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Ys / 0785059665 /
Second Exam
2016-2017
Ibrahim Y Al-salman
Founder of Marketing House
Facebook.com/groups/mkt.family
Note: this work not for make money, it's for free for student
Suppose that you decide to purchase a new car, and you intend to make your
decision based on the following factors: miles per gallon within the city,
automatic transmission, power windows, air conditioning, and a price under
$18,000. These characteristics represent your:
a. consideration set.
b. evoked set.
c. cognitive dissonance.
d. patronage motives.
e. evaluative criteria.
correct: e
feedback: Incorrect. To assess the products in a consideration set, you use
objective and subjective characteristics that are important to you (page 132).
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When the only newspaper editorials you will read are those published in The
New York Times, this is an example of your:
a. selective exposure.
b. selective retention.
c. evoked set.
d. consideration set.
e. evaluative criteria.
correct: a
feedback:. You are selecting which inputs will reach your awareness (page 135).
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When a manager seeks out additional job training so that he or she can grow
professionally, this is an example of which need in Maslow's hierarchy of needs?
a. Physiological
b. Esteem
c. Safety
d. Social
e. Self-actualization
correct: e
feedback:. This is a need to grow and develop and to become all one is capable of
becoming (page 137).
-------------------------------------------------------------
A change in a person's thinking and behavior that is caused by his or her past
experience is called:
a. motivation.
b. motive.
c. learning.
d. selective exposure.
e. selective distortion.
correct: c
feedback:. Behavior that leads to satisfaction strongly influences a person to
repeat that behavior (page 137).
-------------------------------------------------------------
Employees at IBM are asked to take a "morale survey" by rating each item on the
survey on a five-point scale: 5 is Strongly Agree and 1 is Strongly Disagree.
What type of item is the following: "This company is a good place to work."?
a. Personality scale
b. Reference scale
c. Patronage scale
d. Attitude scale
e. Situational scale
correct: d
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When a manager of a company is very well-informed about a certain topic, and
other managers look to this manager's thinking whenever this topic comes up for
discussion, this manager acts as:
a. a consideration set.
b. a motive.
c. an internal search reference.
d. cognitive dissonance.
e. an opinion leader.
correct: e
feedback:. He is a reference group member who provides information about a
specific sphere that interests reference group participants (page 143)
-------------------------------------------------------------
Purchasers who intend to use or benefit from the purchased product and do not
buy products for business purposes are called the
a) ultimate consumers.
b) end-use consumption group.
c) business market.
d) household purchasing group.
e) organizational market.
a) ultimate consumers.
Many aspects of consumer buying decisions are affected by the individual's level
of involvement. Level of involvement is
a) the importance and intensity of interest in a product in a particular situation.
b) the buyer's perception, motives, and abilities.
c) the amount of external search that an individual puts into the decision-making
process.
d) the particular circumstance or environment in which consumers find
themselves.
e) a combination of an individual's demographic factors.
a) the importance and intensity of interest in a product in a particular
situation.
Justin is purchasing his third car in the past five years. He has been a car
enthusiast ever since he was a little boy. He likes to spend his free time looking
at car magazines, going to car shows, and watching NASCAR. Justin's interest in
cars is referred to as
a) situational involvement.
b) dynamic involvement.
c) enduring involvement.
d) dynamic buying behavior.
e) situational buying behavior.
c) enduring involvement.
Chloe and Max are searching for a health club to join. This purchase will likely
be affected by ___________ involvement.
a) low
b) internal
c) enduring
d) evoked
e) perceived
c) enduring
Temporary and dynamic factors that result from a particular set of circumstance a
consumer is facing when making purchase decisions characterize
a) enduring involvement.
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The three most widely recognized types of consumer problem solving are:
a) limited problem solving, extended problem solving, and routinized response
behavior.
b) extended problem solving, enduring problem solving, and situational problem
solving.
c) planned problem solving, impulse buying, and limited problem solving.
d) internal problem solving, external problem solving, situational behavior.
e) responsive behavior, planned behavior, and impulsive problem solving.
a) limited problem solving, extended problem solving, and routinized response
behavior.
While shopping at a Kroger grocery store, Tom sees a display of his favorite
brand of diet cola. He buys a six-pack to take home for the weekend. This
purchase process would be described as
a) routinized response behavior.
b) extended problem solving.
c) limited problem solving.
d) situational perception.
e) enduring involvement.
a) routinized response behavior.
Stacy is going to the store to buy a gallon of milk. She will most likely use
___________ in her consumer decision-making process.
a) routinized response behavior
b) limited problem solving
c) extended problem solving
d) perceptual scanning
e) evaluation of alternatives
a) routinized response behavior
Jenny plans to buy a new swimsuit for her spring break cruise. She has not seen
this year's styles and thus will do some comparison shopping before making a
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For which of the following products would a consumer most likely use limited
problem solving?
a) Detergent
b) Toothpaste
c) Automobile
d) Hair dryer
e) Washing machine
d) Hair dryer
Which of the following purchases would most likely require a consumer to use
extended problem solving?
a) Audio equipment
b) Shaving cream
c) Cereal
d) Kitchen napkins
e) Gasoline
a) Audio equipment
Jose and Teresa are searching for a new cellular phone. They will most likely
engage in which one of the following forms of problem solving?
a) Extended problem solving
b) Limited problem solving
c) Impulse buying
d) Routinized response behavior
e) Intensive response behavior
a) Extended problem solving
Marissa goes to Target to purchase school supplies for her two children. As she is
approaching the check-out counter, she sees a vase she just has to have and buys
it immediately. Marissa's purchase of the vase is an example of
a) limited problem solving.
b) impulse buying.
c) routinized response behavior.
d) addictive consumption.
e) situational involvement.
b) impulse buying.
Beth Hines is buying furniture for her apartment for the first time. She is
spending considerable time and effort comparing the products that different
stores offer. Which type of problem-solving process is she using?
a) Selective
b) Intensive
c) Extended
d) Shopping
e) Routinized
c) Extended
The five major stages of the consumer buying decision process, in order, are
a) information search, establishment of product criteria, evaluation of
alternatives, purchase, and postpurchase evaluation
b) problem recognition, information search, evaluation of alternatives, purchase,
and postpurchase evaluation.
c) problem recognition, information search, evaluation of alternatives,
postpurchase evaluation and purchase.
d) information search, evaluation of alternatives, purchase, trial adoption period,
and postpurchase evaluation.
e) problem recognition, purchase, evaluation of alternatives, postpurchase
evaluation, and rebuy
b) problem recognition, information search, evaluation of alternatives, purchase,
and postpurchase evaluation.
Which of the following statements about the consumer buying decision process is
true?
a) Consumers progress through the five stages of this process for all limited
problem-solving decisions.
b) Although all of the steps in the process are used in all decision processes, the
order tends to depend on the customer's level of involvement.
c) The key element of the process that exists in all consumer buying decision
processes is the purchase of the product.
d) Once the purchase of a product has been made, the consumer buying decision
process is complete.
e) Consumers making limited problem-solving decisions may not go through all
five steps of the process.
e) Consumers making limited problem-solving decisions may not go through all
five steps of the process.
When Julia goes to the first class of her Operations Management course, she
finds out that in addition to the textbook she already purchased, she also needs a
copy of the book The Goal. At which stage of the consumer buying decision
process is Julia?
a) Purchase
b) Evaluation of alternatives
c) Problem recognition
d) Information search
e) Prepurchase evaluation
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c) Problem recognition
Within the information search step of the consumer buying decision process,
what two primary aspects exist?
a) Consideration sets and evoked sets
b) Personal information and non-personal information
c) Selective retention and selective distortion
d) Internal search and external search
e) Company-produced information and internal information
d) Internal search and external search
As Jeff runs out of shaving cream, he immediately tries to remember what he did
the last time this happened. He is engaging in
a) external search.
b) consideration set development.
c) internal search.
d) cognitive dissonance.
e) alternative evaluation.
c) internal search.
When Trevor realizes his liquor cabinet supply was devastated by last weekend's
party, he first retrieves information from his memory about what types of liquor
he and his friends like most and then asks the attractive clerk at the liquor store
what she would recommend. Trevor started with a(n) _____ search and then
progressed to a(n) _____ search.
a) consideration; evaluative
b) focused; broad
c) internal; external
d) routinized; extended
e) self; inclusive
c) internal; external
During which stage of the consumer buying decision process does a consumer
decide from which seller he or she will buy the product?
a) Evaluation of alternatives
b) Information search
c) Source selection
d) Purchase
e) Problem recognition
d) Purchase
When shopping for detergent, Josh looks at Tide, Fresh Start, Surf, and All and
chooses the one that is on sale. These four brands make up his _________ set.
a) alternate
b) purchase
c) consideration
d) problem
e) imposed
c) consideration
In shopping for a new laptop computer for her master degree program, the
alternatives Jocelyn is considering include Dell, Toshiba, Sony, and Hewlett-
Packard. These four brands make up Jocelyn's
a) dissonance group.
b) evaluative group.
c) framing set.
d) external search results.
e) consideration set.
e) consideration set.
Evaluative criteria for brands within the consideration set are both
a) selective and expansive.
b) objective and subjective.
c) internal and external.
d) extended and routinized.
e) perceptive and selective.
b) objective and subjective.
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A customer shopping for a fax machine tells a salesperson that it is important for
the fax machine to have several attributes. It must use plain paper, be able to
make copies, be compatible with all other fax machines, and not require a
separate phone line. The buyer has expressed his or her
a) framing characteristics.
b) service characteristics.
c) consideration set.
d) evaluative criteria.
e) information search criteria.
d) evaluative criteria.
After doing considerable shopping, Eric has just decided what brand and type of
athletic shoes to buy and where he's going to buy them. In what stage of the
consumer buying decision process is Eric?
a) Problem recognition
b) Information search
c) Evaluation of alternatives
d) Purchase
e) Postpurchase evaluation
d) Purchase
Doubts in a buyer's mind about whether the purchase decision made was the right
one may occur during the
a) cognitive dissonance.
b) purchase.
c) evaluation of alternatives.
d) internal search.
e) postpurchase evaluation.
e) postpurchase evaluation.
After purchasing a new Lexus, Pablo sees an Infinity pass by on the street and
begins to wonder if he made the right choice. Pablo is experiencing
a) problem recognition.
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b) cognitive dissonance.
c) internal search.
d) alternative evaluation.
e) framing.
b) cognitive dissonance.
c) Time pressures
d) Purchase reasons
e) Physical surroundings
e) Physical surroundings
As Brianna walks to classes, she selects, organizes, and interprets the sensations
she is receiving through her sense organs. Brianna is experiencing the process of
a) exposure.
b) motivation.
c) learning.
d) attitude formation.
e) perception.
e) perception.
You are in the market for a new car and believe there are more car ads than usual
on TV. Perhaps the need you have is driving which of the following phenomena?
a) perception.
b) selective exposure.
c) selective distortion.
d) cognitive dissonance.
e) selective retention.
b) selective exposure.
If a consumer receives information that is inconsistent with her or his beliefs, the
consumer may alter this information. This perceptual process is known as
selective
a) exposure.
b) distortion.
c) retention.
d) information.
e) organization.
b) distortion.
After certain inputs have been selected to reach an individual's awareness, the
next step in the perceptual process is perceptual
a) organization.
b) attention.
c) retention.
d) interpretation.
e) redefinition.
a) organization.
Maria reads through the newspaper fashion flyers containing advertisements for
sweaters from Polo, purses from JC Penney, and tennis shoes from Foot Locker.
She remembers only the shoe ad, thanks to the recent tear in her own Reeboks.
Maria has engaged in selective
a) distortion.
b) decision making.
c) analysis.
d) retention.
e) reading.
d) retention.
c) distortion.
d) closure.
e) linking.
d) closure.
A salesperson at Best Buy tells Patrick Dunnavan that the Sony Notebook is one
of the most reliable computer notebooks ever made. Patrick, however, has just
heard about a second Sony recall for this model because of overheating. His most
likely response will be to
a) buy the Sony.
b) forget the information from the salesperson.
c) ignore the recall as a fluke.
d) focus on positive aspects of the Sony.
e) cease shopping for a computer notebook at this time.
b) forget the information from the salesperson.
Consumers tend to remember information inputs that support their feelings and
beliefs and forget inputs that do not. This is known as selective
a) exposure.
b) distortion.
c) retention.
d) information.
e) organization.
c) retention.
Which of the following statements about how a consumer organizes inputs that
reach awareness is most accurate?
a) Inputs are organized by individuals to produce meaning, and this
organizational process is usually a slow one.
b) Organization of information inputs is not always needed to produce meaning.
c) Inputs that reach awareness are organized and interpreted in much the same
way by all consumers.
d) Because a person interprets information in terms of what is familiar, only one
interpretation of organized inputs is possible.
e) Inputs that reach awareness are organized to produce meaning, and this
meaning is interpreted in light of what is familiar to the individual.
e) Inputs that reach awareness are organized to produce meaning, and this meaning
is interpreted in light of what is familiar to the individual.
Buyers' actions are affected by one or more internal energizing forces geared
toward satisfying needs, which are called
a) motives.
b) lifestyles.
c) perceptions.
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d) attitudes.
e) traits.
a) motives.
Maslow's hierarchy of needs refers to the five levels of needs that humans seek to
satisfy, from most to least important. These needs, in order from most to least
important are
a) psychological, physiological, safety, social, and esteem.
b) physiological, safety, esteem, social, and self-actualization.
c) physiological, psychological, safety, social, and esteem.
d) physiological, safety, social, and esteem, self-actualization.
e) physiological, esteem, safety, self-actualization, and psychological.
d) physiological, safety, social, and esteem, self-actualization.
Shortly after moving into their new home, Mark and Katherine Gould purchase
and install smoke detectors and an alarm system. The Goulds are concerned
about fulfilling their need for
a) survival.
b) safety.
c) self-actualization.
d) esteem.
e) belonging.
b) safety.
Jana now feels that her teeth are not white enough after seeing advertisements for
whitening toothpaste. Marketers promote these brands based on ___________
needs, appealing to sex appeal.
a) physiological
b) esteem
c) self-actualization
d) psychological
e) social
a) physiological
People's needs to grow, develop, and achieve their full potential are referred to
by Maslow as ______ needs.
a) ego
b) esteem
c) self-actualization
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d) social
e) safety
c) self-actualization
The U.S. Army recruits soldiers based on the slogan, "An army of one," implying
that people can reach their full personal potential in the U.S. Army. This is an
appeal to what need according to Maslow's hierarchy of needs?
a) Safety
b) Esteem
c) Self-actualization
d) Physiological
e) Social
c) Self-actualization
Luis likes shopping at Stein Mart, a discount department store, because he likes
the prices, products, and services the store provides. His selection of this store as
a regular stop when shopping is influenced by ___________ motives.
a) self-concept
b) self-image
c) projective
d) depth
e) patronage
e) patronage
An attitude is
a) an internal trait that makes a person unique.
b) a set of actions that a person in a particular position is supposed to perform.
c) a competence in performing activities.
d) a person's behavior caused by information and experience.
e) one's evaluation, feelings, and behavioral tendencies toward an object or idea.
e) one's evaluation, feelings, and behavioral tendencies toward an object or idea.
Having used both Secret and Sure deodorants, Annette feels that Secret is a good
product and the one that best meets her needs. She has formed a(n) ___________
about Secret.
a) motive
b) consideration set
c) cognition
d) attitude
e) self-concept
d) attitude
Melanie prefers to shop at Target for most of her household needs even though
the same products and brands are available at KMart. She prefers the service,
location, and friendliness of the employees at Target. Melanie's reasons that
influence her decision to shop at Target are called
a) social needs.
b) learning processes.
c) patronage motives.
d) product attitudes.
e) retailer attitudes.
c) patronage motives.
The results of many studies have been inconclusive regarding the association
between buyer behavior and
a) personality.
b) perception.
c) motives.
d) social class.
e) learning.
a) personality.
Shane spends most of his free time participating in extreme sports and traveling
to exotic locations with a group of close friends who share his interests and
opinions about most things. This is a description of Shane's
a) self-concept.
b) lifestyle.
c) personality.
d) attitudes.
e) role.
b) lifestyle.
A consumer's buying decisions are affected in part by the people around him or
her. Such people and the forces they exert on an individual buyer are called
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a) motivational influences.
b) social influences.
c) roles.
d) personality influences.
e) cultural influences.
b) social influences.
The actions and activities associated with a position one holds within a group,
organization, or institution constitute
a) personality.
b) a role.
c) a motive.
d) perception.
e) an attitude.
b) a role.
Jonathan is torn between buying a new swing set for his kids and buying a new
set of Ping golf clubs for himself. Jonathan is experiencing
a) attitude formation.
b) belief assessment.
c) role inconsistency.
d) cognitive dissonance.
e) personality.
c) role inconsistency.
The forces that other people exert on one's buying behavior are called social
influences. These come from reference groups and opinion leaders, social
classes, culture and subcultures, roles, and
a) ethnic heritage.
b) personality.
c) attitudes.
d) perception.
e) family.
e) family.
Shaun is going shopping with his dad to buy his first baseball glove for Little
League. He listens to his dad talk to the salesperson at the sporting goods store,
watches him examine the stitching in the glove and then rub his finger over the
leather palm. Shaun's observations are part of his
a) consumer development.
b) attitude development.
c) purchasing evaluation.
d) consumer socialization.
e) consumer attitude.
d) consumer socialization
d) social class
e) attitude formation
a) consumer socialization
Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop
at Sarah's, a local store where the Kappas buy their clothes. She also asks her
family for a new car because all the sorority members have new cars. In these
instances, Jennifer is influenced by
a) personality.
b) a reference group.
c) a consideration set.
d) a knowledge base.
e) a role conflict.
b) a reference group.
A group becomes a reference group for an individual when that person identifies
with this group so strongly that he or she
a) takes on many of the values, attitudes, or behaviors of group members.
b) becomes a formal member of the group.
c) becomes familiar with the group's activities.
d) seeks information from members of the group regarding buying decisions.
e) cannot control the strength of his or her involvement with the group.
a) takes on many of the values, attitudes, or behaviors of group members.
Which one of the following is most likely to be a product for which both the
purchasing decision and the brand decision are strongly influenced by reference
groups?
a) Canned peaches
b) Instant coffee
c) Jeans
d) Furniture
e) Soap
c) Jeans
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Katie is buying her first car and has narrowed her choices down to a Honda
Civic, a Toyota Prius, or a Volkswagen Jetta. Katie goes on-line and posts
questions to others who have experience with any of these cars, asking for
reviews. Katie is most likely
a) using a blog.
b) an opinion leader.
c) using her reference groups for information.
d) experiencing enduring involvement.
e) exerting social influence.
a) using a blog.
Our society uses many factors, including occupation, educational level, income,
wealth, religion, race, ethnic group, and possessions, to group people into
a) family types.
b) geographic regions.
c) reference groups.
d) social classes.
e) attitudinal segments.
d) social classes.
According to Coleman's major social class categories, the social class in our
society that favors prestigious schooling, neighborhoods, and brands is the
a) upper class.
b) middle class.
c) upper-lower class.
d) working class.
e) lower class.
a) upper class.
According to Coleman's social class categories, the social class that includes
approximately 40 percent of the population, shops for bargains, and buys sports
and recreational equipment is the
a) upper class.
b) middle class.
c) first class.
d) working class.
e) lower class.
d) working class.
Market researchers for a local bakery determined that Jewish people consume 63
percent of the portion of bagels sold in New York City. This is an example of
___________ influence on consumer buying decision processes.
a) demographic
b) situational
c) subcultural
d) role
e) social class
c) subcultural
Which of the following is the fastest growing, most affluent subculture in the
United States?
a) African Americans
b) Hispanics
c) Asian Americans
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d) Native Americans
e) Italian Americans
c) Asian Americans
A consumer market consists of buyers intending to use the product with the main
purpose of making a profit.
False
Buying behavior refers to the decision processes and acts of people involved in
buying and using products.
true
T F High involvement products tend to be those that are expensive and visible to
others.
True
T F The actual act of purchase is the second stage of the consumer buying
decision process.
f
T F Problem recognition speed can vary from quite rapid to very slow.
t
T F An information search, once completed, should identify for the buyer the one
brand that he or she views as the best alternative.
f
T F When evaluating the alternatives, the buyer rates and eventually ranks the
brands in the consideration set.
t
T F The evaluative criteria are objective but not subjective product characteristics
that are important to a specific buyer when purchasing a product.
f
T F The terms of sale (price, delivery, credit arrangements) are negotiated during
the evaluation of alternatives stage of the consumer decision-making process.
f
T F Product availability plays a major role in the purchase stage. If the highest-
ranked product is unavailable, the consumer will most likely purchase the brand
ranked second.
t
T F The choice of a seller may actually affect the final product selection during
the purchase stage of the consumer buying decision process.
t
T F Situational influences generally have the greatest influence during the initial
stage of the consumer buying decision process.
f
T F Situational influences would likely not affect a high school senior searching
for a college or university to attend.
f
T F An electronics store puts a large screen TV, wired for surround sound, in a
quiet corner of the store with couches and a rug, and plays a recently released
movie. These actions give the display the look of a family room or den. The store
is using the physical surroundings as a way to influence purchase decisions.
t
T F Social surroundings during the purchase decision do not include the presence
of a salesperson.
f
T F Time dimensions on the buying decision include how long it may take to
become knowledgeable about a product.
t
a. Institutional market
b. Government market
c. Reseller market
d. Buying center
e. Reciprocity
correct: a
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If a supermarket manager needed to order 50 dozen eggs from a food wholesaler, which buying
method would she most likely use?
a. Project negotiation
b. Inspection
c. Sampling
d. New-task purchase
e. Description
correct: e
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Which method of business buying would most likely be used for a company that was interested in
purchasing a used truck for its delivery service?
a. Sampling
b. Description
c. Inspection
d. Project negotiation
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e. Reciprocity
correct: c
feedback:. This type of buying method is used for products such as industrial equipment that have
unique characteristics and may vary with regard to condition (page 161).
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If a company attempts to identify the most appropriate purchase decision by asking suppliers to
submit bids, which type of buying method does this situation imply?
a. Inspection
b. Negotiation
c. Description
d. Sampling
e. Consumer purchase
correct: b
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Demand for certain business products, especially raw materials and components, is subject to:
a. inelastic demand.
b. joint demand.
c. sole sourcing.
d. reciprocity.
e. government markets.
correct: b
feedback:. This type of demand occurs when two or more items are used in combination to
produce a product (page 163).
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When a company does a systematic evaluation of its current and potential suppliers based on their
prices, product availability, product quality, delivery service, and reliability, this is called a(n):
a. value analysis.
b. inelastic demand.
c. vendor analysis.
d. joint demand.
e. sole sourcing.
correct: c
your: a
feedback:. In this process some suppliers may be deemed unacceptable and others may be
excluded because of poor delivery and service records (page 166).
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When Dell Computer Co. uses several suppliers for its laptop computer components, it is using:
a. sole sourcing.
b. institutional markets.
d. multiple sourcing.
e. reciprocity.
correct: d
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When Best Buy uses only UPS for delivery of its electronics products to customers, this is an
example of:
a. multiple sourcing.
b. inelastic demand.
c. a buying center.
d. value analysis.
e. sole sourcing.
correct: e
feedback:. In the selection stage of the Buying Decision Process the buyer may select and use only
one supplier (page 166).
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Which of the following has been a business classification system of companies that has been
developed by the U.S. government?
a. SIC codes
b. Inelastic demand
c. Elastic demand
d. Sole sourcing
e. Multiple sourcing
correct: a
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Which of the following business classification systems will be used by the U.S., Canada, and
Mexico?
b. NAICS
e. SIC
correct: b
feedback:. A single-industry classification system created to generate comparable statistics among
the three partners of the North American Free Trade Agreement (NAFTA) (page 168).
-----------------------------------------------------------------
The three purposes for which individuals or groups can use products in order for it to be
considered a business market are
In business markets, individuals or groups purchase products for one of three purposes.
These purposes are
When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part
of what type of market for electrical wire?
a. Resale
b. Wholesale
c. Customer
d. Consumer
e. Business
e
Business markets are typically divided into four categories. These categories are
Individuals and business organizations that purchase products for the purpose of making a profit
either by using the products to produce other products or by using them in their operations are
classified as ___________ markets.
a. consumer
b. institutional
c. producer
d. government
e. reseller
c
An accountant who purchases software for maintaining clients' books is an example of a buyer in
a(n) ___________ market.
a. consumer
b. producer
c. reseller
d. government
e. institutional
b
Individuals and business organizations that buy finished goods and resell them to make a profit
without changing the physical characteristics of the product are classified as
___________ markets.
a. consumer
b. institutional
c. producer
d. government
e. reseller
e
______ buy products from manufacturers and then resell the products to other firms in the
distribution system.
a. Retailers
b. Producers
c. Distributors
d. Warehouses
e. Wholesalers
e
Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of
manufacturers and sells them to hardware stores at a price that includes a profit for Snappy
Tools, Inc. The company would be part of what type of business market?
a. Reseller
b. Producer
c. Consumer
d. Government
e. Supply
a
Which type of business market tends to have the most complex buying procedures?
a. Reseller
b. Institutional
c. Retailer
d. Government
e. Producer
d
The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a
large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the
government market. To have a chance at getting this order, Citrus Sweet's first step must be
to get her firm to
Churches, charitable organizations, and private colleges are considered _____ buyers.
a. corporate
b. government
c. institutional
d. producer
e. nonprofit
c
Abbott's Office Supplies buys furniture and filing cabinets from Craine Furniture. Craine buys
paper, pens, and folders from Abbott's. The two firms are engaged in
a. cross-selling.
b. tying agreements.
c. producer marketing.
d. reciprocity.
e. competitive bidding.
d
a. a price war.
b. higher promotional costs.
c. more competitive firms entering the industry.
d. less-than-optimal purchases for the buyer.
e. longer periods of negotiation.
d
Many suppliers and their customers invest time and resources to build and maintain mutually
beneficial relationships which are often called
a. partnerships.
b. co-ops.
c. monopolies.
d. reciprocity.
e. alliances.
a
Raython Hardware and Thames Industrial Supplier have worked closely for many years and
have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs
in a timely manner. Raython and Thames's relationship could be best characterized as
a(n)
a. reciprocity agreement.
b. partnership.
c. intra-organizational group.
d. alliance.
e. tying arrangement.
Most businesses try to control the level of quality in the parts they buy from suppliers. Most
firms develop standards for _____ in order to achieve their quality goals.
Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This
upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called
a. descriptions.
b. product features.
c. criterion.
d. purchase requests.
e. specifications.
e
Johnson's Industrial Pest Control Service wants to meet its customers' expectations with
regard to the quality of service it provides. How should Johnson's identify these expectations?
A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent
for Pillsbury will most likely use which buying method?
a. Description
b. Inspection
c. Sampling
d. Negotiation
e. Selection
c
If a business owner buys parts by specifying the quantity, grade, and other attributes, which
buying method is he or she using?
a. Description
b. Sampling
c. Negotiation
d. Ordering
e. Inspection
a
Which method of business buying is necessary when products are highly homogeneous and
examination of each item is not feasible?
a. Negotiation
b. Sampling
c. Description
d. Inspection
e. Homogeneous selection
b
When a business routinely purchases the same product with similar terms of sale, the
purchase is called a
a. new-task.
b. repetitive purchase.
c. straight rebuy.
d. modified rebuy.
e. standard order.
c
When a business is making its initial purchase of an item to be used to perform a new job, it
is known as a _________ purchase.
a. straight rebuy
b. reciprocal
c. delayed
d. new-task
e. modified rebuy
d
Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a
fleet of company cars as part of its sales compensation package. For Perry Supply, these
vehicles would represent a ____________ purchase.
a. modified rebuy
b. straight rebuy
c. new-task
d. reevaluated
e. repetitive
c
Anderson Distribution Company has purchased 15 forklifts over the past two years. As it
plans to place its next order for another five machines, management wonders if additional features
may be needed in order to handle changes in the product lines it carries. For Anderson, these new
forklifts represent a ___________ purchase.
a. new-task
b. repetitive
c. straight rebuy
d. repetitive order
e. modified rebuy
e
a. New-task
b. Modified rebuy
c. Straight rebuy
d. Bid
e. Negotiated
c
When the requirements associated with a new-task purchase are changed the second or third time,
this is called a ___________ purchase.
a. modified rebuy
b. continued new-task
c. contractual
d. straight rebuy
e. negotiated rebuy
a
a. derived
b. corporate
c. business buying
d. manufacturing
e. industrial
e
The fact that business customers purchase products to be used directly or indirectly in the
production of goods and services to satisfy customers' needs means that demand for
business products is
a. joint.
b. economically stable.
c. derived.
d. inelastic.
e. more fluctuating.
c
Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years,
the company's business has declined because of the overall decrease in consumer demand
for new cars. In this case, the demand for Goodyear's tire products is said to be _______ since it
depends on the demand for new cars.
a. inelastic
b. fluctuating
c. derived
d. elastic
e. nonderived
c
Demand for business products is characterized as derived. From what is the demand
derived?
a. Industrial demand
b. Modified demand
c. Demand for consumer products
d. Future product demand
e. The business cycle
c
All of the following describe the demand for business products except
a. elastic.
b. derived.
c. joint.
d. inelastic.
e. fluctuating.
a
_________ is(are) a major threat to the sales success of jointly demanded products.
a. Price changes
b. Shortages
c. Economic instability
d. Inventory buildup
e. Proliferation of brands
b
Demand for a business product is ___________ if a price increase or decrease will not significantly
affect that demand.
a. elastic
b. inelastic
c. derived
d. joint
e. separate
b
In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is
ordering have increased $37.50 in price since the last order. South Side proceeds with the order,
confident that it can pass on the price increase to future customers. This is an
example of business products having ___________ demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
b
Demand for a business product is _____ when two or more items are used in combination to
produce a product.
a. inelastic
b. joint
c. fluctuating
d. derived
e. partnered
b
As it places its order for truck tires with Michelin, South Side Industrial Supply realizes that it
must also place an order for valve stems and balancing weights for the truck tires. Such business
products are characterized as having ____________ demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
c
When certain consumer products are in high demand, producers might buy extra materials
and equipment and when demand subsides, producers will cut back on their material
purchases. This describes _____ demand.
a. joint
b. inelastic
c. consumer
d. fluctuating
e. derived
d
a. one person.
b. a team of purchasing agents.
c. a firm's buying center.
The group of people within a business who are involved in making business buying decisions is
referred to as
a. the new-task team.
b. negotiators.
c. purchasing agents.
d. deciders.
e. the buying center.
e
Administrative assistants that control the flow of information to other people in the
organization often play the _____ role in the buying center.
a. gatekeeper
b. user
c. influencer
d. buyer
e. controller
a
a. gatekeeper
b. buyer
c. decider
d. buying center captain
e. order giver
a
In its purchase of desktop business computers, Albertson's asked that potential suppliers
provide information only on units with 2.0 gigabytes of memory. As Albertson's management
evaluates this purchase, it finds that 2.0 gigabytes are inadequate for many of the software
programs used at Albertson's. In this instance, the firm would need to modify which aspect of
the purchase process?
a. Searching
b. Specification development
c. Alternative evaluation
d. Selection
e. Performance evaluation
b
After deciding to order replacement parts for aging machinery, the buyer for a construction
company examines catalogs and trade publications looking for these parts. The buyer is at which
stage in the business buying decision process?
a. Problem recognition
b. Product specification
c. Product-supplier search and evaluation
d. Product-supplier selection
e. Product-supplier post-evaluation
c
Christy Bridgman is considering the purchase of a new fax machine for her real estate office.
She is considering a machine that doesn't have as many functions but is available at a considerably
lower price than her current machine. She is engaged in ___________ analysis.
a. vendor
b. downsizing
c. strategic
d. value
e. profit
d
During the search for products and evaluating possible suppliers stage of the business
buying decision process, marketers sometimes use _________ analysis to examine the
quality, design, materials, and possibly item reduction in order to acquire the product in the
most cost-effective way.
a. cost
b. value
c. profit
d. strategic
e. SWOT
b
a. Value
b. Vendor
c. Buying center
d. Strategic
e. Cost
b
An organization that decides to buy all of a certain part from the same company is using
a. single-supplier purchasing.
b. multiple sourcing.
c. same vendor analysis.
d. straight rebuy.
e. sole sourcing.
e
What are the four major categories of factors that influence business buying decisions?
A buyer for Macy's Department Stores orders handbags from a supplier because that
supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase
notice. This is an example of ___________ influence on the business buying decision
process.
a. environmental
b. organizational
c. interpersonal
d. individual
e. demographic
b
a. service.
b. good.
c. business product.
d. process material.
e. idea.
correct: a
When a consumer says that she will only buy Anne Klein blouses and will not even
consider purchasing a different brand, then for this consumer these blouses are an
example of a(n):
a. convenience product.
b. specialty product.
2
c. unsought product.
d. staple.
e. shopping product.
correct: b
feedback: Correct.
b. MRO
c. raw materials
d. business services
e. component parts
correct: c
feedback: . These are the basic natural materials that actually become part of a physical
product (page 206).
When Ford Motor Co. uses Firestone tires on its Explorer SUVs, these tires are an
example of a(n):
a. component part.
b. process material.
4
c. raw material.
d. MRO.
e. accessory equipment.
correct: a
feedback: . These become part of the physical product and are either finished items ready
for assembly or products that need little processing before assembly (page 206).
All of the products that are sold by 3M company are called 3M's:
d. product mix.
e. installations.
correct: d
a. logo.
b. brand mark.
6
c. MRO.
d. brand preference.
e. brand name.
correct: e
feedback: . It is the part of a brand that can be spoken (page 213).
a. brand
b. brand mark
7
c. trademark
d. trade name
e. brand name
correct: d
feedback: . It is the complete name of the business, such as Ford Motor Company, rather
than the name of a specific product (page 213).
When a buyer knows about a particular brand and considers it a viable purchase, this is
an example of:
8 a. brand licensing.
b. brand franchising.
c. co-branding.
d. brand insistence.
e. brand recognition.
correct: e
feedback: . This occurs when a customer is aware that the brand exists and views it as an
alternative purchase (page 215).
If a consumer goes to the supermarket to purchase toothpaste and says to herself: "If
they have Crest, I will buy it, but if they do not, I will buy Colgate instead," this consumer
is experiencing:
a. brand insistence.
b. brand preference.
9
c. brand recognition.
d. brand marking.
e. MRO.
correct: b
feedback: . The customer definitely prefers one brand over competitive offerings and will
purchase this brand if it is available (page 216).
If a consumer says to herself, "I will only buy Calvin Klein jeans," this consumer is
experiencing:
a. brand preference.
b. MRO.
10
c. brand insistence.
d. trademarking.
e. brand recognition.
correct: c
feedback: . The customer strongly prefers a specific brand and will accept no substitute
(page 216).
19. Products are classified as being business or consumer products according to the
24.Products for which buyers are willing to spend much time comparing stores and brands for differences in prices,
product features, and services are called ____ products.
shopping a.
specialty b.
service c.
convenience d.
unsought e.
ANS: A
25. Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates
and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for
service. For Shannon, this flight is an example of which type of product?
Shopping a.
Convenience b.
Specialty c.
Unsought d.
Industrial e.
ANS: A
26. Shopping products have a ____ inventory turnover and need ____ distribution outlets than convenience
goods.
similar; more a.
higher; fewer b.
higher; more c.
lower; more d.
lower; fewer e.
ANS: E
27. Buyers do not compare alternatives when shopping for ____ products.
convenience a.
specialty b.
shopping c.
unique d.
unsought e.
ANS: B
28. The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell
Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they
arrive. For Gwen, Blue Bell represents a(n) ____ product.
convenience a.
shopping b.
specialty c.
unsought d.
durable e.
ANS: C
29.David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the
"special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an
example of a(n) ____ product.
shopping a.
unique b.
specialty c.
historical d.
unsought e.
ANS: C
30. When a sudden problem confronts a consumer, such as emergency automobile repair, he or she is likely
going to view solutions to that problem as
specialty products. a.
installations. b.
unsought products. c.
shopping products. d.
convenience products. e.
ANS: C
31. Nick Arnold's Auto Towing Service would best be described as a(n) ____ product.
convenience a.
unsought b.
specialty c.
durable d.
shopping e.
ANS: B
32. Business products are
purchased for personal consumption. a.
chosen on the basis of preferences expressed by a business procurement b.
department.
purchased for both their functional aspects and their psychological rewards. c.
classified according to their characteristics and intended uses. d.
not purchased by nonbusiness organizations. e.
ANS: D
33. Facilities, factories, and production lines with very large equipment are all classified as
accessory equipment. a.
permanents. b.
installations. c.
component parts. d.
MRO facilities. e.
ANS: C
34.As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you
have purchased can best be classified as a
raw material. a.
processed component. b.
component part. c.
service. d.
business product. e.
ANS: E
35. An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on
this information, pencils in this case would be considered what type of product?
Business a.
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Process materials b.
Raw material c.
Convenience d.
Consumer e.
ANS: A
36. Business products are classified into the following seven categories according to characteristics and intended
uses: raw materials, installations, accessory equipment, component parts, process materials, business
services, and
production activities. a.
service assistance. b.
specialty industrial products. c.
computer programming and operation services. d.
MRO supplies. e.
ANS: E
37. Minerals, chemicals, timber, and agricultural products are considered
process materials. a.
accessory materials. b.
MRO supplies. c.
component parts. d.
raw materials. e.
ANS: E
38. A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer
is an example of which type of business product?
Raw material a.
Installations b.
Accessory equipment c.
Component part d.
Process material e.
ANS: C
39.Although they become part of a larger product, ____ can often be easily identified and distinguished on the
larger product.
component parts a.
accessory parts b.
raw materials c.
process materials d.
MRO supplies e.
ANS: A
40. A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of
a(n)
component part. a.
specialty item. b.
accessory equipment. c.
raw material. d.
process material. e.
ANS: A
41. The intangible products that most organizations use in their operations are called
component parts. a.
MRO supplies. b.
process ideas. c.
business services. d.
installations. e.
ANS: D
42. Products used directly in the production of a final product but are not easily identifiable are categorized as
accessory products. a.
component parts. b.
MRO supplies. c.
assembly components. d.
process materials. e.
ANS: E
43. A product item is best described as a
component of a marketing mix. a.
particular brand. b.
specific characteristic of a product. c.
specific version of a product. d.
unit of measure for the product. e.
ANS: D PTS: 1 DIF: Moderate
44. Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products.
These products make up Sara Lee's product
line. a.
item. b.
mix. c.
width. d.
depth. e.
ANS: C
45. A product line is defined as
products that can be designated as a unique offering among the organization's a.
products.
products that an organization makes available to consumers. b.
a group of closely related products that are considered a unit because of marketing, c.
technical, or end-use considerations.
a specific group of products that are offered to the market. d.
products that are sold by the same firm or a division of a firm. e.
ANS: C
46. A product mix is best described as
all products offered by a firm. a.
product, distribution, promotion, and price. b.
50.One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite
luggage. These various offerings exhibit this firm's product mix
width. a.
depth. b.
length. c.
volume. d.
dimension. e.
ANS: A
51. The width of a product mix is measured by the number of product
dimensions in the product line. a.
features in each brand. b.
items in the product line. c.
lines a company offers. d.
specialties a company offers. e.
ANS: D
55.Which of the following is the most typical example of a new product introduction?
Pringles sold in snack-sized containers a.
A brand-new nut discovered in Africa b.
A car that uses no oil or gasoline c.
Shoes that literally make you run faster d.
A device that cools your car while parked outside e.
ANS: A
56. In which stage of the product life cycle do profits peak?
Introduction a.
Growth b.
Decline c.
Termination d.
Maturity e.
ANS: B
57. In which stage of the product life cycle do profits begin to decrease?
Introduction a.
Growth b.
Maturity c.
Decline d.
Recovery e.
ANS: B
58. Which stage of the product life cycle begins when a business reaches the breakeven point with the product?
Maturity a.
Growth b.
Introduction c.
Market testing d.
Decline e.
ANS: B
59. Which stage in the product life cycle is critical to a product's survival because competitive reactions to the
product's success during this period will affect the product's life expectancy?
Decline a.
Expansion b.
Growth c.
Introduction d.
Stabilization e.
ANS: C
60. Aggressive pricing is typical during the ____ stage of the product life cycle.
decline a.
growth b.
introduction c.
plateau d.
stabilization e.
ANS: B
61. Which of the following tactics would typically be employed when a product is in the growth stage of its life
cycle?
Lowering prices after developmental costs have been recovered a.
Raising promotion expenditures as a percentage of total sales b.
Moving from intensive to selective distribution c.
Raising prices to encourage competitors to enter the market d.
Reducing the number of product models in the product line e.
ANS: A
62. When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a
sign of being in the ____ stage of the product life cycle.
maturity a.
growth b.
introduction c.
market reduction d.
decline e.
ANS: A
63. During the maturity stage
product modifications are unnecessary. a.
there is less emphasis on changing a product's price. b.
marketing strategies are rarely altered. c.
66. Sales usually start to decline during the ____ stage of the product life cycle.
beginning of the termination a.
end of the growth b.
beginning of the decline c.
beginning of the growth d.
end of the maturity e.
ANS: E
67. When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product
being in the ____ stage of the product life cycle.
introduction a.
growth b.
stabilization c.
maturity d.
decline e.
ANS: D
68. Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance
from the producer?
Maturity a.
Growth b.
Introduction c.
Market reduction d.
Decline e.
ANS: A
69. The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures
and more price flexibility for the various types of blades offered. Based on this example, razor blades are in
the ____ stage of the product life cycle.
decline a.
evaluation b.
growth c.
introduction d.
maturity e.
ANS: E
70. Dish Network satellite TV cut back advertising expenditures to minimum levels and reduced the number of
channel members for its industrial satellite product. These actions indicate that its product is in the ____
stage of its life cycle.
introduction a.
growth b.
maturity c.
early d.
decline e.
ANS: E
71.The stage of the product life cycle when marketers consider eliminating products that are not contributing to
profitability or the overall effectiveness of a product mix is the ____ stage.
maturity a.
decline b.
growth c.
introduction d.
reorganization e.
ANS: B
72. Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing
expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the ____
stage of the product life cycle as possibilities for elimination.
not yet developed a.
growth b.
introduction c.
maturity d.
decline e.
ANS: E
73. A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing
expenditures and realign its marketing mix to one that requires fewer resources. This approach is called
harvesting. a.
investing. b.
realigning. c.
divesting. d.
mixing. e.
ANS: A
74. When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its
marketing support from these declining products, an approach known as
harvesting. a.
divesting. b.
investing. c.
realigning. d.
squashing. e.
ANS: B
75. Which of the following best defines the interest stage in the product adoption process?
The buyer tries to find the product in a retail store. a.
The buyer considers the benefits and determines whether to try the product. b.
The buyer tries the product to determine its usefulness. c.
The buyer seeks information and is receptive to learning about the product. d.
The buyer uses objective sources to learn about the product. e.
ANS: D
76. As Jessica enters Best Buy's car electronics department, she is asked by the salesperson if she has seen the
new plug-in cell phones with TV display. She answers that she didn't know that this type of phone accessory
for cars was available. Based on this information, she is now in what stage of the product adoption process
for this item?
Awareness a.
Interest b.
Evaluation c.
Trial d.
Adoption e.
ANS: A
77. Which of the following is not a stage in the buyer's product adoption process?
Awareness a.
Adoption b.
Trial c.
Exploration d.
Interest e.
ANS: D
78. When Saturn offers to let qualified buyers test drive the new Saturn SKY roadster, the dealer is trying to
stimulate which stage of the product adoption process?
Awareness a.
Interest b.
Evaluation c.
Trial d.
Adoption e.
ANS: D
79. When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective
customers into the ____ stage of the product adoption process.
awareness a.
interest b.
evaluation c.
trial d.
adoption e.
ANS: D
80. An individual knows that a product exists, but has little information regarding the product and does not seek
additional information. In what stage of the product adoption process is that person?
Trial a.
Adoption b.
Interest c.
Awareness d.
Evaluation e.
ANS: D
81. When an individual considers whether a product will meet certain criteria that are critical for meeting his or
her needs, in what stage of the product adoption process is this individual?
Interest a.
Awareness b.
Evaluation c.
Trial d.
Adoption e.
ANS: C
82. An individual moves into the adoption stage of the adoption process at the point when he or she
is self-motivated to get information about the product. a.
begins using that specific product. b.
seriously considers whether the product will satisfy his or her needs. c.
experiences the product for the first time. d.
becomes aware that the product exists. e.
ANS: B
83. Depending on the length of time it takes them to adopt a new product, people can be divided into five major
adopter categories: early adopters, early majority, late majority, laggards, and
late adopters. a.
nonadopters. b.
innovators. c.
middle adopters. d.
middle majority. e.
ANS: C
84. The last group to adopt a new product, ____, is oriented toward the past and is suspicious of new products.
non-adopters a.
laggards b.
innovators c.
late adopters d.
late majority e.
ANS: B
85. When Jones' Soda launched its Turkey Gravy flavored soda, it was hoping to take advantage of the short-
lived clear-products fad. By the time it launched the soda, the fad for quirky soda flavors had already waned,
and customers were no longer clamoring for these type of products. The reason this product failed is
poor timing. a.
the company's failure to match product offerings to customer needs. b.
ineffective branding. c.
design problems. d.
overestimation of market size. e.
ANS: A
86.All of the following are reasons why new products fail except
overestimated market size. a.
followed a systematic plan. b.
distributed insufficiently. c.
had poor timing. d.
promoted poorly. e.
ANS: B
87. The part of a brand that can be spoken including letters, numbers, and words is the
brand. a.
brand mark. b.
brand name. c.
trade name. d.
trademark. e.
ANS: C
88. Kleenex Boutique is a brand ____ of tissues made by the Kimberly-Clark Corporation.
mark a.
identification b.
name c.
guarantee d.
type e.
ANS: C
89. McDonald's golden arches are a classic example of a
brand. a.
brand symbol. b.
brand name. c.
brand mark. d.
trademark. e.
ANS: D
90. A distinguishing factor between a brand name and a brand mark is that a brand name
creates customer loyalty. a.
consists of words. b.
identifies only one item in the product mix. c.
MSC: Application
107. When ____ branding is used, each of a firm's products is branded with at least part of the same name.
individual a.
trademark b.
family c.
selective d.
brand-extension e.
ANS: C
108. When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ____
branding.
brand-extension a.
individual b.
exclusive c.
selective d.
existing e.
ANS: A
109. When a firm uses an existing brand name as part of a brand name for a new product, this is called ____
branding.
brand-extension a.
licensed b.
family c.
individual d.
new-product e.
ANS: A
110. An agreement in which one company allows another to use its brand on other products for a fee is called
co-branding. a.
brand extension. b.
brand licensing. c.
trademark licensing. d.
cooperative branding. e.
ANS: C
111. If Ralph Lauren, a designer of fine clothing, authorized Dan River Mills to market a line of sheets under the
Ralph Lauren name this arrangement is an example of
brand extension. a.
brand licensing. b.
product continuation. c.
private branding. d.
individual branding. e.
ANS: B
112.To use co-branding effectively, which one of the following is probably least important?
The brands involved should represent a complementary fit in a customer's mind. a.
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The brands that are teamed together should not lose their individual identities. b.
The brands involved should be owned by two or more organizations. c.
To avoid confusion on the part of customers, co-branding should be done in a way d.
so that it is obvious which brand is the main brand or key brand.
The co-branded product should be able to benefit from the distribution system of e.
both brands involved.
ANS: C
113. When a product tries to capitalize on the brand equity of two separate brands, marketers are using
licensing. a.
dual-branding. b.
partnerships. c.
brand extension. d.
co-branding. e.
ANS: E
114. The development of a container and graphic design for a product is called
licensing. a.
labeling. b.
preparing. c.
packaging. d.
distributing. e.
ANS: D
115. In marketing, family packaging means
packaging products in a quantity suitable for use for an average-sized family. a.
putting a set of related products all in the same package. b.
making all of a company's or product line's packaging look similar. c.
putting the same brand name on all a company's products. d.
designing and selling only products that are related. e.
ANS: C
116. The most important function of packaging is
offering convenience to customers. a.
protecting the product and maintaining its functionality. b.
covering the product. c.
communicating information to the customer. d.
attracting the attention of the customer. e.
ANS: B
117. Packaging is most important, as a strategic tool, for
consumer convenience products. a.
consumer shopping products. b.
industrial products. c.
consumer specialty products. d.
services. e.
ANS: A
118. The spray bottle for Windex Glass Cleaner could be considered a secondary-use package because
its shape is ideal for multiple-unit packaging. a.
glass cleaner works on chrome as well as glass. b.
the spray nozzle has an adjustable valve. c.
customers can reuse it for other purposes. d.
it has a shape similar to other glass cleaner bottles. e.
ANS: D
119. A secondary-use package is defined as one that
can be used as a promotional tool. a.
can be reused for purposes other than its initial use. b.
facilitates transportation, storage, and handling for middlemen. c.
is recyclable and environmentally safe. d.
promotes an overall company image. e.
ANS: B PTS: 1 DIF: Difficult
120. ____ packaging means that the product is packaged in line with the packaging practices associated with a
particular product category.
Category-consistent a.
Category-specific b.
Innovative c.
Multiple-category d.
Selective e.
ANS: A
121. A no-drip spout on a bottle of liquid Tide laundry detergent is an example of ____ packaging.
category-consistent a.
innovative b.
traditional c.
secondary-use d.
convenience e.
ANS: B
122. Multiple packaging is
likely to decrease serving size. a.
the same as family packaging. b.
likely to increase demand. c.
the most effective type of packaging for decreasing demand. d.
the most expensive type of packaging. e.
ANS: C
123. Nathan recently purchased a floor lamp from Wal-Mart. The floor lamp came in a compact cardboard box
and assembly was required. This is an example of ____ packaging.
secondary-use a.
multiple b.
category-consistent c.
innovative d.
handling-improved e.
ANS: E
124. Packaging that is designed to flow through the distribution channel easily is called ____ packaging.
category-consistent a.
multiple b.
innovative c.
handling-improved d.
logistic e.
ANS: D
125. Labeling is important for three specific reasons, including promotional and legal reasons. What is the third
reason?
Marketing a.
Branding b.
Strategy c.
Informational d.
Packaging e.
ANS: D
126. Federal laws require the disclosure of nutritional information on labels. So far, evidence on this matter
indicate that consumers regularly use the information. a.
have been conducted only by the federal government. b.
have shown mixed results about the use of this information. c.
prove that labels are necessary only for promotional reasons. d.
indicate that consumers do not use the information. e.
ANS: C
127. Garments must be labeled with the country of manufacture, fabric content, and
clothing style. a.
size. b.
inspection code. c.
care instructions. d.
universal product code. e.
ANS: D
128. The Fair Packaging and Labeling Act focuses on the voluntary adoption of packaging standards by firms
within industries. It also provides enforcement power to the Federal Trade Commission and the Food and
Drug Administration, and establishes
mandatory labeling requirements. c.
designated package sizes for certain product categories. d.
packaging regulations from the Consumer Product Safety Commission. e.
ANS: C
Scenario 1
Use the following to answer the questions.
Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on
their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women
were forced to use razors designed primarily for men, but often marketed to women by offering them in
different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the
Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and
other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce
new versions of the Venus, such as the Venus Embrace, which has additional blades and other
modifications.
129. Refer to Scenario 11.1. Shaving razors fall into which of the following classification of consumer products?
Convenience products a.
Shopping products b.
Substitute products c.
Specialty products d.
Accessory equipment e.
ANS: A
130. Refer to Scenario 11.1. When Gillette developed the Venus razor in 1998, in which stage of the product life
cycle was the Venus?
Introduction a.
Growth b.
Profit c.
Maturity d.
Decline e.
ANS: A
131. Refer to Scenario 11.1. Molly has been using a Bic disposable razor for her shaving needs for the last ten
years. She doesn't really see the need to spend more money on razors, but she sees that it is becoming more
difficult to find the Bic, and so she is considering the Venus Embrace. Molly is definitely not a(n) ____ in
the product adopter categories, and is more likely to be ____.
innovator; an early adopter a.
early adopter; an innovator b.
early majority; an early adopter c.
innovator; an early majority d.
innovator; a late majority e.
ANS: E
132. Refer to Scenario 11.1. Tasha is shopping for personal care items at her local Target. She walks by one aisle
and sees a floor-standing display for the new Venus Embrace. She hadn't thought about buying a new razor,
but the display has caught her attention. Which stage of the product adoption process is Tasha most likely in
at the present time?
awareness a.
attention b.
evaluation c.
trial d.
adoption e.
ANS: B
Scenario 2
Use the following to answer the questions.
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Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers
travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet
offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is
equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel.
Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-
located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are
limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago.
Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares
and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while
the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greyhound's traditional
line is that there are more departure times and more stops in smaller towns along the way.
133. Refer to Scenario 11.2. What product(s) is Megabus marketing?
Megabus is a service and therefore is not marketing a product. a.
The ride between cities is a service product and is the only one Megabus is b.
marketing.
The ride between the cities, which is the core product, plus the supplemental c.
features of Wi-Fi, video screens, and other technology.
The ride between cities, which is a convenience product. d.
The ride between cities, which is a shopping product. e.
ANS: C
134. Refer to Scenario 11.2. When Greyhound launched the BoltBus and NeOn bus lines, this is an example of
a branding extension. a.
co-branding. b.
an extension in the width of the product mix. c.
an extension in the depth of the product mix. d.
family branding. e.
ANS: C
135. Refer to Scenario 11.2. Casey is searching the website of Megabus.com for the schedule and fares of a trip
between Buffalo, NY and New York City. Case is most likely in which of the following stages of the
product adoption process?
adoption a.
trial b.
evaluation c.
interest d.
awareness e.
ANS: D
136. Refer to Scenario 11.2. Megabus is most likely in which of the following stages of the product life cycle?
Introduction a.
Growth b.
Maturity c.
Decline d.
Rejection e.
ANS: A
TRUE / FALSE (Q)
ANS: T
139. Supporting services, such as installation and guarantees, are part of
a product.
ANS: T
140. The core product element of the total product can include
installation, delivery, training, and financing.
ANS: F
141. Use of the product is the most important means of distinguishing
consumer products from business products.
ANS: T
142. The two major product categories are business and institutional.
ANS: F
ANS: F
154. A product mix is the composite or total group of products that an
organization makes available to customers.
ANS: T
155. Procter & Gamble has a wider product mix than does Baskin
Robbins.
ANS: T
156. Many products never get beyond the introduction stage.
ANS: T
157. Communicating product benefits to consumers is very important in
the introduction stage.
ANS: T
ANS: F
164. Sales peak in a product's maturity stage.
ANS: T
165. Many products are in the maturity stage of the product life cycle.
ANS: T
166. The marketing mix should be left alone during the maturity stage
of the product life cycle; tampering with it may bring an early death to
the product.
ANS: F
167. During a product's maturity stage, all sales promotion efforts are
focused on consumers.
ANS: F
174. In the awareness stage of the product adoption process, the buyer
seeks information about the product.
ANS: F
175. "The people to check with" are the early adopters.
ANS: T
176. The first adopters of a product are the innovators.
ANS: T
177. Early adopters are the first group of consumers to adopt a new
product.
ANS: F
178. Laggards are the last to adopt a new product and usually distrust
new products.
ANS: T
179. One of the most common reasons new products fail is because of a
company's failure to match product offerings to customer needs.
ANS: T
ANS: T
193. Marketers may use brand names that have absolutely no meaning
to avoid negative connotations.
ANS: T
194. Family branding occurs when all of a firm's products are branded
with all or part of the same name.
ANS: T
195. Individual branding facilitates market segmentation.
ANS: T
196. Family branding occurs when all of a firm's products are branded
with all or part of the same name.
ANS: T
197. The brands used for co-branding cannot be owned by the same
company.
ANS: F
198. Co-branding capitalizes on the trust that customers have in both
companies involved, especially when the brands complement one
another in the mind of the buyer.
ANS: T
199. Brand licensing gives a company the ability to gain more revenue
and low-cost or free promotional exposure.
ANS: T
200. A Jeep leather jacket is an example of brand licensing.
ANS: T
201. Individual branding facilitates market segmentation.
ANS: T
202. Family branding occurs when all of a firm's products are branded
with all or part of the same name.
ANS: T
203. The brands used for co-branding cannot be owned by the same
company.
ANS: F
204. To gain customer acceptance, the two brands involved in co-
branding must represent a complementary fit in the minds of buyers.
ANS: T
205. Co-branding capitalizes on the trust that customers have in both
companies involved, especially when the brands complement one
another in the mind of the buyer.
ANS: T
206. Brand licensing gives a company the ability to gain more revenue
and low-cost or free promotional exposure.
ANS: T
207. Packages are always secondary ingredients of a marketing strategy.
ANS: F
208. Package characteristics shape buyer impressions of a product
during use.
ANS: T
209. The basic purpose of packaging is to create eye appeal.
ANS: F
210. Family packaging cannot be used for individual product lines; it
must apply to the entire product mix of the firm.
ANS: F
211. A package can be used to attract customers' attention.
ANS: T
212. The Cool Whip container is an example of a secondary-use
package.
ANS: T
213. The crush-proof cylinder package for Pringle's potato chips is an
example of innovative packaging.
ANS: T
214. Labels facilitate product identification.
ANS: T
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