Question 1

Reference groups refer to

Accepted Answer

Reference groups are one or more individuals that an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors. They can be family members, friends, colleagues, or even celebrities. Reference groups have a significant impact on an individual's attitudes and behavior and can influence their purchasing decisions.

Question 2

In the hierarchy of needs water, food, rest, and shelter would be considered _____ needs.

Accepted Answer

Physiological needs are the most basic and fundamental needs required for human survival, which include water, food, rest, and shelter. Safety needs are related to the protection from danger and harm, social needs are related to belongingness and social connections, personal needs are related to personal growth and fulfillment, and psychological needs are related to self-esteem and self-actualization. However, in the hierarchy of needs, physiological needs are the most basic and essential needs that need to be fulfilled before moving to higher needs.

Question 3

Mars Corp. decides to buy new laptops for its managerial employees. Having made the decision, the top managers deliberated and decided that they required a 3GHZ processor and webcam in each laptop. In this scenario, Mars Corp. is currently in the _____ stage of the B2B buying process.

Accepted Answer

The product specification stage involves the identification of the desired product or service attributes, such as the required features and specifications of the laptops in this scenario.

Question 4

Which of the following is seen in Stage 4 of the B2B buying process?

Accepted Answer

Vendor negotiation is typically seen in Stage 4 of the B2B buying process, where the buyer evaluates and negotiates with potential vendors to ensure that the selected vendor is the best fit for their needs. Metric assessment (A) is typically seen in Stage 1, order specifications (B) in Stage 2, and straight rebuys (C) and modified rebuys (E) in Stage 3.

Question 5

In a(n) _____ search for information , a buyer examines his or her own memory and knowledge about a product or service, gathered through past experiences.

Accepted Answer

In an internal search, a buyer consults their own memory and knowledge about a product or service. This can include past experiences, beliefs, and attitudes towards the product or service.

Question 6

Which list below presents the hierarchy of needs in its correct order, beginning with the lowest level need to the highest level need?

Accepted Answer

This is the correct order of needs according to Maslow's Hierarchy of Needs theory. The lower levels of needs must be satisfied before an individual can move onto the higher levels. The physiological needs refer to basic needs such as food, water, and shelter. The safety needs refer to the need for safety and security, followed by love/belonging needs which refer to social relationships, esteem needs which include the need for recognition and status, and finally, self-actualization needs which involve fulfilling one's potential and achieving personal growth.

Question 7

Mercosur, Association of Southeast Asian Nations, NAFTA, and European Union are examples of _____.

Accepted Answer

Mercosur, Association of Southeast Asian Nations (ASEAN), NAFTA, and European Union are all examples of trade agreements.

Question 8

Organizational buying criteria refer to

Accepted Answer

Organizational buying criteria refers to the objective attributes of the supplier's products and services as well as the capabilities of the supplier itself. This includes factors such as price, quality, delivery, reliability, and service, which organizations use to evaluate potential suppliers and make purchase decisions.

Question 9

At which stage in the customer relationship management process would an organization seek to identify new customers and look for ways to sell more products to existing customers?

Accepted Answer

Prospecting is the stage in the CRM process where a company seeks to identify and qualify potential new customers. Additionally, it is also the stage where an organization looks for ways to upsell and cross-sell products to existing customers to increase their value to the company. Therefore, option B is the best choice.

Question 10

CL Inc. an American fast-food chain enters into an agreement with Mars Corp., a British firm. According to the terms of the contract, Mars Corp. can use CL's brand name, image, logo and business format for a specified fee. This type of market entry is known as _____.

Accepted Answer

The described market entry is franchising. Franchising allows a company to expand its operations without incurring high costs by allowing another party to use their brand name, image, logo and business format for a fee, while still maintaining control over certain aspects of the business.

Question 11

Which of the following is likely to be true of passive customers?

Accepted Answer

Passive customers are not actively engaged with a product or service and are unlikely to repurchase it. They may not complain or seek negative information, but they also will not recommend the product to others or seek positive feedback from friends.

Question 12

Kate buys a new summer dress but is worried that the color may fade during the first wash. This perceived danger that Kate is experiencing is known as _____ risk.

Accepted Answer

Performance risk refers to the potential that a product will not perform as expected, such as a dress losing its color after washing.

Question 13

_____ is defined as the market value of the goods and services produced by a country in a year.

Accepted Answer

Gross domestic product (GDP) is the market value of all final goods and services produced within a country's borders in a given period of time, typically a year. It is a measure of a country's economic output and is used to analyze and compare the economic performance of different countries.

Question 14

Timer, a U.S. based watchmaker, recently entered into a partnership agreement with an Australian firm to make watches. According to the terms of the agreement the firms agreed to pool resources and share losses. What type of partnership agreement does this situation most likely represent?

Accepted Answer

The situation described is most likely a joint venture, as it involves two companies pooling resources and sharing losses. Franchising and licensing agreements typically involve one company granting another company the right to use its brand name or intellectual property in exchange for fees or royalties. A strategic alliance can involve a variety of different types of partnerships, but typically involves two companies working together to achieve a shared goal without necessarily pooling resources or sharing losses. A direct ownership arrangement would involve one company acquiring another company outright.

Question 15

Which of the following is true of postpurchase cognitive dissonance?

Accepted Answer

Postpurchase cognitive dissonance is more likely to occur for expensive products because the higher the price, the more significant the commitment to the product. The consumer may experience anxiety or buyer's remorse and may seek validation for their decision to make such a large purchase.

Question 16

Which of the following commodities is most likely to be bought through habitual decision making?

Accepted Answer

Cheeseburgers are a low-involvement and frequently consumed product that is typically purchased without much thought, making it likely to be bought through habitual decision-making. Motorcycles, coffee machines, kitchen chimneys, and dresses are all considered higher-involvement products that require more research and consideration before making a purchase decision.

Question 17

_____ needs pertain to the personal gratification consumers associate with a product and/or service.

Accepted Answer

Psychological needs refer to the personal gratification or emotional satisfaction that consumers associate with a product or service. These can include desires for status, achievement, self-expression, or aesthetic pleasure, among other things. This is in contrast to functional needs (such as a product's ability to perform its intended task) or social needs (such as a product's ability to help consumers fit in with their peer groups).

Question 18

Hanna is buying a wedding dress and chooses one that is beyond her budget. However, she notices that the dress fits her well and comes with a money-back guarantee. Despite the higher cost, she decides to purchase the dress due to the trade-off between cost and perceived value. In this scenario Hanna is exhibiting the _____ rule.

Accepted Answer

Hanna is using the compensatory decision rule, where she weighs the pros and cons, and the positive attributes (fit and money-back guarantee) compensate for the negative attribute (higher cost).

Question 19

Jim wants to buy a business suit and has a particular brand in mind. However, he also states that he might consider buying three other more expensive brands as alternatives. In this scenario, these alternative brands constitute a _____ set.

Accepted Answer

The evoked set refers to the group of brands or products a consumer considers as alternatives when making a purchasing decision.

Question 20

_____ is a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, if expressed in the same currency.

Accepted Answer

Purchasing power parity theory explains that if the exchange rates of two countries are in balance, the cost of a product purchased in one will cost the same in the other, if expressed in the same currency. The theory asserts that over the long run, currency exchange rates should move towards the rate that would equalize the price of an identical basket of goods and services in any two countries.

Exam 1: Professional Certified Marketer