MKT 210 PDF

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Multiple Choice Questions And Answers
FIRST Exam
‫النسخة المعدلة لعام‬
2016-2017
‫ابراهيم يوسف السلمان‬
Ibrahim Y Al-salman
Founder of Marketing House
‫ألقروب االكاديمي لقسم التسويق‬

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‫تتوفر نسخ السكند والفاينال بالمكتبات اطلبوها باسم " ابراهيم السلمان‬
Chapter 1—Customer-Driven Strategic Marketing

Chapter 1
1 When you go to the supermarket and purchase toothpaste produced by Procter & Gamble
(P&G), you are an
example of P&G's:
a. suppliers .
b. customers .
c. producers .
d. stockholders .
e. CRMs .
correct: b
feedback:. You are part of a group that is the focal point of all marketing activities (page 3).
2- When companies concentrate on satisfying a specific group of consumers, who are these
individuals?
a. Product center
b. Strategic mission
c. Target market
d. Focus group
e. Profit center
correct: c
feedback:. This is a specific group of customers on whom an organization focuses its marketing efforts
(page 4).
3 -A mixed-breed puppy that is available for adoption at a local animal shelter is an example of
that shelter's:
a. CRM .
b. target market .
c. goods .
d. services .
e. ideas
.correct: c
feedback:. A puppy is a physical entity you can touch (page 5
4- When Commerce Bank of St. Louis adds 20 ATM machines at key locations in the city to make it
easier for its customers to withdraw cash 24 hours a day, this is an example of Commerce Bank's:
a. service .
b. goods .
c. ideas .
d. marketing mix .
correct: a
feedback:. This is an example of an application of mechanical efforts to people to provide intangible
benefits to customers (page 5).
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5- When the national organization MADD (Mothers Against Drunk Driving) runs an ad in Sports
Illustrated to convey its concerns about the safety of driving and
drinking alcohol, this is an example of MADD's:
a. product .
b. service .
c. benchmark .
d. empowerment .
e. ideas
correct: e
feedback:. This is an example of a philosophy or an issue conveyed by MADD (page 5).
6- When Dell Computer sells more than 90 percent of its computers in the U.S. over the
Internet, the Internet represents which aspect of the marketing mix?
a. Product
b. Distribution
c. Price
d. Promotion
correct: b
feedback:. Dell is making its product available to its customers at the right time and place (page 6).
7- When Chrysler Corporation runs an ad in Business Week for its 300 Hemi sedan, this is an
example of which aspect of the marketing mix?
a. Price
b. Distribution
c. Product
d. Promotion
e. Profit
correct: d
feedback:. This aspect of the marketing mix is often used as a competitive tool (page 6).
8- A company's customers, suppliers, stockholders, employees, and local communities are all
examples of a company's:
a. stakeholders .
b. exchanges .
c. marketing mix .
d. CRM .
correct: a
feedback:. These are the constituents who have a claim in some aspect of the company (page 8).
9-When a company identifies key customers that it wants to keep as customers for a period of
several years, and then develops service programs designed to keep these customers loyal to
its products and services, this is an example of :
a. value .
b. the marketing environment .
c. an exchange .
d. relationship marketing .
e. the marketing mix .
correct: d
feedback:. The company is developing a long-term, mutually beneficial arrangement with its
customers (page 13).
10- When United Missouri Bank (UMB) of Missouri designs a customer service program in which
key customers are assigned to specific bank employees so that the bank can service these
customers accurately, this is an example of:
a. benchmarking .
b. value .
c. the marketing mix .
d. a performance standard .
e. CRM
correct: e
feedback:. UMB is focusing on customer information to create a marketing strategy that develops
and sustains a desirable customer relationship (page 13).
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1. Marketing is the process of
A) promoting products through personal selling and advertising to facilitate satisfying exchange relationships.
B) creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with
customers and develop and maintain stakeholder relationships in a dynamic environment.
C) delivering a standard of living to a society.
D) creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the
firm's objectives.
E) focusing on customers' needs.
Ans: B AACSB Outcomes: Communication
DF: M LO: 1 Page: 3 Type: KN
2. The focal point of all marketing activities is
A) products.
B) the marketing mix.
C) profits.
D) sales.
E) customers.
Ans: E AACSB Outcomes: Communication
DF: E LO: 1,3 Page: 3 Type: KN
3. A target market
A) involves a large number of customers.
B) is a specific group of customers on whom a company focuses its marketing efforts.
C) already has several competitors vying for customers' business.
D) is the same thing as a salesperson's prospective client list.
E) is a customer group classified as people with similar demographic characteristics.
DF: E LO: 1, 2 Page: 4 Type: KN
4. Coca-Cola is aiming its Diet Coke Plus (with vitamins and minerals) at health-conscious customers. These
health-conscious customers represent Coke’s
A) audience.
B) sales mix.
C) business group.
D) target market.
E) focus group.
Ans: D AACSB Outcomes: Analytical
DF: M LO: 1, 2 Page: 4 Type: AP
5. SunnyD is aimed at mothers with children under age twelve. These mothers represent SunnyD’s
A) target market.
B) consumer advocates.
C) marketing strategy.
D) marketing mix.
E) marketing tactic.
Ans: A AACSB Outcomes: Communication, Marketing Plan
DF: E LO: 1, 2 Page: 4 Type: AP
6. Marketing managers strive to develop a marketing mix that
A) minimizes marketing costs.
B) matches what competitors are offering.
C) best matches the abilities of the firm.
D) matches the needs of the target market.
E) generates the highest level sales.
DF: M LO: 1, 2 Page: 5 Type: KN
7. The product variable of the marketing mix can include all of the following except
A) creation of brand names.
B) consumer perception of the product price.
C) development of product packaging.
D) warranty issues.
E) repair services.
DF: D LO: 2 Page: 5-6 Type: KN
20. A physical product you can touch is a(n)
A) service.
B) good.
C) idea.
D) concept.
E) philosophy.
21. Mothers Against Drunk Driving (MADD) is a group that works to change attitudes and laws about driving under
the influence of alcohol. MADD primarily markets .
A) goods
B) ideas
C) services
D) political figures
E) applications
Ans: B AACSB Outcomes: Analytical
DF: E LO: 2 Page: 5-6 Type: AP
22. Which of the following organizations is the best example of a service marketer?
A) FedEx
B) Apple Computer
C) Abercrombie & Fitch
D) The Republican Party
E) General Electric
Ans: A AACSB Outcomes: Analytical, Reflective thinking
DF: M LO: 2 Page: 6 Type: AP
23. Boca Burger’s website features information about products, recipes, and nutrional values, but customers cannot
actually purchase products from the website. This website is most likely used primarily as a tool.
A) promotional
B) distributional
C) pricing
D) targeting
E) production
Ans: A AACSB Outcomes: Analytical
DF: E LO: 2 Page: 7 Type: AP
24. Which of the following scenarios involves the distribution element of the marketing mix?
A) Deciding whether a certain product should continue to be sold
B) Determining whether an advertising message would be more effective on television or in magazines
C) Choosing between a company jet or the airlines for executive travel
D) Deciding whether to have retail outlets in addition to a website
E) Developing a new warranty policy for an existing product
Ans: D AACSB Outcomes: Analytical, Reflective thinking
DF: M LO: 2 Page: 6–7 Type: AP
25. Consumers buying products online have dramatically affected the variable of the marketing mix.
A) product
B) price
C) distribution
D) research
E) promotion
Ans: C AACSB Outcomes: Analytical, Technology
26. When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers
about the product's benefits. This calls for activity in which of the following marketing mix variables?
A) Price
B) Promotion
C) Distribution
D) Product
E) Packaging
27. When Yoplait, a producer of dairy products, delayed the introduction of its new yogurt smoothies in order to
modify the package, its scheduled magazine advertisements announcing the new product needed to be revised.
In this case, a change in the variable caused changes in the variable of the marketing
mix.
A) distribution; promotion
B) distribution; product
C) product; price
D) product; promotion
E) promotion; price
28. Marketers sometimes speak of the “controllable” variables in the practice of marketing. Which of the following
is not considered one of the controllable variables?
A) Product
B) Price
C) Distribution
D) Competition
E) Promotion
Ans: D AACSB Outcomes: Communication
DF: E LO: 2 Page: 8 Type: KN
29. The concept of “exchange” is fundamental to the definition of marketing. What is the best description of
exchange?
A) Activities that are performed primarily by producers and manufacturers
B) Development of products, distribution channels, promotional strategies, and pricing objectives to satisfy
customer requirements
C) Transfer of products in return for monetary considerations
D) Provision or transfer of goods, services, or ideas in return for something of value
E) Transfer of products that takes place only between for-profit organizations
30. For an exchange to occur, four conditions must exist: first, two or more individuals, groups, or organizations
must participate, and each must possess “something of value” that the other desires; second, the exchange must
provide a benefit or satisfaction to both parties; third, each must have confidence in the promise of the
“something of value” held by the other; and fourth,
A) the parties must agree to participate in the trading of “something of value.”
B) to build trust, parties to the exchange must meet expectations.
C) both parties must participate in the trading of the “something of value.”
D) one party must be willing to compromise.
E) one party must have sufficient bank credit to finance the exchange.
Ans: B AACSB Outcomes: Analytical, Reflective thinking
DF: D LO: 2 Page: 7–8 Type: KN
31. Mark goes to a vending machine, deposits $1.00, and receives a Mountain Dew. Which one of the following
aspects of the definition of marketing is illustrated here?
A) Production conception
B) Satisfaction of organizational goals
C) Distribution of ideas
D) Product planning
E) Exchange
Ans: E AACSB Outcomes: Analytical
32. Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome
for this relationship?
A) Profits for the seller
B) A good bargain on the product for the buyer
C) Reducing the seller's inventory
D) One party having to compromise in the exchange
E) Satisfaction for both the buyer and seller
DF: M LO: 2, 4 Page: 7-8 Type: KN
33. Marketing efforts are designed to
A) distribute “something of value” to buyers and sellers.
B) facilitate satisfying exchange relationships.
C) produce a product.
D) explore customer behavior.
E) promote a product.
DF: E LO: 2 Page: 7-8 Type: KN
34. Those constituents who have a "stake" in some aspect of an organization's products, operations, markets,
industry, and outcomes are known as
A) shareholders.
B) stakeholders.
C) customers.
D) target markets.
E) marketers.
35. Which of the following statements about marketing environment forces is not correct?
A) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for
products.
B) They may influence customers' reactions to a firm's marketing mix.
C) They fluctuate slowly and thereby create threats to a firm's marketing mix.
D) They can fluctuate quickly and dramatically.
E) They help determine whether and how a marketing manager can perform certain marketing activities.
Ans: C AACSB Outcomes: Analytical
DF: E LO: 2 Page: 8–9 Type: CH
36. The forces of the marketing environment include
A) political, legal and regulatory, sociocultural, technological, economic, and competitive.
B) sociocultural, legal, regulatory, economic, and competitive.
C) legal, regulatory, political, and sociocultural.
D) competitive and noncompetitive forces that affect most lifestyles.
E) fairly static components.
Ans: A AACSB Outcomes: Communication
37. A marketing manager for a small computer manufacturer is analyzing the potential effects of political, legal,
sociocultural, and economic forces on the firm's operations. The marketing manager is examining the
that influence(s) the firm's strategy.
A) operating situation
B) marketing environment
C) surroundings
D) economic conditions
E) trends
38. A change in the minimum drinking age in any given state illustrates a change in the for Miller
Brewing.
A) marketing mix
B) marketing environment
C) marketing concept
D) marketing task
E) product concept
DF: D LO: 2 Page: 8–9 Type: AP
39. StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins.
This decision indicates a response to concerns about
A) target market selection.
B) the marketing environment.
C) the reduction of marketing costs.
D) marketing mix decisions.
E) efficiency in marketing activities.
DF: E LO: 2, 6 Page: 8–9 Type: AP
40. Which of the following is essentially an uncontrollable factor in developing a marketing mix?
A) Product adaptations
B) Pricing strategies
C) Government regulations.
D) Advertising campaigns.
E) Retail locations.
Ans. C AACSB Outcomes: Analytical, Marketing plan
DF: E LO: 2 Page 8-9 Type: KN
41. The marketing environment is best described as being

A) composed of controllable variables.
B) composed of variables independent of one another.
C) an indirect influence on the performance of marketing activities.
D) dynamic and changing.
E) slow, with infrequent fluctuations.
Ans: D AACSB Outcomes: Communication, Reflective thinking
42. The marketing concept is best defined as

A) a second definition of marketing.
B) a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set
of activities that allows the organization to achieve its goals.
C) the performance of business activities that direct the flow of goods and services from producer to
customer or user.
D) a philosophy stating that an organization should attempt to accomplish its goals with no regard for the
needs of customers.
E) the inclusion of marketing activities in the activities of an organization.
Ans: B AACSB Outcomes: Analytical, Communication
43. According to the marketing concept, an organization should try to
A) consider short-run objectives and cash flow needs before developing new products.
B) define its business as “making a product.”
C) provide products that satisfy customers' needs and allow the organization to achieve its goals.
D) put most of its emphasis on marketing activities and be less concerned with finance, accounting, and
personnel.
E) view selling activities as the major means of increasing profits.
Ans: C AACSB Outcomes: Communication
44. The marketing concept focuses on
A) achieving the goals of top executives.
B) creating maximum visibility for the firm.
C) maximizing sales.
D) maximizing market share.
E) satisfying customers' needs in a way that helps to achieve organizational objectives.
45. The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs
and also
A) increase market share.
B) increase sales.
C) achieve the organization's goals.
D) produce high-quality products.
E) coordinate its activities to increase production.
46. Which one of the following statements by a company president best reflects the marketing concept?
A) We have organized our business to make certain that customers get what they want.
B) We believe that the marketing department must organize to sell what we produce.
C) We have organized in our company an aggressive sales force to promote our products.
D) We try to produce only high-quality, technically efficient products.
E) We try to encourage company growth.
Ans: A AACSB Outcomes: Analytical, Reflective thinking
47. When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following
which one of the following philosophies?
A) Selling concept
B) Production concept
C) Customer concept
D) Marketing concept
E) Retailing concept
48. The Under Armor Company wants to adopt the marketing concept as a business philosophy. To be consistent
with this decision, it should adopt which of the following philosophies?
A) The customer is always right.
B) Making money is our business.
C) Sell, sell, sell.
D) Keep prices low.
E) Focus on today.
Ans: A AACSB Outcomes: Analytical
DF: E LO: 3 Page: 10–11 Type: AP
49. The marketing concept is
A) a management philosophy.
B) synonymous with exchange.
C) a component of the marketing mix.
D) a function of the marketing environment.
E) focused solely on satisfying customer objectives.
DF: D LO: 3 Page: 10 Type: KN
50. The marketing concept is a management philosophy that affects
A) only marketing activities.
B) all efforts of the organization.
C) mainly the efforts of sales personnel.
D) mainly customer relations.
E) only business organizations.
Ans: B AACSB Outcomes: Reflective thinking
DF: D LO: 3 Page: 10 Type: CH
51. As the Industrial Revolution came to the United States, most firms operated in a(n) orientation.
A) marketing
B) societal
C) sales
D) evolutionary
E) production
52. Businesspeople who believe personal selling, advertising, and distribution are the most important marketing
activities are operating in a(n) orientation.
A) marketing
B) societal
C) sales
D) evolutionary
E) production
53. U.S. Electric, the maker of a highly innovative xenon light bulb, finds that it has excess inventory. The firm
increases its advertising budget by 50 percent and doubles its sales staff. This company is operating as if it were
in which of the following orientations?
A) Production
B) Sales
C) Marketing
D) Customer
E) Societal
DF: D LO: 3 Page: 11 Type: AP
54. American Express implements a program of calling its current cardholders to find out what changes they would
like to see in the services provided. The firm is exhibiting characteristics associated with which of the following
orientations?
A) Production
B) Sales
C) Marketing
D) Social
E) Development
55. A marketing orientation is an organization-wide effort that includes all of the following activities except
A) researching customers' needs.
B) focusing on the marketing department only.
C) generating marketing intelligence for use in the organization.
D) being responsive to customers' ever-changing wants and needs.
E) disseminating marketing intelligence across departments within the organization.
Ans: B AACSB Outcomes: Communication, Reflective thinking
56. Todd Marshall, a mid-level manager, has tried for years to get his company to adopt a marketing orientation.
Although many in the company are receptive to Todd's ideas, it is unlikely that the company will ever truly
become marketing-oriented without
A) the support of competitors.
B) changes in government regulations.
C) increases in tariffs on foreign products.
D) the support of top-level management.
E) the consent of assembly-line workers.
57. Which of the following is not an example of the implementation of the marketing concept?
A) Jimmy Dean’s Sausage introduces turkey sausage patties for a healthier alternative to port.
B) Mar’s Candy asks customers to vote online for a new color for its M&M’s candy.
C) Burger King reduces the labor costs to prepare its sausage-egg biscuits.
D) Microsoft offers rewards for users who can find flaws in its new software.
E) Volkswagen introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a
serious collision.
Ans: C AACSB Outcomes: Analytical, Reflective thinking
58. Health Care Systems, Inc. has rolled out an innovative nurse-on-call information system available on-line. The
product is not widely accepted because patients don't see the need for such a service. This situation represents a
failure in which aspect of implementing the marketing concept?
A) The customer information system
B) The organizational structure
C) Top-management commitment
D) Technological advancement
E) Scanning corporate capabilities
Ans: A AACSB Outcomes: Analytical, Technology
59. Today, establishing long-term, mutually satisfying buyer-seller relationships is known as
A) marketing synthesis.
B) relationship marketing.
C) a marketing orientation.
D) the marketing concept.
E) strategic marketing.
60. A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its
best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be
a bad idea because MegaGrain's long-term survival, like most companies, depends on
A) cost-cutting measures.
B) continually selling to new customers and markets.
C) creating and maintaining satisfying exchange relationships.
D) high-volume, low-margin sales.
E) increasing shelf space for their brands.
DF: E LO: 4 Page: 12-13 Type: AP
61. As a concept, customer relationship management (CRM) begins its focus on customers with
A) information.
B) product.
C) distribution.
D) communication.
E) price.
Ans: A AACSB Outcomes: Technology
62. Long-term relationships with customers is the key objective of
A) personal selling.
B) customer relationship management.
C) production oriented firms.
D) e-marketing.
E) distribution channels.
Ans: B AACSB Outcomes: Communication, Analytical
63. Customer relationship management focuses on using about customers to create marketing
strategies.
A) internal communication
B) information
C) purchasing power insights
D) marketing mix knowledge
E) implementation knowledge
64. is a customer's subjective assessment of benefits relative to costs in determining the worth of a
product.
A) Marketing orientation
B) Monetary price
C) Product assessment
D) Price assessment
E) Value
65. The equation a buyer applies to assess a product's value is
A) Value = monetary price – customer benefits.
B) Value = customer costs – customer benefits.
C) Value = customer benefits – customer costs.
D) Value = customer benefits – monetary price.
E) Value = customer benefits – time and effort.
66. Customer costs include anything the buyer must give up to obtain the benefits the product provides. The most
obvious customer cost is
A) risk.
B) time.
C) monetary price.
D) effort.
E) availability.
67. Which of the following would not be a customer cost considered in determination of product value?
A) Product's purchase price
B) Time spent purchasing the product
C) Effort spent purchasing the product
D) Benefits received in the exchange for the products
E) Risk of purchasing the product
Ans: D AACSB Outcomes: Reflective thinking
68. Scott, a buyer for a medium-sized company, is assessing the value of competing software products for use in his
firm. Which of the following would not be a customer benefit considered in his determination of this product's
value?
A) Speed of delivery
B) Ease of installation
C) Availability of technical support
D) Availability of training assistance
E) Monetary price
Ans: E AACSB Outcomes: Analytical, Reflective thinking
69. Taco Bell is introducing some of its products into supermarkets, vending machines, college campuses, and other
locations to increase its product availability and convenience. One reason Taco Bell is doing so is to
A) decrease customer benefits.
B) increase customer costs.
C) increase customer value.
D) increase distribution expenses.
E) decrease promotion expenses.
70. Marketing management is defined as a process of
A) maintaining an appropriate and efficient marketing mix for a target market.
B) establishing performance standards and evaluating actual performances against these standards.
C) providing products that satisfy customers' needs through a coordinated set of activities.
D) facilitating satisfying exchanges between an organization and its customers.
E) planning, organizing, implementing, and controlling marketing activities.
71. All of the following are marketing management tasks except
A) planning.
B) implementing.
C) organizing.
D) analyzing target markets.
E) controlling.
72. A systematic process of assessing opportunities and resources, determining marketing objectives, and
developing a marketing strategy and plans for implementation and control describes which of the following
marketing management activities?
A) Strategic planning
B) Marketing control
C) Implementation
D) Organizing
E) Planning
73. Developing the internal structure of a firm's marketing unit relates to which of the following marketing
management activities?
A) Marketing control
B) Implementation
C) Organizing
D) Planning
E) Managing
74. of marketing plans hinges on coordination of marketing activities, motivation of marketing
personnel, and effective communication within the marketing unit.
A) Implementation
B) Planning
C) Organizing
D) Marketing control
E) Strategic planning
Ans: A AACSB Outcomes: Communication, Analytical
75. If McDonald's runs a promotion advertising Big Macs for 99 cents, it must ensure that each of the company's
restaurants has sufficient staff and product on hand to handle expected demand. This relates to which of the
following marketing management activities?
A) Strategic planning
B) Planning
C) Organizing
D) Implementation
E) Marketing control
76. is the process of establishing performance standards, comparing actual performance with established
standards, and reducing the difference between desired and actual performance.
A) Internal control analysis
B) Marketing control
C) Market flow regulation
D) Environmental market analysis
E) External analysis
Ans: B AACSB Outcomes: Communication, Analytical
77. For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?
A) One-half
B) One-fifth
C) One-fourth
D) One-third
E) One-sixth
78. In today's market environment, you might pay $20 for a t-shirt at your local discount store. Approximately how
much of that price goes to activities related to marketing (distribution, retailer expenses, profit margins)?
A) $1.70
B) $3.75
C) $5.50
D) $10.00
E) $12.75
79. An Apple iPod has average marketing costs and sells for $299. Approximately how many of a buyer's dollars go
toward marketing costs?
A) $50
B) $90
C) $150
D) $175
E) $199
80. Marketing activities are
A) used by all sizes of organizations including for-profit, nonprofit, and government agencies.
B) limited to use by larger for-profit and nonprofit organizations.
C) implemented only to increase profits for the organization and to expand the scope of its customer base.
D) used by all types and sizes of businesses but are not used by nonprofit organizations.
E) used by small businesses and small nonprofits the most.
81. Marketing activities
A) are aimed at persuading customers through advertising.
B) involve mainly distribution and promotion decisions.
C) and selling activities are basically the same.
D) are important only when a firm is developing new products or entering new markets.
E) help sell an organization's products and generate financial resources for the firm.
Ans: E AACSB Outcomes: Communication, Analytical
82. Marketing knowledge and skills
A) are not necessary for a nonprofit organization.
B) enhance consumer awareness and help provide people with satisfying goods and services.
C) constitute the marketing mix.
D) were most important during the production era.
E) are most valuable for advertising executives but less important for wholesalers and distributors.
83. Approximately what percentage of civilian workers in the United States perform marketing activities?
A) 25 to 33 percent
B) 81 to 92 percent
C) 42 to 50 percent
D) 64 to 76 percent
E) 10 to 20 percent
Use the following to answer questions 84-88:
Greensprings Cemetery in upstate New York, offers full-service funeral and burial that is non-toxic to the
environment. All materials used in the burial are natural and will decompose with no negative impact.
Greensprings’ service is relatively new in the United States, but Services of this type are common in Great
Britain. A typical burial in Greensprings’ cemetery includes a casket made from bamboo, wicker, paper, or other
natural material. There are no headstones of granite or concrete that will detract from the landscape, but trees
and plants as “markers” are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to
about $6,000 at most traditional cemeteries. Although business was slow at first, Greensprings is now
experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners
of Greensprings were previously in the cemetery business, and are active conservationists. After conducting
research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative
to other environmentally-conscious Americans like themselves.
84. Referrals and a new website have helped Greensprings' business grow. These would come under which of the
following marketing mix variables?
A) Product
B) Price
C) Distribution
D) Promotion
E) Promotion and price
Ans: D AACSB Outcomes: Reflective thinking, Product, Price, Promotion, Distribution
85. Greenspring’s main competitive advantage over traditional cemeteries directors comes from its attention to
which element in the marketing mix?
A) Product
B) Price
C) Promotion
D) Distribution
E) Marketing research
Ans: B AACSB Outcomes: Reflective thinking, Strategy
86. Compared to Greensprings’ approach to funerals, traditional cemeteries are using the orientation.
A) marketing
B) sales
C) product
D) people
E) service
87. The owners of Greensprings Cemetery are apparently operating under which of the following orientations?
A) Sales orientation
B) Marketing orientation
C) Production orientation
D) Business orientation
E) Profit orientation
Ans: B AACSB Outcomes: Reflective thinking, Strategy
88. Greensprings’ competitors, the traditional cemeteries, focus on advertising and personal selling of their services.
This indicates a(n) orientation.
A) sales
B) marketing
C) production
D) environmental
E) marketing concept
Ans: A AACSB Outcomes: Reflective thinking, Strategy
Chapter 3 the marketing
environment .
‫االجابة في نهاية السؤال‬
1-When a manager collects information about a marketing situation, this is called:
a. environmental analysis.
b. environmental scanning.
c. consumerism.
d. green marketing.
e. none of the above.
correct: b
feedback:. It is the process of collecting information about forces in the marketing environment (page 50 .)
---------------------------------------------------------
2- The money that an individual has to spend after paying federal, state, and local taxes is called:
a. disposable income.
b. an ethical issue.
c. benchmarking.
d. discretionary income.
e. empowerment.
correct: a
feedback:. This money is the income that is used for spending or saving (page 54 .)
3-When a graduate student saves money to make a down payment on a used car, this is an example of :
a. disposable income.
b. a business cycle.
c. discretionary income.
d. social responsibility.
correct: c
feedback:. Income that is available for spending and saving after purchasing the basic necessities of food,
clothing, and shelter (page 54.)
--------------------------------------------------
4- Seeking out and purchasing gourmet cuisine while on your vacation to San Francisco is an example of your :
a. environmental scanning.
b. willingness to spend.
c. green marketing.
d. sociocultural forces.
correct: b
feedback:. An inclination to buy because of expected satisfaction that is influenced by the ability to buy
is a willingness to spend (page 54).
---------------------------------------------------------------
5- The U.S. federal agency that regulates false advertising, misleading pricing, and deceptive packaging
practices is the:
a. EPA.
b. FCC.
c. FTC.
d. DOD.
e. IRS.
correct: c
feedback:. See description of this regulatory agency (page 57.)
-----------------------------------------------------
6-When Nokia adds a feature to its cell phones so that owners can send and receive emails using their cell
phones, this is an example of the use of :
a. green marketing.
b. social responsibility.
c. a sociocultural force.
d. technology.
correct: d
feedback:. This is an example of a scientific advance (page 61).
-------------------------------------------------------
7- The great emphasis on dieting and "eating right" in the U.S. is an example of the impact of :
a. technology.
b. demographics.
c. social responsibility.
d. cause-related marketing.
e. sociocultural forces.
correct: e
feedback:. This is an influence that impacts people's attitudes, beliefs, norms,
customs, and lifestyles (page 63.)
8- The obligation that a company has to maximize its positive impact on society
and minimize its negative impact on society is called:
a. social responsibility.
b. cause-related marketing.
c. buying power.
d. consumerism.
correct: a
feedback:. Refer to the "Social Responsibility and Ethics in Marketing" section (page 65 .)
----------------------------------------------------------
9-When a company uses its resources to deal with key stakeholders' interests in order to accomplish social
benefits, this is called:
a. environmental analysis.
b. green marketing.
c. environmental scanning.
d. strategic philanthropy.
correct: d
feedback: . It is the synergistic use of organizational core competencies and resources (page 69).
----------------------------------------------------------------------------------
10- Honda's hybrid Civic automobile, which uses an electric motor to supplement its internal -combustion
engine, is an example of:
a. the business cycle.
b. cause-related marketing.
c. buying power.
d. green marketing.
correct: d
feedback: Honda is creating meaningful long-term relationships with customers while supporting and
enhancing the natural environment (page 69.)
‫االجابة في نهاية السؤال‬

To monitor changes in the marketing environment effectively, marketers must
engage in
a) environmental scanning and analysis.

b) economic scanning
c) self-regulatory analysis
d) marketing research analysis
e) information collecting
a
Collecting information from secondary sources such as business, government,

trade, and general-interest publications plays an important role in
a) environmental analysis.
b) competitive forces.
c) environmental scanning.
d) procompetitive legislation.
e) self-regulatory forces.
c
Three primary methods of collecting information for environmental scanning

are
a) marketing research, company records, and advance orders.

b) secondary sources, company records, and observation.
c) executive knowledge, media, and marketing research.
d) observation, secondary sources, and marketing research.
e) company database, executive knowledge, and research.
d
Environmental scanning means ___________ information about the marketing
environment, whereas environmental analysis is concerned with ___________
this information.
a) assessing; collecting
b) assessing; interpreting
c) collecting; assessing
d) interpreting; observing
e) gathering; observing
c
Marketers who attempt to influence and change the various environmental

forces have a(n) _____ response to these forces.
a) reactive
b) inactive
c) variable
d) positive
e) proactive
e
Marketers who view political forces as being beyond their control are taking a
___________ response toward these forces.
a) reactive
b) aggressive
c) proactive
d) competitive
e) liberal
a
The textbook suggests that the best approach a firm can take in responding to
marketing environmental forces is
a) reactive.
b) proactive.
c) inactive.
d) active.
e) variable.
e
When marketers define their target market, they establish a set of
a) technologies.
b) monopolies.
c) competitors.
d) government regulations.
e) sociocultural forces.
c
Companies that market products with similar features, benefits, and prices to
the same customer group are known as _________ competitors.
a) generic
b) product
c) brand
d) total budget
e) monopolistic
c
Which of the following would represent a brand competitor for Ford's Escape
Hybrid sport utility vehicle?
a) Honda Pilot
b) Toyota's Highlander Hybrid
c) Honda Civic Hybrid
d) Taxi ride
b
__________ competitors provide very different products that satisfy the same
basic customer need.
a) Brand
b) Generic
c) Total budget
d) Product
e) Marketing
b
___________ competitors are those that compete in the same product class,
but their products have different features, benefits, and prices.
a) Brand
b) Generic
c) Total budget
d) Product
e) price
d
Marketers primarily focus their environmental analysis on ____ competitors.
a) Brand
b) Generic
c) Total budget
d) Product
e) Monopolistic
a
In today's marketing environment, competitors can take on many forms. For

example, Diet Coke can be seen as a competitor to Wrigley's Double Mint
chewing gum. In this circumstance, these two products are described as
___________ competitors.
a) Pure
b) Generic
c) Total budget
d) Product
e) Monopolistic
c
Due to limited resources, a consumer decided to serve Hawaiian Punch to a

New Year's Eve party crowd instead of Korbel champagne. As a result of this
action, Korbel and Hawaiian Punch can be viewed as ___________
competitors.
a) Pure
b) Generic
c) Total budget
d) Product
e) Oligopolistic
b
Companies that compete for the same limited financial resources of the same
customers are known as _________ competitors.
a) Brand
b) Generic
c) Total budget
d) Product
e) Oligopolistic
c
___________ competitors are the most significant to marketers because

buyers see the different products of these firms as direct substitutes for each
other.
a) Brand
b) Generic
c) Total budget
d) Product
e) Oligopolistic
a
The four major competitive structures are
a) monopolies, oligopolies, oligopolistic monopolies, and pure competition.

b) pure competition, heavy competition, moderate competition, and light
competition.
c) brand, product, total budget, and generic.
d) oligopolies, monopolies, monopolistic competition, and pure competition.
e) monopolies, limited competition, oligopolistic competition, and pure
competition.
d
What type of competitive structure exists when a firm produces a product that
has no close substitutes?
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Pure competition
e) Mixed competition
a
The type of competitive structure that exists in the case where there are
almost no substitutes for a product is a(n)
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Pure competition
e) noncompetition
a
The American automobile industry used to be dominated by "The Big Three,"

including General Motors, Ford, and Chrysler. However, as many more foreign
competitors began influencing this market, the American companies had to
modify and differentiate their products. The automobile industry moved from
a(n) ______ structure to a(n) _______ structure.
a) monopolistic; oligopolistic
b) oligopolistic; pure competition
c) oligopolistic; monopolistic competition
d) monopolistic competition; pure competition
e) monopolistic; monopolistic competition
c
Which of the following firms would be most likely to have a monopoly for its
competitive environment?
a) TimeWarner Cable TV
b) Mitchell Trucking
c) Continental Airlines
d) Rogers Plumbing
e) Chemlawn Lawn Care
a
Most marketers operate in a competitive environment of either
a) oligopoly or monopoly.
b) oligopoly or monopolistic competition.
c) oligopoly or pure competition.
d) monopoly or pure competition.
e) pure competition or monopolistic competition.
b
When a firm has many potential competitors and tries to develop a marketing
strategy to differentiate its products from the competitors' products, a(n)
_______ structure exists in the competitive environment.
a) oligopoly
b) monopoly
c) pure competition
d) oligopolistic competition
e) monopolistic competition
e
What type of competitive structure exists when just a few sellers control a
large portion of the supply of a product?
a) oligopoly
b) monopoly
c) pure competition
d) mixed competition
a
If in an industry, none of the many sellers could influence the price of supply of
its products, this industry would be characterized as
a) oligopoly
b) monopoly
c) pure competition
c
J. Pitner Clothing is a medium-size specialty men's and women's clothing

store in a market with many other specialty stores, department stores, and
discounters. It has established a reputation for offering high-quality,
fashionable merchandise with quality service. J. Pitner's competitive
environment would best be characterized as
a) oligopoly
b) monopoly
c) pure competition
e
In general, which of the following competitive structures is an organization

least likely to operate?
a) oligopoly
b) monopoly
c) pure competition
c
The two least common competitive structures at the opposite ends of the
continuum are
a) monopolies and oligopolies.

b) pure competition and monopolies.
c) monopolistic competition and monopolies.
d) pure competition and no competition.
e) oligopolies and pure competition.
b
The best approach for a company to take when monitoring its competitors is
a) watching for increases and decreases in competitors' prices and match

them.
b) analyzing all information that is readily available about competitors.
c) sending employees to competitors' offices and factories to observe their
actions.
d) developing a system for gathering ongoing information about competitors.
e) reading important business publications such as The Wall Street Journal.
d
Which of the following attributes of a Toyota Scion would be most appropriate

to emphasize in television commercials during an economic recession?
a) Stereo system
b) Prestige
c) Durability
d) Leg room
c
Assuming that inflation is low, high buying power characterizes the _____
stage of the business cycle.
a) prosperity
b) depression
c) recovery
d) succession
e) recession
a
During which stage of the business cycle is unemployment low and total
income relatively high?
a) prosperity
b) depression
c) recovery
d) succession
e) recession
a
Total buying power declines during periods of economic
a) prosperity
b) uncertainty
c) recovery
d) expansion
e) recession
e
Although marketing theory supports the contrary, it is more probable that

marketing budgets will be cut during periods of economic
a) prosperity
b) uncertainty
c) recovery
d) expansion
e) recession
e
Consumers begin to become more price and value conscious during periods
of
a) prosperity
b) uncertainty
c) recovery
d) expansion
e) recession
e
Consumer confidence is at a low during periods of
a) recession.
b) prosperity.
c) recovery.
d) slowdown.
e) depression.
e
Consumer confidence and willingness to spend begins to increase during

periods of _____, and marketers must remain very flexible to make the
necessary adjustments.
a) recession.
b) prosperity.
c) recovery.
d) growth.
e) depression.
c
Why are marketers interested in consumers' levels of disposable income?
a) It accurately predicts future buying power.

b) It increases current buying power.
c) It is what is left after taxes and savings to buy luxuries with.
d) It is a ready source of buying power.
e) It is essential for forecasting future business trends.
d
The amount of money received through wages, rents, investments, pensions,

and subsidies is called
a) income.
b) wealth.
c) discretionary income.
d) prosperity.
e) credit.
a
Which category of income are marketers most interested in?
a) Wealth
b) Disposable income
c) Discretionary income
d) Total income
e) Extra income
b
What is the most important factor in distinguishing disposable income from

income?
a) Taxes
b) Housing
c) Employment levels
d) Consumer spending
e) Saving
d
A person's buying power is a function of
a) disposable income.
b) past income, natural resources, and financial resources.
c) wages, rents, and investments.
d) income, wealth, and credit.
e) discretionary income.
d
Discretionary income is associated with all of the following except
a) automobiles.
b) education.
C) pets.
d) furniture.
e) food.
e
Heidi decided to spend some of her saved money on tickets to a Cold Play
concert coming to town, and now she is planning on buying a new outfit for the
concert. What type of resources is Heidi making decisions about?
a) Disposable income
b) Wealth
c) Buying power
d) Discretionary income
e) Savings income
d
The accumulation of past income, natural resources, and financial resources is

known as
a) income
b) collected income
c) credit
d) wealth
e) savings
d
By offering credit and financing through its GMAC division, General Motors is
trying to help consumers
a) expand future buying power at the expense of current buying power.

b) expand disposable income at the expense of discretionary income.
c) expand current buying power at the expense of future buying power.
d) expand both disposable income and wealth.
e)decrease both disposable and discretionary income.
c
When using credit to make purchases, consumers are
a) decreasing current buying power and increasing future buying power.

b) increasing their present discretionary income to extend purchasing power.
c) putting themselves at significant risk of financial disaster.
d) forgoing the accumulation of wealth to increase current income.
e) increasing current buying power at the expense of future buying power.
e
Texas rice farmers wish to get their product into the Japanese market but are
hindered by a complex maze of regulations imposed by the Japanese
government. The farmers are most likely to attempt to influence which aspect
of the marketing environment?
a) Sociocultural
b) Technological
c) Competitive
d) Economic
e) Political
e
Which of the following is not a reason that marketers try to maintain good
relations with elected political officials?
a) Political officials can influence how much a government agency purchases

and from whom.
b) Political officials can play key roles in helping organizations secure foreign
markets.
c) Political officials well disposed toward particular firms or industries are less
likely to create or enforce laws and regulations unfavorable to these firms.
d) Political officials can accept direct corporate campaign contributions.
e) Political officials who believe that companies in a particular industry are
making honest efforts to control pollution are unlikely to create and enforce
highly restrictive pollution control laws over that industry.
d
One way for corporations to attempt to influence the political environment is

through
a) special benefits to employees.

b) direct contributions to candidates.
c) contributions to elected officials.
d) contributions to political action committees.
e) organizing political action committees.
e
Which of the following acts was enacted to prevent businesses from

restraining trade and monopolizing markets?
a) Sherman Antitrust Act

b) Clayton Act
c) Federal Trade Commission Act
d) Robinson-Patman
e) Act Wheeler-Lea Act
a
If all the gas stations in a city collaborated to determine what gas prices should
be charged, they would be violating the

b) Clayton Act
c) Federal Trade Commission Act
d) Robinson-Patman
e) Act Wheeler-Lea Act
a
Which of the following provides protection for and regulates brand names,
brand marks, trade names, and trademarks?
a) Sherman Act
b) Clayton Act
c) Robinson-Patman Act
d) Lanham Act
e) Celler-Kefauver Act
d
Procompetitive laws are those designed to
a) preserve competition.
b) protect the consumer.
c) ensure product safety.
d) reduce competition.
e) limit business lobbying of government officials.
a
International Office Supplies Wholesaler charges different prices to its various

customers without any legal justification. This company is in violation of the
a) Sherman Act
b) Clayton Act
d) Lanham Act
c
Price discrimination is prohibited by the ___________ Act.
a) Sherman Act
b) Clayton Act
d) Lanham Act
c
The 1990 Nutritional Labeling and Education Act directly prohibits
a) exaggerated claims made by health and fitness products.

b) putting the words "cholesterol-free" on any food package.
c) putting nutritional information on most food products.
d) exaggerated health claims on food packages.
e) the use of any health claim on food packaging.
d
Consumer protection legislation deals with all of the following legal concerns
except
a) consumer safety.
b) sale of hazardous products.
c) monopolistic practices.
d) information disclosure.
e) health claims on food packages.
c
Which of the following are the most frequently sentenced organizational

crimes?
a) False advertising and price discrimination

b) Price discrimination and fraud
c) Fraud and antitrust violations
d) Price fixing and antitrust violations
e) Fraud and price fixing
c
Of all the federal regulatory units, the ____________ most heavily influences
marketing activities.
a) Food and Drug Administration (FDA)

b) Federal Communications Commission (FCC)
c) Environmental Protection Agency (EPA)
d) Federal Trade Commission (FTC)
e) Federal Power Commission (FPC)
d
Which of the following agencies would most likely have jurisdiction over the
problem with lead in the paint of children's toys?
a) Consumer Product Safety Commission

b) Children's Online Protection Act
c) Food and Drug Administration
d) Environmental Protection Agency
e) National Advertising Review Board
a
The FTC can issue a cease-and-desist order, which is an injunction to
a) report to the FTC immediately.

b) stop doing whatever caused the complaint.
c) appear before the courts.
d) pay for damages caused by negligence of the firm.
e) close down the firm until further notice.
b
Which of the following agencies regulates marketing activities the most?
a) Food and Drug Administration

b) Federal Communications Commission
c) Environmental Protection Agency
d) Federal Trade Commission
e) Federal Power Commission
d
In its advertisements for Bud Light beer, Anheuser-Busch has decided to

include a statement saying "Know when to say when." This is an example of
which one of the following types of regulatory forces affecting marketing
efforts?
a) Federal regulation
b) State regulation
c) City regulation
d) Self-regulation
e) Social regulation
d
The Pharmaceutical Research and Manufacturers of America sets guidelines

for its member firms to follow regarding the use of unethical practices. Thus, it
is engaging in
a) legislation.
b) lobbying.
c) self-regulation.
d) environmental scanning.
e) trade restraint.
c
Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his
yard. The firm plants mostly dead plants but refuses to return Jared's money
or replace the dead items. Jared's best course of action would be to contact
the
a) police.
b) Federal Trade Commission.
c) Sherman Commission.
d) Better Business Bureau.
e) federal district court.
d
The Better Business Bureau is probably the best-known
a) nongovernmental regulatory group.

b) state-operated enforcement agency.
c) national evaluator of advertisements.
d) federal regulatory group.
e) self-regulatory unit operating at the national level.
a
Which of the following statements about self-regulatory programs is false?
a) Self-regulatory programs are usually less expensive than governmental
regulatory programs.
b) Self-regulatory programs' guidelines generally are more realistic and
operational.
c) Nongovernmental self-regulatory programs have neither the tools nor the
authority to enforce guidelines.
d) Self-regulatory guidelines generally are stricter than governmental
regulatory programs.
e) When a trade association sets up industry guidelines, some firms that are in
the industry but not in the trade association do not follow the guidelines.
d
What national self-regulatory organization screens ads?
a) Federal Advertising Review Division

b) National Advertising Review Board
c) Federal Communications Commission
d) Consumer Federation of America
b
Technology is
a) the application of scientific knowledge to build products that customers

desire.
b) the application of knowledge and tools to solve problems and perform tasks
more efficiently.
c) applied sciences.
d) one of the weakest marketing environment forces.
e) the result of research performed primarily by universities.
b
The rapid adoption of the use of the Internet has resulted in rapid changes
such as the increase of distance learning, changing social networks, and
concerns such as copyright and privacy issues that the government is focusing
on. These effects of technology are collectively known as
a) reach.
b) the self-sustaining nature.
c) growth.
d) technological advancement.
e) dynamics.
e
Technology assessment is
a) measuring how much technology has been incorporated into an

organization.
b) trying to foresee the effects of new products and processes on the firm's
operation and on society in general.
c) assessing how much technology one wants to incorporate into a company
in the future.
d) judging how a firm's products affect society.
e) weighing the cost of new technology to determine whether a firm can afford
to use it.
b
When Cisco Systems attempts to anticipate the effect of new products and
processes on its own innovations, other business organizations, and society in
general, the firm is engaging in
a) product differentiation.
b) monopolistic competition.
c) technology assessment.
d) distinctive promotional methods.
e) innovative marketing.
c
Many health care companies are making adaptations to meet the needs of an
aging population as the demand for medical services and products such as
diabetes supplies increases. This change in marketing strategy is best
explained by a change in
a) demographics.
b) cultural values.
c) income levels.
d) consumerism.
e) subcultures.
a
Organizations that provide smoke-free environments or low-fat products are
responding to changes in
a) technology.
b) the legal environment.
c) demographics.
d) cultural values.
e) political forces.
d
Consumerism is a
a) diverse group of individuals and organizations opposed to foreign producers

that sell products in the United States that are much cheaper than those
produced by U.S. manufacturers.
b) social movement that is trying to encourage consumer satisfaction.
c) social movement that is reorganizing the Council of Better Business
Bureaus.
d) diverse group of individuals and organizations attempting to protect the
rights of consumers.
e) social movement that provides consumers with means for expressing
satisfaction and expressing their gratitude to producers.
d
‫ ق سم لا تس و يق‬/ ‫ اب ر اه ي م لا س لما ن‬-- Team.help-out.net – Fb.com/Ibraheem.ys
Chapter 5: Target market :

1- When you go to the supermarket and purchase a market basket of goods for your personal use or to be
consumed by members of your household, you are acting as a member of:
a. a Delphi market.
b. a business market.
c. a homogeneous market.
d. a trend market.
e. the consumer market.
correct: e
feedback:. You are part of a group of purchasers and household members who intend to consume or benefit
from the purchased products at the supermarket (page 103).
----------------------------------------------------------------------------------------------------------------------------------
2- When a University purchases desks from a furniture wholesaler, it is acting as part of:
a. the business market.
b. a cycle market.
c. a time series market.
d. the consumer market.
correct: a
feedback: . The University is a group/organization that purchases the furniture for use in its daily operations and for
all its members (page 103
.----------------------------------------------------------------------------------------------------------------------------- -----
3- Age is an example of what type of variable in market segmentation?

a. Psychographic
b. Demographic
c. Behavioristic
d. Benefit
correct: b
feedback:. Marketers rely on these characteristics because they are often closely linked to customers' needs and
purchasing behavior and can be readily measured (page 108).
----------------------------------------------------------------------------------------------------------------------------- -----
4- The number of potential customers within a square mile of a company is an example of:
a. geodemographic segmentation.
b. micromarketing.
c. market forecast.
d. market density.
correct: d
feedback:. The example refers the number of potential customers within a unit of land area (page 113).
----------------------------------------------------------------------------------------------------------------------------- -----
5- Which type of variable segments a market according to personality traits?
a. Psychographic
b. Demographic
c. Geographic
d. Behavioral
correct: a
feedback:. This type of variable can be used by itself to segment a market or can be combined with other types of
segmentation variables (page 114).
----------------------------------------------------------------------------------------------------------------------------- -----
6- Rate of use (heavy user, medium user, light user) is an example of what type of variable in market
segmentation?
a. Geographical
b. Demographic
c. Behavioristic
d. Psychographic
correct: c
feedback:. It refers to firms dividing a market according to some feature of consumer behavior toward a
product, commonly involving some aspect of product use (page 115-116).
----------------------------------------------------------------------------------------------------------------------------- -----
7- If Crest segments the market for toothpaste into cavity protection, whiter teeth, and breath freshener, this is
an example of what type of market segmentation?
a. Psychographic
b. Geographic
c. Demographic
d. Benefit
e. Behavioristic
correct: d
. feedback Crest is dividing its market according to benefits that consumers want from its
toothpaste (page 116)
.----------------------------------------------------------------------------------------------------------------------------- -----
8- When IBM divides the business market for its large computers into segments based on the annual sales
dollars of companies in the past year, this is an example of what type of segmentation variable?
a. Geographic location
b. Product use
c. Customer size
d. Type of organization
correct: c
feedback:. IBM is dividing its customers by how much they buy (page 117).
----------------------------------------------------------------------------------------------------------------------------- -----
9- In order to estimate the number of laptop computers that Dell Computer Co. expects to sell in the next three
years, Dell is first trying to estimate the ________ for the entire laptop computer industry.
a. executive judgment
b. sales forecast
c. trend analysis
d. market potential
correct: d
feedback:. Dell is trying to first estimate the total amount of the product for all firms in the industry that
customers will purchase within a specified period (page 118).
----------------------------------------------------------------------------------------------------------------------------------
10- When a market researcher attempts to track statistically how a set of independent variables are related to a
dependent variable, he or she is typically using:
a. the Delphi technique.
b. an experiment.
c. seasonal analysis.
d. a market test.
e. regression anaylsis.
correct: e
feedback:. He or she is seeking to find a relationship between the dependent variable and one or more
independent variables (page 121).
‫االجابة الصحيحة في نهاية السؤال‬

Any group of people who, as individuals or as organizations, have needs for
products in a product class and who have the ability, willingness, and authority
to buy such products is a(n)
a) business market.
b) market.
c) undifferentiated market
d) segmented market
e) market variable
b) market.
Which of the following is not a characteristic of a consumer market?

a) it consists of purchasers who intend to consume or benefit from the
purchased products
b) they do not buy products for the main purpose of making a profit
c) they are sometimes referred to as B2C markets
d) their purchasing decisions are always made by only one individual
e) each of us belongs to numerous markets of this type
Which of these statements is not true about business markets?

a) the purchase may be made to resell the item
b) the purchase is always made by more than one individual
c) the purchase may be made to use in general daily operations
d) the purchase may be made to use in production of another product
e) they can also be referred to as organizational markets
Which of the following is not a requirement or characteristic of a market?

a) The ability to purchase a product
b) A large number of people or organizations
c) The authority to buy a product
d) The willingness to use buying power
e) The need for a specific product in a specific product category
In order to be considered a market, people do not have to have

a) a need or desire for a particular product.
b) the ability to purchase the product.
c) discretionary income to purchase the product.
d) the willingness to use their buying power.
e) the authority to buy the specific products.
Consumers that do not own dogs are not likely to be in the market for dog food
because
a) they lack the authority to purchase the dog food.
b) they do not possess the buying power for purchasing dog food.
c) their ability to purchase the dog food is questionable.
d) they do not have the need or desire for dog food.
e) they are willing to use their buying power.
The ability to purchase a product is a function of

a) buying power.
b) desire.
c) willingness.
d) authority.
e) needs.
a) buying power.
Adolescents are not considered part of the market for casinos because they
a) have very little buying power.
b) do not have the desire to gamble.
c) are not willing to spend their money on gambling.
d) cannot afford to gamble their savings.
e) do not have the authority to gamble.
Generally speaking, individuals who are unemployed would not be considered

a target market for Mercedes or other luxury European import sedans because
a) they would not desire such products.
b) they would not be willing to purchase such products.
c) they would not have the ability to purchase such products.
d) such markets are narrowly defined geographically.
e) they are not authorized to purchase such products.
Sixteen-year-old high school students do not form a market for alcoholic

beverages because they
a) lack sufficient buying power to form a market.
b) lack the authority to purchase this type of product.
c) do not want to purchase this type of product.
d) do not have sufficient experience with this type of product.
e) lack the money to purchase this type of product.
When marketing research shows that a group of people does not desire a
particular product, the people in that group
a) are a market.
b) do not have the ability to purchase the product.
c) do not have the authority to purchase the product.
d) are not a market for the product.
e) are a market but will not purchase the product.
The first step in the target market selection process is

a) determining which segmentation variables to use.
b) selecting specific target markets.
c) identifying an appropriate targeting strategy.
d) evaluating relevant market segments.
e) developing market segment profiles.
To find a target market, a firm can use the

a) total market strategy and the undifferentiated strategy.
b) product differentiation strategy and the customer differentiation strategy.
c) demographic strategy and the psychographic strategy.
d) socioeconomic strategy and the psychological strategy.
e) undifferentiated strategy, the concentrated strategy, and the differentiated
strategy.
e) undifferentiated strategy, the concentrated strategy, and the differentiated
strategy.
Pillsbury defines all purchasers of flour as its target market. What targeting
strategy would be most appropriate in this case?
a) Concentrated
b) Differentiated
c) Wide appeal
d) Undifferentiated
e) Clustered
d) Undifferentiated
When a firm designs a single marketing mix and directs it at an entire market
for a particular product, the company is using a(n) _________ strategy.
a) concentrated targeting
b) differentiated
c) heterogeneous market
d) undifferentiated
e) single mix
d) undifferentiated
Why would a company use the undifferentiated strategy?

a) The needs of individual consumers are dissimilar, and distinctive marketing
mixes are required to satisfy them.
b) The undifferentiated strategy is the one strategy that provides maximum
satisfaction to the whole market.
c) The needs of individual consumers in the target market for a specific
product are similar, so the organization can satisfy most customers with a
single marketing mix.
d) The undifferentiated strategy is expensive to implement but tends to
produce the most sales.
e) The undifferentiated strategy requires less time and fewer resources
c) The needs of individual consumers in the target market for a specific product
are similar, so the organization can satisfy most customers with a single
marketing mix.
When the needs of individual consumers in a target market for a specific

product are similar and the organization can satisfy most customers with a
single marketing mix, the best approach to use may be the ___________
strategy.
a) undifferentiated
b) differentiated
c) segmented
d) concentrated
e) heterogeneous
a) undifferentiated
Which of the following statements about the undifferentiated targeting strategy

is false?
a) The undifferentiated targeting strategy should be used when the needs of
individual customers are similar.
b) The undifferentiated targeting strategy uses one promotional program
aimed at everyone in the target market.
c) The undifferentiated targeting strategy is good for use with staple items,
such as sugar and salt.
d) The undifferentiated targeting strategy uses multiple distribution systems to
best reach individuals in the target market.
e) The opposite of the undifferentiated targeting strategy is the differentiated
targeting strategy.
d) The undifferentiated targeting strategy uses multiple distribution systems to
best reach individuals in the target market.
The ProMark Company manufactures and sells only one type of ballpoint pen
at just one price. All its advertising is the same and is directed at the mass
market. What type of targeting strategy is the ProMark Company using?
a) Extensive
b) Undifferentiated
c) Concentrated
d) Intensive
e) Differentiated
b) Undifferentiated
Marketers for C & H Sugar believe that consumers have similar needs for the
product. C & H will most likely use a(n) ___________ approach in defining a
target market.
a) undifferentiated
b) differentiated
c) product strategy
d) cost-benefit
e) demographic
a) undifferentiated
If Morton Salt saw all table salt customers as pretty much alike and thus
offered only one marketing mix, it would be using the ___________ strategy.
a) directed
b) undifferentiated
c) segmented
d) differentiated
e) product-use
b) undifferentiated
A market in which a large proportion of customers have similar needs for a

product is called a(n) _____ market.
a) undifferentiated
b) heterogeneous
c) homogenous
d) differentiated
e) concentrated
a) undifferentiated
The undifferentiated targeting strategy for finding a target market will likely not
be successful if
a) product positioning is needed.
b) the firm defines the total market as its target market.
c) people within the market have heterogeneous needs.
d) people within the market have homogeneous needs.
e) the firm is capable of developing a single marketing mix that satisfies all
people's needs.
Most markets for products are made up of individuals or groups with diverse
needs for products and are called ________ markets.
a) undifferentiated
b) concentrated
c) homogenous
d) differentiated
e) heterogeneous
e) heterogeneous
Toyota has learned that some people want sports cars, while others want
vans, trucks, sedans, and economy cars. In this instance, Toyota has found its
markets to be
a) heterogeneous.
b) undifferentiated.
c) concentrated.
d) homogeneous.
e) focused.
a) heterogeneous.
Individuals, groups, or organizations with one or more similar characteristics

that cause them to have similar product needs are classified as
a) market segments.
b) heterogeneous markets.
c) concentrated markets.
d) demographic segments.
e) strategic segments.
a) market segments.
Mattel views the toy market as composed of four age groupings, each with
different needs and desires. Each of these groups are known as
a) an undifferentiated market.
b) heterogeneous.
c) a market segment.
d) a marketing mix.
e) a concentrated market.
The purpose of market segmentation is to

a) differentiate products.
b) divide a total market to enable a marketer to develop a more precise
marketing mix.
c) reduce the overall cost of marketing activities.
d) identify a single marketing mix that will be satisfactory for the general
market.
e) meet the needs of homogeneous markets.
b) divide a total market to enable a marketer to develop a more precise marketing
mix.
The process of dividing a total market into market groups because people
within each group have relatively similar product needs is called
a) segmentation.
b) diversification.
c) target marketing.
d) concentration.
e) customization.
a) segmentation.
Several conditions must exist for market segmentation to be successful. These

conditions include all of the following except
a) the total market should be divided so that segments can be compared on
sales potential, costs, and profits.
b) customers' needs for the product must be homogeneous.
c) the company must be able to reach the chosen segment with a particular
marketing mix.
d) segments must be identifiable and divisible.
e) at least one segment must have enough profit potential to justify developing
and maintaining a special marketing mix for that segment.
A business advantage of the concentrated targeting strategy for any company

is that it
a) requires less market research and information.
b) requires less intensive analysis of customers' characteristics and needs.
c) allows a firm to utilize all of its production capacity.
d) maintains the firm's flexibility in moving into other market segments.
e) allows a firm to develop a special marketing mix for a single market
segment.
e) allows a firm to develop a special marketing mix for a single market segment.
A targeting strategy in which an organization targets a single market segment

using one marketing mix is called a(n) _____ strategy.
a) selective
b) focused
c) differentiated
d) concentrated
e) undifferentiated
d) concentrated
When markets are comprised of people with differing product needs, the
marketing manager should use a(n) ___________ strategy.
a) concentrated or differentiated targeting
b) market-intensive
c) integrated
d) product-oriented
e) undifferentiated
A disadvantage of the concentrated targeting strategy is that

a) the firm's financial condition is tied to a single and specialized marketing
mix.
b) large sales volumes cannot be generated.
c) production costs may be higher than with other strategies.
d) marketing personnel may become dissatisfied with the limited opportunities
provided by this approach.
e) marketing costs are often higher than for other strategies.
the firm's financial condition is tied to a single and specialized marketing mix.
If Jaguar focused all its marketing efforts for the new Jaguar XKR on
professionals earning more than $250,000, it would be using a(n)
___________ strategy.
a) homogeneous
b) undifferentiated
c) multisegmented
d) concentrated
e) stratified
d) concentrated
Tiffany's markets its exclusive jewelry and gifts to high-income individuals

interested in high-quality products and a well-known brand name. It uses the
same marketing mix to reach this market. Tiffany's uses a(n) ______ strategy.
a) undifferentiated
b) differentiated targeting
c) exclusive targeting
d) heterogeneous
e) concentrated targeting
Interior Designs Inc. sells expensive custom-made draperies, bedding, and

accessories using a single marketing mix and is therefore most likely using
a(n) _____ targeting strategy.
a) concentrated
b) differentiated
c) exclusive
d) focused
e) undifferentiated
a) concentrated
The primary advantage of a concentrated targeting strategy is

a) it meets the needs of a wide range of consumers.
b) it allows a firm to specialize to meet specific customer needs.
c) it is more flexible than any other approach.
d) it is the least risky targeting approach.
e) its customers are the most willing to repurchase the same brands.
Procter & Gamble markets Cheer detergent to young singles and couples and
Tide detergent to families. Procter & Gamble is using a(n) ___________
targeting strategy for laundry detergents.
a) multiuse
b) differentiated
c) stratified
d) undifferentiated
e) concentrated
b) differentiated
. Volkswagen markets its Routan to large families, its R32 racecar to men, and
its Jetta to young singles. What targeting approach is Volkswagen using?
a) Concentrated
b) Strategic
c) Differentiated
d) Undifferentiated
e) Multisegmented
c) Differentiated
A targeting strategy in which an organization directs its marketing efforts at

several segments is called a(n) ___________ targeting strategy.
a) differentiated
b) total market
c) concentrated
d) undifferentiated
e) integrated
a) differentiated
Which of the following products is most likely to be marketed, using an
undifferentiated approach?
a) bicycle
b) computer
c) notebook
d) seasoning salt
e) oscillating fan
d) seasoning salt
After a firm has identified an appropriate targeting strategy, the next step in the
target market selection process is
a) determining the demographic variables of the target market.
b) developing market segment profiles.
c) determining which segmentation variables to use.
d) selecting specific target markets.
e) evaluating relevant market segments.
Characteristics of individuals, groups, or organizations that are used for

dividing a total market into smaller homogeneous groups are called
___________ variables.
a) marketing
b) classification
c) segmentation
d) stratification
e) dividing
c) segmentation
Age, rate of product use, location, and gender are all examples of common
a) demographic variables.
b) geographic characteristics.
c) targeting strategies.
d) psychographic variables.
e) segmentation variables.
Segmentation variables are usually grouped into four categories:

a) demographic, geographic, religion, and income.
b) geopolitical, income, behavioristic, and psychographic.
c) attitudes, lifestyles, behaviors, and gender.
d) geographic, demographic, psychographic, and attitudes.
e) demographic, geographic, psychographic, and behavioristic.
Which of the following is not one of the major categories of consumer market
segmentation variables?
a) Demographic characteristics
b) Geographic variables
c) Psychographic dimensions
d) Situational variables
e) Behavioristic characteristics
Alpine Ski Shops U.S, is looking for new markets. Since their market is based
mainly on access to snow, they would most likely use which base for
segmentation?
a) behavioristic
b) demographic
c) psychographic
d) environmental
e) geographic
e) geographic
McDonald's uses a segmentation strategy for its sandwiches based on market

characteristics such as age, gender, or income. Which of the following
segmentation variables is McDonald's using?
a) Demographic
b) Geographic
c) Psychographic
d) Product-related
e) Education
a) Demographic
With its Venus razor, Gillette was the first marketer to offer a triple blade razor
specifically designed for women. This is an example of market segmentation
using ___________ variables.
a) demographic
b) psychographic
c) geographic
d) family life cycle
e) product use
a) demographic
Kelly's Kids is a home-based business that sells high-quality children's clothing

at premium prices using in-home parties. These in-home parties typically cater
to families with small children and middle- to upper-middle-class income.
Kelly's Kids is using _____ variables to segment its market.
a) demographic
b) psychographic
c) sociographic
d) behavioristic
e) geographic
a) demographic
Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all

products whose marketers have used segmentation based on
a) age.
b) education.
c) product use.
d) gender.
e) income.
d) gender.
A marketer that targets customers based on marital status and the presence
and age of children is using
a) behavioristic segmentation.
b) lifestyle variables.
c) psychographic variables.
d) family life cycle.
e) phase of life segmentation.
Which of the following products is most likely to have its market segment
based on age?
a) Bass shoes
b) Lipton Iced Tea
c) Bic pens
d) Legos
e) Carpet
d) Legos
If Campbell were to offer single serving "Soup for One" packages to small
household markets, it would be using segmentation based on
a) income.
b) ethnicity.
c) taste.
d) geographic considerations.
e) family life cycle.
Which of the following products is least likely to be segmented according to

stages in the family life cycle?
a) Single-family homes
b) Ford automobiles
c) European vacations
d) Diet Coke
e) General Electric appliances
d) Diet Coke
Family life cycle is most typically based on

a) income.
b) geographic location.
c) marital status and age of children.
d) occupation.
e) buying power.
Population density and city size are _______ variables used for market
segmentation.
a) geographic
b) demographic
c) psychographic
d) environmental
e) geodemographic
a) geographic
Zerex markets its radiator liquid as a coolant in the South and an antifreeze in
the North. Which of the following segmentation variables is Zerex using?
a) Demographic
b) Psychographic
c) Life cycle
d) Geographic
e) Product use
d) Geographic
Many marketers are concerned about the number of potential customers within
a certain area of land because of the different requirements to serve dissimilar
areas. What is this segmentation variable called?
a) Micromarketing
b) Population
c) Market density
d) MSA
e) PMSA
c) Market density
Subaru is producing a new crossover van with all-wheel drive. Which of the
following would be a likely variable for segmenting the market for this new
model?
a) Religion
b) Geographic location
c) Income
d) Political views
e) Ethnicity
Systems such as PRIZM and Acorn provide companies with lifestyle and
demographic information about neighborhoods throughout the United States.
This information is used to aid
b) geodemographic segmentation.
c) market density analysis.
d) demographic segmentation.
e) geographic segmentation.
Justin Franklin's company is interested in locating areas where the average

income is high, the average age range is 25-35 years, and the lifestyles of the
people involve extreme adventures and dangerous leisure activities. His
company would most likely find possible markets through
a) U.S. Census Bureau information.
b) geographic segmentation variables.
c) geodemographic segmentation.
d) climate information.
e) psychographic segmentation.
Micromarketing is
a) a market segmentation approach in which firms focus precise marketing
efforts on very small geographic markets.
b) developing a very specific marketing mix that will effectively meet the needs
of only a small segment of the market.
c) marketing efforts that are tightly controlled by high-level executives in the
organization.
d) a way to segment the market to meet the needs of individuals with the same
motives and personality attributes.
e) creating advertising that is so specific to a certain type of individual that few
people outside that micromarket will respond to the message.
a) a market segmentation approach in which firms focus precise marketing efforts
on very small geographic markets
Retail-site location analyses, unique product offerings, and special advertising

campaigns are all examples of the use of
a) market density.
b) demographic segmentation.
c) behavioristic segmentation.
d) environmental segmentation.
e) micromarketing.
e) micromarketing.
Which of the following is the biggest drawback to using psychographic

variables?
a) They are not strongly reflective of consumer behavior.
b) They are difficult to measure.
c) They give poor information about consumer needs.
d) They do not reflect socioeconomic characteristics of consumers.
e) The resulting segments are difficult to be reached.
The three most commonly used psychographic segmentation variables are

a) personality, perception, and learning.
b) personality, perception, and behavior.
c) motives, attitudes, and lifestyles.
d) attitudes, personality, and perception.
e) personality, motives, and lifestyles.
When research indicated that Bluetooth's products were not reaching the
correct target market, marketers of Bluetooth decided to change from
demographic segmentation to psychographic segmentation. Which group of
new segmentation variables will Bluetooth now be using?
a) Geographic location of customers
b) Age, sex, and socioeconomic characteristics
c) Social class variables
d) Personality characteristics, motives, and lifestyles
e) Family life cycle, social class, and religion
When using personality characteristics as a market segmentation variable,

marketers generally
a) conduct personality assessments of their potential target market to
determine which personality characteristics they possess.
b) use research developed by clinical psychologists to determine which
personality characteristics consumers using their products are most likely to
have.
c) use generic characteristics that all members of the population have.
d) use a positively viewed characteristic they assume much of their target
market has or would like to have.
e) conduct a series of focus groups to determine both the positive and
negative characteristics members of their target market are perceived to have.
d) use a positively viewed characteristic they assume much of their target market
has or would like to have.
The psychographic variable that includes numerous characteristics related to

people's activities, interests, and opinion is
a) motive.
b) social class.
c) personality.
d) stage in family life cycle.
e) lifestyle.
e) lifestyle.
If a company segments its market on the basis of their reasons for purchasing
a particular product, the primary segmentation variable in use is
a) lifestyle.
b) motives.
c) personality.
d) benefit expectations.
e) personality attributes.
b) motives.
Demographic variables such as income and occupation, as well as how people

spend their time and the importance of things in their surroundings, are all
factors considered in ______ segmentation.
a) psychographic
b) social class
c) lifestyle
d) personality
e) family life cycle
c) lifestyle
A widely used system for classifying individuals on the basis of lifestyle is

a) VALS.
b) PRIZM.
c) CMSA.
d) LIFO.
e) Prospect Zone.
a) VALS.
Which of the following is an example of a behavioristic segmentation variable?

a) Family size
b) Climate
c) Age
d) Usage rate
e) Personality characteristics
d) Usage rate
Budweiser may choose to segment its market based on heavy, moderate, and
light drinkers of its alcoholic beverages. This is an example of market
segmentation based on
a) behavioristic variables.
b) benefits.
c) lifestyles.
e) demographic variables.
End use, price sensitivity, and brand loyalty are all _____ variables that can be
used in market segmentation.
a) psychographic
b) usage
c) demographic
d) geodemographic
e) behavioristic
e) behavioristic
Alli segments its diet pills based on those who have morning cravings, those
who tend to overeat near the end of the day, those who need all day long
appetite suppression, and those who want appetite control and more energy.
This is an example of market segmentation based on variables of
a) demographics.
b) lifestyles.
c) psychographics.
d) behavior.
e) personality characteristics.
d) behavior.
The division of a market according to what benefits consumers want from the
product is called ______ segmentation.
a) behavioristic
b) product usage
c) benefit
d) end-purpose
e) advantage
c) benefit
Variables such as geographic location, type of organization, customer size,

and type of product usage are used to segment ___________ markets.
a) consumer
b) business
c) government
d) international
e) most target
b) business
Dell segments its business markets into small business, corporate,

government agencies, K-12 schools, and higher education institutions. The
primary segmentation variable used in this example is
a) geographic location.
b) type of organization.
c) secondary product use.
d) customer size.
e) market potential.
Which of the following variables would most likely be used to segment a

business market?
a) An attitude of the company's CEO
b) The geographic location of the company
c) The lifestyle of the company's buying agent
d) Net income generated by the company
e) Common opinions of the company's employees
Through marketing newsprint to newspaper publishers and glass

manufacturers that use it in packing, International Paper segments its market
based on
a) customer size.
b) psychographics.
c) demographics.
d) use of product.
e) geographic location.
d) use of product.
Bethlehem Steel provides steel for a variety of uses to its various customers.
Customers have different needs for the steel and thus Bethlehem has to
prepare the raw steel differently depending on how customers will use it in
their production processes. The primary business segmentation variable in this
example is
b) customer size.
c) product use.
d) customer importance.
e) organization classification.
c) product use.
After an organization has determined which of the many segmentation

variables it will use, the next step in the target market selection process is
a) evaluating each of the relevant market segments.
b) selecting the specific target markets.
c) reviewing the appropriate marketing strategy.
d) analyzing the interaction between segmentation variables.
__________ describe the similarities among potential customers within a

market segment and explain the differences among people in different market
segments.
a) Market segmentation variables
b) Market segment profiles
c) Segmentation grids
d) Market differentiation indexes
e) Market concentrations
Yvonne and Garret are looking at information about how their organization's
products could fit potential customers' needs. This information deals with
demographic characteristics, product benefits sought, lifestyles, geographic
factors, brand preferences, and usage rates. They are most likely looking at
a) the sales force survey results.
b) the results of sales forecasting.
c) a market trend analysis.
d) a market segmentation discrimination analysis.
e) a market segment profile.
The total volume of a product, for all firms in an industry, that would be
purchased by specific customer groups within a specified time period at a
given level of industry-wide marketing activity, is the
a) competitor sales potential.
b) sales objective.
c) forecasted sales.
d) company sales potential.
The maximum percentage of market potential that an individual firm can

expect to obtain for a specific product is the
a) sales forecast.
b) market potential.
c) company sales potential.
d) company sales objective.
e) market share goal.
General Electric calculates that the total number of light bulbs sold to
consumers in the next year by all light bulb producers is 1 billion, given
anticipated marketing efforts by the firms involved. This figure represents the
industry's
a) sales potential.
c) target growth rate.
d) sales forecast.
e) sales objective.
If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream

cones sold in the United States, this percentage would represent the ice cream
marketer's
a) target growth rate.
b) sales forecast.
c) sales objective.
Using the breakdown approach to sales potential, estimates are made

a) by referring to specific geographic factors.
b) by establishing levels of marketing effort that will be required to achieve
specific levels of sales.
c) without reference to industry marketing efforts.
d) without reference to general economic conditions.
e) by starting with general economic conditions.
The manager at a local recreational vehicle store, Off-Road Rage, believes the
next two years will be difficult because of an economic recession. Using this
forecast, he determines the effect on the industry's market potential and then
estimates how his company's potential sales will look based on this outlook.
This manager is using a _________ approach to estimating sales potential.
a) breakdown
b) recessionary
c) buildup
d) pyramid
e) dimensional
a) breakdown
Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder,

to find out how much fiberglass insulation he intends to use in building homes
during the next year. Albert then multiplies that number by the total number of
builders in the territory. He is using a ___________ approach to measure
sales potential.
a) multivariable
b) use of product
c) breakdown
d) regression
e) buildup
e) buildup
The buildup approach measure of sales potential

a) starts with broad estimates of general economic activity.
b) ends with an estimate of a single firm's sales of a specific product.
c) starts with forecasts about demand for a specific product within a relatively
small area.
d) does not use sales estimates.
e) is seldom employed by industrial firms.
c) starts with forecasts about demand for a specific product within a relatively
small area.
When evaluating market segments, assessment of competitors is important

because
a) it is difficult to segment a market when it has multiple competitors.
b) an absence of competitors usually creates difficulties in accurately
measuring segment sales potential.
c) sales estimates may cause a segment to appear to be lucrative, but there
may be several competitors that together have a large share of that segment.
d) a competitive analysis may lead to confusion as to who are the key
competitors.
e) competition is generally not a major problem as long as a marketer is aware
of it.
c) sales estimates may cause a segment to appear to be lucrative, but there may
be several competitors that together have a large share of that segment.
Estimating the cost of entering a market and focusing on a specific target

segment is important because
a) cost estimates are crucial to estimating sales potential accurately.
b) higher costs will keep other potential competitors from entering that
particular segment.
c) customers are more likely to be attracted to marketers that invest heavily in
the target segment.
d) the organization's marketers need to know if they can reach the segment at
costs equal to or below competitors' costs.
e) higher cost generally ensures long-term success.
d) the organization's marketers need to know if they can reach the segment at
costs equal to or below competitors' costs.
The final step in the target market selection process is

a) implementing the appropriate marketing mix for the target market.
b) evaluating relative market segments.
c) eliminating market segments that are cost prohibitive.
e) revising the final segmentation variables based on target selection.
Frito-Lay Snack Foods is currently conducting market segmentation studies.

For several segments, they have completed competitive assessments and
cost estimates. The next major step they must take is to
a) determine which segmentation variables to use.
b) develop market segment profiles.
c) identify the appropriate targeting strategy.
d) select specific target markets.
e) develop sales forecasts.
When a marketer is engaged in the target market selection process and has
assessed relevant market segments by considering such factors as sales
estimates, competition, and estimated costs, the marketer is ready for the next
step, which is to
a) identify the appropriate targeting strategy.
b) determine which segmentation variables to use.
c) develop market segment profiles.
d) evaluate relevant market segments.
e) select specific target markets.
When selecting specific target markets, a firm should

a) revert to an undifferentiated approach if the market is deemed
heterogeneous.
b) choose the segments most in line with the firm's objectives and long-term
growth.
c) choose all segments that are determined to be profitable for the
organization.
d) choose the minimum number of segments necessary to achieve company
sales potential.
e) pick the segments with the best sales forecasts for the upcoming period of
time.
b) choose the segments most in line with the firm's objectives and long-term
growth.
. Evaluating and making product positioning decisions is important for

a) new products only.
b) existing products only.
c) new and existing products.
d) product deletions only.
e) new products and product deletions.
Product positioning refers to

a) the area in retail stores in which the manufacturer strives to position its
products.
b) product price but not to product image.
c) product image but not to product price.
d) the decisions and activities intended to create and maintain a certain
concept of the firm's product in customers' minds.
e) the length of time a product has survived in the market.
d) the decisions and activities intended to create and maintain a certain concept
of the firm's product in customers' minds.
All of the following statements about product positioning are true except
a) product positioning decisions are not only for new products.
b) product positioning is the customer's absolute perception of a product's
attributes.
c) effective product positioning helps serve a specific market segment by
creating an appropriate concept in the minds of customers in that market
segment.
d) product positioning is concerned with creating and maintaining a certain
concept of the firm's product in customers' minds.
e) when marketers position a product, they try to position it so that it seems to
possess the characteristics the target market desires.
b) product positioning is the customer's absolute perception of a product's
attributes.
Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in
the mind of the consumer. Marketers question a sample of consumers about
Sierra Mist and other drinks on two different dimensions. They will most likely
put this information into a _____ to show Sierra Mist's position.
a) perceptual map
b) ideal cluster
c) product position chart
d) market graph
e) product matrix
a) perceptual map
If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other
firm's cola, this is referred to as ___________ positioning.
a) direct
b) focused
c) head-to-head
d) avoidance
e) parallel
c) head-to-head
Positioning a product to avoid competition may be best when the
a) competing products are priced higher than or at least equal to the new
product.
b) company has an established reputation with the consumers of that
particular market.
c) market is characterized by consumers who are not sensitive to price or
value.
d) market is characterized by consumers who are price conscious and brand
specific.
e) product's performance characteristics are not significantly different from
those of competing brands.
e) product's performance characteristics are not significantly different from those
of competing brands.
When a company is introducing a new brand in a market where it already has

one or more brands, which type of product positioning is most likely to be
used?
a) Positioning to avoid competition
b) Head-to-head competition
c) Parallel positioning
d) Segmented positioning
e) Counter positioning
If a company extends a line of products by introducing a new product to the

market, and the firm does not distinctly position this product (i.e., separately
from the other products in the line), the result could be
a) poor product positioning.
b) product deletion.
c) product repositioning.
d) cannibalization.
e) new-product development.
d) cannibalization.
In the context of marketing, cannibalization means

a) one company eating up another company's market share.
b) sales of a new product hurts sales of the company's existing products.
c) a product is past its prime and should be deleted from the product mix.
d) a company illegally uses copyrights and patents from another company.
e) sales of a new product may exceed sales of an older, more established
product.
Guess? will be spending $22 million on marketing activities next year and
expects to sell 30 million pairs of jeans. These 30 million pairs represent the
company's
a) sales potential.
c) sales forecast.
d) market sales.
e) selected market.
c) sales forecast.
The amount of product a company expects to sell during a specific period at a

specified level of marketing activity is called the
a) company sales potential.
b) revenue estimate.
c) company sales prediction.
d) market potential.
e) sales forecast.
e) sales forecast.
All of the following are categories of common forecasting techniques for

business except
a) surveys.
b) time series analysis.
c) customer determined.
d) executive judgment.
e) market tests.
Relying on executive judgment for forecasting may be adequate when

a) levels of marketing efforts put forth by competitors vary considerably.
b) recent events give the executive specific impressions of product demand.
c) product demand is erratic.
d) the executive conducts surveys.
e) the executive has considerable experience and product demand is relatively
stable.
e) the executive has considerable experience and product demand is relatively
stable.
Intuition and expediency are primary characteristics of which of the following
sales forecasting methods?
a) Surveys
b) Executive judgment
c) Cycle analysis
d) Market tests
e) Industry indicators
Company sales forecasts are least likely to be based on

a) executive judgment.
b) customer surveys or sales force surveys.
c) time series analysis.
d) market tests.
e) single-variable segmentation.
When a business has a relatively small number of customers, a preferred

method of forecasting is
a) regression analysis.
b) trend analysis.
c) the Delphi technique.
d) a market test.
e) a customer forecasting survey.
The most important reason that a firm might use a sales force forecasting
survey to determine its sales forecast is
a) salespeople are generally optimistic about the future and will provide
excellent forecast targets.
b) most salespeople tend to have a pessimistic outlook, which is more likely to
result in an achievable sales forecast.
c) this tends to be the fastest way to determine a good sales forecast for the
upcoming period.
d) the averaging and other statistical techniques applied to these forecasts
result in extremely accurate numbers.
e) the sales staff is closer to the actual customers on a regular basis than
anyone else in the organization.
e) the sales staff is closer to the actual customers on a regular basis than anyone
else in the organization.
When a company has its sales forecasts prepared by management
consultants, economists, or college professors, it is using a(n)
a) expert forecasting survey.
b) Delphi technique.
c) random factor analysis.
d) external judgment survey.
e) market test.
Often, the Delphi technique is used in conjunction with an expert forecasting

survey. The major objective is to
a) allow an opportunity to obtain diverse expert opinions.
b) allow experts to work separately to reach a consensus as to their forecasts.
c) reach an accurate sales forecast through the use of multiple sales
forecasting techniques.
d) determine if the expert forecasting survey is superior to regression analysis.
e) assess the extent to which this year's sales forecast is more accurate than
that of previous years.
The forecasting techniques that assume past sales patterns will continue into
the future are all variations of
b) random factor analysis.
c) seasonal analysis.
d) time series analysis.
e) past sales forecasting surveys.
A forecasting method that predicts sales based on relationships between past

sales and other variables is called
b) customer forecasting surveys.
d) random factor analysis.
e) time series analysis.
While developing a company sales forecast at Safeway, Barb Herrington

discovered a pattern in sales volume over the past five years. She likely used
which sales forecasting technique?
a) Surveys
c) Time series analysis
d) Market tests
e) Regression analysis
Katy Ramirez is a marketer for a golf equipment manufacturer. When

forecasting company sales, she finds a direct association between past sales
and per capita income. Which sales forecasting technique is Katy using?
a) Surveys
d) Market tests
The sales prediction technique based on the correlation between sales and
other factors—such as population density, per capita income, or family size—
is
c) regression analysis.
d) a market test.
e) an expert survey.
The Sara Lee Company is attempting to forecast sales for a new ice cream
cake. To come up with an accurate forecast, Sara Lee places the product in
Atlanta supermarkets for a period of four months. In this instance, Sara Lee is
using which forecasting method?
a) Time series analysis
b) Market test
c) Executive judgment
d) Regression analysis
e) Survey
b) Market test
The sales forecasting method that consists of making a product available to
buyers in one or more locations and measuring purchase response is
a) a market test.
b) regression analysis.
c) trend analysis.
d) a survey.
e) the Delphi technique.
a) a market test.
The forecasting method that utilizes a firm's historical sales data to find
patterns in the firm's sales volume over time is
a) the regression method.
b) customer forecasting.
c) a market test.
d) sales force forecasting.
In an effort to forecast his firm's sales for the coming year, Henry Thompson
takes sales for the last three years and calculates a growth trend. Henry is
employing which forecasting method?
bExecutive judgment
c) Surveys
e) Market tests
Which of the following sales forecasting techniques would generally be most

suitable for estimating sales of a new product?
a) Executive judgment
b) Customer surveys
d) Market tests
e) Regression methods
d) Market tests
Which of the following forecasting methods is least dependent on historical

sales data?
a) Regression analysis
b) Trend analysis
d) Cycle analysis
e) A market test
e) A market test
What is the main problem with using a market test as a forecasting tool?
a) Difficult to interpret
b) Expensive
c) Inaccurate
d) Unacceptable to consumers
e) Overused
b) Expensive
T F A market is a group of people who, as individuals, have needs for products

in a product class and have the ability, willingness, and authority to purchase
such products.
t
T F Individuals' ability to buy depends on the amount of their buying power.

t
T F The four requirements of a market are that the individuals in the market
must have a need for the product and the ability, willingness, and authority to
buy it.
t
T F A person who has buying power also has the authority to buy.
f
T F The five-step process usually used for target market selection includes
identifying the appropriate targeting strategy, determining which segmentation
variables to use, developing market segment profiles, evaluating relevant
market segments, and deciding which targeting strategy to use.
f
T F There are only two basic strategies for selecting target markets: the
undifferentiated targeting strategy and the concentrated targeting strategy.
f
T F A company sometimes defines a total market as its target market.

t
T F One condition for effective segmentation is that at least one segment must
have substantial profit potential.
t
T F A firm using a concentrated targeting strategy aims its marketing activities

at one segment of a market.
t
T F The undifferentiated strategy can be effective for an organization that has

a homogeneous market and can develop and maintain a single marketing mix.
t
T F An undifferentiated targeting strategy does not target a single market with

one marketing mix.
f
T F The concentrated targeting strategy is one in which an organization directs

its marketing efforts toward a single market segment through one marketing
mix.
t
T F A differentiated targeting strategy is when the organization targets two or

more markets by developing a single marketing mix.
f
T F Only one variable can be used to segment a market.

f
T F Segmentation variables are characteristics of individuals, groups, or

organizations in a total market.
t
T F A segmentation variable is used to group smaller markets into one larger
market.
f
T F Demographic characteristics are commonly used to segment a market

because they are closely related to consumers' product needs and purchasing
behavior.
t
T F Family life cycle is a psychological dimension used for segmenting

markets.
‫في حال وجود مشاكل دراسية يرجى التواصل‬

BY : Ibrahim Yousef ALsalman
MOB. 0785059665
Facebook.com/Ibraheem.ys
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Multiple Choice Questions And Answers
Second Exam
2016-2017
Ibrahim Y Al-salman
Founder of Marketing House
Team.help-out.net << ‫ " متوفره على موقعنا والقروب‬PDF " ‫نسخة الدوسية‬
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Chapter6 : consumer buying behavior

The decision processes of business customers who buy and use products is
known as the customers':
a. buying behavior.
b. consumer buying behavior.
c. evaluative criteria.
d. cognitive dissonance.
e. selective exposure.
correct: a
feedback:. It is the behavior of people buying and using the product (page 128).
----------------------------------------------------------------
When you walk through a supermarket and feel a sudden craving for potato chips
and take a bag of chips off the shelf and place it in your shopping cart, this is an
example of:
a. extended problem solving.
b. impulse buying.
c. limited problem solving.
d. business buying behavior.
e. selective exposure.
status: incorrect (0.0)
correct: b
feedback:. It involves no conscious planning but results from a powerful urge to
buy something immediately (page 130).
----------------------------------------------------------------
You try to start your car, and the engine will not turn over. When you try to
remember what you did the last time this happened, you are conducting a(n):
a. business buying behavior.
b. selective exposure.
c. internal search.
d. selective distortion.
e. external search.
correct: c
----------------------------------------------------------------
Suppose that you notice that the tread on your car tires is dangerously low and
you decide that you need to purchase a new set of tires for your own safety. The
list of brand names that you consider before making this purchase is known as
your:
a. evaluative criteria.
b. cognitive dissonance.
c. consumer socialization.
d. consideration set.
e. patronage motives.
correct: d
feedback:. You are conducting a successful information search that yields a
group of brands that you view as possible alternatives (page 132).
----------------------------------------------------------------

Suppose that you decide to purchase a new car, and you intend to make your
decision based on the following factors: miles per gallon within the city,
automatic transmission, power windows, air conditioning, and a price under
$18,000. These characteristics represent your:
a. consideration set.
b. evoked set.
c. cognitive dissonance.
d. patronage motives.
e. evaluative criteria.
correct: e
feedback: Incorrect. To assess the products in a consideration set, you use
objective and subjective characteristics that are important to you (page 132).
----------------------------------------------------------------
When the only newspaper editorials you will read are those published in The
New York Times, this is an example of your:
a. selective exposure.
b. selective retention.
c. evoked set.
d. consideration set.
e. evaluative criteria.
correct: a
feedback:. You are selecting which inputs will reach your awareness (page 135).
----------------------------------------------------------------
When a manager seeks out additional job training so that he or she can grow
professionally, this is an example of which need in Maslow's hierarchy of needs?
a. Physiological
b. Esteem
c. Safety
d. Social
e. Self-actualization
correct: e
feedback:. This is a need to grow and develop and to become all one is capable of
becoming (page 137).
-------------------------------------------------------------
A change in a person's thinking and behavior that is caused by his or her past
experience is called:
a. motivation.
b. motive.
c. learning.
d. selective exposure.
e. selective distortion.
correct: c
feedback:. Behavior that leads to satisfaction strongly influences a person to
repeat that behavior (page 137).
-------------------------------------------------------------
Employees at IBM are asked to take a "morale survey" by rating each item on the
survey on a five-point scale: 5 is Strongly Agree and 1 is Strongly Disagree.
What type of item is the following: "This company is a good place to work."?
a. Personality scale
b. Reference scale

c. Patronage scale
d. Attitude scale
e. Situational scale
correct: d
----------------------------------------------------------------
When a manager of a company is very well-informed about a certain topic, and
other managers look to this manager's thinking whenever this topic comes up for
discussion, this manager acts as:
a. a consideration set.
b. a motive.
c. an internal search reference.
d. cognitive dissonance.
e. an opinion leader.
correct: e
feedback:. He is a reference group member who provides information about a
specific sphere that interests reference group participants (page 143)
-------------------------------------------------------------
Abercrombie & Fitch is developing a program to get to know its customers.

Which of the following is not a reason why A&F needs to understand consumer
buying behavior?
a) customer's reactions to marketing strategy can impact the firm's success
b) all customers are the same when it comes to buying behavior
c) a firm should create a marketing mix that satisfies customers
d) it helps the marketer predict how consumers will respond to marketing
strategies
e) the marketing concept stresses that a firm should know its customers
b) all customers are the same when it comes to buying behavior
Purchasers who intend to use or benefit from the purchased product and do not
buy products for business purposes are called the

a) ultimate consumers.
b) end-use consumption group.
c) business market.
d) household purchasing group.
e) organizational market.
a) ultimate consumers.
Many aspects of consumer buying decisions are affected by the individual's level
of involvement. Level of involvement is
a) the importance and intensity of interest in a product in a particular situation.
b) the buyer's perception, motives, and abilities.
c) the amount of external search that an individual puts into the decision-making
process.
d) the particular circumstance or environment in which consumers find
themselves.
e) a combination of an individual's demographic factors.
a) the importance and intensity of interest in a product in a particular
situation.
Justin is purchasing his third car in the past five years. He has been a car
enthusiast ever since he was a little boy. He likes to spend his free time looking
at car magazines, going to car shows, and watching NASCAR. Justin's interest in
cars is referred to as
a) situational involvement.
b) dynamic involvement.
c) enduring involvement.
d) dynamic buying behavior.
e) situational buying behavior.
c) enduring involvement.
A major determining factor in deciding which type of problem-solving process

should be used depends on the individual's intensity of interest in a product and
the importance of the product for that person. This is known as an individual's
a) motivational structure.
b) routinized response behavior.
c) level of involvement.
d) cognitive dissonance.
e) evaluative criteria.
c) level of involvement.
Chloe and Max are searching for a health club to join. This purchase will likely
be affected by ___________ involvement.
a) low
b) internal
c) enduring
d) evoked
e) perceived
c) enduring
Temporary and dynamic factors that result from a particular set of circumstance a
consumer is facing when making purchase decisions characterize
a) enduring involvement.
b) extended problem solving.

c) selective exposure.
d) situational involvement.
e) selective retention.
d) situational involvement.
The three most widely recognized types of consumer problem solving are:
a) limited problem solving, extended problem solving, and routinized response
behavior.
b) extended problem solving, enduring problem solving, and situational problem
solving.
c) planned problem solving, impulse buying, and limited problem solving.
d) internal problem solving, external problem solving, situational behavior.
e) responsive behavior, planned behavior, and impulsive problem solving.
a) limited problem solving, extended problem solving, and routinized response
behavior.
While shopping at a Kroger grocery store, Tom sees a display of his favorite
brand of diet cola. He buys a six-pack to take home for the weekend. This
purchase process would be described as
a) routinized response behavior.
c) limited problem solving.
d) situational perception.
e) enduring involvement.
Which product listed would most likely be purchased through routinized

response behavior?
a) Car
b) Desk
c) Shirt
d) Soft drink
e) Television set
d) Soft drink
Which of the following consumer problem-solving processes will probably be

used in purchasing toothpaste?
a) Extended problem solving
b) Routinized response behavior
c) Intensive problem solving
d) Limited problem solving
e) Perceptual scanning
b) Routinized response behavior
Which of the following buying situations is most consistent with routinized

response behavior?
a) Ian buying his first pair of basketball shoes
b) Molly buying a new set of tires for her car
c) Aaron buying a new fishing rod and reel
d) Stephanie buying bottled water
e) Bryan buying a new software program
d) Stephanie buying bottled water
Stacy is going to the store to buy a gallon of milk. She will most likely use
___________ in her consumer decision-making process.
a) routinized response behavior
b) limited problem solving
c) extended problem solving
d) perceptual scanning
e) evaluation of alternatives
a) routinized response behavior
Routinized response behavior is what a consumer does when

a) purchasing an unfamiliar product.
b) buying frequently purchased, low-cost items that need little effort.
c) an information search is extensive and may involve consulting with friends
and family.
d) buying products that require a moderate amount of time for information
gathering and deliberation.
e) he or she enters the problem recognition stage of the consumer buying
decision process.
b) buying frequently purchased, low-cost items that need little effort.
In contrast to extended problem solving, routinized response behavior requires

a) careful deliberation before making a choice.
b) less information about products.
c) more time.
d) considerable thought.
e) more money.
b) less information about products.
When a consumer purchases products occasionally or needs information about an

unfamiliar brand in a familiar product category, he or she will most likely engage
in
a) enduring purchase behavior.
b) routinized response behavior.
c) extended problem solving.
d) impulse searching.
e) limited problem solving.
e) limited problem
When a new variety of Kashi whole-grain breakfast cereals is first introduced,

consumers will most likely engage in______ when deciding whether or not to
purchase this new product.
a) extended problem solving
c) situational solving behavior
d) routinized response behavior
e) automatic processing behavior
Jenny plans to buy a new swimsuit for her spring break cruise. She has not seen
this year's styles and thus will do some comparison shopping before making a
purchase decision. Jenny is engaging in

d) impulse buying.
e) intensive problem solving.
Kellogg's is introducing a new bran waffle for toasters. Television commercials

will be a key element in communicating the benefits associated with this product.
Based on that decision, Kellogg's is expecting consumers to engage in what form
of problem solving?
a) Routinized response behavior
b) Limited problem solving
c) Extended problem solving
d) Impulse buying
e) Extensive response behavior
For which of the following products would a consumer most likely use limited
problem solving?
a) Detergent
b) Toothpaste
c) Automobile
d) Hair dryer
e) Washing machine
d) Hair dryer
Which of the following purchases would most likely require a consumer to use
extended problem solving?
a) Audio equipment
b) Shaving cream
c) Cereal
d) Kitchen napkins
e) Gasoline
a) Audio equipment
Extended problem solving is the type of consumer problem-solving process that

a) involves no conscious planning but rather a powerful and persistent urge to
buy something.
b) is the most complex problem-solving behavior, which comes into play when a
purchase involves unfamiliar, expensive, or infrequently bought products.
c) requires a moderate amount of time for information gathering and search.
d) is the creation and maintenance of a collection of products that satisfy a
person's needs and wants.
e) requires very little search-and-decision effort and is practiced when buying
low-cost and frequently purchased products.
b) is the most complex problem-solving behavior, which comes into play when a
purchase involves unfamiliar, expensive, or infrequently bought products.
Which of the following products would probably require extended problem

solving before a purchase?
a) Products purchased frequently

b) Products to be purchased in the future
c) Products that are purchased routinely
d) Expensive products
e) Products purchased as a result of social influences
d) Expensive products
Jose and Teresa are searching for a new cellular phone. They will most likely
engage in which one of the following forms of problem solving?
c) Impulse buying
d) Routinized response behavior
e) Intensive response behavior
An unplanned buying behavior resulting from a powerful urge to buy something

immediately is called
a) impulse buying.
b) habitual buying.
c) compulsive response behavior.
d) non-problem solving.
e) cognitive dissonance.
a) impulse buying.
Marissa goes to Target to purchase school supplies for her two children. As she is
approaching the check-out counter, she sees a vase she just has to have and buys
it immediately. Marissa's purchase of the vase is an example of
a) limited problem solving.
b) impulse buying.
c) routinized response behavior.
d) addictive consumption.
e) situational involvement.
b) impulse buying.
Beth Hines is buying furniture for her apartment for the first time. She is
spending considerable time and effort comparing the products that different
stores offer. Which type of problem-solving process is she using?
a) Selective
b) Intensive
c) Extended
d) Shopping
e) Routinized
c) Extended
Mark is shopping for a new suit to wear to an important interview. He really

wants to impress his prospective employer and is shopping at many stores to find
the right outfit. Martin is using which type of consumer problem-solving
process?
a) Routinized response behavior
b) Habitual response
c) Information search
d) Extended problem solving

e) Intensive problem solving
d) Extended problem solving
The five major stages of the consumer buying decision process, in order, are
a) information search, establishment of product criteria, evaluation of
alternatives, purchase, and postpurchase evaluation
b) problem recognition, information search, evaluation of alternatives, purchase,
and postpurchase evaluation.
c) problem recognition, information search, evaluation of alternatives,
postpurchase evaluation and purchase.
d) information search, evaluation of alternatives, purchase, trial adoption period,
e) problem recognition, purchase, evaluation of alternatives, postpurchase
evaluation, and rebuy
b) problem recognition, information search, evaluation of alternatives, purchase,
Which of the following statements about the consumer buying decision process is
true?
a) Consumers progress through the five stages of this process for all limited
problem-solving decisions.
b) Although all of the steps in the process are used in all decision processes, the
order tends to depend on the customer's level of involvement.
c) The key element of the process that exists in all consumer buying decision
processes is the purchase of the product.
d) Once the purchase of a product has been made, the consumer buying decision
process is complete.
e) Consumers making limited problem-solving decisions may not go through all
five steps of the process.
e) Consumers making limited problem-solving decisions may not go through all
five steps of the process.
Problem recognition occurs when a consumer

a) searches for information to resolve a problem.
b) becomes aware that there is a difference between a desired state and an actual
condition.
c) recognizes a need.
d) evaluates her or his purchase.
e) is exposed to a television advertisement.
b) becomes aware that there is a difference between a desired state and an actual
condition.
When Julia goes to the first class of her Operations Management course, she
finds out that in addition to the textbook she already purchased, she also needs a
copy of the book The Goal. At which stage of the consumer buying decision
process is Julia?
a) Purchase
b) Evaluation of alternatives
c) Problem recognition
d) Information search
e) Prepurchase evaluation
c) Problem recognition
As Steve is shopping for groceries, he notices a product on the shelf and

remembers that he is about to run out of it at home. In terms of the consumer
buying decision process, Steve just experienced
a) problem recognition.
b) high involvement.
c) postpurchase evaluation.
d) information search.
e) evaluation of alternatives.
Within the information search step of the consumer buying decision process,
what two primary aspects exist?
a) Consideration sets and evoked sets
b) Personal information and non-personal information
c) Selective retention and selective distortion
d) Internal search and external search
e) Company-produced information and internal information
d) Internal search and external search
As Jeff runs out of shaving cream, he immediately tries to remember what he did
the last time this happened. He is engaging in
a) external search.
b) consideration set development.
c) internal search.
e) alternative evaluation.
c) internal search.
When Trevor realizes his liquor cabinet supply was devastated by last weekend's
party, he first retrieves information from his memory about what types of liquor
he and his friends like most and then asks the attractive clerk at the liquor store
what she would recommend. Trevor started with a(n) _____ search and then
progressed to a(n) _____ search.
a) consideration; evaluative
b) focused; broad
c) internal; external
d) routinized; extended
e) self; inclusive
c) internal; external
When, in their information search, consumers focus on communication with

friends and relatives, they are utilizing ______ sources.
a) internal
b) personal
c) marketer-dominated
d) direct
e) organizational
b) personal

In the consumer buying decision process, the information search stage

a) yields a group of brands that a buyer views as possible alternatives.
b) involves a buyer becoming aware of the need for a product.
c) is not necessary when the buyer is involved in extensive decision making.
d) occurs immediately after evaluation of alternatives.
e) is lengthy for routine response buying behavior.
a) yields a group of brands that a buyer views as possible alternatives.
During which stage of the consumer buying decision process does a consumer
decide from which seller he or she will buy the product?
a) Evaluation of alternatives
b) Information search
c) Source selection
d) Purchase
e) Problem recognition
d) Purchase
When shopping for detergent, Josh looks at Tide, Fresh Start, Surf, and All and
chooses the one that is on sale. These four brands make up his _________ set.
a) alternate
b) purchase
c) consideration
d) problem
e) imposed
c) consideration
In shopping for a new laptop computer for her master degree program, the
alternatives Jocelyn is considering include Dell, Toshiba, Sony, and Hewlett-
Packard. These four brands make up Jocelyn's
a) dissonance group.
b) evaluative group.
c) framing set.
d) external search results.
e) consideration set.
e) consideration set.
A group of brands that a consumer views as alternatives for possible purchase is

called a(n)
a) evoked set.
b) acceptance group.
c) brand preference.
d) selective retention group.
e) evaluation criteria.
a) evoked set.
Evaluative criteria for brands within the consideration set are both
a) selective and expansive.
b) objective and subjective.
c) internal and external.
d) extended and routinized.
e) perceptive and selective.
b) objective and subjective.
A customer shopping for a fax machine tells a salesperson that it is important for
the fax machine to have several attributes. It must use plain paper, be able to
make copies, be compatible with all other fax machines, and not require a
separate phone line. The buyer has expressed his or her
a) framing characteristics.
b) service characteristics.
c) consideration set.
d) evaluative criteria.
e) information search criteria.
d) evaluative criteria.
All of the following are marketer-dominated sources of information except

a) salespeople.
b) advertising.
c) packaging.
d) friends.
e) displays.
d) friends.
During the evaluation of alternatives stage of the consumer buying decision

process, framing most likely influences the decision process of ___________
buyers.
a) younger
b) older
c) wealthier
d) veteran
e) inexperienced
e) inexperienced
After doing considerable shopping, Eric has just decided what brand and type of
athletic shoes to buy and where he's going to buy them. In what stage of the
consumer buying decision process is Eric?
a) Problem recognition
b) Information search
c) Evaluation of alternatives
d) Purchase
e) Postpurchase evaluation
d) Purchase
Doubts in a buyer's mind about whether the purchase decision made was the right
one may occur during the
a) cognitive dissonance.
b) purchase.
c) evaluation of alternatives.
d) internal search.
e) postpurchase evaluation.
e) postpurchase evaluation.
After purchasing a new Lexus, Pablo sees an Infinity pass by on the street and
begins to wonder if he made the right choice. Pablo is experiencing
b) cognitive dissonance.
c) internal search.
d) alternative evaluation.
e) framing.
b) cognitive dissonance.
After purchasing a product, postpurchase evaluation may result in cognitive

dissonance. Cognitive dissonance is
a) the congruence between external and internal searches for product
information.
b) a function of the manner in which the manufacturer of the product describes
its attributes.
c) satisfaction with the purchase.
d) the establishment of criteria for comparing products.
e) doubts that occur because the buyer questions whether the decision to
purchase the product was right.
e) doubts that occur because the buyer questions whether the decision to purchase
the product was right.
The three major categories of influences on the consumer buying decision

process are:
a) situational influences, demographic influences, and psychological influences.
b) social influences, situational influences, and marketer-dominated influences.
c) demographic influences, situational influences, and marketer-dominated
influences.
d) situational influences, social influences, and psychological influences.
e) marketer-dominated influences, psychological influences, and person-specific
influences.
d) situational influences, social influences, and psychological influences.
The five categories of situational influences are:

a) product involvement level, physical surroundings, social surroundings, time
perspective, and purchase reason.
b) antecedent states, physical surroundings, social surroundings, time
perspective, and space dimensions.
c) social surroundings, physical surroundings, time pressures, purchase reason,
and lifestyles.
d) purchase reason, time perspective, social surroundings, physical surroundings,
and buyer's momentary mood.
e) store atmosphere, location, aromas, sounds, and lighting.
d) purchase reason, time perspective, social surroundings, physical surroundings,
and buyer's momentary mood.
Bob Turner makes an appointment to visit with a new dermatologist in town to

determine whether he should have several moles on his neck removed. When he
arrives at the dermatologist's office, Bob notices a foul odor in the air, worn floor
coverings, cluttered rooms that have paint peeling from the walls, and poor
lighting. While Bob viewed the dermatologist as competent, Bob decided not to
have the moles removed even though the dermatologist recommended removal.
Which situational influences are most likely to have affected Bob's decision?
a) Social surroundings
b) Customer's momentary mood and condition
c) Time pressures
d) Purchase reasons
e) Physical surroundings
e) Physical surroundings
___________ are situational influences that include the characteristics and

interactions of others who are present when a purchase decision is being made,
such as friends, relatives, and salespeople.
a) Physical surroundings
b) Social surroundings
c) Purchase reasons
d) Buyer's momentary mood and condition
e) Pressures created by time factors
b) Customer's momentary mood and condition
The primary psychological influences on consumer behavior are:

a) perception, motives, learning, attitudes, personality, and lifestyles.
b) attitudes, perception, retention, exposure, roles, and lifestyles.
c) attitudes, perception, social class, culture, and learning.
d) perception, motives, reference groups, social class, and personality.
e) lifestyles, personality, perception, motives, attitudes, and culture.
a) perception, motives, learning, attitudes, personality, and lifestyles.
Perception is a three-step process that involves

a) motivation, personality, and attitudes.
b) classifying, recording, and eliminating information received through the
senses.
c) collecting, eliminating, and organizing information inputs.
d) selecting, organizing, and interpreting information inputs.
e) anticipating, classifying, and discarding information inputs.
d) selecting, organizing, and interpreting information inputs.
In the process of perception, individuals receive sensations through sight, sound,

taste, smell, and hearing. These sensations are called
a) selective inputs.
b) olfactory receptors.
c) information inputs.
d) perceptual motives.
e) psychological influences.
c) information inputs.
Selective exposure refers to

a) targeting only certain parts of the total market.
b) admitting only certain inputs into consciousness.
c) the circumstances or conditions that exist when a consumer is making a
purchase decision.
d) the process of selecting, organizing, and interpreting information inputs to
produce meaning.
e) remembering inputs that support personal feelings and beliefs and forgetting
those that do not.
b) admitting only certain inputs into consciousness.

As Brianna walks to classes, she selects, organizes, and interprets the sensations
she is receiving through her sense organs. Brianna is experiencing the process of
a) exposure.
b) motivation.
c) learning.
d) attitude formation.
e) perception.
e) perception.
You are in the market for a new car and believe there are more car ads than usual
on TV. Perhaps the need you have is driving which of the following phenomena?
a) perception.
b) selective exposure.
c) selective distortion.
e) selective retention.
b) selective exposure.
If a consumer receives information that is inconsistent with her or his beliefs, the
consumer may alter this information. This perceptual process is known as
selective
a) exposure.
b) distortion.
c) retention.
d) information.
e) organization.
b) distortion.
After certain inputs have been selected to reach an individual's awareness, the
next step in the perceptual process is perceptual
a) organization.
b) attention.
c) retention.
d) interpretation.
e) redefinition.
a) organization.
Maria reads through the newspaper fashion flyers containing advertisements for
sweaters from Polo, purses from JC Penney, and tennis shoes from Foot Locker.
She remembers only the shoe ad, thanks to the recent tear in her own Reeboks.
Maria has engaged in selective
a) distortion.
b) decision making.
c) analysis.
d) retention.
e) reading.
d) retention.
When organizing perceptual inputs, people tend to mentally fill in missing

elements in a pattern or statement. This principle is called
a) interpretation.
b) completion.
c) distortion.
d) closure.
e) linking.
d) closure.
Assignment of meaning to organized information inputs is called

a) motivation.
b) redefinition.
c) learning.
d) interpretation.
e) selection.
d) interpretation.
A salesperson at Best Buy tells Patrick Dunnavan that the Sony Notebook is one
of the most reliable computer notebooks ever made. Patrick, however, has just
heard about a second Sony recall for this model because of overheating. His most
likely response will be to
a) buy the Sony.
b) forget the information from the salesperson.
c) ignore the recall as a fluke.
d) focus on positive aspects of the Sony.
e) cease shopping for a computer notebook at this time.
b) forget the information from the salesperson.
Consumers tend to remember information inputs that support their feelings and
beliefs and forget inputs that do not. This is known as selective
a) exposure.
b) distortion.
c) retention.
d) information.
e) organization.
c) retention.
Which of the following statements about how a consumer organizes inputs that
reach awareness is most accurate?
a) Inputs are organized by individuals to produce meaning, and this
organizational process is usually a slow one.
b) Organization of information inputs is not always needed to produce meaning.
c) Inputs that reach awareness are organized and interpreted in much the same
way by all consumers.
d) Because a person interprets information in terms of what is familiar, only one
interpretation of organized inputs is possible.
e) Inputs that reach awareness are organized to produce meaning, and this
meaning is interpreted in light of what is familiar to the individual.
e) Inputs that reach awareness are organized to produce meaning, and this meaning
is interpreted in light of what is familiar to the individual.
Buyers' actions are affected by one or more internal energizing forces geared
toward satisfying needs, which are called
a) motives.
b) lifestyles.
c) perceptions.
d) attitudes.
e) traits.
a) motives.
Maslow's hierarchy of needs refers to the five levels of needs that humans seek to
satisfy, from most to least important. These needs, in order from most to least
important are
a) psychological, physiological, safety, social, and esteem.
b) physiological, safety, esteem, social, and self-actualization.
c) physiological, psychological, safety, social, and esteem.
d) physiological, safety, social, and esteem, self-actualization.
e) physiological, esteem, safety, self-actualization, and psychological.
d) physiological, safety, social, and esteem, self-actualization.
According to Maslow's hierarchy of needs,

a) individuals simultaneously try to satisfy all five levels of needs.
b) self-actualization needs are the most important needs to be met for most
individuals.
c) individuals first address needs at the top of the pyramid and then move down
to the lower level needs.
d) levels of needs are different for everyone, and we all try to satisfy them in a
different order.
e) individuals first satisfy the most basic needs and then try to fulfill needs at the
next level up.
e) individuals first satisfy the most basic needs and then try to fulfill needs at the
next level up.
Shortly after moving into their new home, Mark and Katherine Gould purchase
and install smoke detectors and an alarm system. The Goulds are concerned
about fulfilling their need for
a) survival.
b) safety.
c) self-actualization.
d) esteem.
e) belonging.
b) safety.
Jana now feels that her teeth are not white enough after seeing advertisements for
whitening toothpaste. Marketers promote these brands based on ___________
needs, appealing to sex appeal.
a) physiological
b) esteem
c) self-actualization
d) psychological
e) social
a) physiological
People's needs to grow, develop, and achieve their full potential are referred to
by Maslow as ______ needs.
a) ego
b) esteem
d) social
e) safety
The U.S. Army recruits soldiers based on the slogan, "An army of one," implying
that people can reach their full personal potential in the U.S. Army. This is an
appeal to what need according to Maslow's hierarchy of needs?
a) Safety
b) Esteem
c) Self-actualization
d) Physiological
e) Social
c) Self-actualization
Psychological influences that determine where a person purchases products on a

regular basis are called
a) convenience responses.
b) patronage motives.
c) shopping motives.
d) pattern responses.
e) routine decisions.
b) patronage motives.
Luis likes shopping at Stein Mart, a discount department store, because he likes
the prices, products, and services the store provides. His selection of this store as
a regular stop when shopping is influenced by ___________ motives.
a) self-concept
b) self-image
c) projective
d) depth
e) patronage
e) patronage
Changes in an individual's thought processes and behavior caused by information

and experience is called
a) learning.
b) attitude formation.
c) patronage motives.
d) personality.
e) motivation.
a) learning.
Marketers often provide consumers with experience to their products, including

free samples and trial offers, to facilitate consumer
a) patronage motives.
b) attitudes.
c) perception.
d) distortion.
e) learning.
e) learning.

An attitude is
a) an internal trait that makes a person unique.
b) a set of actions that a person in a particular position is supposed to perform.
c) a competence in performing activities.
d) a person's behavior caused by information and experience.
e) one's evaluation, feelings, and behavioral tendencies toward an object or idea.
e) one's evaluation, feelings, and behavioral tendencies toward an object or idea.
Having used both Secret and Sure deodorants, Annette feels that Secret is a good
product and the one that best meets her needs. She has formed a(n) ___________
about Secret.
a) motive
b) consideration set
c) cognition
d) attitude
e) self-concept
d) attitude
Cognitive, affective, and behavioral are the three major components of

a) self-concept.
b) motives.
c) lifestyles.
d) consumer socialization.
e) attitudes.
e) attitudes.
What consumer research method consists of a series of adjectives, phrases, or

sentences regarding an object, with subjects indicating the intensity of their
feelings toward this object by reacting to these adjectives, phrases, or sentences?
a) Projective specification
b) Patronage clarification
c) Group interview
d) Attitude scale
e) Depth interview
d) Attitude scale
Melanie prefers to shop at Target for most of her household needs even though
the same products and brands are available at KMart. She prefers the service,
location, and friendliness of the employees at Target. Melanie's reasons that
influence her decision to shop at Target are called
a) social needs.
b) learning processes.
d) product attitudes.
e) retailer attitudes.
An attitude scale measures the

a) strength of a buyer's need for a product.
b) buyer's level of information about a product.
c) amount of experience the buyer has had with the product.

d) intensity of a buyer's feelings toward a certain object.

e) intensity of a buyer's desire for the product.
d) intensity of a buyer's feelings toward a certain object.
Changing people's attitudes toward a firm and its marketing program is

a) simple when advertisements are used.
b) impossible, even if the firm uses advertisements.
c) a long, expensive, and difficult task that may require extensive advertising
campaigns.
d) unnecessary, since consumer attitudes are of little importance.
e) rarely attempted through the use of marketing practice.
c) a long, expensive, and difficult task that may require extensive advertising
campaigns.
The results of many studies have been inconclusive regarding the association
between buyer behavior and
a) personality.
b) perception.
c) motives.
d) social class.
e) learning.
a) personality.
Hereditary characteristics combined with personal experiences that together

make an individual unique form one's
a) self-concept.
b) attitudes.
c) lifestyle.
d) personality.
e) role.
d) personality
The development of a person's self-concept is a function of

a) learning.
b) psychological and social factors.
c) reference groups and opinion leaders.
d) roles and family influences.
e) subcultures.
b) psychological and social factors.
Shane spends most of his free time participating in extreme sports and traveling
to exotic locations with a group of close friends who share his interests and
opinions about most things. This is a description of Shane's
a) self-concept.
b) lifestyle.
c) personality.
d) attitudes.
e) role.
b) lifestyle.
A consumer's buying decisions are affected in part by the people around him or
her. Such people and the forces they exert on an individual buyer are called
a) motivational influences.
b) social influences.
c) roles.
d) personality influences.
e) cultural influences.
b) social influences.
The actions and activities associated with a position one holds within a group,
organization, or institution constitute
a) personality.
b) a role.
c) a motive.
d) perception.
e) an attitude.
b) a role.
Jonathan is torn between buying a new swing set for his kids and buying a new
set of Ping golf clubs for himself. Jonathan is experiencing
a) attitude formation.
b) belief assessment.
c) role inconsistency.
e) personality.
c) role inconsistency.
The forces that other people exert on one's buying behavior are called social
influences. These come from reference groups and opinion leaders, social
classes, culture and subcultures, roles, and
a) ethnic heritage.
b) personality.
c) attitudes.
d) perception.
e) family.
e) family.
Shaun is going shopping with his dad to buy his first baseball glove for Little
League. He listens to his dad talk to the salesperson at the sporting goods store,
watches him examine the stitching in the glove and then rub his finger over the
leather palm. Shaun's observations are part of his
a) consumer development.
b) attitude development.
c) purchasing evaluation.
d) consumer socialization.
e) consumer attitude.
d) consumer socialization
Children often achieve ______ by observing parents and older siblings in

purchase situations and then through their own purchase experiences.
a) consumer socialization
b) personality
c) role identification

d) social class
e) attitude formation
a) consumer socialization
Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop
at Sarah's, a local store where the Kappas buy their clothes. She also asks her
family for a new car because all the sorority members have new cars. In these
instances, Jennifer is influenced by
a) personality.
b) a reference group.
c) a consideration set.
d) a knowledge base.
e) a role conflict.
b) a reference group.
The three major types of reference groups are:

a) membership, aspirational, and advocacy.
b) advocacy, avoidance, and approach.
c) aspirational, disassociative, and membership.
d) actual, implied, and desired.
e) family, peer group, and media.
c) aspirational, disassociative, and membership.
Marketers who attempt to use reference-group influence in advertisements are

most likely to succeed when messages indicate that
a) people in a specific group buy the product and are highly satisfied by it.
b) reference groups should be of little concern to the consumer.
c) reference groups are "in" and everyone should belong to at least one.
d) all products and brands are influenced by reference groups.
e) people in a specific group have tried the product and dislike it.
a) people in a specific group buy the product and are highly satisfied by it.A group
becomes a reference group for an individual when that person identifies with this
group so strongly that he or she
A group becomes a reference group for an individual when that person identifies
with this group so strongly that he or she
a) takes on many of the values, attitudes, or behaviors of group members.
b) becomes a formal member of the group.
c) becomes familiar with the group's activities.
d) seeks information from members of the group regarding buying decisions.
e) cannot control the strength of his or her involvement with the group.
a) takes on many of the values, attitudes, or behaviors of group members.
Which one of the following is most likely to be a product for which both the
purchasing decision and the brand decision are strongly influenced by reference
groups?
a) Canned peaches
b) Instant coffee
c) Jeans
d) Furniture
e) Soap
c) Jeans
An opinion leader is likely to be most effective under all of the following

conditions except when the
a) follower has high product involvement.
b) follower has low product knowledge.
c) follower has values and attitudes similar to the opinion leader.
d) product details are numerous and complicated.
e) follower has attitudes and values that are different from those of the opinion
leader.
e) follower has attitudes and values that are different from those of the opinion
leader.
Katie is buying her first car and has narrowed her choices down to a Honda
Civic, a Toyota Prius, or a Volkswagen Jetta. Katie goes on-line and posts
questions to others who have experience with any of these cars, asking for
reviews. Katie is most likely
a) using a blog.
b) an opinion leader.
c) using her reference groups for information.
d) experiencing enduring involvement.
e) exerting social influence.
a) using a blog.
Which of the following statements regarding social class is true?

a) A social class is a closed aggregate of people with similar social ranking.
b) The criteria used to group people into social classes do not vary from one
culture to another.
c) A social class is an open aggregate of people with similar social ranking.
d) A social class is a ranking of people by other members of society into
positions of social respect.
e) A social class is an open aggregate of people with different social rankings.
c) A social class is an open aggregate of people with similar social ranking
An open aggregate of people with similar social ranking is referred to as a

a) reference group.
b) social class.
c) role.
d) caste.
e) subculture.
b) social class.
Our society uses many factors, including occupation, educational level, income,
wealth, religion, race, ethnic group, and possessions, to group people into
a) family types.
b) geographic regions.
c) reference groups.
d) social classes.
e) attitudinal segments.
d) social classes.
According to Coleman's major social class categories, which of the following

social classes in our culture has these characteristics: lives in well-kept
neighborhoods, likes fashionable items, and is often found in management

positions?
a) Lower class
b) Upper class
c) Middle class
d) Working class
e) First class
c) Middle class
According to Coleman's major social class categories, the social class in our
society that favors prestigious schooling, neighborhoods, and brands is the
a) upper class.
b) middle class.
c) upper-lower class.
d) working class.
e) lower class.
a) upper class.
According to Coleman's social class categories, the social class that includes
approximately 40 percent of the population, shops for bargains, and buys sports
and recreational equipment is the
a) upper class.
b) middle class.
c) first class.
d) working class.
e) lower class.
d) working class.
A culture can be divided into subcultures according to

a) personality characteristics of individuals in that culture.
b) motives that members of that cultural group have for their behavior.
c) geographic regions or human characteristics, such as age or ethnic
background.
d) income levels.
e) information to which consumers allow themselves to be exposed.
c) geographic regions or human characteristics, such as age or ethnic background.
Market researchers for a local bakery determined that Jewish people consume 63
percent of the portion of bagels sold in New York City. This is an example of
___________ influence on consumer buying decision processes.
a) demographic
b) situational
c) subcultural
d) role
e) social class
c) subcultural
Which of the following is the fastest growing, most affluent subculture in the
United States?
a) African Americans
b) Hispanics
c) Asian Americans
d) Native Americans
e) Italian Americans
c) Asian Americans
A consumer market consists of buyers intending to use the product with the main
purpose of making a profit.
False
Buying behavior refers to the decision processes and acts of people involved in
buying and using products.
true
Marketers should view customers as problem solvers.

true
If a person's interest in the product category is ongoing and long term, it is

referred to as situational involvement.
false
Involvement that is temporary and results from a specific set of circumstances is

called situational involvement.
true
T F Involvement level is one factor that affects a consumer's selection of a type

of problem-solving process.
True
T F High involvement products tend to be those that are expensive and visible to
others.
True
T F Limited problem solving is used when purchasing frequently bought, low-

cost items needing very little decision effort.
f
T F Extended problem solving is used when unfamiliar, expensive, or

infrequently purchased products are bought.
true
T F When making habitual purchases, a consumer uses extensive problem

solving.
f
T F The actual act of purchase is the second stage of the consumer buying
decision process.
f
T F Once initiated, the consumer buying decision process always leads to a

purchase.
f

T F Problem recognition speed can vary from quite rapid to very slow.
t
T F An information search, once completed, should identify for the buyer the one
brand that he or she views as the best alternative.
f
T F When evaluating the alternatives, the buyer rates and eventually ranks the
brands in the consideration set.
t
T F The evaluative criteria are objective but not subjective product characteristics
that are important to a specific buyer when purchasing a product.
f
T F A marketer's use of framing can make a product characteristic seem more

important to a consumer and can facilitate its recall from memory.
t
T F During the evaluation of alternatives stage of the consumer buying decision

process, the buyer selects the seller from whom he or she will purchase the
product.
f
T F The terms of sale (price, delivery, credit arrangements) are negotiated during
the evaluation of alternatives stage of the consumer decision-making process.
f
T F Some of the criteria used in the evaluation of alternatives stage of the

consumer buying decision process are also used during the postpurchase
evaluation stage.
t
T F Product availability plays a major role in the purchase stage. If the highest-
ranked product is unavailable, the consumer will most likely purchase the brand
ranked second.
t
T F The choice of a seller may actually affect the final product selection during
the purchase stage of the consumer buying decision process.
t
T F Dissatisfaction may occur shortly after a purchase; this is called cognitive

dissatisfaction.
f
T F Situational influences generally have the greatest influence during the initial
stage of the consumer buying decision process.
f
T F There are situational influences that cannot be controlled.

T F Situational influences can be classified into five different categories

including physical surroundings, social surroundings, personality, purchase
reason, and time perspective.
f
T F Situational influences would likely not affect a high school senior searching
for a college or university to attend.
f
T F An electronics store puts a large screen TV, wired for surround sound, in a
quiet corner of the store with couches and a rug, and plays a recently released
movie. These actions give the display the look of a family room or den. The store
is using the physical surroundings as a way to influence purchase decisions.
t
T F Social surroundings during the purchase decision do not include the presence
of a salesperson.
f
T F Time dimensions on the buying decision include how long it may take to
become knowledgeable about a product.
t
T F The time that a buyer has to make a purchase decision is a situational

influence.
t
T F Psychological influences operate within individuals to determine, in part,

their behavior as consumers.
t
T F Perception is a process in which an individual selects, organizes, and

interprets information received through the sense organs.
t
T F A person receives information inputs through the senses.

t
T F A major part of perception involves information processing.

t
T F The phenomenon of selective exposure is associated with perception.

t
174. T F An information input is less likely to reach awareness if it is related to

an event that the person is anticipating.
f

Chapter7 : business Market &buyin behavior

" ‫(يرجى التاكد من ان هذا الشابتر داخل في االمتحان "قمت باضافته لالحتياط‬
The American Red Cross is an example of what type of organizational market?
a. Institutional market
b. Government market
c. Reseller market
d. Buying center
e. Reciprocity
correct: a
feedback:. Such markets are constituted by charitable, educational, community, or other

nonbusiness goals (page 157).
------------------------------------------------------------------------------------------------------------
If a supermarket manager needed to order 50 dozen eggs from a food wholesaler, which buying
method would she most likely use?
a. Project negotiation
b. Inspection
c. Sampling
d. New-task purchase
e. Description
correct: e
------------------------------------------------------------------------------------------------------------
Which method of business buying would most likely be used for a company that was interested in
purchasing a used truck for its delivery service?
a. Sampling
b. Description
c. Inspection
d. Project negotiation
e. Reciprocity
correct: c
feedback:. This type of buying method is used for products such as industrial equipment that have
unique characteristics and may vary with regard to condition (page 161).
------------------------------------------------------------------------------------------------------------
If a company attempts to identify the most appropriate purchase decision by asking suppliers to
submit bids, which type of buying method does this situation imply?
a. Inspection
b. Negotiation
c. Description
d. Sampling
e. Consumer purchase
correct: b
------------------------------------------------------------------------------------------------------------
Demand for certain business products, especially raw materials and components, is subject to:
a. inelastic demand.
b. joint demand.
c. sole sourcing.
d. reciprocity.
e. government markets.
correct: b
feedback:. This type of demand occurs when two or more items are used in combination to
produce a product (page 163).
------------------------------------------------------------------------------------------------------------
When a company does a systematic evaluation of its current and potential suppliers based on their
prices, product availability, product quality, delivery service, and reliability, this is called a(n):
a. value analysis.
b. inelastic demand.

c. vendor analysis.
d. joint demand.
e. sole sourcing.
correct: c
your: a
feedback:. In this process some suppliers may be deemed unacceptable and others may be
excluded because of poor delivery and service records (page 166).
------------------------------------------------------------------------------------------------------------
When Dell Computer Co. uses several suppliers for its laptop computer components, it is using:
a. sole sourcing.
b. institutional markets.
c. straight rebuy purchases.
d. multiple sourcing.
e. reciprocity.
correct: d
------------------------------------------------------------------------------------------------------------
When Best Buy uses only UPS for delivery of its electronics products to customers, this is an
example of:
a. multiple sourcing.
b. inelastic demand.
c. a buying center.
d. value analysis.
e. sole sourcing.
correct: e
feedback:. In the selection stage of the Buying Decision Process the buyer may select and use only
one supplier (page 166).
------------------------------------------------------------------------------------------------------------

Which of the following has been a business classification system of companies that has been
developed by the U.S. government?
a. SIC codes
b. Inelastic demand
c. Elastic demand
d. Sole sourcing
e. Multiple sourcing
correct: a
feedback:. It is a system developed by the federal government to classify selected economic

characteristics of industrial, commercial, financial, and service organizations (page 168).
-------------------------------------------------------------------------------
Which of the following business classification systems will be used by the U.S., Canada, and
Mexico?
a. Joint demand codes
b. NAICS
c. Elastic demand codes
d. Inelastic demand codes
e. SIC
correct: b
feedback:. A single-industry classification system created to generate comparable statistics among
the three partners of the North American Free Trade Agreement (NAFTA) (page 168).
-----------------------------------------------------------------
The three purposes for which individuals or groups can use products in order for it to be
considered a business market are
a. use in daily operations, end consumption, and resale.

b. direct use in producing other products, company travel, and end consumption.
c. resale, use in daily operations, and direct use in producing other products.
d. governmental, institutional, and reseller purposes.
e. making other products, selling to other businesses, making component parts.
c
In business markets, individuals or groups purchase products for one of three purposes.
These purposes are

a. resale, wholesale, and direct use.

b. wholesale, direct use, and use in producing other products.
c. producing other products.
d. resale, direct use in producing other products, and use in general daily operations.
e. use in general daily operations, wholesale, and resale.
d
When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part
of what type of market for electrical wire?
a. Resale
b. Wholesale
c. Customer
d. Consumer
e. Business
e
Business markets are typically divided into four categories. These categories are
a. retailers, wholesalers, services, and nonprofit firms.

b. producer, manufacturer, reseller, and government.
c. producer, reseller, government, and institutional.
d. manufacturer, wholesaler, retailer, and services.
e. reseller, retailer, government, and institutional.
c
Individuals and business organizations that purchase products for the purpose of making a profit
either by using the products to produce other products or by using them in their operations are
classified as ___________ markets.
a. consumer
b. institutional
c. producer
d. government
e. reseller
c
An accountant who purchases software for maintaining clients' books is an example of a buyer in
a(n) ___________ market.
a. consumer
b. producer
c. reseller
d. government
e. institutional
b

Individuals and business organizations that buy finished goods and resell them to make a profit
without changing the physical characteristics of the product are classified as
___________ markets.
a. consumer
b. institutional
c. producer
d. government
e. reseller
e
______ buy products from manufacturers and then resell the products to other firms in the
distribution system.
a. Retailers
b. Producers
c. Distributors
d. Warehouses
e. Wholesalers
e
Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of
manufacturers and sells them to hardware stores at a price that includes a profit for Snappy
Tools, Inc. The company would be part of what type of business market?
a. Reseller
b. Producer
c. Consumer
d. Government
e. Supply
a
Reseller markets consist mainly of

a. consumers.
b. retailers.
c. wholesalers and retailers.
d. manufacturers.
e. industrial users.
c
Which type of business market tends to have the most complex buying procedures?
a. Reseller
b. Institutional
c. Retailer

d. Government
e. Producer
d
The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a
large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the
government market. To have a chance at getting this order, Citrus Sweet's first step must be
to get her firm to
a. make a presentation appointment with the state.

b. quote prices to the purchasing department.
c. advertise in the capital city.
d. negotiate with the state.
e. secure a slot on the list of qualified bidders.
e
Churches, charitable organizations, and private colleges are considered _____ buyers.
a. corporate
b. government
c. institutional
d. producer
e. nonprofit
c
Institutional markets are
a. intermediaries who resell goods to make a profit.

b. federal and state government units.
c. state or local government units.
d. consumers who buy products for their own use.
e. organizations that seek nonbusiness goals.
e
Which of the following would be considered an institutional buyer?

a. The University of Illinois
b. The Environmental Protection Agency
c. Apple Computers
d. The United Way
e. City of Greenville
d

Abbott's Office Supplies buys furniture and filing cabinets from Craine Furniture. Craine buys
paper, pens, and folders from Abbott's. The two firms are engaged in
a. cross-selling.
b. tying agreements.
c. producer marketing.
d. reciprocity.
e. competitive bidding.
d
What is a primary difference between business and consumer buyers?

a. Consumer buyers require more product information than business buyers.
b. Business purchases are made by one individual whereas families make consumer purchases
together.
c. Repeat sales are more common with consumer buyers than business buyers.
d. Consumers primarily buy inexpensive items; businesses only buy expensive
items.
e. Business buyers generally make larger orders than consumer buyers.
e
A disadvantage of reciprocity is that it can lead to
a. a price war.
b. higher promotional costs.
c. more competitive firms entering the industry.
d. less-than-optimal purchases for the buyer.
e. longer periods of negotiation.
d
Many suppliers and their customers invest time and resources to build and maintain mutually
beneficial relationships which are often called
a. partnerships.
b. co-ops.
c. monopolies.
d. reciprocity.
e. alliances.
a
Raython Hardware and Thames Industrial Supplier have worked closely for many years and
have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs
in a timely manner. Raython and Thames's relationship could be best characterized as
a(n)
a. reciprocity agreement.
b. partnership.
c. intra-organizational group.
d. alliance.
e. tying arrangement.

Product specifications are

a. physical characteristics and level of quality.
b. types of services that are provided with the product.
c. financing available for the product.
d. types of competitors offering similar products.
e. product return policies.
a
Most businesses try to control the level of quality in the parts they buy from suppliers. Most
firms develop standards for _____ in order to achieve their quality goals.
a. how many different suppliers they use

b. how many parts can fail
c. controlling when shipments will arrive
d. the percentage of defects allowed
e. how long the parts should last
d
All of the following are important concerns of business customers except
a. achieving a specific level of quality in the products offered to target markets.

b. obtaining a level of quality that meets specifications.
c. obtaining products that exceed specifications to ensure the best possible product performance.
d. obtaining products for which the quality level is consistent.
e. supporting customers with services they expect.
c
Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This
upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called
a. descriptions.
b. product features.
c. criterion.
d. purchase requests.
e. specifications.
e
Johnson's Industrial Pest Control Service wants to meet its customers' expectations with
regard to the quality of service it provides. How should Johnson's identify these expectations?
a. Conduct market research.

b. Use management judgment.
c. Trace existing service levels.

d. Stress quality service with employees.

e. Train employees better.
a
A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent
for Pillsbury will most likely use which buying method?
a. Description
b. Inspection
c. Sampling
d. Negotiation
e. Selection
c
If a business owner buys parts by specifying the quantity, grade, and other attributes, which
buying method is he or she using?
a. Description
b. Sampling
c. Negotiation
d. Ordering
e. Inspection
a
Which method of business buying is necessary when products are highly homogeneous and
examination of each item is not feasible?
a. Negotiation
b. Sampling
c. Description
d. Inspection
e. Homogeneous selection
b
Most business purchases can be classified as belonging to one of three types:
a. delinquent, repetitive, or delivered.

b. repetitive, new-task, or modified rebuy.
c. modified rebuy, new-task, or straight rebuy.
d. delinquent, new-task, or reciprocal.
e. rebuy, reciprocal, or delayed.
c

When a business routinely purchases the same product with similar terms of sale, the
purchase is called a
a. new-task.
b. repetitive purchase.
c. straight rebuy.
d. modified rebuy.
e. standard order.
c
When a business is making its initial purchase of an item to be used to perform a new job, it
is known as a _________ purchase.
a. straight rebuy
b. reciprocal
c. delayed
d. new-task
e. modified rebuy
d
Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a
fleet of company cars as part of its sales compensation package. For Perry Supply, these
vehicles would represent a ____________ purchase.
a. modified rebuy
b. straight rebuy
c. new-task
d. reevaluated
e. repetitive
c
Anderson Distribution Company has purchased 15 forklifts over the past two years. As it
plans to place its next order for another five machines, management wonders if additional features
may be needed in order to handle changes in the product lines it carries. For Anderson, these new
forklifts represent a ___________ purchase.
a. new-task
b. repetitive
c. straight rebuy
d. repetitive order
e. modified rebuy
e
A representative from Coca-Cola stops by at a local fast-food restaurant once a month to

inquire how much soft drink syrup the store will need. The restaurant's orders are an
example of which type of business purchase?
a. New-task

b. Modified rebuy
c. Straight rebuy
d. Bid
e. Negotiated
c
When the requirements associated with a new-task purchase are changed the second or third time,
this is called a ___________ purchase.
a. modified rebuy
b. continued new-task
c. contractual
d. straight rebuy
e. negotiated rebuy
a
Demand for business products is also known as ______ demand.
a. derived
b. corporate
c. business buying
d. manufacturing
e. industrial
e
The fact that business customers purchase products to be used directly or indirectly in the
production of goods and services to satisfy customers' needs means that demand for
business products is
a. joint.
b. economically stable.
c. derived.
d. inelastic.
e. more fluctuating.
c
Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years,
the company's business has declined because of the overall decrease in consumer demand
for new cars. In this case, the demand for Goodyear's tire products is said to be _______ since it
depends on the demand for new cars.
a. inelastic
b. fluctuating
c. derived
d. elastic
e. nonderived
c

Demand for business products is characterized as derived. From what is the demand
derived?
a. Industrial demand
b. Modified demand
c. Demand for consumer products
d. Future product demand
e. The business cycle
c
All of the following describe the demand for business products except
a. elastic.
b. derived.
c. joint.
d. inelastic.
e. fluctuating.
a
_________ is(are) a major threat to the sales success of jointly demanded products.
a. Price changes
b. Shortages
c. Economic instability
d. Inventory buildup
e. Proliferation of brands
b
Inelastic demand simply means that

a. buyers will not make a modified rebuy purchase.
b. demand depends on how many items are purchased.
c. a price increase or decrease will not significantly change the demand for an item.
d. when price goes up, demand goes down.
e. when supply is reduced, the price will increase.
c
Demand for a business product is ___________ if a price increase or decrease will not significantly
affect that demand.
a. elastic
b. inelastic
c. derived
d. joint
e. separate
b

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is
ordering have increased $37.50 in price since the last order. South Side proceeds with the order,
confident that it can pass on the price increase to future customers. This is an
example of business products having ___________ demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
b
Demand for a business product is _____ when two or more items are used in combination to
produce a product.
a. inelastic
b. joint
c. fluctuating
d. derived
e. partnered
b
As it places its order for truck tires with Michelin, South Side Industrial Supply realizes that it
must also place an order for valve stems and balancing weights for the truck tires. Such business
products are characterized as having ____________ demand.
a. derived
b. inelastic
c. joint
d. fluctuating
e. higher
c
When certain consumer products are in high demand, producers might buy extra materials
and equipment and when demand subsides, producers will cut back on their material
purchases. This describes _____ demand.
a. joint
b. inelastic
c. consumer
d. fluctuating
e. derived
d
Most business buying decisions are made by
a. one person.
b. a team of purchasing agents.
c. a firm's buying center.

d. inventory control personnel.

e. the sales force.
c
The group of people within a business who are involved in making business buying decisions is
referred to as
a. the new-task team.
b. negotiators.
c. purchasing agents.
d. deciders.
e. the buying center.
e
Administrative assistants that control the flow of information to other people in the
organization often play the _____ role in the buying center.
a. gatekeeper
b. user
c. influencer
d. buyer
e. controller
a
Barry Gluckman of WP International, a major marketer of word-processing software, calls the

secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an
appointment to discuss an upcoming purchase of software. The secretary plays the role of
___________ in this purchase decision.
a. gatekeeper
b. buyer
c. decider
d. buying center captain
e. order giver
a
The stages of the business buying decision process, in order, are
a. recognizing the problem, establishing product specifications, searching for

products and evaluating possible suppliers, selecting suppliers and products, and evaluating
performance.
b. recognizing the problem, searching for products and evaluating possible
suppliers, selecting suppliers and products, establishing product specifications, and evaluating
performance.
c. recognizing the problem, selecting suppliers and products, evaluating performance, establishing

product specifications, and searching for substitute products.

d. establishing product specifications, recognizing the problem, searching for
products, evaluating possible products and suppliers, selecting suppliers and products, and
evaluating performance.
e. establishing product specifications, searching for products, selecting suppliers
and products, evaluating performance, recognizing the problem, and evaluating
possible products and suppliers.
a-- Recognize, establish, search, select, evaluate-- RESSE
The second stage in the business buying decision process is to
a. search for products and suppliers.

b. select the most appropriate product.
c. develop product specifications.
d. evaluate product and supplier performance.
e. recognize the problem.
c
In its purchase of desktop business computers, Albertson's asked that potential suppliers
provide information only on units with 2.0 gigabytes of memory. As Albertson's management
evaluates this purchase, it finds that 2.0 gigabytes are inadequate for many of the software
programs used at Albertson's. In this instance, the firm would need to modify which aspect of
the purchase process?
a. Searching
b. Specification development
c. Alternative evaluation
d. Selection
e. Performance evaluation
b
After deciding to order replacement parts for aging machinery, the buyer for a construction
company examines catalogs and trade publications looking for these parts. The buyer is at which
stage in the business buying decision process?
a. Problem recognition
b. Product specification
c. Product-supplier search and evaluation
d. Product-supplier selection
e. Product-supplier post-evaluation
c

The third stage in the business buying decision process is to
a. evaluate product specifications to solve the problem.

b. evaluate products relative to specifications.
c. select and order the most appropriate product.
d. evaluate product and supplier performance.
e. search for products and suppliers.
e
Christy Bridgman is considering the purchase of a new fax machine for her real estate office.
She is considering a machine that doesn't have as many functions but is available at a considerably
lower price than her current machine. She is engaged in ___________ analysis.
a. vendor
b. downsizing
c. strategic
d. value
e. profit
d
During the search for products and evaluating possible suppliers stage of the business
buying decision process, marketers sometimes use _________ analysis to examine the
quality, design, materials, and possibly item reduction in order to acquire the product in the
most cost-effective way.
a. cost
b. value
c. profit
d. strategic
e. SWOT
b
___________ analysis is a systematic evaluation of current and potential suppliers that

focuses on many dimensions including price, product quality, delivery service, product
dependability, and overall company reliability.
a. Value
b. Vendor
c. Buying center
d. Strategic
e. Cost
b

An organization that decides to buy all of a certain part from the same company is using
a. single-supplier purchasing.
b. multiple sourcing.
c. same vendor analysis.
d. straight rebuy.
e. sole sourcing.
e
What are the four major categories of factors that influence business buying decisions?
a. Environmental, organizational, interpersonal, and individual

b. Environmental, organizational, psychological, and individual
c. Environmental, psychological, individual, and technological
d. Technological, organizational, environmental, and interpersonal
e. Environmental, organizational, technological, and individual
a -- EOII
Individual influencing factors refer to
a. relationships among those in the firm's buying center.

b. uncontrollable environmental forces.
c. the power an individual controls in the buying center.
d. personal characteristics of individuals in the buying center.
e. activities of suppliers.
d
A buyer for Macy's Department Stores orders handbags from a supplier because that
supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase
notice. This is an example of ___________ influence on the business buying decision
process.
a. environmental
b. organizational
c. interpersonal
d. individual
e. demographic
b
Input-output analysis is most likely to yield what type of information?
a. Number of employees that a firm has

b. Industries that purchase the major portion of an industry's output
c. Kinds of returns a firm is getting on its equipment investments
d. Type of inventory turnover that is characteristic of a firm
e. Kinds of variables that would be used to segment the target market
b

Chapter 10—Product, Branding, and

Packaging Concepts
When a hair stylist cuts your hair, this is an example of a(n):
a. service.
b. good.
c. business product.
d. process material.
e. idea.
correct: a
feedback: . A haircut is an intangible result (page 201).
When a consumer says that she will only buy Anne Klein blouses and will not even
consider purchasing a different brand, then for this consumer these blouses are an
example of a(n):
a. convenience product.
b. specialty product.
2
c. unsought product.
d. staple.
e. shopping product.
correct: b
feedback: Correct.
Rose oil and jasmine are examples of ________ in making perfume.

3
a. process materials

b. MRO
c. raw materials
d. business services
e. component parts
correct: c
feedback: . These are the basic natural materials that actually become part of a physical
product (page 206).
When Ford Motor Co. uses Firestone tires on its Explorer SUVs, these tires are an
example of a(n):
a. component part.
b. process material.
4
c. raw material.
d. MRO.
e. accessory equipment.
correct: a
feedback: . These become part of the physical product and are either finished items ready
for assembly or products that need little processing before assembly (page 206).
All of the products that are sold by 3M company are called 3M's:
a. width of product mix.
b. depth of product mix.

5
c. marketing mix.
d. product mix.
e. installations.
correct: d

feedback: . It is the composite, or total, group of products that an organization makes

available to customers (page 207).
"7Up" is an example of a(n):
a. logo.
b. brand mark.
6
c. MRO.
d. brand preference.
e. brand name.
correct: e
feedback: . It is the part of a brand that can be spoken (page 213).
A _______ is the full and legal name of an organization.
a. brand
b. brand mark
7
c. trademark
d. trade name
e. brand name
correct: d
feedback: . It is the complete name of the business, such as Ford Motor Company, rather
than the name of a specific product (page 213).
When a buyer knows about a particular brand and considers it a viable purchase, this is
an example of:
8 a. brand licensing.
b. brand franchising.

c. co-branding.
d. brand insistence.
e. brand recognition.
correct: e
feedback: . This occurs when a customer is aware that the brand exists and views it as an
alternative purchase (page 215).
If a consumer goes to the supermarket to purchase toothpaste and says to herself: "If
they have Crest, I will buy it, but if they do not, I will buy Colgate instead," this consumer
is experiencing:
a. brand insistence.
b. brand preference.
9
c. brand recognition.
d. brand marking.
e. MRO.
correct: b
feedback: . The customer definitely prefers one brand over competitive offerings and will
purchase this brand if it is available (page 216).
If a consumer says to herself, "I will only buy Calvin Klein jeans," this consumer is
experiencing:
a. brand preference.
b. MRO.
10
c. brand insistence.
d. trademarking.
e. brand recognition.
correct: c
feedback: . The customer strongly prefers a specific brand and will accept no substitute

(page 216).
14. A (n) ____ is a concept, philosophy, or image.

product a.
good b.
idea c.
service d.
issue e.
ANS: C
15.According to the text, a product is defined as
anything the customer receives in an exchange. a.
the physical object the customer receives in an exchange. b.
the service that is rendered to a customer. c.
the idea that the customer receives in an exchange. d.
goods and services the customer receives in an exchange. e.
ANS: A
16. To make intangible products more tangible or real to the consumer, marketers often
use low prices on intangible goods. a.
use symbols or cues to help symbolize product benefits. b.
use external reference prices. c.
use multiple channels of distribution. d.
offer more support services with such products. e.
ANS: B
17. Which of the following best illustrates how a firm can use a symbol to make an intangible product more
tangible?
McDonald's arches a.
Mercedes Benz emblem b.
Nike swoosh c.
Traveler's Insurance umbrella d.
Arrows on Wrigley gum packages e.
ANS: D
18. A light bulb can be considered all of the following except
a consumer product. a.
a business product. b.
either a consumer product or a business product. c.
a business product if it is used to light an assembly line in a factory. d.
a consumer product if it is used to light the office of the board of directors. e.
ANS: E
19. Products are classified as being business or consumer products according to the

goals of the organization. a.

buyer's intended use of the product. b.
seller's intended use of the product. c.
location of use. d.
types of outlets from which they are purchased. e.
ANS: B
20. Which of the following is most likely to be considered a convenience good?
A lamp a.
A haircut b.
Running shoes c.
Gatorade d.
Concert tickets purchased online e.
ANS: D
21. Energizer batteries would be classified as which type of product?
Convenience a.
Shopping b.
Specialty c.
Unsought d.
Industrial service e.
ANS: A
22. Products which are relatively inexpensive and frequently purchased with minimal effort are classified as
____ products.
shopping a.
convenience b.
industrial c.
specialty d.
unsought e.
ANS: B
23. Convenience products are
relatively inexpensive, frequently purchased items for which buyers exert only a.
minimal purchasing effort.
frequently purchased items for which buyers are willing to exert considerable b.
effort.
frequently purchased items that are found in certain retail outlets. c.
items that are expensive but are easy to purchase. d.
items that require some purchase planning and for which the buyer often will not e.
accept substitutes.
ANS: A
24.Products for which buyers are willing to spend much time comparing stores and brands for differences in prices,
product features, and services are called ____ products.
shopping a.
specialty b.
service c.

convenience d.
unsought e.
ANS: A
25. Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates
and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for
service. For Shannon, this flight is an example of which type of product?
Shopping a.
Convenience b.
Specialty c.
Unsought d.
Industrial e.
ANS: A
26. Shopping products have a ____ inventory turnover and need ____ distribution outlets than convenience
goods.
similar; more a.
higher; fewer b.
higher; more c.
lower; more d.
lower; fewer e.
ANS: E
27. Buyers do not compare alternatives when shopping for ____ products.
convenience a.
specialty b.
shopping c.
unique d.
unsought e.
ANS: B
28. The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell
Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they
arrive. For Gwen, Blue Bell represents a(n) ____ product.
convenience a.
shopping b.
specialty c.
unsought d.
durable e.
ANS: C
29.David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the
"special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an
example of a(n) ____ product.
shopping a.
unique b.
specialty c.
historical d.

unsought e.
ANS: C
30. When a sudden problem confronts a consumer, such as emergency automobile repair, he or she is likely
going to view solutions to that problem as
specialty products. a.
installations. b.
unsought products. c.
shopping products. d.
convenience products. e.
ANS: C
31. Nick Arnold's Auto Towing Service would best be described as a(n) ____ product.
convenience a.
unsought b.
specialty c.
durable d.
shopping e.
ANS: B
32. Business products are
purchased for personal consumption. a.
chosen on the basis of preferences expressed by a business procurement b.
department.
purchased for both their functional aspects and their psychological rewards. c.
classified according to their characteristics and intended uses. d.
not purchased by nonbusiness organizations. e.
ANS: D
33. Facilities, factories, and production lines with very large equipment are all classified as
accessory equipment. a.
permanents. b.
installations. c.
component parts. d.
MRO facilities. e.
ANS: C
34.As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you
have purchased can best be classified as a
raw material. a.
processed component. b.
component part. c.
service. d.
business product. e.
ANS: E
35. An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on
this information, pencils in this case would be considered what type of product?
Business a.
Process materials b.
Raw material c.
Convenience d.
Consumer e.
ANS: A
36. Business products are classified into the following seven categories according to characteristics and intended
uses: raw materials, installations, accessory equipment, component parts, process materials, business
services, and
production activities. a.
service assistance. b.
specialty industrial products. c.
computer programming and operation services. d.
MRO supplies. e.
ANS: E
37. Minerals, chemicals, timber, and agricultural products are considered
process materials. a.
accessory materials. b.
MRO supplies. c.
component parts. d.
raw materials. e.
ANS: E
38. A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer
is an example of which type of business product?
Raw material a.
Installations b.
Accessory equipment c.
Component part d.
Process material e.
ANS: C
39.Although they become part of a larger product, ____ can often be easily identified and distinguished on the
larger product.
component parts a.
accessory parts b.
raw materials c.
process materials d.
MRO supplies e.
ANS: A
40. A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of
a(n)
component part. a.
specialty item. b.
accessory equipment. c.
raw material. d.

process material. e.
ANS: A
41. The intangible products that most organizations use in their operations are called
component parts. a.
MRO supplies. b.
process ideas. c.
business services. d.
installations. e.
ANS: D
42. Products used directly in the production of a final product but are not easily identifiable are categorized as
accessory products. a.
component parts. b.
MRO supplies. c.
assembly components. d.
process materials. e.
ANS: E
43. A product item is best described as a
component of a marketing mix. a.
particular brand. b.
specific characteristic of a product. c.
specific version of a product. d.
unit of measure for the product. e.
ANS: D PTS: 1 DIF: Moderate
44. Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products.
These products make up Sara Lee's product
line. a.
item. b.
mix. c.
width. d.
depth. e.
ANS: C
45. A product line is defined as
products that can be designated as a unique offering among the organization's a.
products.
products that an organization makes available to consumers. b.
a group of closely related products that are considered a unit because of marketing, c.
technical, or end-use considerations.
a specific group of products that are offered to the market. d.
products that are sold by the same firm or a division of a firm. e.
ANS: C
46. A product mix is best described as
all products offered by a firm. a.
product, distribution, promotion, and price. b.

many products sold by one firm. c.

all products of a particular type. d.
a group of closely related products that are considered a unit because of market, e.
technical, or end-use considerations.
ANS: A
47. Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of
width of product mix. a.
product mix consistency. b.
depth of product mix. c.
a market mix. d.
a promotion mix. e.
ANS: C
48. The depth of a product mix is measured by the average number of
convenience products as compared with the number of specialty products. a.
different product lines offered by the company. b.
different products offered in each product line. c.
specialty products as compared with the number of convenience products. d.
product features that the company offers. e.
ANS: C
49. Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses,
Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix
width. a.
depth. b.
length. c.
volume. d.
life cycle. e.
ANS: B
50.One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite
luggage. These various offerings exhibit this firm's product mix
width. a.
depth. b.
length. c.
volume. d.
dimension. e.
ANS: A
51. The width of a product mix is measured by the number of product
dimensions in the product line. a.
features in each brand. b.
items in the product line. c.
lines a company offers. d.
specialties a company offers. e.
ANS: D

52. The four major stages of a product life cycle include

prosperity, recession, depression, and recovery. a.
specialty, convenience, shopping, and unsought goods. b.
decline, stabilization, exposure, and growth. c.
introduction, growth, maturity, and decline. d.
awareness, interest, trial, and adoption. e.
ANS: D
53. Sales start at zero and profits are negative during the ____ stage of the product life cycle.
decline a.
growth b.
initial c.
maturity d.
introduction e.
ANS: E
54. During the introduction stage of a successful product, profits are usually
at their highest point. a.
negative and decreasing. b.
negative and increasing. c.
positive and increasing. d.
declining. e.
ANS: C
55.Which of the following is the most typical example of a new product introduction?
Pringles sold in snack-sized containers a.
A brand-new nut discovered in Africa b.
A car that uses no oil or gasoline c.
Shoes that literally make you run faster d.
A device that cools your car while parked outside e.
ANS: A
56. In which stage of the product life cycle do profits peak?
Introduction a.
Growth b.
Decline c.
Termination d.
Maturity e.
ANS: B
57. In which stage of the product life cycle do profits begin to decrease?
Introduction a.
Growth b.
Maturity c.
Decline d.
Recovery e.
ANS: B

58. Which stage of the product life cycle begins when a business reaches the breakeven point with the product?
Maturity a.
Growth b.
Introduction c.
Market testing d.
Decline e.
ANS: B
59. Which stage in the product life cycle is critical to a product's survival because competitive reactions to the
product's success during this period will affect the product's life expectancy?
Decline a.
Expansion b.
Growth c.
Introduction d.
Stabilization e.
ANS: C
60. Aggressive pricing is typical during the ____ stage of the product life cycle.
decline a.
growth b.
introduction c.
plateau d.
stabilization e.
ANS: B
61. Which of the following tactics would typically be employed when a product is in the growth stage of its life
cycle?
Lowering prices after developmental costs have been recovered a.
Raising promotion expenditures as a percentage of total sales b.
Moving from intensive to selective distribution c.
Raising prices to encourage competitors to enter the market d.
Reducing the number of product models in the product line e.
ANS: A
62. When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a
sign of being in the ____ stage of the product life cycle.
maturity a.
growth b.
introduction c.
market reduction d.
decline e.
ANS: A
63. During the maturity stage
product modifications are unnecessary. a.
there is less emphasis on changing a product's price. b.
marketing strategies are rarely altered. c.

some competitors are forced out. d.

limited advertising expenditures are required to maintain market share. e.
ANS: D
64. Which stage of the product life cycle is characterized by intense competition?
Decline a.
Plateau b.
Introduction c.
Maturity d.
Stabilization e.
ANS: D
65. When banks add new services during the maturity stage, the objective they are most likely trying to achieve
is
pruning items from the product line. a.
generating cash flow. b.
maintaining their market share. c.
filling geographic gaps. d.
increasing their share of the customer. e.
ANS: E
66. Sales usually start to decline during the ____ stage of the product life cycle.
beginning of the termination a.
end of the growth b.
beginning of the decline c.
beginning of the growth d.
end of the maturity e.
ANS: E
67. When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product
being in the ____ stage of the product life cycle.
introduction a.
growth b.
stabilization c.
maturity d.
decline e.
ANS: D
68. Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance
from the producer?
Maturity a.
Growth b.
Introduction c.
Market reduction d.
Decline e.
ANS: A

69. The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures
and more price flexibility for the various types of blades offered. Based on this example, razor blades are in
the ____ stage of the product life cycle.
decline a.
evaluation b.
growth c.
introduction d.
maturity e.
ANS: E
70. Dish Network satellite TV cut back advertising expenditures to minimum levels and reduced the number of
channel members for its industrial satellite product. These actions indicate that its product is in the ____
stage of its life cycle.
introduction a.
growth b.
maturity c.
early d.
decline e.
ANS: E
71.The stage of the product life cycle when marketers consider eliminating products that are not contributing to
profitability or the overall effectiveness of a product mix is the ____ stage.
maturity a.
decline b.
growth c.
introduction d.
reorganization e.
ANS: B
72. Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing
expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the ____
stage of the product life cycle as possibilities for elimination.
not yet developed a.
growth b.
introduction c.
maturity d.
decline e.
ANS: E
73. A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing
expenditures and realign its marketing mix to one that requires fewer resources. This approach is called
harvesting. a.
investing. b.
realigning. c.
divesting. d.
mixing. e.

ANS: A
74. When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its
marketing support from these declining products, an approach known as
harvesting. a.
divesting. b.
investing. c.
realigning. d.
squashing. e.
ANS: B
75. Which of the following best defines the interest stage in the product adoption process?
The buyer tries to find the product in a retail store. a.
The buyer considers the benefits and determines whether to try the product. b.
The buyer tries the product to determine its usefulness. c.
The buyer seeks information and is receptive to learning about the product. d.
The buyer uses objective sources to learn about the product. e.
ANS: D
76. As Jessica enters Best Buy's car electronics department, she is asked by the salesperson if she has seen the
new plug-in cell phones with TV display. She answers that she didn't know that this type of phone accessory
for cars was available. Based on this information, she is now in what stage of the product adoption process
for this item?
Awareness a.
Interest b.
Evaluation c.
Trial d.
Adoption e.
ANS: A
77. Which of the following is not a stage in the buyer's product adoption process?
Awareness a.
Adoption b.
Trial c.
Exploration d.
Interest e.
ANS: D
78. When Saturn offers to let qualified buyers test drive the new Saturn SKY roadster, the dealer is trying to
stimulate which stage of the product adoption process?
Awareness a.
Interest b.
Evaluation c.
Trial d.
Adoption e.
ANS: D
79. When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective
customers into the ____ stage of the product adoption process.
awareness a.

interest b.
evaluation c.
trial d.
adoption e.
ANS: D
80. An individual knows that a product exists, but has little information regarding the product and does not seek
additional information. In what stage of the product adoption process is that person?
Trial a.
Adoption b.
Interest c.
Awareness d.
Evaluation e.
ANS: D
81. When an individual considers whether a product will meet certain criteria that are critical for meeting his or
her needs, in what stage of the product adoption process is this individual?
Interest a.
Awareness b.
Evaluation c.
Trial d.
Adoption e.
ANS: C
82. An individual moves into the adoption stage of the adoption process at the point when he or she
is self-motivated to get information about the product. a.
begins using that specific product. b.
seriously considers whether the product will satisfy his or her needs. c.
experiences the product for the first time. d.
becomes aware that the product exists. e.
ANS: B
83. Depending on the length of time it takes them to adopt a new product, people can be divided into five major
adopter categories: early adopters, early majority, late majority, laggards, and
late adopters. a.
nonadopters. b.
innovators. c.
middle adopters. d.
middle majority. e.
ANS: C
84. The last group to adopt a new product, ____, is oriented toward the past and is suspicious of new products.
non-adopters a.
laggards b.
innovators c.
late adopters d.

late majority e.
ANS: B
85. When Jones' Soda launched its Turkey Gravy flavored soda, it was hoping to take advantage of the short-
lived clear-products fad. By the time it launched the soda, the fad for quirky soda flavors had already waned,
and customers were no longer clamoring for these type of products. The reason this product failed is
poor timing. a.
the company's failure to match product offerings to customer needs. b.
ineffective branding. c.
design problems. d.
overestimation of market size. e.
ANS: A
86.All of the following are reasons why new products fail except
overestimated market size. a.
followed a systematic plan. b.
distributed insufficiently. c.
had poor timing. d.
promoted poorly. e.
ANS: B
87. The part of a brand that can be spoken including letters, numbers, and words is the
brand. a.
brand mark. b.
brand name. c.
trade name. d.
trademark. e.
ANS: C
88. Kleenex Boutique is a brand ____ of tissues made by the Kimberly-Clark Corporation.
mark a.
identification b.
name c.
guarantee d.
type e.
ANS: C
89. McDonald's golden arches are a classic example of a
brand. a.
brand symbol. b.
brand name. c.
brand mark. d.
trademark. e.
ANS: D
90. A distinguishing factor between a brand name and a brand mark is that a brand name
creates customer loyalty. a.
consists of words. b.
identifies only one item in the product mix. c.

is registered with the U.S. Patent and Trademark Office. d.

implies an organization's name. e.
ANS: B
91. Healthy Choice is a ____ manufactured by ConAgra Foods, which is a ____.
brand mark; trade name a.
brand name; trade name b.
trade name; brand c.
brand name; trademark d.
brand mark; trademark e.
ANS: B
92. A trademark signifies

that the owner has exclusive use of a brand and others are prohibited from using it. a.
that a product was manufactured by a particular company. b.
the full and legal name of an organization. c.
the level of quality of a product based on its legally protected rights. d.
the inventive use of a brand name or brand mark to identify a company's products. e.
ANS: A
93. Brand ____ is a customer's favorable attitude toward a specific brand and, depending on its strength, some
likelihood of the consistent purchase of this brand.
loyalty a.
equity b.
awareness c.
personality d.
quality e.
ANS: A
94. The three levels of brand loyalty from strongest to weakest are
preference, insistence, recognition. a.
insistence, recognition, preference. b.
insistence, preference, recognition. c.
recognition, preference, insistence. d.
insistence, preference, indifference. e.
ANS: C
95. Melissa needs some spaghetti sauce and always buy Ragu. However, her local supermarket is out of Ragu
and since Melissa wants to get home to cook dinner she settles for Prego. Melissa has brand ____ for Ragu
and brand ____ for Prego.
insistence; recognition a.
insistence; preference b.
loyalty; preference c.
preference; recognition d.
preference; loyalty e.
ANS: D
96. Which of the following products is an example of a manufacturer brand?

Sears Kenmore washing machines a.

JC Penney jeans b.
Kmart tires c.
Pioneer stereos d.
Safeway tomato sauce e.
ANS: D
97. Private distributor, generic, and manufacturer are the three types of
equity. a.
brands. b.
producers. c.
packaging. d.
trade names. e.
ANS: B
98. A ____ brand usually requires a producer to become involved in distribution, promotion, and pricing
decisions.
dealer a.
manufacturer b.
private distributor c.
store d.
wholesaler e.
ANS: B
99. Private distributor brands are owned by
manufacturers only. a.
manufacturers and retailers. b.
wholesalers only. c.
manufacturers and wholesalers. d.
wholesalers or retailers. e.
ANS: E
100. A product that is simply labeled with the product category is considered a
private brand. a.
no-name product. b.
generic brand. c.
poor quality item. d.
lean manufacturer brand. e.
ANS: C
101. A product that is simply labeled with the product category is considered a
private brand. a.
no-name product. b.
generic brand. c.
poor quality item. d.
lean manufacturer brand. e.
ANS: C
102. Which of the following should be the least important concern for marketers when selecting a brand name?

Choosing a name that is easy to say and recall a.

Positively suggesting the product's major benefits b.
Designing a name that can be used in all different types of media c.
Developing an advertising campaign to introduce the name d.
Checking to see if the name is already trademarked by another company e.
ANS: D
103. Which of the following is a primary factor specific to services in choosing a brand name?
The service brand is usually the same as the company name so it must be flexible a.
enough to fit several services.
The name must convey an image of great customer service because this is more b.
important for services than for goods.
The name should be distinctive and set the company apart from potential c.
competitors.
Shortness and conciseness are extremely important when choosing brand names d.
for services so that they can easily be remembered.
Service brands are much more difficult to protect legally, so marketers must focus e.
on creating brands with made-up words or a combination of letters and numbers.
ANS: A
104. Besides generic names, what other types of names are very difficult to protect?
Names created by the company a.
Surnames and geographic names b.
Arbitrarily chosen names not related to the product c.
Arbitrarily chosen names related closely to the product d.
Names that contain shapes and colors e.
ANS: B
105. When a firm uses a policy of naming each product differently, this strategy is called ____ branding.
brand-extension a.
family b.
differentiated c.
individual d.
new-product e.
ANS: D
106. R. J. Reynolds markets several brands of cigarettes, including Vantage, Camel, Winston, and Salem. This is
an example of which type of branding policy?
Generic a.
Individual b.
Family c.
Line family d.
Brand extension e.
ANS: B PTS: 1 DIF: Easy

OBJ: 10-07 Identify two types of branding policies, explain brand extensions, co-branding, and brand
licensing. NAT: AACSB: Analytic | MKTG: Product

MSC: Application
107. When ____ branding is used, each of a firm's products is branded with at least part of the same name.
individual a.
trademark b.
family c.
selective d.
brand-extension e.
ANS: C
108. When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ____
branding.
brand-extension a.
individual b.
exclusive c.
selective d.
existing e.
ANS: A
109. When a firm uses an existing brand name as part of a brand name for a new product, this is called ____
branding.
brand-extension a.
licensed b.
family c.
individual d.
new-product e.
ANS: A
110. An agreement in which one company allows another to use its brand on other products for a fee is called
co-branding. a.
brand extension. b.
brand licensing. c.
trademark licensing. d.
cooperative branding. e.
ANS: C
111. If Ralph Lauren, a designer of fine clothing, authorized Dan River Mills to market a line of sheets under the
Ralph Lauren name this arrangement is an example of
brand extension. a.
brand licensing. b.
product continuation. c.
private branding. d.
individual branding. e.
ANS: B
112.To use co-branding effectively, which one of the following is probably least important?
The brands involved should represent a complementary fit in a customer's mind. a.
The brands that are teamed together should not lose their individual identities. b.
The brands involved should be owned by two or more organizations. c.
To avoid confusion on the part of customers, co-branding should be done in a way d.
so that it is obvious which brand is the main brand or key brand.
The co-branded product should be able to benefit from the distribution system of e.
both brands involved.
ANS: C
113. When a product tries to capitalize on the brand equity of two separate brands, marketers are using
licensing. a.
dual-branding. b.
partnerships. c.
brand extension. d.
co-branding. e.
ANS: E
114. The development of a container and graphic design for a product is called
licensing. a.
labeling. b.
preparing. c.
packaging. d.
distributing. e.
ANS: D
115. In marketing, family packaging means
packaging products in a quantity suitable for use for an average-sized family. a.
putting a set of related products all in the same package. b.
making all of a company's or product line's packaging look similar. c.
putting the same brand name on all a company's products. d.
designing and selling only products that are related. e.
ANS: C
116. The most important function of packaging is
offering convenience to customers. a.
protecting the product and maintaining its functionality. b.
covering the product. c.
communicating information to the customer. d.
attracting the attention of the customer. e.
ANS: B
117. Packaging is most important, as a strategic tool, for
consumer convenience products. a.
consumer shopping products. b.
industrial products. c.
consumer specialty products. d.
services. e.
ANS: A

118. The spray bottle for Windex Glass Cleaner could be considered a secondary-use package because
its shape is ideal for multiple-unit packaging. a.
glass cleaner works on chrome as well as glass. b.
the spray nozzle has an adjustable valve. c.
customers can reuse it for other purposes. d.
it has a shape similar to other glass cleaner bottles. e.
ANS: D
119. A secondary-use package is defined as one that
can be used as a promotional tool. a.
can be reused for purposes other than its initial use. b.
facilitates transportation, storage, and handling for middlemen. c.
is recyclable and environmentally safe. d.
promotes an overall company image. e.
ANS: B PTS: 1 DIF: Difficult
120. ____ packaging means that the product is packaged in line with the packaging practices associated with a
particular product category.
Category-consistent a.
Category-specific b.
Innovative c.
Multiple-category d.
Selective e.
ANS: A
121. A no-drip spout on a bottle of liquid Tide laundry detergent is an example of ____ packaging.
category-consistent a.
innovative b.
traditional c.
secondary-use d.
convenience e.
ANS: B
122. Multiple packaging is
likely to decrease serving size. a.
the same as family packaging. b.
likely to increase demand. c.
the most effective type of packaging for decreasing demand. d.
the most expensive type of packaging. e.
ANS: C
123. Nathan recently purchased a floor lamp from Wal-Mart. The floor lamp came in a compact cardboard box
and assembly was required. This is an example of ____ packaging.
secondary-use a.
multiple b.
category-consistent c.
innovative d.
handling-improved e.

ANS: E
124. Packaging that is designed to flow through the distribution channel easily is called ____ packaging.
category-consistent a.
multiple b.
innovative c.
handling-improved d.
logistic e.
ANS: D
125. Labeling is important for three specific reasons, including promotional and legal reasons. What is the third
reason?
Marketing a.
Branding b.
Strategy c.
Informational d.
Packaging e.
ANS: D
126. Federal laws require the disclosure of nutritional information on labels. So far, evidence on this matter
indicate that consumers regularly use the information. a.
have been conducted only by the federal government. b.
have shown mixed results about the use of this information. c.
prove that labels are necessary only for promotional reasons. d.
indicate that consumers do not use the information. e.
ANS: C
127. Garments must be labeled with the country of manufacture, fabric content, and
clothing style. a.
size. b.
inspection code. c.
care instructions. d.
universal product code. e.
ANS: D
128. The Fair Packaging and Labeling Act focuses on the voluntary adoption of packaging standards by firms
within industries. It also provides enforcement power to the Federal Trade Commission and the Food and
Drug Administration, and establishes
mandatory labeling requirements. c.
designated package sizes for certain product categories. d.
packaging regulations from the Consumer Product Safety Commission. e.
ANS: C
Scenario 1
Use the following to answer the questions.

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on
their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women
were forced to use razors designed primarily for men, but often marketed to women by offering them in
different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the
Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and
other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce
new versions of the Venus, such as the Venus Embrace, which has additional blades and other
modifications.
129. Refer to Scenario 11.1. Shaving razors fall into which of the following classification of consumer products?
Convenience products a.
Shopping products b.
Substitute products c.
Specialty products d.
Accessory equipment e.
ANS: A
130. Refer to Scenario 11.1. When Gillette developed the Venus razor in 1998, in which stage of the product life
cycle was the Venus?
Introduction a.
Growth b.
Profit c.
Maturity d.
Decline e.
ANS: A
131. Refer to Scenario 11.1. Molly has been using a Bic disposable razor for her shaving needs for the last ten
years. She doesn't really see the need to spend more money on razors, but she sees that it is becoming more
difficult to find the Bic, and so she is considering the Venus Embrace. Molly is definitely not a(n) ____ in
the product adopter categories, and is more likely to be ____.
innovator; an early adopter a.
early adopter; an innovator b.
early majority; an early adopter c.
innovator; an early majority d.
innovator; a late majority e.
ANS: E
132. Refer to Scenario 11.1. Tasha is shopping for personal care items at her local Target. She walks by one aisle
and sees a floor-standing display for the new Venus Embrace. She hadn't thought about buying a new razor,
but the display has caught her attention. Which stage of the product adoption process is Tasha most likely in
at the present time?
awareness a.
attention b.
evaluation c.
trial d.
adoption e.
ANS: B
Scenario 2
Use the following to answer the questions.
Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers
travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet
offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is
equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel.
Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-
located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are
limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago.
Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares
and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while
the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greyhound's traditional
line is that there are more departure times and more stops in smaller towns along the way.
133. Refer to Scenario 11.2. What product(s) is Megabus marketing?
Megabus is a service and therefore is not marketing a product. a.
The ride between cities is a service product and is the only one Megabus is b.
marketing.
The ride between the cities, which is the core product, plus the supplemental c.
features of Wi-Fi, video screens, and other technology.
The ride between cities, which is a convenience product. d.
The ride between cities, which is a shopping product. e.
ANS: C
134. Refer to Scenario 11.2. When Greyhound launched the BoltBus and NeOn bus lines, this is an example of
a branding extension. a.
co-branding. b.
an extension in the width of the product mix. c.
an extension in the depth of the product mix. d.
family branding. e.
ANS: C
135. Refer to Scenario 11.2. Casey is searching the website of Megabus.com for the schedule and fares of a trip
between Buffalo, NY and New York City. Case is most likely in which of the following stages of the
product adoption process?
adoption a.
trial b.
evaluation c.
interest d.
awareness e.
ANS: D
136. Refer to Scenario 11.2. Megabus is most likely in which of the following stages of the product life cycle?
Introduction a.
Growth b.
Maturity c.
Decline d.
Rejection e.
ANS: A

‫ابراهيم السلمان‬ ‫رضا الوالدين والصاله والدعاء مفتاح كل نجاح‬

TRUE / FALSE (Q)
137. A product need not be a physical product.
ANS: T PTS: 1 DIF: Easy

OBJ: 10-01 Understand the concept of a product and how
products are classified.
NAT: AACSB: Reflective Thinking | MKTG: Product MSC:
Knowledge
138. A service is intangible and is the result of the application of human

or mechanical efforts to people or objects.
ANS: T
139. Supporting services, such as installation and guarantees, are part of
a product.
ANS: T
140. The core product element of the total product can include
installation, delivery, training, and financing.
ANS: F
141. Use of the product is the most important means of distinguishing
consumer products from business products.
ANS: T
142. The two major product categories are business and institutional.
ANS: F

143. Bread is usually a convenience product.

ANS: T
144. Consumers are reluctant to purchase substitute brands if a desired
brand of a convenience product is unattainable.
ANS: F
145. Buyers want to exert only minimal effort to obtain shopping
products.
ANS: F
146. Obtaining a specialty product involves a considerable amount of

comparison activity.
ANS: F
147. Component parts usually need to be processed significantly before
they are used in production.
ANS: F
148. Process materials are used directly in the production of products.
ANS: T
149. A product line is a particular version of a product that can be
designated as a distinct offering on the organization's list of products.
ANS: F
150. A product line includes a group of closely related product items
that are considered to be a unit because of marketing, technical, or end-
use considerations.
ANS: T
151. Product mix refers to a related group of products in the product
line.
ANS: F
152. The depth of a product mix is measured by the average number of
product types in a product line.
ANS: T
153. The width of a product mix refers to the number of generic
products offered by a company.
ANS: F
154. A product mix is the composite or total group of products that an
organization makes available to customers.
ANS: T
155. Procter & Gamble has a wider product mix than does Baskin
Robbins.
ANS: T
156. Many products never get beyond the introduction stage.
ANS: T
157. Communicating product benefits to consumers is very important in
the introduction stage.
ANS: T
158. New products seldom generate enough sales to bring immediate

profits.
ANS: T
159. Price cuts are typical in a product's growth stage.

ANS: T
160. Intensive competition causes price increases during the growth

stage of the product life cycle.
ANS: F
161. Distribution outlets become more difficult to secure during the

growth stage of a product's life cycle because of aggressive competition.
ANS: F
162. Profits decline in the maturity stage, largely because of increased
competition.
ANS: T
163. A seller's profits peak in the maturity stage of a product's life cycle.

ANS: F
164. Sales peak in a product's maturity stage.
ANS: T
165. Many products are in the maturity stage of the product life cycle.
ANS: T
166. The marketing mix should be left alone during the maturity stage
of the product life cycle; tampering with it may bring an early death to
the product.
ANS: F
167. During a product's maturity stage, all sales promotion efforts are
focused on consumers.
ANS: F
168. A business can justify keeping a product as long as it contributes to

profits or enhances the effectiveness of a product mix.
ANS: T
169. Sometimes new marketing channels open up in the decline stage.

ANS: T
170. Promotion decreases in importance during a product's decline

stage.
ANS: T
171. Sellers can sometimes prolong a product's life cycle.
ANS: T
172. When an organization introduces a new product, people do not all
begin the adoption process at the same time, nor do they move through
the process at the same speed.
ANS: T

173. Trial is the first stage of the product adoption process.

ANS: F
174. In the awareness stage of the product adoption process, the buyer
seeks information about the product.
ANS: F
175. "The people to check with" are the early adopters.
ANS: T
176. The first adopters of a product are the innovators.
ANS: T
177. Early adopters are the first group of consumers to adopt a new
product.
ANS: F
178. Laggards are the last to adopt a new product and usually distrust
new products.
ANS: T
179. One of the most common reasons new products fail is because of a
company's failure to match product offerings to customer needs.
ANS: T
180. The success of launching a new product is based primarily on luck.

ANS: F
181. If a company repositions a relative product failure, that product

might become a successful member of the product line.
ANS: T
182. A brand name is the part of the brand that is spoken.

ANS: T
183. Brand preference is the strongest form or degree of brand loyalty.

ANS: F
184. Brand recognition exists when a customer is aware that the brand
exists and views it as an alternative to purchase if the preferred brand is
unavailable or if the other available brands are unfamiliar to the
customer.
ANS: T
185. Brand preference is a degree of brand loyalty in which a customer
definitely prefers one brand over competitive offerings and will
purchase this brand if available.
ANS: T
186. Brand equity is a customer's favorable attitude toward a specific
brand and, depending on strength, some likelihood of consistent
purchase of the brand when needs for a product in this product category
arise.
ANS: F
187. Four major elements underlie brand equity including brand name
awareness, brand loyalty, perceived brand quality, and brand
associations.
ANS: T
188. Brand equity helps give a brand the power to capture and maintain
a consistent market share, which provides stability to an organization's
sales volume.
ANS: T
189. Apple Computer is an example of a manufacturer brand.
ANS: T
190. Competition between manufacturer brands and private distributor
brands is becoming more intense in several major categories.
ANS: T
191. A generic brand indicates only the product category.
ANS: T
192. A brand name should indicate the product's major benefits.
ANS: T
193. Marketers may use brand names that have absolutely no meaning
to avoid negative connotations.
ANS: T
194. Family branding occurs when all of a firm's products are branded
with all or part of the same name.
ANS: T
195. Individual branding facilitates market segmentation.
ANS: T
ANS: T
197. The brands used for co-branding cannot be owned by the same
company.
ANS: F
198. Co-branding capitalizes on the trust that customers have in both
companies involved, especially when the brands complement one
another in the mind of the buyer.
ANS: T
199. Brand licensing gives a company the ability to gain more revenue
and low-cost or free promotional exposure.
ANS: T
200. A Jeep leather jacket is an example of brand licensing.
ANS: T
201. Individual branding facilitates market segmentation.
ANS: T
ANS: T
203. The brands used for co-branding cannot be owned by the same
company.

ANS: F
204. To gain customer acceptance, the two brands involved in co-
branding must represent a complementary fit in the minds of buyers.
ANS: T
205. Co-branding capitalizes on the trust that customers have in both
companies involved, especially when the brands complement one
another in the mind of the buyer.
ANS: T
206. Brand licensing gives a company the ability to gain more revenue
and low-cost or free promotional exposure.
ANS: T
207. Packages are always secondary ingredients of a marketing strategy.
ANS: F
208. Package characteristics shape buyer impressions of a product
during use.
ANS: T
209. The basic purpose of packaging is to create eye appeal.
ANS: F
210. Family packaging cannot be used for individual product lines; it
must apply to the entire product mix of the firm.
ANS: F
211. A package can be used to attract customers' attention.
ANS: T
212. The Cool Whip container is an example of a secondary-use
package.
ANS: T
213. The crush-proof cylinder package for Pringle's potato chips is an
example of innovative packaging.
ANS: T
214. Labels facilitate product identification.
ANS: T

215. Labeling and packaging are closely interrelated.

ANS: T
216. The instruction "Refrigerate after opening" on a salad dressing
label is an example of the descriptive function of labeling.
ANS: T
217. Nutritional information on labels is required by law, though
consumers are indifferent to its availability.
ANS: F
218. The Food and Drug Administration requires that food processors
indicate the amount of carbohydrates, calories, and fat in a product.
ANS: T
219. The Federal Trade Commission is solely responsible for
establishing and enforcing packaging regulations.
ANS: F
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Any group of people who, as individuals or as organizations, have needs for products in a
product class and who have the ability, willingness, and authority to buy such products is
a(n)
a) business market.
b) market.
c) undifferentiated market
d) segmented market
e) market variable
b) market. :: ‫االجابة هنا‬
Which of the following is not a characteristic of a consumer market?

a) it consists of purchasers who intend to consume or benefit from the purchased
products
b) they do not buy products for the main purpose of making a profit
c) they are sometimes referred to as B2C markets
e) each of us belongs to numerous markets of this type
Which of these statements is not true about business markets?

a) the purchase may be made to resell the item
c) the purchase may be made to use in general daily operations
d) the purchase may be made to use in production of another product
e) they can also be referred to as organizational markets
Which of the following is not a requirement or characteristic of a market?

a) The ability to purchase a product
c) The authority to buy a product

d) The willingness to use buying power
e) The need for a specific product in a specific product category
In order to be considered a market, people do not have to have

a) a need or desire for a particular product.
b) the ability to purchase the product.
d) the willingness to use their buying power.
e) the authority to buy the specific products.
Consumers that do not own dogs are not likely to be in the market for dog food because
a) they lack the authority to purchase the dog food.
b) they do not possess the buying power for purchasing dog food.
c) their ability to purchase the dog food is questionable.
e) they are willing to use their buying power.
The ability to purchase a product is a function of

a) buying power.
b) desire.
c) willingness.
d) authority.
e) needs.
a) buying power.
Adolescents are not considered part of the market for casinos because they
a) have very little buying power.
b) do not have the desire to gamble.
c) are not willing to spend their money on gambling.
d) cannot afford to gamble their savings.
Generally speaking, individuals who are unemployed would not be considered a target market
for Mercedes or other luxury European import sedans because
a) they would not desire such products.

b) they would not be willing to purchase such products.
d) such markets are narrowly defined geographically.
e) they are not authorized to purchase such products.
Sixteen-year-old high school students do not form a market for alcoholic beverages because
they
a) lack sufficient buying power to form a market.
c) do not want to purchase this type of product.
d) do not have sufficient experience with this type of product.
e) lack the money to purchase this type of product.
When marketing research shows that a group of people does not desire a particular product,
the people in that group
a) are a market.
b) do not have the ability to purchase the product.
c) do not have the authority to purchase the product.
e) are a market but will not purchase the product.
The first step in the target market selection process is

a) determining which segmentation variables to use.
b) selecting specific target markets.
d) evaluating relevant market segments.
To find a target market, a firm can use the

a) total market strategy and the undifferentiated strategy.
b) product differentiation strategy and the customer differentiation strategy.
c) demographic strategy and the psychographic strategy.
d) socioeconomic strategy and the psychological strategy.
e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.
e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be
most appropriate in this case?
a) Concentrated
b) Differentiated
c) Wide appeal
d) Undifferentiated
e) Clustered
d) Undifferentiated
When a firm designs a single marketing mix and directs it at an entire market for a particular
product, the company is using a(n) _________ strategy.
a) concentrated targeting
b) differentiated
c) heterogeneous market
d) undifferentiated
e) single mix
d) undifferentiated
Why would a company use the undifferentiated strategy?

a) The needs of individual consumers are dissimilar, and distinctive marketing mixes are
required to satisfy them.
b) The undifferentiated strategy is the one strategy that provides maximum satisfaction to
the whole market.
c) The needs of individual consumers in the target market for a specific product are
similar, so the organization can satisfy most customers with a single marketing mix.
d) The undifferentiated strategy is expensive to implement but tends to produce the most
sales.
e) The undifferentiated strategy requires less time and fewer resources
c) The needs of individual consumers in the target market for a specific product are similar, so
the organization can satisfy most customers with a single marketing mix.
When the needs of individual consumers in a target market for a specific product are similar
and the organization can satisfy most customers with a single marketing mix, the best
approach to use may be the ___________ strategy.
a) undifferentiated
b) differentiated
c) segmented
d) concentrated
e) heterogeneous

a) undifferentiated
Which of the following statements about the undifferentiated targeting strategy is false?
a) The undifferentiated targeting strategy should be used when the needs of individual
customers are similar.
b) The undifferentiated targeting strategy uses one promotional program aimed at
everyone in the target market.
c) The undifferentiated targeting strategy is good for use with staple items, such as sugar
and salt.
d) The undifferentiated targeting strategy uses multiple distribution systems to best reach
individuals in the target market.
e) The opposite of the undifferentiated targeting strategy is the differentiated targeting
strategy.
d) The undifferentiated targeting strategy uses multiple distribution systems to best reach
individuals in the target market.
The ProMark Company manufactures and sells only one type of ballpoint pen at just one price.
All its advertising is the same and is directed at the mass market. What type of targeting
strategy is the ProMark Company using?
a) Extensive
b) Undifferentiated
c) Concentrated
d) Intensive
e) Differentiated
b) Undifferentiated
Marketers for C & H Sugar believe that consumers have similar needs for the product. C & H will
most likely use a(n) ___________ approach in defining a target market.
a) undifferentiated
b) differentiated
c) product strategy
d) cost-benefit
e) demographic
a) undifferentiated
If Morton Salt saw all table salt customers as pretty much alike and thus offered only one
marketing mix, it would be using the ___________ strategy.
a) directed
b) undifferentiated
c) segmented

d) differentiated
e) product-use
b) undifferentiated
A market in which a large proportion of customers have similar needs for a product is called
a(n) _____ market.
a) undifferentiated
b) heterogeneous
c) homogenous
d) differentiated
e) concentrated
a) undifferentiated
The undifferentiated targeting strategy for finding a target market will likely not be successful
if
a) product positioning is needed.
b) the firm defines the total market as its target market.
d) people within the market have homogeneous needs.
e) the firm is capable of developing a single marketing mix that satisfies all people's
needs.
Most markets for products are made up of individuals or groups with diverse needs for
products and are called ________ markets.
a) undifferentiated
b) concentrated
c) homogenous
d) differentiated
e) heterogeneous
e) heterogeneous
Toyota has learned that some people want sports cars, while others want vans, trucks, sedans,
and economy cars. In this instance, Toyota has found its markets to be
a) heterogeneous.
b) undifferentiated.
c) concentrated.
d) homogeneous.
e) focused.
a) heterogeneous.

Individuals, groups, or organizations with one or more similar characteristics that cause them
to have similar product needs are classified as
a) market segments.
b) heterogeneous markets.
c) concentrated markets.
d) demographic segments.
e) strategic segments.
a) market segments.
Mattel views the toy market as composed of four age groupings, each with different needs and
desires. Each of these groups are known as
a) an undifferentiated market.
b) heterogeneous.
d) a marketing mix.
e) a concentrated market.
The purpose of market segmentation is to

a) differentiate products.
b) divide a total market to enable a marketer to develop a more precise marketing mix.
c) reduce the overall cost of marketing activities.
d) identify a single marketing mix that will be satisfactory for the general market.
e) meet the needs of homogeneous markets.
b) divide a total market to enable a marketer to develop a more precise marketing mix.
The process of dividing a total market into market groups because people within each group
have relatively similar product needs is called
a) segmentation.
b) diversification.
c) target marketing.
d) concentration.
e) customization.
a) segmentation.
Several conditions must exist for market segmentation to be successful. These conditions
include all of the following except
a) the total market should be divided so that segments can be compared on sales

potential, costs, and profits.
c) the company must be able to reach the chosen segment with a particular marketing
mix.
d) segments must be identifiable and divisible.
e) at least one segment must have enough profit potential to justify developing and
maintaining a special marketing mix for that segment.
A business advantage of the concentrated targeting strategy for any company is that it
a) requires less market research and information.
b) requires less intensive analysis of customers' characteristics and needs.
c) allows a firm to utilize all of its production capacity.
d) maintains the firm's flexibility in moving into other market segments.
A targeting strategy in which an organization targets a single market segment using one
marketing mix is called a(n) _____ strategy.
a) selective
b) focused
c) differentiated
d) concentrated
e) undifferentiated
d) concentrated
When markets are comprised of people with differing product needs, the marketing manager
should use a(n) ___________ strategy.
b) market-intensive
c) integrated
d) product-oriented
e) undifferentiated
A disadvantage of the concentrated targeting strategy is that

a) the firm's financial condition is tied to a single and specialized marketing mix.
b) large sales volumes cannot be generated.
c) production costs may be higher than with other strategies.
d) marketing personnel may become dissatisfied with the limited opportunities provided

by this approach.
e) marketing costs are often higher than for other strategies.
the firm's financial condition is tied to a single and specialized marketing mix.
If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more
than $250,000, it would be using a(n) ___________ strategy.
a) homogeneous
b) undifferentiated
c) multisegmented
d) concentrated
e) stratified
d) concentrated
Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-
quality products and a well-known brand name. It uses the same marketing mix to reach
this market. Tiffany's uses a(n) ______ strategy.
a) undifferentiated
b) differentiated targeting
c) exclusive targeting
d) heterogeneous
Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories using a
single marketing mix and is therefore most likely using a(n) _____ targeting strategy.
a) concentrated
b) differentiated
c) exclusive
d) focused
e) undifferentiated
a) concentrated
The primary advantage of a concentrated targeting strategy is

a) it meets the needs of a wide range of consumers.
c) it is more flexible than any other approach.
d) it is the least risky targeting approach.
e) its customers are the most willing to repurchase the same brands.

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to
families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry
detergents.
a) multiuse
b) differentiated
c) stratified
d) undifferentiated
e) concentrated
b) differentiated
. Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young
singles. What targeting approach is Volkswagen using?
a) Concentrated
b) Strategic
c) Differentiated
d) Undifferentiated
e) Multisegmented
c) Differentiated
A targeting strategy in which an organization directs its marketing efforts at several segments
is called a(n) ___________ targeting strategy.
a) differentiated
b) total market
c) concentrated
d) undifferentiated
e) integrated
a) differentiated
Which of the following products is most likely to be marketed, using an undifferentiated

approach?
a) bicycle
b) computer
c) notebook
d) seasoning salt
e) oscillating fan
d) seasoning salt

After a firm has identified an appropriate targeting strategy, the next step in the target market
selection process is
a) determining the demographic variables of the target market.
b) developing market segment profiles.
e) evaluating relevant market segments.
Characteristics of individuals, groups, or organizations that are used for dividing a total market
into smaller homogeneous groups are called ___________ variables.
a) marketing
b) classification
c) segmentation
d) stratification
e) dividing
c) segmentation
Age, rate of product use, location, and gender are all examples of common
a) demographic variables.
b) geographic characteristics.
c) targeting strategies.
Segmentation variables are usually grouped into four categories:

a) demographic, geographic, religion, and income.
b) geopolitical, income, behavioristic, and psychographic.
c) attitudes, lifestyles, behaviors, and gender.
d) geographic, demographic, psychographic, and attitudes.
Which of the following is not one of the major categories of consumer market segmentation
variables?
a) Demographic characteristics
b) Geographic variables
c) Psychographic dimensions

e) Behavioristic characteristics
Alpine Ski Shops U.S, is looking for new markets. Since their market is based mainly on access
to snow, they would most likely use which base for segmentation?
a) behavioristic
b) demographic
c) psychographic
d) environmental
e) geographic
e) geographic
McDonald's uses a segmentation strategy for its sandwiches based on market characteristics
such as age, gender, or income. Which of the following segmentation variables is
McDonald's using?
a) Demographic
b) Geographic
c) Psychographic
d) Product-related
e) Education
a) Demographic
With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically
designed for women. This is an example of market segmentation using ___________
variables.
a) demographic
b) psychographic
c) geographic
d) family life cycle
e) product use
a) demographic
Kelly's Kids is a home-based business that sells high-quality children's clothing at premium
prices using in-home parties. These in-home parties typically cater to families with small
children and middle- to upper-middle-class income. Kelly's Kids is using _____ variables
to segment its market.
a) demographic
b) psychographic
c) sociographic

d) behavioristic
e) geographic
a) demographic
Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers
have used segmentation based on
a) age.
b) education.
c) product use.
d) gender.
e) income.
d) gender.
A marketer that targets customers based on marital status and the presence and age of
children is using
b) lifestyle variables.
c) psychographic variables.
e) phase of life segmentation.
Which of the following products is most likely to have its market segment based on age?
a) Bass shoes
b) Lipton Iced Tea
c) Bic pens
d) Legos
e) Carpet
d) Legos
If Campbell were to offer single serving "Soup for One" packages to small household markets, it
would be using segmentation based on
a) income.
b) ethnicity.
c) taste.
d) geographic considerations.

Which of the following products is least likely to be segmented according to stages in the
family life cycle?
a) Single-family homes
b) Ford automobiles
c) European vacations
d) Diet Coke
e) General Electric appliances
d) Diet Coke
Family life cycle is most typically based on

a) income.
b) geographic location.
d) occupation.
e) buying power.
Population density and city size are _______ variables used for market segmentation.
a) geographic
b) demographic
c) psychographic
d) environmental
e) geodemographic
a) geographic
Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the North. Which
of the following segmentation variables is Zerex using?
a) Demographic
b) Psychographic
c) Life cycle
d) Geographic
e) Product use
d) Geographic
Many marketers are concerned about the number of potential customers within a certain area
of land because of the different requirements to serve dissimilar areas. What is this
segmentation variable called?
a) Micromarketing
b) Population
c) Market density

d) MSA
e) PMSA
c) Market density
Subaru is producing a new crossover van with all-wheel drive. Which of the following would be
a likely variable for segmenting the market for this new model?
a) Religion
c) Income
d) Political views
e) Ethnicity
Systems such as PRIZM and Acorn provide companies with lifestyle and demographic
information about neighborhoods throughout the United States. This information is used
to aid
c) market density analysis.
d) demographic segmentation.
e) geographic segmentation.
Justin Franklin's company is interested in locating areas where the average income is high, the
average age range is 25-35 years, and the lifestyles of the people involve extreme
adventures and dangerous leisure activities. His company would most likely find possible
markets through
a) U.S. Census Bureau information.
b) geographic segmentation variables.
d) climate information.
e) psychographic segmentation.
Micromarketing is
a) a market segmentation approach in which firms focus precise marketing efforts on very
small geographic markets.
b) developing a very specific marketing mix that will effectively meet the needs of only a
small segment of the market.
c) marketing efforts that are tightly controlled by high-level executives in the

organization.
d) a way to segment the market to meet the needs of individuals with the same motives
and personality attributes.
e) creating advertising that is so specific to a certain type of individual that few people
outside that micromarket will respond to the message.
a) a market segmentation approach in which firms focus precise marketing efforts on very
small geographic markets
Retail-site location analyses, unique product offerings, and special advertising campaigns are
all examples of the use of
a) market density.
b) demographic segmentation.
c) behavioristic segmentation.
d) environmental segmentation.
e) micromarketing.
e) micromarketing.
Which of the following is the biggest drawback to using psychographic variables?

a) They are not strongly reflective of consumer behavior.
c) They give poor information about consumer needs.
d) They do not reflect socioeconomic characteristics of consumers.
e) The resulting segments are difficult to be reached.
The three most commonly used psychographic segmentation variables are

a) personality, perception, and learning.
b) personality, perception, and behavior.
c) motives, attitudes, and lifestyles.
d) attitudes, personality, and perception.
When research indicated that Bluetooth's products were not reaching the correct target market,
marketers of Bluetooth decided to change from demographic segmentation to
psychographic segmentation. Which group of new segmentation variables will Bluetooth
now be using?
a) Geographic location of customers
b) Age, sex, and socioeconomic characteristics
c) Social class variables

e) Family life cycle, social class, and religion
When using personality characteristics as a market segmentation variable, marketers generally

a) conduct personality assessments of their potential target market to determine which
personality characteristics they possess.
b) use research developed by clinical psychologists to determine which personality
characteristics consumers using their products are most likely to have.
c) use generic characteristics that all members of the population have.
d) use a positively viewed characteristic they assume much of their target market has or
would like to have.
e) conduct a series of focus groups to determine both the positive and negative
characteristics members of their target market are perceived to have.
d) use a positively viewed characteristic they assume much of their target market has or would
like to have.
The psychographic variable that includes numerous characteristics related to people's activities,
interests, and opinion is
a) motive.
b) social class.
c) personality.
d) stage in family life cycle.
e) lifestyle.
e) lifestyle.
If a company segments its market on the basis of their reasons for purchasing a particular
product, the primary segmentation variable in use is
a) lifestyle.
b) motives.
c) personality.
d) benefit expectations.
e) personality attributes.
b) motives.
Demographic variables such as income and occupation, as well as how people spend their time
and the importance of things in their surroundings, are all factors considered in ______
segmentation.
a) psychographic
b) social class

c) lifestyle
d) personality
e) family life cycle
c) lifestyle
A widely used system for classifying individuals on the basis of lifestyle is

a) VALS.
b) PRIZM.
c) CMSA.
d) LIFO.
e) Prospect Zone.
a) VALS.
Which of the following is an example of a behavioristic segmentation variable?

a) Family size
b) Climate
c) Age
d) Usage rate
e) Personality characteristics
d) Usage rate
Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of
its alcoholic beverages. This is an example of market segmentation based on
b) benefits.
c) lifestyles.
e) demographic variables.
End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market
segmentation.
a) psychographic
b) usage
c) demographic
d) geodemographic
e) behavioristic
e) behavioristic

Alli segments its diet pills based on those who have morning cravings, those who tend to
overeat near the end of the day, those who need all day long appetite suppression, and
those who want appetite control and more energy. This is an example of market
segmentation based on variables of
a) demographics.
b) lifestyles.
c) psychographics.
d) behavior.
e) personality characteristics.
d) behavior.
The division of a market according to what benefits consumers want from the product is called
______ segmentation.
a) behavioristic
b) product usage
c) benefit
d) end-purpose
e) advantage
c) benefit
Variables such as geographic location, type of organization, customer size, and type of product
usage are used to segment ___________ markets.
a) consumer
b) business
c) government
d) international
e) most target
b) business
Dell segments its business markets into small business, corporate, government agencies, K-12
schools, and higher education institutions. The primary segmentation variable used in this
example is
c) secondary product use.
d) customer size.

Which of the following variables would most likely be used to segment a business market?
a) An attitude of the company's CEO
c) The lifestyle of the company's buying agent
d) Net income generated by the company
e) Common opinions of the company's employees
Through marketing newsprint to newspaper publishers and glass manufacturers that use it in
packing, International Paper segments its market based on
a) customer size.
b) psychographics.
c) demographics.
d) use of product.
e) geographic location.
d) use of product.
Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have
different needs for the steel and thus Bethlehem has to prepare the raw steel differently
depending on how customers will use it in their production processes. The primary
business segmentation variable in this example is
b) customer size.
c) product use.
d) customer importance.
e) organization classification.
c) product use.
After an organization has determined which of the many segmentation variables it will use, the
next step in the target market selection process is
a) evaluating each of the relevant market segments.
b) selecting the specific target markets.
c) reviewing the appropriate marketing strategy.
d) analyzing the interaction between segmentation variables.
__________ describe the similarities among potential customers within a market segment and
explain the differences among people in different market segments.
a) Market segmentation variables

c) Segmentation grids
d) Market differentiation indexes
e) Market concentrations
Yvonne and Garret are looking at information about how their organization's products could fit
potential customers' needs. This information deals with demographic characteristics,
product benefits sought, lifestyles, geographic factors, brand preferences, and usage
rates. They are most likely looking at
a) the sales force survey results.
b) the results of sales forecasting.
c) a market trend analysis.
d) a market segmentation discrimination analysis.
The total volume of a product, for all firms in an industry, that would be purchased by specific
customer groups within a specified time period at a given level of industry-wide
marketing activity, is the
a) competitor sales potential.
b) sales objective.
c) forecasted sales.
The maximum percentage of market potential that an individual firm can expect to obtain for a
specific product is the
a) sales forecast.
d) company sales objective.
e) market share goal.
General Electric calculates that the total number of light bulbs sold to consumers in the next
year by all light bulb producers is 1 billion, given anticipated marketing efforts by the
firms involved. This figure represents the industry's
a) sales potential.

c) target growth rate.
d) sales forecast.
e) sales objective.
If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the
United States, this percentage would represent the ice cream marketer's
a) target growth rate.
b) sales forecast.
c) sales objective.
Using the breakdown approach to sales potential, estimates are made

a) by referring to specific geographic factors.
b) by establishing levels of marketing effort that will be required to achieve specific levels
of sales.
c) without reference to industry marketing efforts.
d) without reference to general economic conditions.
The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years
will be difficult because of an economic recession. Using this forecast, he determines the
effect on the industry's market potential and then estimates how his company's potential
sales will look based on this outlook. This manager is using a _________ approach to
estimating sales potential.
a) breakdown
b) recessionary
c) buildup
d) pyramid
e) dimensional
a) breakdown
Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how
much fiberglass insulation he intends to use in building homes during the next year.
Albert then multiplies that number by the total number of builders in the territory. He is
using a ___________ approach to measure sales potential.

a) multivariable
b) use of product
c) breakdown
d) regression
e) buildup
e) buildup
The buildup approach measure of sales potential

a) starts with broad estimates of general economic activity.
b) ends with an estimate of a single firm's sales of a specific product.
c) starts with forecasts about demand for a specific product within a relatively small area.
d) does not use sales estimates.
e) is seldom employed by industrial firms.
c) starts with forecasts about demand for a specific product within a relatively small area.
When evaluating market segments, assessment of competitors is important because

a) it is difficult to segment a market when it has multiple competitors.
b) an absence of competitors usually creates difficulties in accurately measuring segment
sales potential.
c) sales estimates may cause a segment to appear to be lucrative, but there may be
several competitors that together have a large share of that segment.
d) a competitive analysis may lead to confusion as to who are the key competitors.
e) competition is generally not a major problem as long as a marketer is aware of it.
c) sales estimates may cause a segment to appear to be lucrative, but there may be several
competitors that together have a large share of that segment.
Estimating the cost of entering a market and focusing on a specific target segment is important
because
a) cost estimates are crucial to estimating sales potential accurately.
b) higher costs will keep other potential competitors from entering that particular
segment.
c) customers are more likely to be attracted to marketers that invest heavily in the target
segment.
d) the organization's marketers need to know if they can reach the segment at costs equal
to or below competitors' costs.
e) higher cost generally ensures long-term success.
d) the organization's marketers need to know if they can reach the segment at costs equal to or
below competitors' costs.

The final step in the target market selection process is
a) implementing the appropriate marketing mix for the target market.
b) evaluating relative market segments.
c) eliminating market segments that are cost prohibitive.
e) revising the final segmentation variables based on target selection.
Frito-Lay Snack Foods is currently conducting market segmentation studies. For several
segments, they have completed competitive assessments and cost estimates. The next
major step they must take is to
a) determine which segmentation variables to use.
b) develop market segment profiles.
c) identify the appropriate targeting strategy.
e) develop sales forecasts.
When a marketer is engaged in the target market selection process and has assessed relevant
market segments by considering such factors as sales estimates, competition, and
estimated costs, the marketer is ready for the next step, which is to
a) identify the appropriate targeting strategy.
b) determine which segmentation variables to use.
c) develop market segment profiles.
d) evaluate relevant market segments.
When selecting specific target markets, a firm should

a) revert to an undifferentiated approach if the market is deemed heterogeneous.
b) choose the segments most in line with the firm's objectives and long-term growth.
c) choose all segments that are determined to be profitable for the organization.
d) choose the minimum number of segments necessary to achieve company sales
potential.
e) pick the segments with the best sales forecasts for the upcoming period of time.
b) choose the segments most in line with the firm's objectives and long-term growth.
. Evaluating and making product positioning decisions is important for

a) new products only.
b) existing products only.

d) product deletions only.
e) new products and product deletions.
Product positioning refers to

a) the area in retail stores in which the manufacturer strives to position its products.
b) product price but not to product image.
c) product image but not to product price.
d) the decisions and activities intended to create and maintain a certain concept of the
firm's product in customers' minds.
e) the length of time a product has survived in the market.
d) the decisions and activities intended to create and maintain a certain concept of the firm's
product in customers' minds.
All of the following statements about product positioning are true except
a) product positioning decisions are not only for new products.
b) product positioning is the customer's absolute perception of a product's attributes.
c) effective product positioning helps serve a specific market segment by creating an
appropriate concept in the minds of customers in that market segment.
d) product positioning is concerned with creating and maintaining a certain concept of the
firm's product in customers' minds.
e) when marketers position a product, they try to position it so that it seems to possess
the characteristics the target market desires.
b) product positioning is the customer's absolute perception of a product's attributes.
Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the
consumer. Marketers question a sample of consumers about Sierra Mist and other drinks
on two different dimensions. They will most likely put this information into a _____ to
show Sierra Mist's position.
a) perceptual map
b) ideal cluster
c) product position chart
d) market graph
e) product matrix
a) perceptual map
If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is
referred to as ___________ positioning.
a) direct

b) focused
c) head-to-head
d) avoidance
e) parallel
c) head-to-head
Positioning a product to avoid competition may be best when the

a) competing products are priced higher than or at least equal to the new product.
b) company has an established reputation with the consumers of that particular market.
c) market is characterized by consumers who are not sensitive to price or value.
d) market is characterized by consumers who are price conscious and brand specific.
e) product's performance characteristics are not significantly different from those of
competing brands.
e) product's performance characteristics are not significantly different from those of competing
brands.
When a company is introducing a new brand in a market where it already has one or more
brands, which type of product positioning is most likely to be used?
b) Head-to-head competition
c) Parallel positioning
d) Segmented positioning
e) Counter positioning
If a company extends a line of products by introducing a new product to the market, and the
firm does not distinctly position this product (i.e., separately from the other products in
the line), the result could be
a) poor product positioning.
b) product deletion.
c) product repositioning.
d) cannibalization.
e) new-product development.
d) cannibalization.
In the context of marketing, cannibalization means

a) one company eating up another company's market share.
c) a product is past its prime and should be deleted from the product mix.

d) a company illegally uses copyrights and patents from another company.
e) sales of a new product may exceed sales of an older, more established product.
Guess? will be spending $22 million on marketing activities next year and expects to sell 30
million pairs of jeans. These 30 million pairs represent the company's
a) sales potential.
c) sales forecast.
d) market sales.
e) selected market.
c) sales forecast.
The amount of product a company expects to sell during a specific period at a specified level of
marketing activity is called the
a) company sales potential.
b) revenue estimate.
c) company sales prediction.
d) market potential.
e) sales forecast.
e) sales forecast.
All of the following are categories of common forecasting techniques for business except
a) surveys.
d) executive judgment.
e) market tests.
Relying on executive judgment for forecasting may be adequate when

a) levels of marketing efforts put forth by competitors vary considerably.
b) recent events give the executive specific impressions of product demand.
c) product demand is erratic.
d) the executive conducts surveys.
e) the executive has considerable experience and product demand is relatively stable.
e) the executive has considerable experience and product demand is relatively stable.

Intuition and expediency are primary characteristics of which of the following sales forecasting
methods?
a) Surveys
c) Cycle analysis
d) Market tests
e) Industry indicators
Company sales forecasts are least likely to be based on

b) customer surveys or sales force surveys.
c) time series analysis.
d) market tests.
When a business has a relatively small number of customers, a preferred method of forecasting
is
b) trend analysis.
d) a market test.
The most important reason that a firm might use a sales force forecasting survey to determine
its sales forecast is
a) salespeople are generally optimistic about the future and will provide excellent forecast
targets.
b) most salespeople tend to have a pessimistic outlook, which is more likely to result in an
achievable sales forecast.
c) this tends to be the fastest way to determine a good sales forecast for the upcoming
period.
d) the averaging and other statistical techniques applied to these forecasts result in
extremely accurate numbers.
e) the sales staff is closer to the actual customers on a regular basis than anyone else in
the organization.
e) the sales staff is closer to the actual customers on a regular basis than anyone else in the
organization.

When a company has its sales forecasts prepared by management consultants, economists, or
college professors, it is using a(n)
b) Delphi technique.
c) random factor analysis.
d) external judgment survey.
e) market test.
Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major
objective is to
a) allow an opportunity to obtain diverse expert opinions.
c) reach an accurate sales forecast through the use of multiple sales forecasting
techniques.
d) determine if the expert forecasting survey is superior to regression analysis.
e) assess the extent to which this year's sales forecast is more accurate than that of
previous years.
The forecasting techniques that assume past sales patterns will continue into the future are all
variations of
b) random factor analysis.
c) seasonal analysis.
e) past sales forecasting surveys.
A forecasting method that predicts sales based on relationships between past sales and other
variables is called
b) customer forecasting surveys.
d) random factor analysis.

While developing a company sales forecast at Safeway, Barb Herrington discovered a pattern in
sales volume over the past five years. She likely used which sales forecasting technique?
a) Surveys
d) Market tests
Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company
sales, she finds a direct association between past sales and per capita income. Which sales
forecasting technique is Katy using?
a) Surveys
d) Market tests
The sales prediction technique based on the correlation between sales and other factors—such
as population density, per capita income, or family size—is
d) a market test.
e) an expert survey.
The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up
with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a
period of four months. In this instance, Sara Lee is using which forecasting method?
b) Market test
c) Executive judgment
e) Survey
b) Market test
The sales forecasting method that consists of making a product available to buyers in one or
more locations and measuring purchase response is

a) a market test.
b) regression analysis.
c) trend analysis.
d) a survey.
e) the Delphi technique.
a) a market test.
The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's
sales volume over time is
a) the regression method.
b) customer forecasting.
c) a market test.
d) sales force forecasting.
In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the
last three years and calculates a growth trend. Henry is employing which forecasting
method?
bExecutive judgment
c) Surveys
e) Market tests
Which of the following sales forecasting techniques would generally be most suitable for
estimating sales of a new product?
a) Executive judgment
b) Customer surveys
d) Market tests
e) Regression methods
d) Market tests
Which of the following forecasting methods is least dependent on historical sales data?
a) Regression analysis
b) Trend analysis

d) Cycle analysis
e) A market test
e) A market test
What is the main problem with using a market test as a forecasting tool?
a) Difficult to interpret
b) Expensive
c) Inaccurate
d) Unacceptable to consumers
e) Overused
b) Expensive
T F A market is a group of people who, as individuals, have needs for products in a product
class and have the ability, willingness, and authority to purchase such products.
t
T F Individuals' ability to buy depends on the amount of their buying power.

t
T F The four requirements of a market are that the individuals in the market must have a need
for the product and the ability, willingness, and authority to buy it.
t
T F A person who has buying power also has the authority to buy.
f
T F The five-step process usually used for target market selection includes identifying the
appropriate targeting strategy, determining which segmentation variables to use,
developing market segment profiles, evaluating relevant market segments, and deciding
which targeting strategy to use.
f
T F There are only two basic strategies for selecting target markets: the undifferentiated
targeting strategy and the concentrated targeting strategy.
f
T F A company sometimes defines a total market as its target market.

t

T F One condition for effective segmentation is that at least one segment must have substantial
profit potential.
t
T F A firm using a concentrated targeting strategy aims its marketing activities at one segment
of a market.
t
T F The undifferentiated strategy can be effective for an organization that has a homogeneous
market and can develop and maintain a single marketing mix.
t
T F An undifferentiated targeting strategy does not target a single market with one marketing
mix.
f
T F The concentrated targeting strategy is one in which an organization directs its marketing
efforts toward a single market segment through one marketing mix.
t
T F A differentiated targeting strategy is when the organization targets two or more markets by
developing a single marketing mix.
f
T F Only one variable can be used to segment a market.

f
T F Segmentation variables are characteristics of individuals, groups, or organizations in a total

market.
t
T F A segmentation variable is used to group smaller markets into one larger market.
f
T F Demographic characteristics are commonly used to segment a market because they are
closely related to consumers' product needs and purchasing behavior.
t

T F Family life cycle is a psychological dimension used for segmenting markets.
f
Chapter 11 : pricing Fundamentl

‫ حل السؤال في بداية السؤال‬: ‫مالحظة‬
-------------------------------------------------------------
E ‫االجابة‬

Price is
a) money paid in a transaction.
b) not important to buyers.
c) of limited interest to sellers.
d) the most inflexible marketing mix decision variable.
e) the value that is exchanged for products in a marketing transaction.
d
The oldest form of exchange—trading of products—is known as
a) credit.
b) buying.
c) purchasing.
d) barter.
e) pricing.
d
What do all of the following have in common: tuition, fee, premium, retainer,
dues?
a) They all must be paid in cash.
b) They are forms of exchange similar to, but not identical with, money.
c) They are forms of exchange similar to, but not identical with, barter.
d) They are different terms for the concept of price.
e) They have nothing in common.
d
The tuition and fees each student paid for this semester of college are both
terms for
a) expenses.
b) charges.
c) bills.
d) price.
e) exchange valuations.
b
Which of the following is the most flexible variable in the marketing mix?
a) Product

b) Price
c) Advertising
d) Personal selling
e) Distribution
c
What equation shows organizations the relationship between price and profit?
a) Total Variable Costs + Total Fixed Costs = Sales - Profit
b) Price = Profit per Item × Number of Units Sold
c) (Price × Quantity Sold) - Total Costs = Profits
d) (Price - Profits) × Total Costs = Sales
e) Total Costs = (Price × Quantity Sold) - Profits
d
Price is a key element in the marketing mix because it relates directly to
a) the size of the sales force.
b) the speed of an exchange.
c) quality controls.
d) the generation of total revenue.
e) brand image.
b
In conducting an assessment of her accounting firm, Pauline Santana discovers
the following annual results: average charge per customer = $250; rent =
$12,000; total billings = $150,000; employee compensation and benefits =
$60,000; and other costs = $110,000. Given these results, Mary's profits would
equal
a) a loss of $20,000.
b) a loss of $32,000.
c) $28,000.
d) $40,000.
e) $222,000.
e
Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer
believes that the target market for these ties comprises men who are very

status-conscious. In keeping with this assessment, department stores selling
the ties should
a) charge a price based on their cost.
b) charge prices consistent with their existing ties.
c) discount the ties.
d) negotiate the price with individual tie shoppers.
e) use price symbolically.
a
When marketers emphasize price as an issue and match or beat the prices of
other companies, they are using
a) price competition.
b) nonprice competition.
c) comparative pricing strategies.
d) demand-based pricing.
e) supply-based pricing.
e
Safe Auto advertises its low-cost automobile insurance as "minimum coverage
for minimum budgets." Safe Auto is engaging in
a) non-price competition.
b) demand-based pricing.
c) prestige pricing.
d) price differentiation.
e) price competition.
c
Advertisements for Suave shampoos emphasize that other shampoos may cost
more but don't work any better than Suave. In this example, Suave is competing
on the basis of
a) service.
b) market share.
c) price.
d) selection.
e) packaging.

b
A danger associated with engaging in price competition is that competitors can
also change prices quickly and aggressively, which can result in a(n) _____ that
will be harmful to both companies.
a) reduction in cost
b) price war
c) competitive draw
d) industry collapse
e) advertising battle
b
Sellers that emphasize distinctive product features to encourage brand
preferences among customers are practicing
a) product competition.
b) nonprice competition.
c) brand differentiation.
d) price competition.
e) competitor differentiation.
c
One advantage of nonprice competition is that
a) a firm can react quickly to competitive efforts.
b) market share becomes less important.
c) a firm can build customer loyalty.
d) marketing efforts are completely eliminated.
e) pricing is no longer a factor.
a
Which of the following statements about nonprice competition is false?
a) Companies that use nonprice competition do not need to keep track of their
competitor's prices.
b) A company must be able to distinguish its brand through some unique
feature in order to successfully engage in nonprice competition.
c) A firm using nonprice competition can build loyalty to both its company and
its products.
d) When using nonprice competition, a company should promote the

distinguishing characteristics of its brand.
e) Buyers must view the distinguishing characteristics of a product offered
through nonprice competition as being important.
b
A product under nonprice competition would most likely not succeed in the
market if
a) a new advertising campaign is established for it.
b) it is easy to duplicate.
c) it is packaged differently from similar products.
d) it is priced near the competitors' price.
e) its quality has been upgraded.
e
For most firms in the United States, demand curves are
a) upward sloping.
b) completely horizontal.
c) completely vertical.
d) c-shaped.
e) downward sloping.
a
If Wilson Sporting Goods faces a standard demand curve that exists for most
products, as it raises the price of its tennis rackets, the
a) quantity demanded goes down.
b) demand remains constant.
c) quantity demanded increases.
d) demand increases.
e) breakeven increases.
b
For most products, a(n) ____ relationship exists between the price of a
particular product and the quantity demanded.
a) inelastic
b) inverse
c) positive

d) unknown
e) elastic
e
A graph of the quantity of products marketers expect to sell at various prices if
other factors remain constant is a
a) price graph.
b) supply curve.
c) price/quantity graph.
d) marginal revenue curve.
e) demand curve.
d
When marketers at Consolidated Mustard Company tried to determine demand
for their product, they found that at 50 cents, consumers wanted 2,000 jars; at
$1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can
Consolidated conclude?
a) Consolidated did poor market demand research.
b) Consolidated has an elastic product.
c) Consolidated has an inelastic product.
d) Consolidated mustard is a prestige good.
e) Consolidated mustard has a normal demand curve.
e
French Quarter Inns drops the price of a suite from $225 to $195 per night and
experiences a reduction in the quantity of rooms demanded of an average of
five per night. This is an indication that suites at this hotel are apparently an
example of a(n) ___________ product.
a) reverse-demand
b) inferior
c) standard
d) secondary-demand
e) prestige

What does the demand curve for a prestige product look like?
a) It is a straight line where the quantity sold continues to increase as the price
of each product increases.
b) It is a curve where the highest and the lowest prices yield the greatest
quantity sold and mid-range prices produce the fewest sales.
c) It forms a curve where the greatest quantity sold comes at a medium price
and the quantities fall as the price increases or decreases.
d) It forms a straight vertical line because of the prestige of the product, and
quantity sold will remain stable regardless of the price.
e) It slopes from left to right at a very mild slope; that is, as quantity increases,
price decreases slowly.
c
If Seagram's marketers found that the firm's Crown Royal bourbon was a
prestige product and raised its price, which of the following would most likely
happen?
a) The quantity demanded would immediately fall.
b) The quantity demanded would always increase.
c) Above some price level, the quantity demanded would begin to decrease.
d) The demand curve for the product would always shift to the right.
e) The demand curve for the product would always shift to the left.
b
Which of the following products is most likely to have an inverted C-shaped
demand curve?
a) Levi jeans
b) Giorgio perfume
c) Maxwell House coffee
d) Pillsbury cake mix
e) Ford Taurus
d
A measure of sensitivity of demand in relation to changes in price is
a) a demand curve.
b) a prestige graph.
c) marginal analysis.

d) price elasticity of demand.
e) quantity elasticity.
c
If Carnival Cruise Lines increased the price of its seven-day cruise package by
10 percent and, as a result, experienced a 20 percent decline in customer
bookings, Carnival's demand would be
a) steady.
b) inelastic.
c) elastic.
d) prestige.
e) marginal.
e
Which of the following is most likely to have an inelastic demand curve?
a) Automobile
b) Vacation
c) Nonelective surgery
d) Recreational vehicle
e) Computer
a
If a product has an inelastic demand and the manufacturer raises its price,
a) total revenue will increase.
b) quantity demanded will decrease.
c) the demand schedule will shift.
d) the demand will become more inelastic.
e) total revenue will decrease.
d
Which of the following statements about price elasticity is false?
a) Steak is an example of a product that has an elastic demand for most people,
because when price goes up quantity demanded goes down proportionally
more.
b) Elasticity of demand is the relative responsiveness of a change in quantity
demanded to changes in price.

c) If marketers can determine price elasticity, then setting prices at optimum
levels is much easier.
d) When price is raised on a product that has an inelastic demand, then total
revenue will decrease.
e) A product like electricity has an inelastic demand.
e
If Pacific Power and Light increased its rates 10 percent and experienced only a
2 percent reduction in the demand for power, the demand would be
a) elastic.
b) prestige.
c) common.
d) horizontal.
e) inelastic.
e
Dividing the percentage change in quantity demanded by the percentage
change in price gives the
a) prestige demand curve.
b) breakeven point.
c) marginal cost curve.
d) price sensitivity curve.
e) price elasticity of demand.
a
Marginal analysis involves examining
a) what happens to a firm's costs and revenues when production is changed by
one unit.
b) the extra revenue produced by the sale of one more product.
c) the extra cost incurred by the production of one more unit.
d) the difference between marginal revenue and total revenue.
e) the difference between marginal cost and total cost.

Costs that do not vary with changes in the number of units produced and sold
are called ____ costs.
a) fixed
b) total
c) invariable
d) variable
e) set
c
Which of the following is most likely to be a fixed cost?
a) Component parts
b) Raw materials
c) Rent
d) Electricity
e) Transportation
b
Costs that vary directly with changes in the number of units produced or sold
are called
a) changeables.
b) variable costs.
c) direct costs.
d) fixed costs.
e) marginal costs.
d
If a firm currently produces 2,500 products per month and decides to produce
2,501, it will incur
a) more fixed costs.
b) higher average fixed costs.
c) fewer variable costs.
d) a marginal cost.
e) higher average variable costs.

Roberts Electronics calculates that if it produces 15 radar detectors, its costs
are $1,500, and if it produces 16 radar detectors, its costs are $1,590. In this
instance, $90 is the firm's ___________ cost.
a) average
b) fixed
c) variable
d) marginal
e) average variable
e
If Roberts Electronics finds that the average total cost of its radar detectors
and the marginal cost of its radar detectors are both $85, then
a) its marginal costs are falling.
b) average total cost is at its maximum.
c) average total costs are rising.
d) demand is elastic.
e) average total cost is at its lowest level.
b
Michelin notices that when the number of tires it sells increases from
1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the
firm's
a) average revenue.
b) marginal revenue.
c) price elasticity.
d) average variable revenue.
e) average total cost.
a
At what point does a firm maximize profit?
a) The point at which marginal cost equals marginal revenue
b) The point at which the firm sells its product at the highest price
c) The breakeven point plus the adjusted marginal cost
d) The point at which marginal profits equal marginal revenue
e) The point at which marginal cost equals marginal profits

c
When marginal cost is equal to marginal revenue, the firm should
a) produce more to increase profits.
b) produce less to decrease total costs.
c) stop producing additional units to maximize profits.
d) provide discounts to encourage purchases.
e) intensify distribution to increase sales.
d
If Colgate-Palmolive wants to maximize profit on its toothpaste, it should
operate at the point where
a) total costs and total revenues are equal.
b) marginal revenue is at its highest level.
c) marginal revenue exceeds marginal cost.
d) marginal revenue equals marginal cost.
e) demand is most elastic.
a
At the breakeven point,
a) the money a company brings in from selling products equals the amount
spent producing the products.
b) the total fixed costs are exactly equal to the total variable costs.
c) profits are exactly equal to the difference between revenue and total
variable costs.
d) the marginal revenue of a product is exactly equal to the marginal cost of
producing one more unit.
e) the marginal cost curve and the average cost curve will be identical for a
particular product.
b
The point at which the costs of producing a product equal the revenue earned
from selling the product is
a) elasticity of demand.
b) the breakeven point.
c) variable costs.

d) price elasticity.
e) the sum of fixed and variable costs.
a
Suppose managers at Caterpillar have determined the costs associated with
producing hay balers are equal to the price that they charge for the hay balers.
This indicates that Caterpillar is producing at the ___________ point.
a) breakeven
b) marginal revenue less than marginal cost
c) profit margin
d) competitive price
e) profit maximizing
c
To determine the breakeven point in units, divide the fixed costs by
a) total costs.
b) variable costs time price.
c) price minus variable costs.
d) price per unit.
e) total revenue minus fixed costs.
b
If the product price is $100, average variable cost $40 per unit, and the total
fixed costs are $120,000, what is the breakeven point?
a) 500 units
b) 2,000 units
c) 1,200 units
d) 300 units
e) 3,000 units
a
Markum Industries determines that for its air compressors the following
results are achieved at a price of $250: total costs = $250,000; variable costs
per unit = $100; fixed costs = $175,000. Given these figures, Markum would
break even at ___________ units.
a) 1,167

b) 1,000
c) 1,750
d) 2,500
e) 700
b
A certain location of O'Charley's Restaurant has annual fixed costs of
$200,000. If an average tab at the restaurant is $60 and the variable costs per
tab is $20, how many groups of customers must O'Charley's serve per year in
order to break even?
a) 2,000
b) 5,000
c) 10,000
d) 3,333
e) 2,500
c
The Highland Racquet Club found that with annual fixed costs of $60,000, its
breakeven point is 2,000 members when the membership charge is $60 per
person per year. What is the variable cost per person for Highland?
a) $45
b) $50
c) $30
d) $25
e) $40
e
Below the breakeven point, a firm is operating
a) with fixed costs only.
b) with minimal variable costs.
c) with no revenue.
d) profitably.
e) at a loss.

What assumption does breakeven analysis make that limits its overall
usefulness?
a) It focuses on how to achieve a price objective.
b) It assumes a company wants to gain a certain market share.
c) It relies on demand for a product being inelastic.
d) It focuses only on competitive factors and not costs.
e) It assumes demand is elastic for the product.
e
Which factor is least likely to affect pricing decisions?
a) Competitive prices
b) Legal and regulatory issues
c) Organizational and marketing objectives
d) Customers' interpretation and response
e) Shifting stock values
c
Which of the following is not a major factor for firms making price decisions?
a) Costs
b) Competition
c) Previous sales
d) Channel member expectations
e) Legal and regulatory issues
b
A company trying to position itself as value oriented should not
a) set prices that are reasonable relative to product quality.
b) use premium pricing for its products.
c) set prices similar to those of its competitors.
d) use any advertising for its products.
e) consider costs when determining the price of products.
b
A marketer sometimes uses temporary price reductions to
a) increase the number of competitors.
b) gain market share.

c) decrease volume sold.
d) increase revenue per item.
e) control demand.
a
Temporary price reductions through sales, rebates, and special discounts are
often used to
a) raise cash quickly.
b) decrease costs.
c) increase profitability.
d) run off the competition.
e) create a value image.
d
Marketers generally view _____ as the minimum price a product can be sold
for.
a) fixed costs
b) variable costs
c) profits
d) costs
e) moderate losses
c
In the long run, the J. F. Smucker Company must view ___________ as the
absolute lowest price for its Jif brand peanut butter.
a) a 10 percent return on investment
b) product development costs
c) total costs
d) advertising expenditures
e) Nestlé's prices
c
To maintain market share and revenue in an increasingly price-sensitive
market, companies have focused on quality, used labor-saving technologies,
and used efficient manufacturing processes. These tactics have provided gains
in productivity that have translated into ___________ for the consumer.

a) higher costs for the company and higher prices
b) higher costs for the company and lower prices
c) lower costs for the company and lower prices
d) lower costs for the company and higher prices
e) no change in the costs for either the company or
a
For most consumers, there is an assumed relationship between
a) price and quality.
b) value and cost.
c) internal and external reference prices.
d) value and price consciousness.
e) prestige prices and value.
e
Premium-priced products are usually marketed through
a) complex marketing channels.
b) intensive or selective distribution.
c) exclusive or intensive distribution.
d) exclusive distribution only.
e) selective or exclusive distribution.
c
The type of prices most likely to appear in advertising is
a) prestige.
b) future.
c) bargain.
d) internal reference.
e) cost-plus.
c
The types of prices that appear least often in ads are ___________ prices.
a) reference
b) discount
c) premium

d) comparison
e) sale
b
Which of the following products is most likely to involve personal selling?
a) Blenders
b) Riding lawn mowers
c) Fresh peaches
d) Picture frames
e) Footballs
c
The amount of profit a channel member expects depends on
a) the amount of discounts for large orders provided by the producers.
b) the number of channel support activities provided by the producers.
c) what the intermediary could earn if it were handling a competing product
instead.
d) the type of distribution channels involved.
e) the amount of effort required to carry the product.
c
What a price means or what it communicates to customers is called
a) reference.
b) response.
c) interpretation.
d) internalization.
e) signaling.
a
The degree to which the price of a product enhances a customer's satisfaction
with the purchase experience and with the product after the purchase is part
of their
a) response.
b) reference.
c) interpretation.

d) price satisfaction.
e) price-consciousness.
a
Generally, customers are most likely to rely on the price-quality association
when
a) they cannot judge the quality of the product for themselves.
b) the product is a well-known brand.
c) customers can judge the product's quality for themselves.
d) the product is purchased through the use of the Internet.
e) products are being purchased from well-established retailers that are
familiar to customers.
a
To gain market share, when Hyundai first entered the U.S. car market it did so
with a comparatively low price strategy. One of the negative side effects of
making this pricing decision is
a) a negative impact on consumers' perceptions of quality.
b) competitive matching.
c) a high return on investment level affecting tax balances owed.
d) poor survival chances.
e) higher developmental costs.
e
A price developed in the consumer's mind through experience with the
product is called a(n)
a) external reference price.
b) value-price guideline.
c) frame of reference.
d) internalized price.
e) internal reference price.
e
When a customer is considering the purchase of a product in a less-familiar
product category, that individual is likely to rely more heavily on
a) internal reference prices.

b) symbol prices.
c) high value products.
d) discounted reference prices.
e) external reference prices.
e
Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at
$50.00. Our Price $29.99." This is an example of the use of
a) internal referencing.
b) cumulative discounts.
c) seasonal discounts.
d) base-point pricing.
e) an external reference price.
a
The perception of price depends on a
a) product's actual price and consumers' expectations regarding price.
b) consumer's analysis of competitive prices.
c) consumer's reference price.
d) consumer's expectation of price.
e) product's actual price in comparison with the manufacturer's suggested
price.
c
___________ consumers are concerned about both the price and the quality
aspects of a product.
a) Price-conscious
b) Prestige-sensitive
c) Value-conscious
d) Price-conscious and prestige-sensitive
e) Quality-conscious
d
Buyers who focus on purchasing products that signify prominence and status
are
a) value-conscious consumers.

b) price-conscious consumers.
c) socially elite buyers.
d) prestige-sensitive buyers.
e) brand aware consumers.
e
A customer who is ___________ is likely to say, "People notice when you buy the
most expensive brand of a product."
a) price-conscious
b) quality-conscious
c) value-conscious
d) socially conscious
e) prestige-sensitive
c
ACE Electronics introduces a new voice-activated personal computer that no
longer requires a keyboard. ACE charges the high price of $11,000 per unit,
thus generating large profits because it has a 20 percent market share. ACE's
major problem in the future will most likely be
a) survival.
b) cash flow.
c) competition.
d) return on investment.
e) profit.
b
Monopolies usually keep their prices at a level that generate a reasonable, but
not excessive, return primarily because
a) they want to avoid new competitors entering their market.
b) they want to avoid government regulations on their pricing.
c) they try to satisfy the demands of value-conscious consumers.
d) firms can increase market share more rapidly this way.
e) customers will discontinue use of these products if prices rise.

Marketers have no flexibility in setting prices under conditions of
a) a monopoly.
b) an oligopoly.
c) perfect competition.
d) monopolistic competition.
e) no competition.
a
The ___________ prohibits price fixing among firms in an industry.
b) Federal Trade Commission Act
c) Wheeler-Lea Act
d) Robinson-Patman Act
e) Clayton Act
e
Which of the following acts does not directly affect pricing decisions?
c) Wheeler-Lea Act
d) Clayton Act
e) Simpson-Marshall Act
c
Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit
a) freezing prices.
b) independent pricing policies.
c) deceptive pricing.
d) price fixing.
e) price differentials.
a
If a company provides price differentials that harm competition by giving one
or more buyers a competitive advantage, it is committing
a) price discrimination.
b) price-consciousness.

c) functional discounting.
d) price competition.
e) price fixing.
b
Which of the following prohibits price discrimination that lessens competition
among wholesalers and retailers?
b) Robinson-Patman Act
c) Lanham Trademark Act
d) Federal Trade Commission Act
e) Wheeler-Lea Act
b
Which of the following prohibits price discrimination that lessens competition
among wholesalers and retailers?
b) Robinson-Patman Act
c) Lanham Trademark Act
d) Federal Trade Commission Act
e) Wheeler-Lea Act
d
Provisions of the Robinson-Patman Act, as well as those of the ___________,
limit the use of price differentials.
a) Simpson-Marshall Act
c) Wheeler-Lea Act
d) Clayton Act
e) Sherman Antitrust Act
e
Which of the following is not a discount provided to business customers?
a) Trade
b) Cumulative
c) Cash

d) Seasonal
e) Differentiated
e
What type of discount is given to a business purchaser for performing
activities such as transporting, storing, and selling?
a) Quantity
b) Cash
c) Geographic
d) Service
e) Trade
a
The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line.
Its basic promotional tool is the discount. These discounts offered to
middlemen for performing certain channel activities are referred to as
____________ discounts.
a) trade
b) cumulative
c) noncumulative
d) push
e) intermediary
d
Laura Spangler, of North Central Novelties, reduces the price of games sold to
Robertson's Entertainment by 10 percent to allow for expenses associated with
Robertson's promoting the games to consumers. This is an example of a
___________ discount.
a) quantity
b) cash
c) seasonal
d) trade
e) complementary

If Ralph Lauren offers to reduce the price of its women's blazers when retailers
buy more than 100 pieces, the designer is offering a ____________ discount.
a) quantity
b) cash
c) seasonal
d) trade
e) complementary
c
A deduction from list price for purchasing large quantities aggregated over a
stated period of time is a
a) noncumulative quantity discount.
b) additive cash discount.
c) cumulative quantity discount.
d) cumulative discount allowance.
e) additive quantity reduction.
b
Justin Caprese phones Ben Kirkland of Southside Furniture to inform him that
if he will increase his recent order of 15 mattress sets to 20, he will receive a
14 percent price reduction. This offer is due to a recent overstock condition at
the factory and will not be available in the future. The discount offered here is
a) cash.
b) noncumulative.
c) seasonal.
d) trade.
e) cumulative.
e
Tim O'Brien gets the invoice for a load of gravel he purchased last week. The
price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the
invoice in five weeks, he will owe
a) a penalty.
b) $53.90.
c) $56.10.

d) $58.30.
e) $55.00.
e
If the terms of a business exchange are 2/10 net 30, this means that the
transaction
a) involves a cumulative discount if paid in 30 days.
b) involves a noncumulative discount.
c) offers a discount if the buyer lives within a ten-mile radius.
d) price does not include the cost of freight.
e) involves a cash discount if paid within ten days.
a
A concession in price in business markets to achieve a desired goal is called
a(n)
a) allowance.
b) objective-oriented discount.
c) cash discount.
d) trade discount.
e) cumulative discount.
e
Reductions for transportation and other costs related to the physical distance
between buyer and seller are known as
a) base-point pricing.
b) freight absorption pricing.
c) price zoning.
d) location pricing.
e) geographic pricing.
b
If a retailer orders a quantity of merchandise to be delivered to his store in
Phoenix and is quoted a price that does not include shipping charges, the
retailer is paying a(n) ___________ price.
a) F.O.B. destination
b) F.O.B. factory

c) transfer
d) postage-stamp
e) base-point
e
Rob Johnson orders 16 dozen fishing lures from Strike Right for $375. When
he gets the invoice, he is furious that $25 in freight charges has been tacked
onto his bill because he thought the price included freight costs. Rob should
have been certain that the order terms were
a) F.O.B. origin.
b) F.O.B. factory.
c) C.O.D.
d) 2/10, n/30.
e) F.O.B. destination.
e
The fact that a gas station in Texas pays less for fuel than a gas station in
Maine from a producer in Louisiana suggests that refineries are using which of
the following pricing methods?
a) Price differentiation
b) Base-point pricing
c) Freight absorption pricing
d) Transfer pricing
e) Zone pricing
d
Suppose that the frozen foods division of Swanson purchases food trays and
boxes from the packaging division. The form of pricing used to charge the
frozen foods division is called
a) zone pricing.
b) base-point pricing.
c) business-unit pricing.
d) transfer pricing.
e) price discrimination.

When Cadillac buys headlights from Delco (both of which are divisions of
General Motors), ___________ pricing occurs.
a) base-point
b) zone
c) transfer
d) uniform geographic
e) matrix
a
Which of the following is not a method used to determine transfer prices?
a) Discounted standard cost
b) Actual full cost
c) Standard full cost
d) Cost plus investment
e) Market-based cost
e
Suppose that the watchband department of Timex sells completed watchbands
to the finished watch department. The finished watch department is charged
the price it would have to pay an outside watchband manufacturer less a
discount to reflect low sales and transportation costs. This method of pricing
is called _______ pricing.
a) zone
b) actual full cost
c) standard full cost
d) cost plus investment
e) market-based cost

Chapter 15 : ITEGRATED MARKETING

COMMUNICATION
‫مالحظة حل السؤال في نهاية السؤال‬
The coordination of promotion and other marketing efforts for maximum

informational and persuasive impact defines
a) communication.
b) integrated marketing communications.
c) tactile communication.
d) kinesic communication.
e) proxemic communication.
b
Chris sees a television commercial for Arby's promoting its roast beef sandwiches
at 5 for $5.95. Later that day he goes to the nearest Arby's for a roast beef feast,
but is told that the special offer is not available at that location. Arby's seems to
lack
a) communication.
b) promotional efforts.
c) integrated marketing communications.
d) channel capacity.
e) coordinated awareness.
c
Effective management of integrated marketing communications is based upon

a) consumer attitudes towards promotion.
b) information about customers.
c) the communication process model.

d) budgetary allowances.
e) the firm's organizational structure.
b
If FedEx-Kinko's decided to outsource all of its marketing efforts to the MaxPro

Company, which specializes in advertising, sales promotion activities, and public
relations, FedEx-Kinko's would likely be striving to practice
a) one-stop shopping.
b) more expertise.
c) pioneer promotional efforts.
d) competitive promotional programming.
e) integrated marketing communications.
e
In order for customers to receive greater customization and service, they must be
willing to
a) pay high prices for standard goods.
b) give up all their rights to privacy.
c) use the Internet for communication with companies.
d) give information about themselves and their tastes.
e) spend significant amounts of time to purchase products.
d
A sharing of meaning defines

a) promotion.
b) information.
c) noise.
d) interference.
e) communication.
e
A person, group, or organization that has a meaning it intends and attempts to

share with a receiver or an audience is a
a) communications channel.
b) source.
c) relay channel.

d) decoder.
e) sender.
b
In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette
is the communication
a) receiver.
b) transmitter.
c) decoder.
d) source.
e) noise.
d
The individual or group that decodes a coded message is called a

a) sender.
b) receiver.
c) source.
d) decoder.
e) receptor.
b
Sierra is driving to work on I-95 and notices a billboard for new salads at Wendy's.
She reads the message and sees the pictures of the new salads. In this case, Sierra
is the _____ and Wendy's is the _____ of this communication.
a) receiver; source
b) audience; promoter
c) decoder; coder
d) communicatee; communicator
e) feedback; noise
a
The process of putting one's thoughts (meaning) into signs (symbols) is called
a) decoding.
b) noise.
c) interference.

d) transmission.
e) the coding process.
e
When a source converts meaning into a series of signs or symbols representing

ideas or concept, the source is undergoing
a) communication.
b) the coding process.
c) the decoding process.
d) the conversion process.
e) communications channel.
b
As Emily Jeffries prepares the script for a radio commercial for her boutique, she is
engaging in the _______ stage of the communication process.
a) encoding
b) sourcing
c) decoding
d) sending
e) receiving
a
When encoding the message, the source should use signs that have
a) new and exciting meanings.
b) different meanings to different people.
c) contemporary jargon.
d) meanings that the target market will understand.
e) broad interpretations.
d
Radio and television signals as well as ink on the paper of a magazine or

newspaper are all considered
a) noise.
b) communication links.
c) communication resources.

d) communication channels.
e) decoding sources.
d
The Barrister's Deli decides to run advertisements for its lunch specials on a local
FM radio station. Marketing research later reveals that the restaurant's target
market listens primarily to satellite radio stations. This promotion program
suffered from an error in the selection of
a) shared symbols.
b) targeted customers.
c) communication channel.
d) decoded meanings.
e) noise minimizers.
c
The vehicle through which the coded message is transmitted from the source to
the receiver is called a(n)
a) coder.
b) decoder.
c) encoder.
d) relay channel.
e) communication channel.
e
OES Office Systems' use of fax machines to carry its advertising messages to its
business customers is which component of the communication process?
a) Communication channel
b) Decoding process
c) Encoding process
d) Sharing of meaning
e) Noise minimization
a
During the decoding process, the

a) intensity of the transmission becomes stronger.
b) receiver attempts to convert signs or symbols into concepts and ideas.

c) source attempts to convert signs or symbols into concepts and ideas.
d) source converts meaning into a series of signs or symbols that represent ideas
or concepts.
e) receiver filters noise from the feedback.
b
The message that a source originally encodes and the meaning a receiver
ultimately decodes
a) contain circular feedback.
b) may be different because of noise.
c) are usually exactly the same.
d) rarely are similar because of feedback.
e) are collectively termed the communications channel.
b
During a one-minute television ad for Nike, the National Weather Service interrupts
to announce a flash flood warning for surrounding counties. Such an occurrence is
an example of ___________ in the communication process.
a) encoding
b) bad luck
c) noise
d) deflected transmission
e) poor implementation
c
Sonya is watching the six o'clock news as she prepares dinner. As commercial
breaks come on, Sonya's dinner preparation would be considered
a) a communication inhibitor.
b) feedback.
c) noise.
d) decoding blocker.
e) interference.
c
Which is the best example of noise that originates with the receiver in the
communication process?

a) Sarah drives through a tunnel, and her radio signals become very weak.
b) Maria has been studying English for two years and does not understand the
symbolism being used in a commercial.
c) Kevin simply tunes out pop-up ads on the Internet so that they don't even enter
his awareness.
d) Because of poor printing, Claire cannot read an advertisement in her local
newspaper.
e) A mother fails to hear a new commercial for diapers because her new baby is
crying.
c
The receiver's response to a message is ___________ for the source.

a) feedback
b) the communications channel
c) noise
d) channel capacity
e) decoding
a
Communication can be viewed as a circular process because

a) during feedback, the receiver can be viewed as the source of the message while
the original source becomes the receiver.
b) the message goes from encoding by the source to decoding by the receiver.
c) during a personal selling situation, both verbal and nonverbal feedback can be
very fast and immediate.
d) channel capacity is determined by the least efficient component.
e) the message goes from person to person.
a
Reba Vincent is employed as a consultant for Mary Kay Cosmetics. This illustrates
a) personal selling.
b) retailing.
c) public relations.
d) advertising.
e) sales promotion.
a

In one corner of its magazine advertisement for office copiers, Epson places a small
box asking for the names and addresses of individuals or companies seeking more
information. Epson has included this box to facilitate ___________ for this
communication.
a) decoding
b) feedback
c) encoding
d) perceptual attention
e) noise reduction
b
Sara Dickson is concerned about the effectiveness of Magnum, Inc.'s promotional

messages, and is seeking an approach with immediate feedback. Sara is most likely
to achieve this through
a) television advertising.
b) newspaper advertising.
d) sales promotion.
e) personal selling.
e
Channel capacity is determined by the

a) most efficient component of the communication process.
b) least efficient component of the communication process.
c) source.
d) receiver.
e) meanings of the message.
b
Each communication channel has a limit on the volume of information it can handle
effectively. This limit is called
a) transmission load.
b) feedback.
c) encoding.

d) noise.
e) channel capacity.
e
Although a radio announcer can read several hundred words a minute, a one-
minute advertising message should not exceed 150 words because most
announcers cannot articulate words into understandable messages at faster rates.
This illustrates the ___________ consideration in effective communication.
a) transmission load
b) feedback
c) encoding
d) noise
e) channel capacity
e
For many consumers, the pages near the back of magazines with dozens of very
small black and white advertisements exceed their
a) channel capacity.
b) threshold of awareness.
c) decoding abilities.
d) transmission limitations.
e) noise limit.
a
Anything that reduces the accuracy and clarity of communication is called

a) distraction.
b) feedback.
c) interference.
d) discordance.
e) noise.
e
Claire Nevsky is in charge of advertising for her company and has produced a 30-
second television spot to promote one of the company's new products. One of her
assistants just out of college believes that the commercial has too much visual and
audio information packed into such a small amount of time. The assistant is

specifically concerned about limits in the receiver's
a) noise.
b) coding process.
c) encoding.
d) channel capacity.
e) feedback.
d
What is the overall role of promotion?

a) To stimulate product demand
b) To identify prospects
c) To retain loyal customers
d) To encourage product trial
e) To reduce sales fluctuations
a
Communication that builds and maintains favorable relationships by informing and

persuading one or more audiences to view an organization more positively and to
accept its product is the role of
a) the vice president of sales.
b) manipulation.
c) promotion.
d) information.
e) sales promotion.
c
Companies tend to view promotion from many vantage points. Which of the
following alternatives is most accurate?
a) Promotion costs cause product costs to be higher.
b) Promotion activities make up the bulk of marketing.
c) The role of promotion is to stimulate product demand.
d) Promotion should be directed toward numerous audiences.
e) Most promotional efforts are performed through advertising.
c

___________ links the purchase of an organization's products to support of
philanthropic organizations favored by the target market.
a) Promotion
b) Cause-related marketing
c) Charity-related promotion
d) Selective demand promotion
e) Charitable nonprofit marketing
b
When Yoplait Yogurt gives a portion of its profits to Breast Cancer Research, it is
using
a) promotion.
b) integrated marketing communications.
c) charity marketing.
d) charitable promotion.
e) cause-related marketing.
e
Threatt Production makes low-priced, convenience products that are widely

available. It is most likely to focus its promotion efforts on
a) public relations.
b) personal selling.
c) viral marketing.
d) advertising.
e) sales promotion.
d
To gain maximum benefit from promotional efforts, marketers must strive to

a) become directly involved rather than indirectly involved.
b) obtain information about the marketing environment through their MIS.
c) realize the needs of their target market and try to meet them.
d) properly plan, implement, coordinate, and control communications.
e) use promotion during the growth stage of the product's life cycle.
d

Often when a company introduces a new product or line extension, its promotion
will focus on _____ in order to initiate the product-adoption process.
a) creating awareness
b) stimulating demand
c) retaining loyal customers
d) combating competitive promotional efforts
e) identifying prospects
a
By promoting the fact that "orange juice is not just for breakfast anymore," the
Florida Orange Growers Association attempted to stimulate
a) primary demand.
b) secondary demand.
c) competition.
d) comparison of orange juices.
e) demand elasticity.
a
Primary demand is defined as

a) demand for a product category.
b) demand for a new product.
c) consumer awareness of a product category.
d) stimulating demand for any products.
e) demand for a particular brand.
a
When Blue-ray disc players were first introduced to the market, what would the
logical choice for promotion have been?
a) Selective demand
b) Pioneer promotion
c) Comparative promotion
d) Primary demand promotion
e) Retention promotion
b

Which of the following types of promotion informs potential customers about a
product and what it is?
a) Reminder
b) Competitive
c) Comparative
d) Pioneer
e) Repetitive
d
During the introduction stage of the product life cycle, which type of promotion
would a firm focus on?
a) Reminder
b) Competitive
c) Comparative
d) Pioneer
e) Repetitive
d
Pioneer promotion is most likely to be used during the _____ stage of the product
life cycle.
a) maturity
b) decline
c) growth
d) introduction
e) presentation
d
When a marketer makes an effort in promotion to point out the strengths and
benefits of a specific brand, it is an attempt to build _________ demand.
a) primary
b) secondary
c) selective
d) economic
e) competitive
c

Selective demand is demand for a
a) general type of product.
b) particular brand.
c) new product.
d) competitor's product.
e) service.
b
When Sears promotes the benefits and strengths of its Kenmore brand appliances,
it is attempting to build
a) primary demand.
b) pioneer promotion.
c) prospects.
d) brand awareness.
e) selective demand.
e
Retro64 distributes free downloadable versions of its computer games for a short
time. These efforts have a primary promotional objective of
a) encouraging product trial.
b) stimulating demand.
c) identifying prospects.
d) creating awareness.
e) reducing sales fluctuations.
a
Promotional efforts designed to reduce the risk to consumers for using a product
for the first time seek to
a) stimulate demand.
b) encourage product trial.
c) create awareness.
d) combat competitive promotional efforts.
e) retain loyal customers.
b

Bowflex uses infommercials to demonstrate its fitness products and encourage
customers to call and receive a free video with more information about its
products. This promotional effort is directed at
a) creating awareness.
b) encouraging product trial.
c) identifying prospects.
d) stimulating demand.
e) retaining loyal customers
c
A direct-response information form found in a magazine advertisement that allows

customers to send for more information has a primary objective of
b) retaining loyal customers.
c) stimulating demand.
d) creating awareness.
e) identifying prospects.
e
The cost of _____ is usually substantially lower than the cost of _____.
a) stimulating primary demand; stimulating selective demand
b) identifying prospects; encouraging product trial
c) retaining existing customers; acquiring new customers
d) comparative advertising; pioneer promotion
e) personal selling; public relations
c
Blockbuster offers its customers a Blockbuster Rewards Card that allows them to
rent every sixth movie free and provides various discounts throughout the year.
The primary promotional objective of programs such as this is
b) retaining existing customers.
c) stimulating demand.
d) combating competitive promotional offers.
b

Cooperative advertising efforts between manufacturers and retailers demonstrate

the promotional objective of
a) stimulating demand.
b) reducing sales fluctuations.
c) combating competitive promotional efforts.
d) facilitating reseller support.
e) retaining loyal customers.
d
When Hamburger Helper introduced its Oven Varieties, it gave special offers to
supermarkets to purchase the new product and supplemented these offers with
consumer advertising. Hamburger Helper's primary objective is to
a) facilitate reseller support.
b) reduce sales fluctuations.
c) combat competitive promotional efforts.
d) encourage product trial.
a
Which of the following is the best example of the promotional objective of

combating competitive promotional efforts?
a) Joy advertises that its dish soap has more suds than Dawn, Sunlight, and other
leading dish soaps.
b) Joe Boxer and Kmart collaborate to promote Joe Boxer's lines of clothing and
housewares.
c) The Pork Council advertises pork as the "other white meat" and a healthier
alternative to beef.
d) After Ford promotes the towing capacity of its F-series trucks, DaimlerChrysler
soon emphasizes the towing capacity of its Dodge trucks.
e) Hyundai offers 10-year/100,000 mile warranties on its vehicles in order to give
customers confidence in its brand name and automotive offerings.
d
Which of the following industries is most likely to employ combative promotional

efforts?

a) Fast food
b) Computer processors
c) Tax-preparation services
d) Television producers
e) Automotive paints
a
Factors such as climate, seasons, and holidays tend to lead to the promotional
objective of
a) combating competitive promotional offers.
b) facilitating reseller support.
c) encouraging product trial.
d) retaining loyal customers.
e
Newspaper ads for Blue Haven Pools offering discounted prices during October are
examples of which of the following uses of promotion?
a) Retaining loyal customers
b) Promoting new product uses
c) Making salespeople more effective
d) Stimulating primary demand
e) Reducing sales fluctuations
e
A spokesperson for Mott's apple juice encourages television audiences to use its
juice in the winter by serving it hot with a cinnamon stick. In this instance, Mott's is
using promotion to
a) stimulate primary demand.
b) offset competitors' promotional efforts.
c) facilitate reseller support.
d) retain loyal customers.
e) reduce sales fluctuations.
e

An advertisement from a ski lodge extolling the benefits of a summer getaway in
the mountains uses promotion to
a) combat competitive promotional efforts.
b) stimulate demand.
c) reduce sales fluctuations.
d) encourage product trial.
c
Advertising, personal selling, sales promotion, and public relations are called
a) promotion mix ingredients.
b) marketing mix components.
c) characteristics of a product.
d) advertising tools.
e) nonpersonal communication.
a
A paid form of nonpersonal communication about an organization and/or its

products that is transmitted to a target audience through a mass medium is
a) advertising.
b) public relations.
c) sales promotion.
d) personal selling.
e) campaigning.
a
Slow feedback, high absolute-dollar outlay, and difficulty in measuring effects on

sales are disadvantages of which promotion mix ingredient?
a) Advertising
b) Public relations
c) Sales management
d) Sales promotion
e) Personal selling
a

Cost efficiency, repetition, and adding product value are all potential benefits of
a) public relations.
b) advertising.
c) personal selling.
d) promotion.
e) guerilla marketing.
b
One of the biggest problems associated with ___________ as an element of

promotion is the high absolute dollar outlay often required.
a) personal selling
b) advertising
c) public relations
d) sales promotion
e) packaging
b
Paid personal communication that seeks to inform customers and persuade them
to purchase products in an exchange situation is
a) personal promotion.
b) advertising.
d) public relations.
e) individual promotion.
c
Which promotion mix ingredient costs considerably more than advertising to reach
just one person but can provide more immediate feedback?
a) Publicity
b) Sales management
c) Sales promotion
d) Personal selling
e) Public relations
d

Kinesic communication is an element in which type of promotional method?
a) Advertising
b) Public relations
c) Personal selling
d) Packaging
e) Sales promotion
c
Head nodding, winking, hand gestures, and arm motions are all forms of _________
communication.
a) kinesic
b) spacing
c) proxemic
d) touching
e) tactile
a
As they walk to the car, Erin Brandeis tells her sales representative, Joachin Perez,
that they may need to modify the price structure they just presented to the
prospect. Erin bases her statement on the way the prospect folded his arms when
Joachin quoted him the prices on the new system. Joachin says he didn't notice.
Erin recommends a book on ___________ communication to Joachin.
a) tactile
b) proxemic
c) kinesic
d) verbal
e) signal
c
When a salesperson varies the physical distance between himself and a customer
he is using
a) kinesic communication.
c) tactile communication.
d) comfort relations.
e) proxemic communication.

e
Brandon walks around behind purchasing agent Shannon Wise as she looks at the
pamphlet describing Hyster's new conveyer system. Shannon stands up and walks
to a table on the other side of her office. Brandon follows, but he does not
understand the ___________ communication Shannon is sending.
a) tactile
b) proxemic
c) kinesic
d) verbal
e) promotional
b
As their meeting concludes, Jamal rises and thanks Gina for taking the time to
come by and explain her firm's new line of industrial fasteners. A(n) ___________,
which is a form of tactile communication, concludes the session.
a) smile
b) walk to the door
c) handshake
d) exchange of business cards
e) pleasant good-bye
c
A common form of tactile communication in U.S. business activities is

a) hugging.
b) kissing.
c) handshaking.
d) eye contact.
e) head nodding.
c
_____ is a broad set of communication efforts used to create and maintain favorable
relationships between a company and its stakeholders.
a) Stakeholder management
b) Personal selling
c) Integrated marketing communications

d) Sales promotion
e) Public relations
e
Communication through the use of brochures, annual reports, event sponsorships,

and news stores is referred to as
a) advertising.
c) sales promotion.
d) publicity.
e) public relations.
e
The Sharper Image likes to use nonpersonal communication in news story form
such as press releases for its new and improved products. This is an example of
a) sales promotion.
b) advertising.
d) publicity.
e) kinesic communication.
d
All of the following are examples of publicity-based public relations tools except
a) press conferences.
b) feature articles.
c) news releases.
d) annual reports.
e) news stories.
d
Public relations
a) should be used mostly to counteract any competitive promotions or negative
publicity.
b) is an element of promotion that should be handled on a continuous basis.
c) should be used solely to respond to emergencies that could significantly damage
the company's reputation.

d) is paid communication that helps enhance a company's image by highlighting its
philanthropic efforts.
e) is generally not given much weight because the information is generated by the
company itself.
b
An activity and/or material that offers added value or incentive to resellers,

salespeople, or consumers is
a) advertising.
d) sales promotion.
e) packaging.
d
Frequently, Burger King restaurants offer 32-ounce glasses depicting currently

popular movie characters free with the purchase of a large drink. This example
illustrates Burger King's use of which one of the following elements of the
promotion mix?
a) Packaging
b) Personal selling
c) Sales promotion
d) Public relations
e) Telemarketing
c
When McDonald's uses the Monopoly game in which customers receive game
pieces with each visit and try to assemble a set of properties to win prizes,
McDonald's is utilizing
a) sales promotion.
b) advertising.
c) guerilla marketing.
a

Marketers of highly seasonal products tend to have more irregular use of
a) advertising.
b) sales promotion.
e) marketing.
b
Hunt's decided to put a much larger share of its promotion budget into ___________
because of the heavy reliance it will be placing on coupons in the second quarter.
a) advertising
b) sales promotion
c) public relations
d) telemarketing
e) personal selling
b
Procter & Gamble periodically sends out coupons and free samples of products like
Downy fabric softener. This illustrates P&G's use of which of the following elements
of the promotion mix?
a) Advertising
b) Personal selling
c) Sales promotion
d) Public relations
e) Telemarketing
c
A consumer contest is an example of

a) personal selling.
b) sales promotion.
c) advertising.
d) indirect selling.
b

Sweepstakes, free samples, coupons, and rebates are examples of
a) advertising.
b) sales promotion techniques.
c) publicity.
d) personal selling techniques.
e) packaging methods.
b
Generally, promotion mixes for companies with extremely limited promotional

budgets tend to concentrate on
a) advertising.
b) publicity.
c) sales promotions.
e) distributor incentives.
d
Which of the following target market characteristics are most important to consider
before determining the promotion mix ingredients?
a) The size, geographic distribution, and demographic characteristics
b) The cultural diversity and population size
c) The age, sex, religion, and race characteristics
d) Existing product adoption categories
e) Existing levels of price consciousness
a
If a firm's promotional budget were extremely limited, for which of the following
reasons would it be more likely to rely on personal selling as its main promotional
tool?
a) People are more likely to believe a human being than a print ad.
b) TV and radio ads are not feasible for smaller companies.
c) It can achieve more sales through business customers than through individual
consumers.
d) It is easier to measure a salesperson's effects on sales than advertising's effects
on sales.

e) The firm is charging a higher price to cover the expensive salaries of its
salespeople.
d
Organizations that sell products to industrial markets or a few wholesalers tend to

focus their promotion efforts on
a) advertising.
b) word-of-mouth communication.
d) sales promotion.
e) personal selling.
e
High-priced products usually depend heavily on which promotion mix ingredient?

a) Advertising
b) Personal selling
c) Public relations
d) Sales promotion
e) Telemarketing
b
The use of heavy advertising in the promotion mix is least likely to occur in which
product life cycle stage?
a) Introduction
b) Decline
c) Maturity
d) Growth
e) Plateau
b
If the push policy is used in promoting a product, the firm

a) promotes directly to consumers.
b) promotes only to the next marketing institution down the marketing channel.
c) promotes the product to wholesalers only.
d) promotes the product to retailers only.
e) will be assured of having an effective promotional mix.

b
If a manufacturer decides to use a push policy to promote its products, it is most

likely to focus its efforts on
a) retailers.
b) wholesalers.
c) ultimate consumers.
d) other producers.
e) institutional users.
b
When Hershey Dark Chocolate Kisses were introduced, Hershey promoted directly
to consumers and told them to ask for the product at their favorite stores. This is
an example of a _________ policy.
a) reseller promotional
b) push
c) customer promotional
d) pull
e) channel promotional
d
If a pull policy is to be used in promoting a product, the firm

a) promotes directly to consumers.
b) promotes only to the next marketing institution down the marketing channel.
c) promotes the product to retail stores only.
d) promotes the product to wholesalers only.
e) must also use the push policy to be effective.
a
The use of a pull policy may require heavy expenditures for

a) advertising and sales promotion.
b) public relations and distribution.
c) personal selling and public relations.
d) distribution and advertising.
e) sales promotion and personal selling.
a

Which of the following are personal informal exchanges of communication that

customers share with one another about products, brands, and companies?
a) Guerilla communication
b) Word-of-mouth communication
c) Buzz marketing
d) Viral marketing
e) Conversational promotion
b
An attempt to create a trend or acceptance of a product through word-of-mouth

communication is called
a) guerilla marketing.
b) viral marketing.
c) buzz marketing.
d) personal publicity.
e) conversational promotion.
c
Andrea receives an e-mail from her sister-in-law that is actually a recommendation

for a website with a demonstration of a new home hair-coloring system. She later
discovers that her sister-in-law received a free trial kit for passing Andrea's and
four other friends' e-mail addresses along to the marketer. This is known as
a) viral marketing.
b) buzz marketing.
c) guerilla marketing.
d) a word-of-mouth pyramid.
e) personal advertising.
a
If promotion does not do its job of stimulating demand, then the

a) price of the promoted product is likely to increase.
b) price of the promoted product will remain reasonably stable.
c) price of the promoted product will decrease.
d) cost of promotion will decline.
e) cost will remain about the same.

a
The two main reasons for criticism of promotional activities are that promotion
a) has some flaws, and it is deceptive.
b) is deceptive, and it causes prices to rise.
c) pervades our daily lives, and it creates needs in us.
d) creates needs in us, and it encourages materialism.
e) has some flaws, and it pervades our daily lives.
e
Promotion can help keep prices lower because

a) demand for the product does not increase.
b) promotion of prices intensifies price competition.
c) promotion of prices leads to nonprice competition.
d) promotion tends to reduce consumers' price sensitivity.
e) promotion tends to stabilize a product's price elasticity of demand.
b
A commercial for a weight-loss program that explains that the customer pays only
one dollar for every pound he or she wants to lose but specifies in fine print that
the cost of meals is extra exemplifies ____________ advertising.
a) unfair
b) illegal
c) deceptive
d) push
e) pull
c
If a marketer of a perfume ad develops a commercial involving a man being

attracted to a woman who wears a particular perfume, it is attempting to influence
one's need for
a) love and affection.
b) safety.
c) self-esteem.
d) self-actualization.
e) respect from others.

a
If children and teenagers are insisting on wearing expensive name-brand apparel, a

criticism of promotion can be made that promotion
a) forces people to spend too much.
b) forces prices to go up.
c) encourages materialism.
d) creates needs.
e) can be harmful.
c
Promotion tends to
a) create needs.
b) capitalize on existing needs.
c) be overly focused on the self-actualization needs.
d) overemphasize physiological and safety needs.
e) avoid focusing on people's needs.
b
Promotion helps consumers because it

a) costs billions of dollars each year, which stimulates the U.S. economy.
b) always stresses wholesome values, which benefits society.
c) persuades consumers to make the right choices.
d) informs consumers and places them in a position to specify the products that
they seek.
e) tends to be informative and not persuasive.
d
Some critics, including consumer groups and government officials, suggest that certain
products should not be promoted because they
a) cost too much.
b) are illegal.
c) are potentially harmful.
d) do not last.
e) are not competitive

‫‪0785059665 -‬‬ ‫ابراهيم يوسف ‪Fb.com/Ibraheem.Ys -‬‬
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Multiple Choice Questions And Answers

‫ألقروب االكاديمي لقسم التسويق‬

‫مالحظة هامة جدا‬

Chapter 1—Customer-Driven Strategic Marketing

41. The marketing environment is best described as being

42. The marketing concept is best defined as

Use the following to answer questions 84-88:

‫االجابة في نهاية السؤال‬

a) environmental scanning and analysis.

Collecting information from secondary sources such as business, government,

Three primary methods of collecting information for environmental scanning

a) marketing research, company records, and advance orders.

Marketers who attempt to influence and change the various environmental

When marketers define their target market, they establish a set of

Marketers primarily focus their environmental analysis on ____ competitors.

In today's marketing environment, competitors can take on many forms. For

Due to limited resources, a consumer decided to serve Hawaiian Punch to a

___________ competitors are the most significant to marketers because

The four major competitive structures are

a) monopolies, oligopolies, oligopolistic monopolies, and pure competition.

The American automobile industry used to be dominated by "The Big Three,"

Most marketers operate in a competitive environment of either

J. Pitner Clothing is a medium-size specialty men's and women's clothing

In general, which of the following competitive structures is an organization

a) monopolies and oligopolies.

a) watching for increases and decreases in competitors' prices and match

Which of the following attributes of a Toyota Scion would be most appropriate

Total buying power declines during periods of economic

Although marketing theory supports the contrary, it is more probable that

Consumer confidence is at a low during periods of

Consumer confidence and willingness to spend begins to increase during

Why are marketers interested in consumers' levels of disposable income?

a) It accurately predicts future buying power.

The amount of money received through wages, rents, investments, pensions,

Which category of income are marketers most interested in?

What is the most important factor in distinguishing disposable income from

A person's buying power is a function of

Discretionary income is associated with all of the following except

The accumulation of past income, natural resources, and financial resources is

a) expand future buying power at the expense of current buying power.

When using credit to make purchases, consumers are

a) decreasing current buying power and increasing future buying power.

a) Political officials can influence how much a government agency purchases

One way for corporations to attempt to influence the political environment is

a) special benefits to employees.

Which of the following acts was enacted to prevent businesses from

a) Sherman Antitrust Act

a) Sherman Antitrust Act

Procompetitive laws are those designed to

International Office Supplies Wholesaler charges different prices to its various

Price discrimination is prohibited by the ___________ Act.

The 1990 Nutritional Labeling and Education Act directly prohibits

a) exaggerated claims made by health and fitness products.

Which of the following are the most frequently sentenced organizational

a) False advertising and price discrimination

a) Food and Drug Administration (FDA)

a) Consumer Product Safety Commission