Chapter 10 Understanding Marketing Processes and Consumer Behavior

CHAPTER 10 Understanding Marketing Processes and Consumer Behavior

Multiple Choice
1. The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives is called a. financial planning. b. controlling. c. operations management. d. human resource management. e. marketing. e (page 280, easy) 2. Which of the follo ing is included in the marketing mix! a. developing products b. pricing products c. promoting products d. placing products e. all of the above e (page 280, moderate) ". ############ compares a product$s benefits ith its costs. a. %tility b. &arketing c. 'alue d. (xchange e. )ifferentiation c (page 280, easy) *. + product$s benefits include a. the emotional satisfaction associated ith o ning the product. b. the time re,uired to purchase the product. c. the functions of the product. d. both a and b. e. both a and c. d (page 280, moderate) -. The benefits of a.n/ ########## product are much greater than its costs. a. utility b. high0value c. placement d. essential e. premium b (page 280, moderate)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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########## is the ability of a product to satisfy a human ant or need. a. %tility b. (xchange c. 'alue d. )ifferentiation e. 2unction a (page 280, easy) 3. Which of the follo ing is 45T one of the four kinds of utility! a. o nership b. value c. time d. form e. place b (page 280, moderate) 6. Which of the follo ing best describes time utility! a. (mphasizing lasting relationships ith customers and suppliers. b. &aking products available hen consumers ant them. c. Transferring legal possession to the consumer. d. &aking products available here consumers can conveniently purchase them. e. Turning ra materials into finished products. b (page 280, moderate) 7. Which of the follo ing best describes place utility! a. (mphasizing lasting relationships ith customers and suppliers. b. &aking products available hen consumers ant them. c. Transferring legal possession to the consumer. d. &aking products available here consumers can conveniently purchase them. e. Turning ra materials into finished products. d (page 280, moderate) 18. Which of the follo ing best describes ownership utility! a. (mphasizing lasting relationships ith customers and suppliers. b. &aking products available hen consumers ant them. c. Transferring legal possession to the consumer. d. &aking products available here consumers can conveniently purchase them. e. Turning ra materials into finished products. c (page 280, moderate) 11. Which of the follo ing best describes form utility! a. (mphasizing lasting relationships ith customers and suppliers. b. &aking products available hen consumers ant them. c. Transferring legal possession to the consumer. d. &aking products available here consumers can conveniently purchase them. e. Turning ra materials into finished products. e (page 280, moderate)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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9roducts purchased for personal use are called a. intangibles. b. consumer goods. c. industrial goods. d. industrial services. e. the advertising mix. b (page 281, easy) 1". 2irms that sell products to consumers for personal consumption are engaged in a. industrial marketing. b. selling services. c. consumer marketing. d. relationship marketing. e. substitute marketing. c (page 281, moderate) 1*. 9roducts used by companies to produce other products are referred to as a. industrial goods. b. consumer staples. c. consumer goods. d. services. e. substitute products. a (page 281, easy) 1-. :a materials, integrated circuits, and surgical instruments are a. substitute products. b. industrial goods. c. consumer goods. d. marketing goods. e. services. b (page 281, moderate) 11. 2irms that sell their products to other manufacturers are engaged in a. relationship marketing. b. selling personal goods. c. industrial marketing. d. service marketing. e. personal selling. c (page 281, moderate) 13. ;ntangible products, such as time, expertise, or an activity that can be purchased, are called a. industrial goods. b. personal goods. c. risky assets. d. services. e. complementary products. d (page 281, easy)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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;nsurance companies, airlines, investment counselors, health clinics, and public accountants all engage in a. personal selling. b. monopolistic practices. c. industrial selling. d. consumer marketing. e. service marketing. e (page 281, moderate) 17. <=oyalty banking< programs are an example of a. industrial marketing. b. relationship marketing. c. personal selling. d. economic marketing. e. political marketing. b (page 281, moderate) 28. Which of the follo ing emphasizes lasting relationships ith customers and suppliers! a. industrial marketing b. advertising c. personal selling d. relationship marketing e. economic marketing d (page 281, easy) 21. 2re,uent flier miles are an example of a. industrial marketing. b. relationship marketing. c. personal selling. d. economic marketing. e. political marketing. b (page 281, difficult) 22. Which of the follo ing is 45T a factor in a company$s marketing environment! a. monopolistic environment b. technological environment c. competitive environment d. political>legal environment e. social>cultural environment a (page 281, moderate) 2". ?ongressional hearings on the use of cell phones hile driving are an example of ############ factors in a company$s external environment. a. political>legal b. social>cultural c. technological d. economic e. competitive a (page 281, moderate)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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When marketing managers support the activities of political action committees .9+?s/, they attempt to influence the ########### environment. a. competitive b. economic c. technological d. social>cultural e. political>legal e (page 282, moderate) 2-. ;ntroducing a line of golf gear designed specifically for omen is a response to a trend in the ############ environment. a. competitive b. social>cultural c. political>legal d. technological e. economic b (page 282, moderate) 21. +s +mericans have become more concerned ith health and fitness, the number of health clubs has increased. This is a response to a trend in the ########### environment. a. competition b. technology c. social>cultural d. political>legal e. economic c (page 282, difficult) 23. ?ellular phones are an example of a.n/ ########### factor affecting marketers. a. economic b. technological c. social>cultural d. political>legal e. competition b (page 282, moderate) 26. The satellite dish and home television shopping provide examples of changes to hich of the follo ing external environmental factors that affect marketing! a. economic b. competition c. technological d. political>legal e. social>cultural c (page 282, moderate)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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Which of the follo ing environmental factors include spending patterns by consumers, businesses, and governments! a. competition b. economic c. political d. cultural e. social b (page 282, moderate) "8. ;nflation, interest rates, recession, and recovery are factors that impact hich of the follo ing environmental factors! a. economic b. competitive c. social d. legal e. ethical a (page 282, moderate) "1. @reat Aritain$s decision not to adopt the ne euro is a factor in the ########### environment. a. economic b. competitive c. social d. legal e. ethical a (page 282, difficult) "2. Which of the follo ing types of competition has products that are dissimilar from those of competitors, but can fulfill the same need! a. brand competition b. international competition c. the marketing mix d. substitute products e. economic products d (page 284, easy) "". 2itness programs and drug regimens to lo er cholesterol level are an example of a. brand competition. b. international competition. c. the marketing mix. d. substitute products. e. economic products. d (page 284, moderate) "*. ?ompetition based on buyersB perceptions of the benefits of products offered by particular companies is called a. arbitrage. b. monopolistic competition. c. international competition. d. forced competition. e. brand competition. e (page 284, easy)
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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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Which of the follo ing occurs bet een similar products, such as auditing services provided by large accounting firms! a. international competition b. substitute competition c. brand competition d. monopolistic competition e. arbitrage c (page 284, moderate) "1. The competition bet een ?oke and 9epsi is an example of a. international competition. b. substitute competition. c. brand competition. d. economic competition. e. arbitrage. c (page 284, moderate) "3. Which of the follo ing matches the products of domestic marketers against those of foreign competitors! a. brand competition b. international competition c. substitute competition d. monopolistic competition e. arbitrage b (page 284, easy) "6. Which of the follo ing is 45T a part of the marketing mix! a. place b. promotion c. purchase d. pricing e. product c (page 284, moderate) "7. Which of the follo ing is a component of the marketing mix! a. place b. pricing c. pricing d. product e. all of the above e (page 284, easy) *8. + good, service, or idea designed to fill a consumer need is a.n/ a. price. b. firm. c. tangible good. d. intangible good. e. product. e (page 284, easy)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

The creation of a product or product image that differs enough from existing products to attract consumers is called a. consumption. b. consumerism. c. product differentiation. d. geographic centralization. e. promotion decision making. c (page 284, easy) *2. The popularity of 'olvo automobiles is based, in part, on successful a. aggregation. b. product differentiation. c. substitutions. d. production costs. e. economic differentiation. b (page 284, moderate) *". Celecting the most appropriate price at hich to sell a product is included as one of the marketing mix elements of a. product. b. place. c. pricing. d. promotion. e. none of the above. c (page 284, easy) **. =o prices generally lead to a. higher costs. b. lo er costs. c. larger sales volumes. d. lo er sales volumes. e. less competition. c (page 284, easy) *-. Dann Wenner has positioned Us magazine to compete ith a. Newsweek. b. Rolling Stone. c. House Beautiful. d. People. e. Cosmopolitan. d (page 285, difficult) *1. ;n the marketing mix, ########## refers to distribution. a. product b. promotion c. price d. place e. cost d (page 285, moderate)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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)ecisions about arehousing, inventory control, and transportation are a part of the ########### function. a. product b. promotion c. price d. place e. cost d (page 285, moderate) *6. )ecisions concerning holesalers and retailers relate to distribution a. price. b. promotion. c. channels. d. advertising. e. production. c (page 285, moderate) *7. The techni,ues for communicating information about products are referred to as a. product. b. promotion. c. price. d. place. e. cost. b (page 286, easy) -8. The most highly visible component of the marketing mix is a. promotion. b. price. c. place. d. product. e. revenues. a (page 286, moderate) -1. @roups of people ith similar ants and needs are a. price points. b. target markets. c. distribution points. d. destination points. e. channels. b (page 286, easy) -2. The ########### for minivans is mothers ith children. a. position b. market segmentation c. channel d. target market e. variable d (page 286, difficult)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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)ividing a market into categories of customer types is called a. market segmentation. b. positioning. c. pricing. d. demographic variance. e. product marketing. a (page 286, easy) -*. &arket segmentation is a. a marketing strategy that emphasizes long lasting relationships ith customers. b. the process of dividing a market into categories of customer types. c. the study of consumer needs and ants, and the ays in hich sellers can best meet them. d. the process of collecting, storing, and retrieving data in electronic files. e. the process of fixing, adapting, and communicating the nature of the product itself. b (page 286, moderate) --. ;n marketing, the process of fixing, adapting, and communicating the nature of the product itself is called a. pricing. b. geographic distribution. c. positioning. d. personal selling. e. public relations. c (page 286, easy) -1. 9ositioning is a. a marketing strategy that emphasizes long lasting relationships ith customers. b. the process of dividing a market into categories of customer types. c. the study of consumer needs and ants, and the ays in hich sellers can best meet them. d. the process of collecting, storing, and retrieving data in electronic files. e. the process of fixing, adapting, and communicating the nature of the product itself. e (page 286, moderate) -3. ;n identifying market segments, hich of the follo ing influence consumer behavior! a. geographic influences b. demographic influences c. psychographic influences d. all of the above e. none of the above d (page 286, moderate) -6. 'ariables from countries to neighborhoods that may be considered in developing a segmentation strategy are called ######### variables. a. psychographic b. geographic c. product use d. demographic e. pricing b (page 286, moderate)
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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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+ plan to market do n0filled parkas in rural &innesota reflects ############ segmentation. a. psychographic b. geographic c. product use d. demographic e. pricing b (page 286, moderate) 18. Which of the follo ing types of variables describe populations and identify traits, such as age, income, gender, and marital status! a. price b. product c. geographic d. psychographic e. demographic e (page 286, moderate) 11. Eia, Fyundai, and )ae oo have been successful marketing cars in the %.C. to younger buyers ith limited incomes. These companies are using ########## segmentation. a. price b. product c. geographic d. psychographic e. demographic e (page 287, moderate) 12. =ifestyles, opinions, interests, and attitudes are referred to as ########### variables. a. geographic b. demographic c. psychographic d. pricing e. product use c (page 287, easy) 1". Aurberry is repositioning itself as a global luxury brand, such as @ucci and =ouis 'uitton, and calls for luring a different type of customer. This is an example of hat type of market segmentation! a. geographic b. demographic c. psychographic d. product use e. production c (page 287, moderate) 1*. ########### , automobile versions of electronic entertainment systems, are expected to be in 68 percent of all ne cars by 2883. a. +xioms b. Technographics c. )ifferentiation systems d. Telematics e. 9lasmatics d (page 288, difficult)
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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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########### variables refer to the ay in hich consumers use a product, the benefits they expect, their reasons for purchasing, and their loyalty to it. a. @eographic b. )emographic c. 9sychographic d. Aehavioral e. 9roduction d (page 288, easy) 11. + shoemaker ho produces athletic, casual, and dress shoes is practicing ########## segmentation. a. geographic b. demographic c. psychographic d. behavioral e. production d (page 288, moderate) 13. ########### is the study of consumer needs and ants, and the ays in hich sellers can best meet them. a. &arketing research b. &arket segmentation c. )emographics d. )ata mining e. )istribution a (page 289, easy) 16. &arketing research is a. a marketing strategy that emphasizes long lasting relationships ith customers. b. the process of dividing a market into categories of customer types. c. the study of consumer needs and ants, and the ays in hich sellers can best meet them. d. the process of collecting, storing, and retrieving data in electronic files. e. the process of fixing, adapting, and communicating the nature of the product itself. c (page 289, moderate) 17. The first step in the marketing research process is to a. analyze the data. b. select a research method. c. study the current situation. d. prepare a report. e. collect data. c (page 290, moderate) 38. The last step in the marketing research process is to a. analyze the data. b. select a research method. c. study the current situation. d. prepare a report. e. collect data. d (page 290, moderate)
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Which of the follo ing is 45T a method of marketing research! a. surveys b. observation c. focus groups d. experimentation e. positioning e (pages 291-292, moderate) 32. ############ is the market research techni,ue that involves atching and recording consumer behavior. a. Curveys b. 5bservation c. 2ocus groups d. (xperimentation e. 9ositioning b (page 291, easy) 3". (lectronic scanners that track consumer purchases are examples of the ########### method of marketing research. a. survey b. observation c. focus group d. experimentation e. positioning b (page 291, moderate) 3*. 5bservation is the market research techni,ue a. that involves creating an image of a product for the consumer. b. that uses a ,uestionnaire that is either mailed to individuals or used as the basis of telephone or personal intervie s. c. that involves atching and recording consumer behavior. d. in hich a group of people is gathered, presented ith an issue, and asked to discuss it in depth. e. that attempts to compare the responses of the same or similar people under different circumstances. c (page 291, moderate) 3-. ########### is>are a market research techni,ue using a ,uestionnaire that is either mailed to individuals or used as the basis for telephone or personal intervie s. a. Curveys b. 5bservation c. 2ocus groups d. (xperimentation e. 9ositioning a (page 291, easy)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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+fter using ########## to collect market research data, %9C found that customers anted more interaction ith drivers. a. surveys b. observation c. focus group d. experimentation e. positioning b (page 291, moderate) 33. Curveys are the market research techni,ue a. that involves creating an image of a product for the consumer. b. that uses a ,uestionnaire that is either mailed to individuals or used as the basis of telephone or personal intervie s. c. that involves atching and recording consumer behavior. d. in hich a group of people is gathered, presented ith an issue, and asked to discuss it in depth. e. that attempts to compare the responses of the same or similar people under different circumstances. b (page 291, moderate) 36. ############# is a market research techni,ue in hich a group of people is gathered, presented ith an issue, and asked to discuss it in depth. a. Curveys b. 5bservation c. 2ocus groups d. (xperimentation e. 9ositioning c (page 291, moderate) 37. 2ocus groups are the market research techni,ue a. that involves creating an image of a product for the consumer. b. that uses a ,uestionnaire that is either mailed to individuals or used as the basis of telephone or personal intervie s. c. that involves atching and recording consumer behavior. d. in hich a group of people is gathered, presented ith an issue, and asked to discuss it in depth. e. that attempts to compare the responses of the same or similar people under different circumstances. d (page 291, moderate) 68. ########### compares the responses of the same or similar people under different circumstances. a. Curveys b. 5bservation c. 2ocus groups d. (xperimentation e. 9ositioning d (page 292, moderate)

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(xperimentation is the market research techni,ue a. that involves creating an image of a product for the consumer. b. that uses a ,uestionnaire that is either mailed to individuals or used as the basis of telephone or personal intervie s. c. that involves atching and recording consumer behavior. d. in hich a group of people is gathered, presented ith an issue, and asked to discuss it in depth. e. that attempts to compare the responses of the same or similar people under different circumstances. e (page 292, moderate) 62. Aurt$s Aeverages is giving taste tests for several different lemonade recipes. Aurt$s Aeverages is using the ########### techni,ue to collect market research data. a. surveys b. observation c. focus group d. experimentation e. positioning d (page 292, difficult) 6". )ata arehousing is a. a marketing strategy that emphasizes long lasting relationships ith customers. b. the process of dividing a market into categories of customer types. c. the study of consumer needs and ants, and the ays in hich sellers can best meet them. d. the process of collecting, storing, and retrieving data in electronic files. e. the process of fixing, adapting, and communicating the nature of the product itself. d (page 292, moderate) 6*. ############## is the process of collecting, storing, and retrieving data in electronic files. a. Curvey b. 5bservation c. 2ocus grouping d. (xperimentation e. )ata arehousing e (pages 292, easy) 6-. ########### is the application of electronic technologies for searching, sifting, and reorganizing data in order to collect marketing information and target products in the marketplace. a. )ata arehousing b. 9ositioning c. )ata mining d. (xperimentation e. )istribution c (page 292, easy)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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%sing ###########, the insurance company 2armers @roup discovered that a sports car is not an exceptionally high insurance risk if it$s not the only family car. a. data arehousing b. positioning c. data mining d. experimentation e. distribution c (page 292, moderate) 63. ############ is the study of the decision process by hich customers come to purchase and consume products. a. Fuman resource management b. 2inancial management c. &arketing d. 9roduction management e. ?onsumer behavior e (page 29 , easy) 66. Which of the follo ing is 45T recognized as a major influence on consumer behavior! a. psychological factors b. personal factors c. social factors d. cultural factors e. economic factors e (page 29 , moderate) 67. +n individualBs motivations, perceptions, ability to learn, and attitudes are referred to as a. personal influences. b. social influences. c. cultural influences. d. psychological influences. e. all of the above. d (page 29 , moderate) 78. ;n consumer behavior, lifestyle, personality, and economic status are called a. social influences. b. personal influences. c. cultural influences. d. psychological influences. e. background influences. b (page 29 , moderate) 71. ########### on consumer behavior include family, opinion leaders, and reference groups, such as friends, co0 orkers, and professional associates. a. 9ersonal influences b. Cocial influences c. 9sychological influences d. &onetary influences e. ?ultural influences b (page 29 , moderate)

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;n consumer behavior, ######## influences include the < ay of living,< that distinguishes one large group and one ethnic group from each other. a. psychological b. personal c. social d. cultural e. none of the above d (page 29 , moderate) 7". When consumers regularly purchase products because they are satisfied ith their performance, they exhibit high a. hopes. b. cultural influence. c. social influence. d. brand loyalty. e. achievement. d (page 29 , moderate) 7*. The buying process begins hen the customer a. seeks information. b. evaluates alternatives. c. recognizes a problem or need. d. makes a purchase decision. e. evaluates the purchase. c (page 294, moderate) 7-. :eading the relevant issue of ?onsumer :eports prior to purchasing a product is an example of hat part of the consumer buying model! a. problem>need recognition b. information seeking c. evaluation of alternatives d. purchasing decision e. post0purchase evaluation b (page 294, moderate) 71. +ccessing a Web site in search of magazine articles about a product before its purchase is an example of hat part of the consumer0buying model! a. post0purchase evaluation b. evaluation of alternatives c. information seeking d. purchasing the product e. need recognition c (page 294, difficult)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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+ <buy< decision that involves the logical evaluation of product attributes, such as cost, ,uality, and usefulness, is based on a. emotional motives. b. rational motives. c. pricing motives. d. production motives. e. psychological motives. b (page 294, moderate) 76. + <buy< decision that involves non0objective factors and can lead to <irrational< decisions is based on a. emotional motives. b. social motives. c. rational motives. d. management motives. e. pricing motives. a (page 294, moderate) 77. Which of the follo ing is 45T a component of the organizational market! a. reseller markets b. industrial markets c. institutional market d. government markets e. retail markets e (page 294, moderate) 188. Ausinesses that buy goods to be converted into other products and goods, hich are used up during production are categorized as ########## markets. a. reseller b. industrial c. institutional d. government e. retail b (page 295, easy) 181. @& purchases brakes, dashboards, and other components for its vehicles from manufacturers inside and outside the %.C. ;n this capacity, @& is a member of the ########### market. a. reseller b. industrial c. institutional d. government e. retail b (page 295, moderate) 182. ;ntermediaries, ho buy finished goods and resell them, are categorized as a. reseller markets. b. manufacturer markets. c. industrial markets. d. government markets. e. institutional markets. a (page 295, easy)
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Chapter 10 Understanding Marketing Processes and Consumer Behavior

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Westminster 5ffice 9roducts buys paper products from Aoise ?ascade for sale in its retail stores. Westminster 5ffice 9roducts purchases paper products in the ######### market. a. reseller b. industrial c. institutional d. government e. retail a (page 295, moderate) 18*. Fospitals, churches, museums, and charitable organizations are called ########## markets. a. reseller b. industrial c. institutional d. government e. pricing c (page 295, easy) 18-. When the state of &aryland purchases office e,uipment, they do so as a part of the ######### market. a. reseller b. industrial c. institutional d. government e. retail d (page 295, moderate) 181. When the @etty &useum purchases cleaning supplies, they do so as a part of the ########### market. a. reseller b. industrial c. institutional d. government e. retail c (page 295, moderate) 183. +ll of the follo ing statements concerning organizational buyers are true (G?(9TH a. 5rganizational buyers are professionals ho are trained in negotiating purchase terms. b. ;n general, organizational buyers are company specialists in a line of items. c. 5rganizational buyers routinely study competing products and competing suppliers. d. 5rganizational buyers tend to be primarily motivated by emotional motives. e. +ll of the above are true. d (page 295, moderate) 186. Which of the follo ing products had to be adapted for sale in foreign markets! a. personal computers b. Aud eiser beer c. ?oca0?ola d. &arlboro cigarettes e. all of the above a (page 296, moderate)

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Which of the follo ing is 45T true of the international marketing mix! a. 9roducts that sell for a given price in the %nited Ctates may sell at a different price in another country. b. The ;nternational Ctandards +ct ensures the existence of uniform advertising practices in most countries. c. + company can speed up its international distribution activities by buying an existing business in another country. d. Come products can be sold abroad ith virtually no changes. e. ?ultural differences can cause negative reactions to products that are advertised improperly. b (page 296, difficult) 118. Which of the follo ing is 45T true of the small business marketing mix! a. Cuccessful small businesses plan for promotional expenses as a part of start0up costs. b. Cmaller companies may have advantages over larger companies in distribution. c. Cmall business pricing errors usually result from a failure to estimate operating expenses accurately. d. + small business must have a clear picture of their target market$s needs and ants. e. + clever marketing campaign ill create success for a product that fe consumers ant or need. e (pages 297-298, difficult) 111. Which of the follo ing is 45T one of the largest markets for computer and video games! a. %nited Ctates b. Dapan c. (urope d. ?hina e. +ll are significant markets d (page 279, moderate) 112. Gbox as created by ########## and released to the market in 4ovember ######. a. 4intendo, 2881 b. )ell, 2888 c. ;A&, 2888 d. Cega, 2881 e. &icrosoft, 2881 e (page 279, moderate) 11". The initial launch of Gbox featured ####### games. a. under 2b. 21I-8 c. -1I188 d. 181I288 e. over 288 a (page 279, difficult)

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Which of the follo ing game systems as the leader in console sales in 2882! a. @ame?ube b. @ameAoy c. 9laystation 2 d. )reamcast e. Gbox c (page 298, moderate) 11-. What is the profit margin to &icrosoft on Gbox consoles! a. a loss of J288 b. a loss of J12c. no profit or loss .breakeven/ d. a profit of J2e. a profit of J3b (page 298, moderate)

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111. &arketing consists primarily of advertising a product or service. !alse (page 280, moderate) 113. The +merican ;nstitute of ?ertified 9ublic +ccountants defines marketing as the Kthe process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.L !alse (page 280, moderate) 116. ?onsumers buy products that offer the best value hen it comes to meeting their needs and ants. "rue (page 280, easy) 117. 'alue is the relationship bet een inputs and outputs. !alse (page 280, easy) 128. The benefits of a high0value product are much greater than its costs. "rue (page 280, moderate) 121. The sales price, the buyer$s time, and the emotional costs of making a purchase decision are all components of a product$s cost. "rue (page 280, easy) 122. %tility is the benefit of a product compared to its costs. !alse (page 280, easy) 12". Time utility is created hen a company makes products available hen consumers ant them. "rue (page 280, easy) 12*. When 9izza Fut combines flour, yeast, sauce, and cheese to create a pizza, they create form utility. "rue (page 280, moderate)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

12-. 9roducts used by companies to produce other products are called consumer goods. !alse (page 281, easy) 121. ?onveyors, surgical instruments, and earthmovers are examples of industrial goods. "rue (page 281, moderate) 123. &arketing concepts can be extended to the promotion of ideas. "rue (page 281, moderate) 126. Cervice marketing has become a major gro th area in the %nited Ctates. "rue (page 281, moderate) 127. :elationship marketing focuses on single transactions of products, services, or ideas. !alse (page 281, easy) 1"8. 2re,uent flier miles are an example of relationship marketing. "rue (page 281, moderate) 1"1. &arketing plans, decisions, and strategies are not determined unilaterally by any business. "rue (page 281, moderate) 1"2. To gain public support for products and activities, marketers use ad campaigns to raise a areness of local, regional, or national issues. "rue (page 282, moderate) 1"". ?ompetition from foreign manufacturers is an element of the social and cultural environment. !alse (page 282, moderate) 1"*. 4e products may make existing products obsolete. "rue (page 282, easy) 1"-. ;nflation and interest rates are major factors in the economic environment. "rue (page 282, easy) 1"1. (mail messages sent and>or received during orking hours on company e,uipment are the property of the employee. !alse (page 28 , moderate) 1"3. ;t is legal for companies to collect information on people visiting their ebsite and to share that information ith other organizations. "rue (page 28 , moderate) 1"6. Aritain plans to adopt the euro, but not the labor regulations of the (uropean %nion countries. !alse (page 28 , moderate) 1"7. Cubstitute products are dissimilar from those of competitors, but can fulfill the same need. "rue (page 284, easy) 1*8. The K2our 9$sL of the marketing mix are product, pricing, promotion, and place. "rue (page 284, moderate)
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Chapter 10 Understanding Marketing Processes and Consumer Behavior

1*1. Couth est +irlines is a good example of effective product differentiation. "rue (page 284, moderate) 1*2. Figh prices generally lead to larger sales volumes. !alse (page 284, moderate) 1*". Us and People magazines are examples of substitute products. !alse (page 285, moderate) 1**. )ecisions about arehousing and inventory control are distribution functions. "rue (page 285, moderate) 1*-. The most important promotional tools include advertising, personal selling, pricing, and distribution. !alse (page 286, moderate) 1*1. Ay definition, the members of a target market must share some common traits that ill affect their purchasing decisions. "rue (page 286, easy) 1*3. &arket segmentation is the process of dividing a market into categories of consumer types. "rue (page 286, moderate) 1*6. 9ositioning is the process of dividing the market into segments that have common buying objectives. !alse (page 286, easy) 1*7. + description, such as single, aged 280"*, earning J2-,888 a year, is an example of a psychographic variable. !alse (page 287, moderate) 1-8. 9sychographics cannot be changed by marketing efforts. !alse (page 287, moderate) 1-1. Telematics are automobile versions of home entertainment systems. "rue (page 288, moderate) 1-2. The target market for telematics is mature adults ith moderate incomes. !alse (page 288, moderate) 1-". ?ultural influences on buyer behavior include an individual$s motivations, perceptions, ability to learn, and attitudes. !alse (page 29 , moderate) 1-*. Arand loyalty refers to a pattern of regular consumer purchasing based on satisfaction ith a product. "rue (page 29 , easy)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

1--.

The consumer buying process begins ith information seeking and searching for stores, styles, prices, and the opinions of others. !alse (page 29 , moderate) 1-1. Cociability, ,uality, and aesthetics are examples of rational buying motives for purchases. !alse (page 294, moderate) 1-3. )issatisfied customers are much more likely to broadcast their experiences than satisfied customers. "rue (page 294, moderate) 1-6. The organizational market includes industrial, reseller, and government>institutional markets. "rue (page 294, moderate) 1-7. The industrial market includes hospitals, churches, museums, and charities. !alse (page 295, easy) 118. The reseller market includes farmers, manufacturers, and some retailers. !alse (page 295, moderate) 111. ?onsumer0seller relationships are often impersonal and fleeting, based on one0time interactions. "rue (page 295, moderate) 112. ;ndustrial sellers rarely have long0term relationships ith buyers. !alse (page 295, moderate) 11". Aecause of lo er ages, a Aig &ac costs less in )enmark than in the %nited Ctates. !alse (page 296, moderate) 11*. Cmall business pricing errors usually result from a failure to estimate operating expenses accurately. "rue (page 297, moderate) 11-. )istribution strategy ill create a competitive disadvantage for small businesses. !alse (page 297, moderate) 111. The target market for interactive games is almost exclusively male, bet een the ages of 12 and 21. !alse (page 279, moderate) 113. ?omputer and video game sales have gro n by 1- percent per year for four years. "rue (page 279, moderate) 116. Gbox as launched by &icrosoft ith over 188 games. !alse (page 279, easy) 117. &icrosoft has priced the Gbox console at a price hich results in a significant loss on each sale. "rue (page 298, moderate)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

138.

The 4intendo @ame?ube has a competitive advantage because of its ability to play ?)$s and )')$s. !alse (page 298, easy)

,hort Ans-er
131. What is the ratio for value! #$s%er& 'alue ( be$efits)costs* (page 280, moderate) 132. =ist the four forms of utility. #$s%er& "ime, place, o%$ers+ip, a$d form* (pages 280-281, moderate) 13". What is a consumer good! #$s%er& # co$sumer good is a product purc+ased by co$sumers for perso$al use* (page 281, moderate) 13*. =ist the five environmental factors in a company$s external environment. #$s%er& ,olitical-legal e$-iro$me$t, social-cultural e$-iro$me$t, tec+$ological e$-iro$me$t, eco$omic e$-iro$me$t, a$d competiti-e e$-iro$me$t* (page 281, moderate) 13-. =ist the four strategies in the marketing mix. #$s%er& ,roduct, prici$g, place, a$d promotio$* (page 284, moderate) 131. What is a product! #$s%er& # product is a good, ser-ice, or idea t+at is mar.eted to fill co$sumer $eeds a$d %a$ts* (page 284, moderate) 133. What is a target market! #$s%er& # target mar.et is a group of buyers %+o +a-e similar %a$ts a$d $eeds a$d %+o ca$ be e/pected to s+o% i$terest i$ t+e same products* (page 286, moderate) 136. ;dentify four bases for market segmentation. #$s%er& 0eograp+ic -ariables, demograp+ic -ariables, psyc+ograp+ic -ariables, a$d be+a-ioral -ariables* (page 286, moderate) 137. What is secondary data! #$s%er& 1eco$dary data is readily a-ailable as a result of pre-ious researc+* (page 290, moderate) 168. What is primary data! #$s%er& ,rimary data is data de-eloped t+roug+ $e% researc+* (page 291, moderate) 161. =ist four basic methods for collecting marketing research data. #$s%er& 2bser-atio$, sur-ey, focus groups, a$d e/perime$tatio$* (pages 291-292, moderate) 162. What is the first step in the consumer uying process! #$s%er& ,roblem)$eed recog$itio$* (page 29 , moderate) 16". What is the last step in the consumer uying process! #$s%er& ,ostpurc+ase e-aluatio$* (page 294, moderate)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

16*. =ist the components of the organizational market. #$s%er& 3$dustrial mar.et, reseller mar.et, a$d go-er$me$tal a$d i$stitutio$al mar.et* (page 294, moderate) 16-. Who is the target market for Gbox! #$s%er& 4icrosoft targets more sop+isticated gamers t+a$ 5i$te$do a$d 1o$y* (page 298, moderate)

Essa.
161. )efine marketing. #$s%er& "+e #merica$ 4ar.eti$g #ssociatio$ defi$es mar.eti$g as 6t+e process of pla$$i$g a$d e/ecuti$g t+e co$ceptio$, prici$g, promotio$, a$d distributio$ of ideas, goods, a$d ser-ices to create e/c+a$ges t+at satisfy i$di-idual a$d orga$i7atio$al goals*8 (page 280, difficult) 163. What is the difference bet een consumer and industrial goods! #$s%er& 9o$sumer goods are products t+e co$sumer may buy for perso$al use, suc+ as colog$e, cold medici$e, or a car* 3$dustrial goods are products used by compa$ies to produce ot+er products* 9o$-eyors a$d eart+mo-ers are i$dustrial goods* (page 281, difficult) 166. @ive an example of a trend in the social>cultural environment. )escribe ho it might affect marketers. #$s%er& (#$s%ers %ill -ary) "+e te/t ide$tifies more people %or.i$g i$ +ome offices: a$ i$crease i$ t+e $umber of si$gle-pare$t families: a gro%i$g co$cer$ for +ealt+y lifestyles: a$d a desire a$d e/pectatio$ of pri-acy* (page 282, difficult) 167. @ive an example of a trend in the technological environment. )escribe ho it might affect marketers. #$s%er& (#$s%ers %ill -ary) "+e te/t ide$tifies satellite dis+es, +ome tele-isio$ s+oppi$g, cell p+o$es, a$d t+e 3$ter$et* (page 282, difficult) 178. @ive an example of a trend in the economic environment. )escribe ho it might affect marketers. #$s%er& (#$s%ers %ill -ary) "+e te/t ide$tifies i$flatio$, i$terest rates, t+e ge$eral busi$ess cycle, co$sumer co$fide$ce, a$d t+e global eco$omy* (page 282, difficult) 171. What are the elements of the marketing mix! )efine each of the components. #$s%er& "+e eleme$ts of t+e mar.eti$g mi/ are product, prici$g, promotio$, a$d place* # product is a good, ser-ice, or idea desig$ed to fill a co$sumer $eed* ,rici$g i$-ol-es selecti$g t+e most appropriate price at %+ic+ to sell it* ,romotio$ refers to tec+$i;ues for commu$icati$g i$formatio$ about products* ,lace refers to distributio$* (pages 284-286, difficult) 172. What are target markets and hat part does market segmentation play in them! #$s%er& "arget mar.ets are groups of people %it+ similar %a$ts a$d $eeds* "arget mar.eti$g re;uires mar.et segme$tatio$, %+ic+ is di-idi$g a mar.et i$to categories of customer types or 6segme$ts6* 2$ce compa$ies ide$tify mar.et segme$ts, t+ey may adopt a -ariety of mar.eti$g strategies t+at appeal to eac+ segme$t* (page 286, difficult)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

17". Fo are market segments identified! #$s%er& 3$ ide$tifyi$g mar.et segme$ts, researc+ers loo. at a $umber of differe$t i$flue$ces o$ co$sumer be+a-ior* "+e four most importa$t are geograp+ic, demograp+ic, psyc+ograp+ic, a$d product use -ariables* 0eograp+ic -ariables are geograp+ical u$its t+at may be co$sidered i$ de-elopi$g a segme$tatio$ strategy* <emograp+ic -ariables describe populatio$s: ide$tifyi$g traits suc+ as age, i$come, a$d ge$der* ,syc+ograp+ic -ariables are lifestyles, opi$io$s, i$terests, a$d attitudes* ,roduct use -ariables i$clude t+e %ays i$ %+ic+ co$sumers use a product* (pages 286-288, difficult) 17*. )escribe the steps in the marketing research process. #$s%er& "+e first step i$ t+e mar.eti$g researc+ process is to study t+e curre$t situatio$* 5e/t, mar.et researc+ers must select a researc+ met+od* "+e t+ird step is data collectio$* #$aly7i$g t+e data is t+e fourt+ step* "+e fi$al step is t+e preparatio$ of a report t+at summari7es t+e met+odology a$d fi$di$gs* (pages 290-291, difficult) 17-. )escribe the four major influences on consumer behavior! #$s%er& "+e four ma=or i$flue$ces o$ co$sumer be+a-ior& psyc+ological, perso$al, social, a$d cultural* ,syc+ological i$flue$ces i$clude a$ i$di-idual>s moti-atio$s, perceptio$s, ability to lear$, a$d attitudes* ,erso$al i$flue$ces i$clude lifestyle, perso$ality, a$d eco$omic status* 1ocial i$flue$ces i$clude family, opi$io$ leaders, frie$ds, co-%or.ers, a$d professio$al associates* 9ultural i$flue$ces i$clude culture, subculture, a$d social class* (page 29 , difficult) 171. +ccording to the model described in your textbook, hat are the steps involved in the consumer buying process! #$s%er& "+e steps i$clude problem)$eed recog$itio$, i$formatio$ see.i$g, e-aluatio$ of alter$ati-es, t+e purc+ase decisio$, a$d post-purc+ase e-aluatio$* (pages 29 -294, difficult) 173. )iscuss the three categories of organizational markets. #$s%er& "+e t+ree categories of orga$i7atio$al mar.ets are i$dustrial, reseller, a$d go-er$me$t)i$stitutio$al* "+e i$dustrial mar.et i$cludes busi$esses t+at buy goods to be co$-erted i$to ot+er products a$d goods t+at are used up duri$g productio$* "+e reseller mar.et co$sists of i$termediaries, i$cludi$g %+olesalers a$d retailers, %+o buy t+e fi$is+ed goods a$d resell t+em* !ederal, state, a$d local go-er$me$ts a$d i$stitutio$s, %+ic+ co$sist of $o$go-er$me$tal orga$i7atio$s, suc+ as +ospitals, c+urc+es, museums, a$d c+aritable orga$i7atio$s, ma.e up t+e fi$al category of orga$i7atio$al mar.ets* (pages 294-295, difficult) 176. (xplain ho organizational buying behavior differs from consumer buying behavior. #$s%er& 2rga$i7atio$al buyi$g be+a-ior differs from co$sumer buyi$g be+a-ior because of differe$ces i$ buyers a$d i$ t+e buyer-seller relatio$s+ip* ?$li.e most co$sumers, orga$i7atio$al buyers are professio$al, speciali7ed, a$d e/pert (or at least %ell i$formed)* 9o$sumer-seller relatio$s+ips are ofte$ imperso$al a$d fleeti$g, %+ereas orga$i7atio$al situatio$s ofte$ i$-ol-e fre;ue$t, e$duri$g buyer-seller relatio$s+ips* (page 295, difficult) 177. )iscuss the issues of international promotion. #$s%er& 2ccasio$ally, a$ ad-ertisi$g campaig$ may be appropriate for global use* @o%e-er, ;uite ofte$ ?*1* promotio$al tactics do $ot succeed i$ ot+er cou$tries* 3$ter$atio$al mar.eters must also be a%are t+at cultural differe$ces ca$ cause $egati-e reactio$s to improperly ad-ertised products* ,roduct promotio$s must be carefully matc+ed to local customs a$d cultural -alues* (page 296, difficult)

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Chapter 10 Understanding Marketing Processes and Consumer Behavior

288. Fo has &icrosoft differentiated Gbox from its competitors! #$s%er& Abo/ +as bee$ desig$ed by 4icrosoft to appeal to more sop+isticated gamers* Bit+ a separate remote, it ca$ play music a$d mo-ies %it+ t+eater ;uality -ideo a$d sou$d* (0ame9ube does $ot +a-e t+is capability*) Abo/ is also desig$ed for broadba$d multiplayer gami$g, allo%i$g players to ta.e ad-a$tage of +ig+-speed $et%or.s* 4icrosoft +as future pla$s for +ome $et%or.i$g usi$g Abo/* (page 298, difficult)

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