Marketing 14Th Edition by Roger - Test Bank

Marketing 14Th Edition By Roger – Test Bank
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Marketing 14Th Edition By Roger – Test Bank

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Chapter 3: Scanning the Marketing Environment

1) Facebook has approximately what fraction of the world’s population as customers?
1. A) one-half
2. B) one-third
3. C) one-quarter
4. D) one-fifth
5. E) one-seventh

Answer: C
Explanation: In 2004 Mark Zuckerberg started Facebook in his Harvard dorm room. His vision was
not just to be a company, but to connect everyone in the world. Today, with 1.8 billion users, or
nearly one-quarter of the world’s population, Facebook is well on its way to accomplishing that
vision.
Difficulty: 1 Easy
Topic: Environmental Influences on Marketing
Learning Objective: 03-01 Explain how environmental scanning provides information about social,
economic, technological, competitive, and regulatory forces.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) All of the following statements about the environmental forces that have influenced Facebook are
true except which?
1. A) The Federal Trade Commission (FTC) has a laissez-faire policy of not interfering with the
development and marketing of Facebook and other social media websites.
2. B) Technological advances in data storage, server speed, and software integration have made
Facebook increasingly fast and convenient.
3. C) Its rivalry with Google, Twitter, Snapchat, and new social networks encourages rapid expansion.
4. D) The cost of wireless connectivity and smartphones rapidly declined, and Internet access expanded,
which increasingly made social networking affordable for more people.
5. E) People increasingly look for new ways to communicate, obtain information, and offer opinions.

Answer: A
Explanation: All five environmental forces have influenced Facebook, but the legal and regulatory
force was that the company obtains trademark and patent rights to its name and many of its
features, and it provides guidelines for a variety of topics such as privacy, data protection, protection
of minors, and taxation. There is no mention of the FTC’s efforts regarding Facebook, but in general
the U.S. government agency has been involved in regulating the practices of social networks.
Difficulty: 2 Medium
Bloom’s: Understand
3) Environmental scanning refers to
1. A) assessing any possible negative impact a firm’s activities might have on the local ecology.
2. B) continually acquiring information on events occurring outside the organization to identify and
interpret potential trends.
3. C) setting up a regular schedule to assess the performance of different divisions within a firm.
4. D) initiating an internal talent search to identify employees who can think “outside the box” to
generate solutions to marketing problems caused by changes in the marketing environment.
5. E) requiring all employees to spend time outside the office to avoid the “ivory tower” syndrome.

Answer: B
Explanation: Key term definition—environmental scanning.
Difficulty: 1 Easy

Bloom’s: Remember
4) The process of continually acquiring information on events occurring outside the organization to
identify and interpret potential trends is referred to as
1. A) significant trend analysis.

2. B) organizational scanning.
3. C) environmental scanning.
4. D) a SWOT analysis.
5. E) marketing intelligence.

Answer: C
Explanation: Key term definition—environmental scanning.
Difficulty: 1 Easy
Bloom’s: Remember
5) Environmental trends arise from all of the following forces except which?

1. A) competitive
2. B) economic
3. C) regulatory
4. D) geographical
5. E) social

Answer: D
Explanation: Environmental scanning trends come from social, economic, technological,

competitive, and regulatory forces. See Figure 3-1.
Difficulty: 1 Easy
Bloom’s: Remember
6) The purpose of environmental scanning is to
1. A) uncover causes of trends in the marketplace.

2. B) uncover opportunities in the marketplace.
3. C) stop unhelpful trends in the marketplace, and speed helpful ones.
4. D) stop unhelpful trends in the workplace, and speed helpful ones.
5. E) identify and interpret trends in the marketplace.

Answer: E
Explanation: The purpose of environmental scanning is to identify and interpret trends in the
marketplace that affect the marketing activities of the firm. Environmental scanning is done through
continually acquiring information on events occurring outside the organization.
7) Which of the following statements regarding environmental scanning is the most accurate?
1. A) Environmental scanning changes the marketing environment.
2. B) Environmental scanning identifies and interprets potential trends.
3. C) Environmental scanning should be done about every five years.
4. D) Environmental scanning focuses primarily on ecological factors.
5. E) It is too costly and there is too much information generated from environmental scanning to make it
viable for small firms.

Answer: B
Explanation: The process of continually acquiring information on events occurring outside the
organization to identify and interpret potential trends is called environmental scanning.
8) A firm conducting an environmental scan of the marketplace might uncover key ________ such
as the growing popularity of brand advocates, the increasing application of virtual reality and
augmented reality, and the importance of “gig economy” businesses’ legal challenges.
1. A) profits
2. B) responsibilities
3. C) idealisms
4. D) codes
5. E) trends

Answer: E
Explanation: A firm conducting an environmental scan of the marketplace might uncover key trends
such as the growing popularity of brand advocates, the increasing application of virtual reality and
augmented reality, and the importance of “gig economy” businesses’ legal challenges. See Figure 3-
2.
9) Starbucks entered a partnership with Keurig Green Mountain to sell K-Cup single-serving coffee
packs. Because Starbucks ________, it was prepared for this shift in its marketing environment.
1. A) optimized its distribution by adding local outlets in grocery stores

2. B) noticed the change in the demographics of coffee and tea drinkers in general
3. C) added more in-store displays
4. D) shifted funds from product development to advertising
5. E) tracked, as part of its ongoing environmental scanning activities, the percentage of households with
single cup brewers

Answer: E
Explanation: The increase in the percentage of households with single-cup brewers led to changes
in the marketplace, so Starbucks joined the move to single-serving coffee packs.
Difficulty: 3 Hard
Bloom’s: Apply
AACSB: Knowledge Application
10) As the director of marketing for a local hospital that specializes in caring for limited mobility
patients and related health issues, you must conduct an environmental scan to help create a five-
year marketing plan for the hospital. Which of the following environmental trends should you
consider to be the most important?
1. A) The number of people in the geographic area who are 65 years or older will increase by 23 percent
during the next five years.
2. B) Millennials are becoming increasingly important in the workplace.
3. C) The local community has seen a rise in dual-income households.
4. D) By the year 2025, robotics will play a major role in surgical procedures.
5. E) Twenty percent of the local population is of Hispanic origin, but that number is expected to grow
during the next decade.

Answer: A
Explanation: The most important trend is the rise of the 65 and older population in the community
because of the disproportionate demand for health care services among these consumers. This will
likely be an important target market for the hospital.
Difficulty: 3 Hard
Bloom’s: Apply
11) The Lemon Tree is a high-fashion boutique selling top-of-the-line women’s clothing and
accessories. The keys to its success include knowing customers’ changing tastes and providing
something different than other retailers. In addition, because of the high value of the merchandise,
The Lemon Tree’s management is investing in the use of computerized inventory controls and sales
order processing. The least important environmental force to The Lemon Tree at this time is likely to
be
1. A) economic.
2. B) competitive.
3. C) technological.
4. D) social.
5. E) regulatory.

Answer: E
Explanation: Only regulatory issues are not mentioned in the question.
Difficulty: 3 Hard
Bloom’s: Apply
12) Local newspaper readership has declined significantly in recent years. Not only are traditional
newspapers losing subscribers, they are also losing advertisers. To combat these trends, many
newspaper publishers now offer online versions of their printed newspapers. This is most likely a
response to which environmental force?
1. A) economic, since few can afford a newspaper today

2. B) competitive, resulting from new, smaller local newspapers that are flourishing
3. C) technological, since high-speed printing presses have become easier to use
4. D) social, resulting from changing consumer preferences for information delivered online
5. E) regulatory, since the government provides tax incentives for paper-based products

Answer: D
Explanation: The declining readership of local newspapers (and magazines and books, for that
matter) is a trend within the social environment. Many newspaper publishers believe that if they
provided online versions of their printed editions, they could reduce the decline in subscribers or
actually increase them since many now seek information in digital form.
Difficulty: 3 Hard
Bloom’s: Apply
13) A growing trend to “Buy American” may encourage U.S. automakers to increase political
pressure on Washington to pass legislation for more restrictive quotas on Japanese car imports. In
addition, a decline in the value of the U.S. dollar would be instrumental in Toyota’s decision to build
a manufacturing plant in the United States instead of continuing to export cars from Japan. If Toyota
builds the plant, its decision would reflect
1. A) a reactive strategy that would impact the competitive environmental force.

2. B) a proactive maneuver to manipulate and impact the social environmental force.
3. C) a positive result from regulatory and economic environmental forces.
4. D) a positive response to a technological environmental force.
5. E) a negative impact as a result of adverse competitive, regulatory, and technological environmental
forces.

Answer: C
Explanation: The identified examples represent regulatory and economic environmental forces that
are not controllable by Toyota but could positively influence its decision to build a plant in the United
States.
Difficulty: 3 Hard
Bloom’s: Apply
14) Many large consulting firms are beginning to sponsor “women-only” networking events. The
purpose of these events is to offer an opportunity for women in management to network with other
businesswomen, either as clients, mentors, or protégés. This is an example of which environmental
force?
1. A) social
2. B) economic
3. C) technological
4. D) competitive
5. E) regulatory

Answer: A
Explanation: There are increasing numbers of women in the workforce, a social environmental
trend. These events can help women moving up the corporate ladder become connected with other
women.
Difficulty: 3 Hard
Bloom’s: Apply
15) The Kansas state legislature recently banned the use of tanning beds by anyone under the age
of 18. This restriction would be an example of which environmental force?
1. A) social
2. B) economic
3. C) technological
4. D) competitive
5. E) regulatory

Answer: E
Explanation: Government regulation like the law mentioned here is considered one of the
uncontrollable environmental forces that include social, technological, economic, competitive, and
regulatory forces.
Difficulty: 3 Hard
Bloom’s: Apply
16) Using smartphones, one can watch the news, shoot videos, browse the Internet, take pictures,
and listen to music. Improved features are added with each smartphone introduced by Apple,
Samsung, LG, and others. As a result, customers often want to replace their existing smartphones
with new models or brands every two years when their contracts expire. This increase in demand is
due mostly to changes in ________, an environmental force.
1. A) competition
2. B) social culture
3. C) technology
4. D) regulations
5. E) the economy

Answer: C
Explanation: The technological environmental force has resulted in the addition of new features for
the latest generation of smartphones, which make them appealing to prospective and current
smartphone consumers, the latter whose contracts expire on average every two years.
Difficulty: 3 Hard
Bloom’s: Apply
17) Pending federal legislation will require all online retailers to collect state sales taxes from
customers. This would affect online sellers such as Virtual Vineyards, which now collects state sales
taxes only from customers who reside in California, its home state. This pending legislation would be
an example of which environmental force?
1. A) social
2. B) economic
3. C) technological
4. D) competitive
5. E) regulatory

Answer: E
Explanation: Government regulation is generally considered to be one of the uncontrollable or

environmental forces. This legislation may be economically motivated, but it nonetheless is an
aspect of the regulatory environment.
Difficulty: 3 Hard
Bloom’s: Apply
18) The set of environmental forces that consists of the demographic characteristics of the
population and its culture is referred to as
1. A) social forces.
2. B) economic forces.
3. C) consumer forces.
4. D) cultural forces.
5. E) market forces.

Answer: A
Explanation: Key term definition—social forces.
Difficulty: 1 Easy
Topic: Sociocultural Influences
Learning Objective: 03-02 Describe how social forces such as demographics and culture can have
an impact on marketing strategy.
Bloom’s: Remember
19) The social forces in the environment include the ________ of the population and its culture.
1. A) living standards
2. B) social classes
3. C) cohorts
4. D) ethics
5. E) demographic characteristics

Answer: E
Explanation: Key term definition—social forces.
Difficulty: 1 Easy
Bloom’s: Remember
20) Which of the following statements regarding social forces is most accurate?
1. A) Social forces can have a dramatic impact on marketing strategy.

2. B) As a social force, consumer incomes have more impact on marketing strategy than demographics.
3. C) Social forces within an organization motivate employees to improve their productivity.
4. D) Social forces determine all of the other environmental forces that affect an organization.
5. E) Of all the environmental forces, social forces are the easiest for a marketer to manipulate.

Answer: A
Explanation: The social forces of the environment include the demographic characteristics of the
population and its culture. Changes in these forces can have a dramatic impact on marketing
strategy.
21) Which of the following would be identified as a social force in an environmental scan?
1. A) a new consumer protection law

2. B) an increase in Asian immigration
3. C) an advanced technology is perfected
4. D) a decrease in consumer incomes
5. E) a new international firm exporting to the United States

Answer: B
Explanation: Social forces of the environment include demographic shifts, such as an increase in
Asian immigration.
22) Generation X consumers indicate they want online customer support; websites that are
comprehensive, professional, and interactive; and advertising that is authentic, family-oriented, and
unique. Generation X is also replacing baby boomers as the largest segment of business travelers.
In response, American Airlines is offering travelers in-flight Wi-Fi, entertainment on demand, and
personal powerports. This is an example of how ________ forces impact the marketing environment.
1. A) economic
2. B) competitive
3. C) social
4. D) technological
5. E) regulatory

Answer: C
Explanation: Social forces include the demographic characteristics of the population, such as age.
Generation X is replacing baby boomers as the largest segment of business travelers. In response,
American Airlines is offering travelers in-flight Wi-Fi, entertainment on demand, and personal
powerports.
Difficulty: 3 Hard
Bloom’s: Apply
23) An important social trend is the continued concern for health and well-being in the United States.
This is most likely evidenced by
1. A) the increased sales of Cigar Aficionado

2. B) the introduction of Lay’s Kettle Cooked potato chips, which have 40 percent less fat than regular
potato chips.
3. C) the opening of more Starbucks coffee boutiques in supermarkets.
4. D) the upsizing of menu items at fast-food restaurants.
5. E) the introduction of tablet devices such as the iPad.

Answer: B
Explanation: Social forces include the demographic characteristics of the population and its values.
Interests in health, fitness, and appearance have prompted companies such as Frito-Lay, for
example, to attract baby boomers with its Lay’s Kettle Cooked potato chips, which have 40 percent
less fat than regular potato chips.
Difficulty: 3 Hard
Bloom’s: Apply
24) Publishers were surprised by the dramatic success of the book Fifty Shades of Grey and believe
that it would likely generate a fresh cycle of female-targeted romances packaged for the mainstream
reader. This is an example of a(n) ________ force impacting the marketing environment.
1. A) economic
2. B) competitive
3. C) technological
4. D) social
5. E) regulatory

Answer: D
Explanation: Social forces include the demographic characteristics of the population and its values,
the latter of which shape consumer buying patterns, as is the case with the publishing industry.
Difficulty: 3 Hard
Bloom’s: Apply
25) Demographics refer to
1. A) the depiction of a population according to its core values or cultural beliefs and their rate of
change.
2. B) an objective measurement of a person’s likelihood to purchase a product or service.
3. C) the psychological profile of prospective consumers.
4. D) the density of a population in a geographic area.
5. E) the description of a population according to selected characteristics such as age, gender, ethnicity,
income, and occupation.

Answer: E
Explanation: Key term definition—demographics.
Difficulty: 1 Easy
Topic: Demographic Environment
Bloom’s: Remember
26) The description of a population according to selected characteristics such as age, gender,
ethnicity, income, and occupation is referred to as
1. A) consumer group profiling.

2. B) demographics.
3. C) behavioral analysis.
4. D) psychographics.
5. E) statistical analysis.

Answer: B
Explanation: Key term definition—demographics.
Difficulty: 1 Easy
Bloom’s: Remember
27) Demographic characteristics that describe a population include all of the following except which?
1. A) income
2. B) age
3. C) occupation
4. D) zip code
5. E) ethnicity

Answer: D
Explanation: Key term definition—demographics. Zip code is a geographic characteristic.
Difficulty: 1 Easy
Bloom’s: Remember
28) More is a publication designed to appeal to women aged 40 and over. Demand for such
magazines is an example of how changing ________ characteristics impact the marketing
environment.
1. A) cultural
2. B) behavioral
3. C) psychographic
4. D) occupational
5. E) demographic

Answer: E
Explanation: Describing a population according to selected characteristics such as age, gender,

ethnicity, income, and occupation is referred to as demographics. The age of readers is a
demographic characteristic.
Difficulty: 3 Hard
Bloom’s: Apply
29) The most recent estimate indicates that the population of the world today is about
5. A) 5.7 billion.
6. B) 6.3 billion.
7. C) 7.4 billion.
8. D) 8.2 billion.
9. E) 9.5 billion.

Answer: C
Explanation: The world population today is estimated at 7.4 billion people.
Difficulty: 1 Easy
Bloom’s: Remember
30) By 2050, the world’s population is expected to exceed
1. A) 2 billion.
2. B) 3 billion.
3. C) 5 billion.
4. D) 6 billion.
5. E) 9 billion.

Answer: E
Explanation: By 2050, the world’s population is expected to exceed 9 billion. It is already about 7.4
billion.
Difficulty: 1 Easy
Bloom’s: Remember
31) The change in the growth of the world’s population is called the
1. A) population contraction.
2. B) population inversion.
3. C) population migration.
4. D) population explosion.
5. E) population eruption.

Answer: D
Explanation: Text term definition—population explosion.
Difficulty: 1 Easy
Bloom’s: Remember

32) The population explosion has occurred
1. A) primarily in the developing countries of Asia and Africa.

2. B) fairly evenly throughout the world.
3. C) primarily in the United States due to high birthrates and immigration.
4. D) primarily in the countries of the European Union due to high birthrates and immigration.
5. E) primarily in developed countries due to better economic, infrastructure, and health care conditions.

Answer: A
Explanation: The population explosion is occurring primarily in the developing countries of Africa
and Asia.
33) Projections show that the population is
1. A) growing in most developed countries.

2. B) declining in most developing countries.
3. C) decreasing in Africa.
4. D) increasing in Asia.
5. E) decreasing in Latin America.

Answer: D
Explanation: Population explosion is occurring primarily in the developing countries of Africa and
Asia. In fact, India is predicted to have the world’s largest population in 2050 with 1.7 billion people,
replacing the current largest country, China, which will have a population of 1.3 billion people. World
population projections show that the populations of 42 countries, including China, Japan, Ukraine,
Russia, Romania, Poland, Spain, and Taiwan, will be declining.

34) The country expected to have the largest population in 2050 is
1. A) the United States.

2. B) India.
3. C) China.
4. D) Russia.
5. E) Brazil.

Answer: B
Explanation: India is predicted to have the world’s largest population in 2050 with 1.7 billion people.
China will be a close second with 1.3 billion.
Difficulty: 1 Easy
Bloom’s: Remember
35) Which of the following is a demographic trends that has significant implications to global
marketers?
1. A) the declining populations in Latin American countries

2. B) the large and growing markets in India and China
3. C) the tripling of the population of consumers under 40 years old
4. D) the decreasing interest in entrepreneurship in developing countries
5. E) the lack of savings of elderly populations in developed countries

Answer: B
Explanation: India is predicted to have the world’s largest population in 2050 with 1.7 billion people.
China will be a close second with 1.3 billion. The relative size of these countries will mean they
represent huge markets for many product categories.
36) Studies of the ________ characteristics of the U.S. population suggest that it is becoming larger,
older, and more diverse.
1. A) cultural
2. B) psychographic
3. C) geographic
4. D) demographic
5. E) economic

Answer: D
Explanation: Demographic variables include those such as age, gender, ethnicity, income, and
occupation that describe a population. Studies of the demographic characteristics of the U.S.
population suggest several important trends. Generally, the population is becoming larger, older, and
more diverse.
Difficulty: 1 Easy

Bloom’s: Remember
37) Generally, the U.S. population is becoming
1. A) smaller, younger, and more diverse.

2. B) smaller, older, and more diverse.
3. C) larger, younger, and less diverse.
4. D) larger, younger, and more diverse.
5. E) larger, older, and more diverse.

Answer: E
Explanation: Studies of the demographic characteristics of the U.S. population suggest several
important trends. Generally, the population is becoming larger, older, and more diverse.
Difficulty: 1 Easy
Bloom’s: Remember
38) By 2030, the U.S. population is expected to exceed
1. A) 273 million.
2. B) 314 million.
3. C) 323 million.
4. D) 359 million.
5. E) 414 million.

Answer: D
Explanation: The U.S. Census Bureau estimates that the current population of the United States is
approximately 325 million people. If current trends in life expectancy, birth rates, and immigration
continue, by 2030 the U.S. population will exceed 359 million people.
Difficulty: 1 Easy
Bloom’s: Remember
39) All of the following factors contribute significantly to the rate of change of a country’s
population except which?
1. A) life expectancy (the average number of years a population lives from birth)
2. B) immigration (the number of people who enter a country for the purpose of permanent residence)
3. C) population density (the total number of people per square mile/kilometer)
4. D) birth rate (the number of births during a specified time period)
5. E) death rate (the number of deaths during a specified time period)

Answer: C
Explanation: Population density has little to do with the growth or decline of a country’s population.
All of the other alternatives have a significant impact on population growth.

40) The generation of children born between 1946 and 1964 is referred to as
1. A) the grey generation.

2. B) millennials.
3. C) Generation Y.
4. D) baby boomers.
5. E) Generation X.

Answer: D
Explanation: Key term definition—baby boomers.
Difficulty: 1 Easy
Bloom’s: Remember
41) Baby boomers can be defined as the generation born
1945. A) between 1918 and 1945.

1946. B) between 1946 and 1964.
1947. C) between 1965 and 1976.
1948. D) between 1977 and 1994.
1949. E) since 1995.

Answer: B
Explanation: Key term definition—baby boomers.
Difficulty: 1 Easy
Bloom’s: Remember
42) Which of the following currently affects baby boomers, and thus those that market to them, in a
significant way?
1. A) They are beginning to have children.

2. B) They are getting their high school and college educations.
3. C) They are currently retiring or nearing retirement age.
4. D) They are just being born.
5. E) They are beginning their primary school educations.

Answer: C
Explanation: Baby boomers are currently retiring at a rate of 10,000 every 24 hours, and all will be
65 or older by 2030.
43) Prudential, a financial planning firm, offers retirement plans and wealth management advice.
These products are most likely targeted toward which generational cohort?
1. A) Generation X
2. B) baby busters
3. C) Generation Y
4. D) the greatest generation
5. E) baby boomers

Answer: E
Explanation: Baby boomers are currently retiring at a rate of 10,000 every 24 hours, and all will be
65 or older by 2030. Companies that target boomers need to respond to their interests in health,
fitness, retirement housing, financial planning, and appearance.
Difficulty: 3 Hard
Bloom’s: Apply
44) Olay, a personal care product firm, offers anti-aging and restoration products like its Total Effects
cleansing cloths that are best targeted toward
1. A) echo-boomers.
2. B) Generation Z.
3. C) Generation Y.
4. D) baby boomers.
5. E) baby busters.

Answer: D
Explanation: Companies that target boomers need to respond to their interests in health, fitness,
retirement housing, financial planning, and appearance.
Difficulty: 3 Hard
Bloom’s: Apply
45) In a recent issue of AARP The Magazine, a print ad for State Farm Insurance annuities advises
readers that “The company has helped you enjoy your time with the kids and it can now help you
enjoy your time without them.” The ad is most likely targeted toward which generational cohort?
1. A) echo-boomers
2. B) Generation Xers
3. C) Generation Yers
4. D) baby boomers
5. E) baby busters

Answer: D
Explanation: Baby boomers were born between 1946 and 1964, and being older, they often are
receptive to products that focus on enjoying the next stages of life.
Difficulty: 3 Hard
Bloom’s: Apply
46) Generation X is defined as the generation of children born
1964. A) between 1946 and 1964.

1965. B) between WWI and WWII.
1966. C) between 1965 and 1976.
1967. D) between 1977 and 1994.
1968. E) since the millennium.

Answer: C
Explanation: Key term definition—Generation X.
Difficulty: 1 Easy
Bloom’s: Remember
47) The 50 million people born between 1965 and 1976, a period also known as the baby bust, are
referred to as
1. A) Generation X.
2. B) millennials.
3. C) Generation Y.
4. D) Generation Z.
5. E) baby boomers.

Answer: A
Explanation: Key term definition—Generation X.
Difficulty: 1 Easy
Bloom’s: Remember
Marketing, 14e (Kerin)

Chapter 5: Understanding Consumer Behavior

1) Women make what percentage of new-car buying decisions?
1. A) 15 percent
2. B) 30 percent
3. C) 45 percent
4. D) 60 percent
5. E) 80 percent

Answer: D
Explanation: Women make 60 percent and influence 84 percent of new-car buying decisions.
Difficulty: 1 Easy
Topic: Consumer Behavior
Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.
Bloom’s: Remember
2) Women influence what percentage of new-car buying decisions?
1. A) 15 percent
2. B) 20 percent
3. C) 45 percent
4. D) 68 percent
5. E) 84 percent

Answer: E
Explanation: Women make 60 percent and influence 84 percent of new-car buying decisions.
Difficulty: 1 Easy
Bloom’s: Remember

3) Enlightened carmakers have hired women designers, engineers, and marketing executives to
better understand the way women decide to buy new cars. They have learned that
1. A) meeting the expectations of men during the new-car purchasing process is more difficult than
meeting those of women.
2. B) men make the majority of new-car purchasing decisions.
3. C) women and men think differently about the new-car buying experience.
4. D) women care more about reliability than men.
5. E) men care more about price than women.

Answer: C
Explanation: While car price, reliability, and technology are important, women and men think and
feel differently about car features and key elements of the new-car buying decision process and
experience.
4) Which of the following statements about how women buy new cars today is most accurate?
1. A) Women have definite likes or dislikes when buying a new car, but they don’t feel comfortable
expressing their opinions.
2. B) Most women actually enjoy the price negotiation process.
3. C) The issue of “speed” is an important factor to men but not really important to women.
4. D) Women are more likely to make their new-car purchase selection as a result of information
provided by a friend or a relative than from promotional information.
5. E) Women care more about exterior styles and lines and men are more concerned with cargo space
and gas mileage.

Answer: D
Explanation: Women actively seek information and postpone a purchase decision until all options
have been evaluated. Women frequently visit auto-buying websites, read car-comparison articles,
and scan car advertisements. Recommendations of friends and relatives matter most for the final
decision.
Topic: Consumer Purchase Decision Process
5) Which of the following statements about how women buy cars today is most accurate?
1. A) For women, safety is about features that would help survive an accident.
2. B) Women have definite likes or dislikes when buying a car, but they don’t feel comfortable
expressing their opinions.
3. C) When it comes to the actual purchase process, women are more adept negotiators than men.
4. D) Women care more about exterior styles and lines, and men are more concerned with cargo space
and gas mileage.
5. E) Women usually shop one dealership before making a decision and men usually shop three.

Answer: A
Explanation: For women, safety is about features that help to survive an accident, including
passenger airbags and reinforced side panels.

6) Some automobile dealerships employ a nonnegotiable or no-haggle price strategy to sell their
cars. A customer who wants to buy a new or used car would pay the posted price. These dealers
probably adopted this pricing policy because
1. A) the industry was discussing the abandonment of self-regulation practices.

2. B) women have an intense dislike of price negotiation, yet still want to buy a car.
3. C) many recent immigrants into the United States are not accustomed to negotiation.
4. D) women distrust men in general and car salesmen in particular.
5. E) a sluggish economy guarantees that negotiations would produce negative profit per vehicle.

Answer: B
Explanation: Women in particular dread price negotiations that are often involved in buying a new
car. As a result, a nonnegotiable or no-haggle price strategy may appeal to women car buyers.
Difficulty: 3 Hard
Bloom’s: Apply
7) The actions a person takes in purchasing and using products and services, including the mental
and social processes that come before and after these actions, are referred to as
1. A) purchase intentions.
2. B) market research.
3. C) consumer behavior.
4. D) consumer conduct.
5. E) purchase protocols.

Answer: C
Explanation: Key term definition—consumer behavior.
Difficulty: 1 Easy
Bloom’s: Remember
8) Consumer behavior refers to
1. A) the aspects of a consumer’s decision-making processes that cannot be measured.

2. B) the actions a person takes in purchasing and using products and services, including the mental and
social processes that come before and after these actions.
3. C) the five stages a buyer passes through in making choices about which product and service to
investigate, purchase, and consume.
4. D) the mental and social processes related to purchasing that are innate in a person from birth.
5. E) those purchasing behaviors that result from (1) repeated experience and (2) reasoning.

Answer: B
Explanation: Key term definition—consumer behavior.
Difficulty: 1 Easy
Bloom’s: Remember
9) Consumer behavior includes the actions a person takes in purchasing services and using
products and services, including
1. A) the physical effort spent on these actions.

2. B) the financial limitations one must overcome to accomplish these actions.
3. C) the mental and social processes that come before and after these actions.
4. D) the emotional processes that occur during these actions.
5. E) the cognitive and attitudinal processes that must be learned to complete these actions.

Answer: C
Explanation: Consumer behavior refers to the actions a person takes in purchasing and using
products and services, including the mental and social processes that come before and after these
actions.
Figure 5-1

10) The five stages a buyer passes through in making choices about which products and services to
buy is called the
1. A) information sorting process.

2. B) purchase decision process.
3. C) alternative evaluation process.
4. D) postpurchase behavior process.
5. E) problem recognition process.

Answer: B
Explanation: Key term definition—purchase decision process. See Figure 5-1.
Difficulty: 1 Easy
Bloom’s: Remember
11) The initial stage in the consumer purchase decision process involves perceiving a difference
between a person’s ideal and actual situations big enough to trigger a decision. What is this stage
called?
1. A) prepurchase behavior
2. B) alternative evaluation
3. C) purchase decision
4. D) problem recognition
5. E) information search

Answer: D
Explanation: Problem recognition is the initial stage in the consumer purchase decision process,
which involves perceiving a difference between a person’s ideal and actual situations big enough to
trigger a decision. See Figure 5-1.
Difficulty: 1 Easy
Bloom’s: Remember
12) There are five stages in the consumer purchase decision process. The first stage is
1. A) information search.
2. B) purchase decision.
3. C) alternative evaluation.
4. D) opportunity identification.
5. E) problem recognition.

Answer: E
Explanation: Problem recognition is the initial stage in the consumer purchase decision process,
which involves perceiving a difference between a person’s ideal and actual situations big enough to
trigger a decision. See Figure 5-1.
13) The second stage in the consumer purchase decision process involves gathering facts about
possible choices, and may include internal and external sources. What is this stage called?
1. A) postpurchase behavior

Answer: E
Explanation: Information search is the second stage in the consumer purchase decision process,
which involves searching for information, which may include an internal search and/or an external
search. See Figure 5-1.
Difficulty: 1 Easy
Bloom’s: Remember
14) There are five stages in the consumer purchase decision process. The second stage is
4. D) opportunity identification.

Answer: A
Explanation: After recognizing a problem, a consumer begins to search for information, which may
include an internal search and/or an external search. See Figure 5-1.
15) Scanning memory for previous experiences and also exploring the external environment
represent which stage of the consumer purchase decision process?
1. A) information search
2. B) purchase decision
3. C) alternative evaluation
4. D) opportunity identification
5. E) problem recognition

Answer: A
Explanation: After recognizing a problem, a consumer begins to search for information, which may
include an internal search and/or an external search. See Figure 5-1.

16) The third stage in the consumer purchase decision process involves appraising brands in the
consideration set based on the important criteria (both objective and subjective) identified during the
information search step for the ultimate decision. What is this stage called?

Answer: B
Explanation: Alternative evaluation is the third stage in the consumer purchase decision process,
which involves evaluating brands in the consideration set based on evaluative criteria (both objective
and subjective) identified during the information search step for the ultimate decision. See Figure 5-
1.
Difficulty: 1 Easy
Bloom’s: Remember
17) There are five stages in the consumer purchase decision process. Immediately following the
information search stage is
1. A) preference development.
4. D) opportunity testing.

Answer: C
Explanation: In the process of collecting information a consumer also accrues alternative products
from which to choose. At this stage, the consumer develops evaluative criteria (both objective and
subjective) for the ultimate decision. See Figure 5-1.
18) The fourth stage in the consumer purchase decision process includes deciding from whom to
buy and when to buy. What is this stage called?
1. A) preference development
2. B) prepurchase evaluation

Answer: C
Explanation: Purchase decision is the fourth stage in the consumer purchase decision process,
which involves deciding from whom to buy and when to buy so that the purchase decision can be
made. See Figure 5-1.
Difficulty: 1 Easy
Bloom’s: Remember
19) The fifth stage in the consumer purchase decision process involves comparing the product or
service purchased with one’s expectations to determine the degree of satisfaction or dissatisfaction.
What is this stage called?
4. D) problem resolution

Answer: A
Explanation: Postpurchase behavior is the fifth stage in the consumer purchase decision process,
which involves comparing the product or service purchased by buyers with their expectations to
determine whether they are either satisfied or dissatisfied. See Figure 5-1.
Difficulty: 1 Easy
Bloom’s: Remember
20) There are five stages in the consumer purchase decision process. The last stage is
4. D) postpurchase behavior.
5. E) problem resolution.

Answer: D
Explanation: After buying a product, the consumer compares it with his or her expectations and is
either satisfied or dissatisfied, which is postpurchase behavior. See Figure 5-1.

21) In Figure 5-1 above, A represents which stage of the consumer purchase decision process?
1. A) purchase decision
2. B) information search
3. C) problem recognition
4. D) alternative evaluation
5. E) option identification

Answer: C
Explanation: The first stage of the consumer purchase decision process is problem recognition. See
Figure 5-1.
22) In Figure 5-1 above, B represents which stage of the consumer purchase decision process?
5. E) financial consideration

Answer: B
Explanation: The second stage of the consumer purchase decision process is information search.
See Figure 5-1.

23) In Figure 5-1 above, C represents which stage of the consumer purchase decision process?
5. E) financial consideration

Answer: D
Explanation: The third stage of the consumer purchase decision process is alternative evaluation.
See Figure 5-1.
24) In Figure 5-1 above, D represents which stage of the consumer purchase decision process?
3. C) financial transaction
5. E) postpurchase behavior

Answer: A
Explanation: The fourth stage of the consumer purchase decision process is the actual purchase
decision. See Figure 5-1.
25) In Figure 5-1 above, E represents which stage of the consumer purchase decision process?
3. C) financial transaction

Answer: E
Explanation: The fifth stage of the consumer purchase decision process is postpurchase behavior.
See Figure 5-1.
Difficulty: 3 Hard
26) The point at which you would exchange money for a sandwich of corned beef on rye is in the
________ stage.
5. E) option identification

Answer: A
Explanation: The actual purchase follows three previous stages: problem recognition, information
search, and alternative evaluation. See Figure 5-1.
Difficulty: 3 Hard
27) During the consumer purchase decision process, an individual at the ________ stage will
perceive differences between his or her ideal and actual situations big enough to trigger a decision.
1. A) problem recognition
3. C) cognitive dissonance
4. D) information search

Answer: A
Explanation: Problem recognition, the initial step in the consumer purchase decision process,
involves perceiving a difference between a person’s ideal and actual situations big enough to trigger
a decision.
28) When you leave the library, walk back to your car, and notice that it has a flat tire, you are in
which stage of the purchase decision process?
3. C) cognitive dissonance
4. D) routine response behavior
5. E) prepurchase behavior

Answer: A
a decision. You must solve the problem of the flat tire.
Difficulty: 3 Hard
Bloom’s: Apply
29) When Jeremy said, “It’s really hard for me to get to class on time without a car,” he was entering
which stage of the consumer purchase decision process?
3. C) information search
5. E) prepurchase behavior

Answer: D
a decision. Jeremy’s problem is that he hasn’t been able to get to class on time without a car.
Difficulty: 3 Hard
Bloom’s: Apply
30) Jill goes shopping with a friend and notices her friend’s fashionable winter boots. She thinks
about the recent cool weather and realizes she needs to buy a pair. In which stage of the consumer
purchase decision process was Jill when she had this realization?
2. B) problem recognition
3. C) purchase behavior
5. E) prepurchase cognition

Answer: B
a decision. Jill realized she needed winter boots.
Difficulty: 3 Hard
Bloom’s: Apply
31) Glow Pets, from the makers of Pillow Pets, are a light-up pillow product designed for young
children. The pillows are colorful animals that produce a soft light for 20 minutes at a time and were
produced for children with a fear of the dark. The company aired ads on various TV programs
showing children being comforted and sleeping restfully with a Glow Pet, making parents and kids
alike desire such a situation. The content of the advertising’s message most likely focuses on which
stage of the consumer purchase decision process?
4. D) purchase decision

Answer: A
Explanation: The content of the advertising’s message would most likely focus on the problem
recognition stage of the consumer purchase decision process to get consumers to realize that they
may need a Glow Pet to get to sleep better—a difference between their ideal and actual situations
that is big enough to trigger a decision to buy the product.
Difficulty: 3 Hard
Bloom’s: Apply
32) Amanda plans to go for a run after her classes are over. As she is lacing up her running shoes,
she notices that one of the shoe’s seams is unraveling, and she thinks it is about time for a new pair.
In which stage of the consumer purchase decision process is Amanda at that moment?
2. B) problem recognition
3. C) purchase behavior
5. E) prepurchase cognition

Answer: B
a decision. Amanda realized she needed a new pair of running shoes because one of the shoe’s
seams was unraveling.
Difficulty: 3 Hard
Bloom’s: Apply
33) In marketing, advertisements or salespeople can activate a consumer’s purchase decision

process by
1. A) creating a sense of irony or amusement.

2. B) manipulating a customer’s want into a need.
3. C) promising product attributes that exceed the actual product potential.
4. D) showing the shortcomings of competing (or currently owned) products.
5. E) shifting the consumer’s focus from internal search to external search.

Answer: D
Explanation: In marketing, advertisements or salespeople can activate a consumer’s decision

process by showing the shortcomings of competing (or currently owned) products or brands.
34) Scanning your memory for previous experiences with products or brands occurs during which
stage of the consumer purchase decision process?
2. B) purchase decision
4. D) postpurchase behavior
5. E) problem recognition

Answer: A
Explanation: After recognizing a problem, a consumer begins to search for information, first by
scanning one’s memory for previous experiences with products or brands.
Difficulty: 1 Easy
Bloom’s: Remember
35) “Which brand of smartphone does my roommate own?” would be a question asked during the
________ stage in the consumer purchase decision process.
3. C) information search
4. D) purchase decision
5. E) comparison

Answer: C
Difficulty: 3 Hard
Bloom’s: Apply

36) In which stage in the consumer purchase decision process would a consumer ask, “How much
can I afford to spend on a new TV for my apartment?”
4. D) evaluation

Answer: E
Difficulty: 3 Hard
Bloom’s: Apply
37) You have determined you want to buy an advanced hybrid vehicle, and a visit to Ford’s website
has revealed that the Ford Fusion Hybrid SE uses hybrid fuel technology with the latest in lithium-ion
battery technology. You are currently in which stage of the consumer purchase decision process for
this type of automobile?
2. B) needs analysis
4. D) information search
5. E) postpurchase evaluation

Answer: D
Explanation: After a consumer has recognized a problem, the next step in the decision-making
process is to search for information. In this case, you have undertaken an external search for
information. This is needed when past experience or knowledge is insufficient, the perceived risk of
making a wrong purchase decision is high, and the cost of gathering information is low.
Difficulty: 3 Hard
Bloom’s: Apply
38) Scanning your memory for previous experiences with products or brands is called
1. A) problem recognition.
2. B) alternative evaluation.
3. C) cognitive dissonance.
4. D) internal search.
5. E) external search.

Answer: D
Explanation: Key term definition—internal search.
Difficulty: 1 Easy
Bloom’s: Remember

39) A(n) ________ in the consumer purchase decision process occurs when consumers scan their
memories for previous experiences with products or brands.
2. B) internal search
3. C) external search
4. D) purchase task
5. E) antecedent state

Answer: B
Explanation: Key term definition—internal search.
Difficulty: 1 Easy
Bloom’s: Remember
40) When an elementary school teacher was returning to school in the fall, she wanted to buy
markers and craft paper. She remembered the discount website she visited last year for her
purchases, so she started there to see if the website still carried the items previously purchased.
What term best describes the information search method used by the teacher?
1. A) personal external source

2. B) public external source
3. C) market-dominated external source
4. D) internal search
5. E) market-dominated internal source

Answer: D
Explanation: When the teacher scanned her memory for previous experiences with products or
brands, she was engaged in an internal search for information.
Difficulty: 3 Hard
Bloom’s: Apply
41) Casey’s girlfriend will celebrate her birthday next week, so he needs to buy her a gift. He
remembers the brand of watch that she wears and considers if she would like a new one by the
same maker. This is an example of which part of the consumer purchase decision process?
1. A) recollection search
2. B) external search
3. C) evaluative criteria
4. D) antecedent states
5. E) internal search

Answer: E
Explanation: The stage in the consumer purchase decision process when consumers scan their
memories for previous experiences with products or brands is referred to as internal search.
Difficulty: 3 Hard
Bloom’s: Apply
42) A mother of two toddlers would primarily use an internal search during the purchase decision
process when purchasing
1. A) a gift for her mother-in-law.

2. B) an iPhone.
3. C) disposable diapers.
4. D) a swing set.
5. E) a weekend getaway.

Answer: C
Explanation: A consumer would typically use an internal search of her prior experiences with
frequently purchased products such as disposable diapers.
Difficulty: 3 Hard
Bloom’s: Apply
43) Julie is an avid mystery reader and her babysitter Tina has been borrowing some of her books
over the summer. When Tina’s birthday approaches, Julie wants to buy her a good mystery. When
Julie was trying to recall her favorite mystery authors, she was engaged in
2. B) an internal search.
3. C) an external search.
4. D) a purchase task.
5. E) the precognition of an antecedent state.

Answer: B
Explanation: The stage in the consumer purchase decision process when consumers scan their
memories for previous experiences with products or brands is called internal search.
Difficulty: 3 Hard
Bloom’s: Apply

44) A(n) ________ for information is needed when past experience or knowledge is insufficient, the
risk of making a wrong purchase decision is high, and the cost of gathering information is low.
1. A) external search
2. B) cognitive search
3. C) alternative search
4. D) internal search
5. E) postpurchase search

Answer: A
Explanation: Text term definition—external search.
Difficulty: 1 Easy
Bloom’s: Remember
45) An external search for product information is likely to occur when
1. A) the cost of gathering information is low.

2. B) review of past experience provides adequate information.
3. C) the risk of making a wrong purchase decision is low.
4. D) the item is frequently purchased.
5. E) the item is for personal use rather than for professional use.

Answer: A
Explanation: An external search for information is especially needed when past experience is
insufficient, the risk of making a wrong decision is high, and the cost of gathering information is low.
46) When past experience is insufficient, the risk of making a wrong decision is high, and the cost of
gathering information is low, a consumer is more likely to use an ________ for information.
1. A) internal search
2. B) extensive search
3. C) expert directed search
4. D) external search
5. E) intensive search

Answer: D
Explanation: When past experience is insufficient, the risk of making a wrong decision is high, and
the cost of gathering information is low, a consumer is more likely to use an external search for
information.
47) Emily wants to purchase a tablet device. She is unsure about what hardware and apps she will
need. As a result, she has begun asking for advice from her friends and relatives. In addition, she
has talked to several salespeople at Apple and Best Buy and has looked at some websites, such as
HP and Dell. Emily is engaging in
3. C) an external search.
4. D) a purchase task.
5. E) the creation of an antecedent state.

Answer: C
Explanation: Emily is searching for information about tablet devices from external sources including
friends, relatives, salespeople, and websites. An external search is especially important when the
cost of gathering information is low, when past experience is insufficient, and when the risk of
making a wrong decision is high.
Difficulty: 3 Hard
Bloom’s: Apply
48) Nico wants to buy a new digital camera for his semester studying abroad, but he knows very little
about cameras, having never owned one. As a result, he has begun asking for advice from friends
and relatives. In addition, he has talked to salespeople at a Wolf camera shop and Best Buy and he
has looked at some websites. Nico is engaging in
3. C) the purchase decision.
4. D) an external search.
5. E) the creation of an antecedent state.

Answer: D
Explanation: Nico is searching for information about cameras from external sources including
friends, relatives, salespeople, and websites. An external search is especially important when the
cost of gathering information is low, when past experience is insufficient, and when the risk of
making a wrong decision is high.
Difficulty: 3 Hard

Bloom’s: Apply

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Topic: Environmental Influences on Marketing

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Topic: Environmental Influences on Marketing

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

3) Environmental scanning refers to

Explanation: Key term definition—environmental scanning.

Topic: Environmental Influences on Marketing

AACSB: Analytical Thinking

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1. A) significant trend analysis.

Explanation: Key term definition—environmental scanning.

Topic: Environmental Influences on Marketing

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

5) Environmental trends arise from all of the following forces except which?

Explanation: Environmental scanning trends come from social, economic, technological,

Topic: Environmental Influences on Marketing

AACSB: Analytical Thinking

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6) The purpose of environmental scanning is to

1. A) uncover causes of trends in the marketplace.

Topic: Environmental Influences on Marketing

AACSB: Analytical Thinking

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Topic: Environmental Influences on Marketing

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

Topic: Environmental Influences on Marketing

AACSB: Analytical Thinking

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1. A) optimized its distribution by adding local outlets in grocery stores

Topic: Environmental Influences on Marketing

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Topic: Environmental Influences on Marketing

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Explanation: Only regulatory issues are not mentioned in the question.

AACSB: Knowledge Application

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1. A) economic, since few can afford a newspaper today

Topic: Environmental Influences on Marketing

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

1. A) a reactive strategy that would impact the competitive environmental force.

Topic: Environmental Influences on Marketing

AACSB: Knowledge Application

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AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Topic: Environmental Influences on Marketing

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Topic: Environmental Influences on Marketing

AACSB: Knowledge Application

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Explanation: Government regulation is generally considered to be one of the uncontrollable or

AACSB: Knowledge Application

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