term "opportunism" with respect to business relationships.

Question 72

In buying alliances, participants offer to trade goods or services.

Question 73

Which of the following is a form of cheating or undersupply relative to an implicit or explicit contract which usually takes place when buyers cannot easily monitor supplier performance?

A) institutional sale
B) business buying
C) opportunism
D) vertical integration
E) contractual transactionism

Question 74

Which of the following is an example of a functional hub?

A) Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers.
B) ChemConnect.com is an online exchange for buyers and sellers of bulk chemicals.
C) SteelMart.com concentrates on steel buyers from the United States.
D) SupplyLink.com offers manufacturers from different industries information on ensuring workplace safety.
E) PaperTiger.com offers paper buyers a comprehensive look at the prices and quality in the paper market.

Question 75

Researchers have found that buyer-supplier relationships differed according to four factors: availability of alternatives; importance of supply; complexity of supply; and supply market dynamism. Based on these four factors, they classified buyer-supplier relationships into eight different categories. What are those categories?

Question 76

The business buying process begins when someone places an order with a sales representative.

Question 77

What is vendor-managed inventory (VMI)?

Question 78

Small sellers concentrate on multilevel in-depth selling instead of reaching the key buying influencers.

Question 79

Patrick J. Robinson and his associates have identified eight stages in the business buying-decision process. This model is called the ________ framework.

A) buygrid
B) buying/selling
C) seller-centered
D) commercial
E) buy-analysis

Question 80

Contracts are always sufficient to govern supplier transactions and prevent supplier opportunism.