Marketing An Introduction 13th Edition By Gary Armstrong - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Marketing: An Introduction, 13e (Armstrong) Chapter 5 Understanding Consumer and Business Buyer Behavior 1) A child in the United States is exposed to many values including …
$19.99
Marketing An Introduction 13th Edition By Gary Armstrong – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
Marketing: An Introduction, 13e (Armstrong)
Chapter 5 Understanding Consumer and Business Buyer Behavior
1) A child in the United States is exposed to many values including achievement and success, freedom, individualism, hard work, and material comfort. These are symbolic of American ________.
Answer: B
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
2) Many marketers now embrace a ________ strategy, integrating ethnic and cross-cultural perspectives within their mainstream marketing.
Answer: A
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
AACSB: Diverse and multicultural work environments
3) ________ are the most affluent and brand conscious demographic segment in the United States.
Answer: D
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
4) Which of the following is most likely a true statement about social class?
Answer: C
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
AACSB: Analytical thinking
5) Which of the following is a social factor that influences consumer buying behavior?
Answer: A
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
6) A shoe company’s ads feature the members of a popular country music band. Product sales increase significantly among the band’s fans. From the fans’ viewpoint, the band is a ________.
Answer: B
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
AACSB: Analytical thinking
7) ________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.
Answer: A
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
8) ________ involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company’s products.
Answer: C
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
9) When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ________.
Answer: D
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
AACSB: Analytical thinking
10) What is the most important consumer buying organization in society?
Answer: B
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
11) A(n) ________ reflects the general esteem given to the different roles of a person by society.
Answer: E
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
12) Which of the following is a personal factor that influences a consumer’s buying behavior?
Answer: A
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
13) A marketing firm has been assigned the task of watching trends in spending, personal income, savings, and interest rates. The marketing firm is most likely gathering information about consumers’ ________.
Answer: B
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
14) Which of the following is a psychographic characteristic of a consumer?
Answer: C
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
15) ________ refers to the unique psychological characteristics that distinguish a person or group.
Answer: A
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
16) Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand?
Answer: C
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
17) A baby boomer decides to purchase a BMW to impress others with her success. This illustrates the importance of understanding the role of ________ in the marketing process.
Answer: B
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
AACSB: Analytical thinking
18) According to Sigmund Freud’s theory, a person’s buying decisions are ________.
Answer: E
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
19) Which of the following needs in Maslow’s hierarchy is generally satisfied last?
Answer: D
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
20) According to Maslow’s hierarchy of needs, which of the following is most likely an esteem need?
Answer: E
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
21) Hallmark’s classic “When you care enough to send the very best” slogan appeals to which need category in Maslow’s hierarchy?
Answer: B
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
AACSB: Analytical thinking
22) ________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
Answer: D
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
23) ________ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands.
Answer: A
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
24) A(n) ________ becomes a motive when it is directed toward a particular stimulus object.
Answer: B
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
25) The McDonald’s corporate brand name and golden arches can be classified as ________ that may potentially stimulate an individual’s attention and decision about whether or not to dine at the restaurant.
Answer: A
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
26) A(n) ________ describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.
Answer: D
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
27) Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables.
Answer: TRUE
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
28) Subcultures are groups of people with shared value systems based on common life experiences and situations.
Answer: TRUE
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
29) Reference group influence on consumer buying behavior varies across products and brands.
Answer: TRUE
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
30) A role consists of the activities people are expected to perform according to the people around them.
Answer: TRUE
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
31) People use the same products and services as they progress through each life-cycle stage.
Answer: FALSE
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
32) According to Maslow’s theory, safety and social needs must be fulfilled after self-actualization needs.
Answer: FALSE
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
33) Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe.
Answer: TRUE
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
34) It’s advisable for a company to fit its products into existing attitude patterns rather than attempt to change them.
Answer: TRUE
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
35) Explain the cultural factors that influence consumer behavior.
Answer: Culture is the most basic cause of a person’s wants and behavior. Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important market segments. Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Unlike nationality or ethnic subculture, social class is determined by a combination of many variables, such as occupation, income, education, and wealth. Social scientists have identified seven social classes within the American culture, ranging from upper class to lower class.
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
36) Describe the buying behavior, characteristics, and media habits of different subcultures in the United States.
Answer: Many subcultures make up important market segments, and marketers often design products and marketing programs tailored to their needs. Examples of three such important subculture groups are Hispanic American, African American, and Asian American consumers.
Hispanics represent a large, fast-growing market. Although Hispanic consumers share many characteristics and behaviors with the mainstream buying public, there are also distinct differences. They tend to be deeply family oriented and make shopping a family affair — children have a big say in what brands they buy. Older, first-generation Hispanic consumers tend to be very brand loyal and to favor brands and sellers who show special interest in them. Younger Hispanics, however, have shown increasing price sensitivity in recent years and a willingness to switch to store brands. Hispanics are also more active on mobile and social networks than other segments, making digital medium ideal for reaching this segment. Hispanics are typically more active on mobile and social networks than other segments, making digital medium ideal for reaching this segment. The African American population is growing in affluence and sophistication. Although more price conscious than other segments, blacks are also strongly motivated by quality and selection. Brands are important. African American consumers are heavy users of digital and social media, providing access through a rich variety of marketing channels. Asian American consumers are the most affluent U.S. demographic segment and are the second-fastest-growing population subsegment after Hispanics. They are also a diverse group like Hispanics, but a notable difference is that they speak several different languages. As a group, Asian American consumers shop frequently and are the most brand conscious of all the ethnic groups. They can be fiercely brand loyal.
Diff: 3
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
AACSB: Diverse and multicultural work environments
37) Explain the concepts of word-of-mouth influence, opinion leaders, and buzz marketing.
Answer: Word-of-mouth influence can have a powerful impact on consumer buying behavior. The personal words and recommendations of trusted friends, associates, and other consumers tend to be more credible than those coming from commercial sources. Most word-of-mouth influence happens naturally: Consumers start chatting about a brand they use or feel strongly about one way or the other. Often, however, rather than leaving it to chance, marketers can help to create positive conversations about their brands. Marketers of brands subjected to strong group influence must figure out how to reach opinion leaders — people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others. Marketers try to identify opinion leaders for their products and direct marketing efforts toward them. Buzz marketing involves enlisting or even creating opinion leaders to serve as “brand ambassadors” who spread the word about a company’s products. For example, Mercedes-Benz wanted get more people talking about its all-new, soon-to-be-launched 2014 CLA model, priced at $29,900 and aimed at getting a new generation of younger consumers into the Mercedes brand. So it challenged five of Instagram’s most influential photographers — everyday Gen Y consumers whose stunning imagery had earned them hundreds of thousands of fans — to each spend five days behind the wheel of a CLA, documenting their journeys in photos shared via Instagram. The photographer who got the most “likes” got to keep the CLA. The short campaign really got people buzzing about the car, earning 87 million social media impressions and more than 2 million likes. Ninety percent of the social conversation was positive. And when Mercedes launched the CLA the following month, it broke sales records. Many companies now create brand ambassador programs in an attempt to turn influential but everyday customers into brand evangelists.
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
38) A consumer’s behavior is influenced by social factors, such as the consumer’s small groups, family, and social roles and status. Explain the differences among these social factors.
Answer: Many small groups influence a person’s behavior. Groups that have a direct influence and to which a person belongs are called membership groups. Reference groups serve as direct or indirect points of comparison or reference in forming a person’s attitudes or behaviors. An aspirational group is one to which the individual wishes to belong. Reference groups expose a person to new behaviors and lifestyles, influence a person’s attitudes and self-concept, and create pressures to conform that may affect the person’s product and brand choices. Opinion leaders are also included in reference groups. Family members can strongly influence buyer behavior and are the most important consumer buying organization in society. Marketers are interested in the changing roles and influence of each family member, particularly as male and female purchasing roles evolve and children wield more purchasing influence. Within groups, including families, the position of an individual is defined by role and status. A role consists of the activities people are expected to perform according to the persons around them, while status is the general esteem given to that role. People tend to choose products that fit their roles and status.
Diff: 1
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
AACSB: Analytical thinking
39) What are personality traits, and how do they affect purchase behavior? Explain with an example.
Answer: Personality refers to the unique psychological characteristics that distinguish a person or group. Personality is described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Personality can be useful in analyzing consumer behavior for certain product or brand choices. Consumers are likely to choose brands with personalities that match their own. A brand personality is the specific mix of human traits that may be attributed to a particular brand. One researcher identified five brand personality traits: sincerity (down-to-earth, honest, wholesome, and cheerful), excitement (daring, spirited, imaginative, and up to date), competence (reliable, intelligent, and successful), sophistication (glamorous, upper class, charming), and ruggedness (outdoorsy and tough). Most well-known brands are strongly associated with one particular trait: the Ford F150 with “ruggedness,” Apple with “excitement,” the Washington Post with “competence,” Method with “sincerity,” and Gucci with “class” and “sophistication.” Hence, these brands will attract persons who are high on the same personality traits.
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
AACSB: Analytical thinking
40) Explain Maslow’s hierarchy of needs.
Answer: Maslow suggested that our unfulfilled needs motivate us and that our needs are arranged in a hierarchy. That hierarchy includes these needs: physiological, safety, social, esteem, and self-actualization. Maslow suggested that we fulfill the lower-level, basic needs first before moving up the hierarchy. Until more important, basic needs such as safety are fulfilled, an individual has little interest in higher-level needs such as esteem and self-actualization. When that need is satisfied, it will stop being a motivator, and the person will then try to satisfy the next most important need. For example, starving people (physiological need) will not take an interest in the latest happenings in the art world (self-actualization needs) nor in how they are seen or esteemed by others (social or esteem needs) nor even in whether they are breathing clean air (safety needs). But as each important need is satisfied, the next most important need will come into play.
Diff: 2
LO: 5-1: Understand the consumer market and the major factors that influence consumer buyer behavior.
41) Which of the following is the first stage of the buyer decision process?
Answer: A
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
42) Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find a coat in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process.
Answer: D
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
AACSB: Analytical thinking
43) Which of the following sources of product information can marketers control completely?
Answer: C
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
44) Which of the following is a commercial source of product information?
Answer: C
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
AACSB: Analytical thinking
45) The most effective sources of information about a product tend to be ________.
Answer: D
Diff: 1
LO: 5-2: Identify and discuss the stages in the buyer decision process.
46) Devon is in the market for a new car. She is seriously considering either a Honda Civic or Toyota Corolla because they both have excellent quality and safety ratings and are comparable in price. Devon is in the ________ stage of the buyer decision process.
Answer: A
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
AACSB: Analytical thinking
47) Jeff is in the process of buying a new car. He carefully analyzes the features that he wants in a car, and perceives significant differences in price, quality, and features among three of his favorite models. He rates the models on each factor and ranks them in the order of his preference. To which of the following stages of the buyer decision process will Jeff most likely proceed next?
Answer: E
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
AACSB: Analytical thinking
48) Simone bought two bottles of wine from two vineyards in Bordeaux. When asked for an opinion on the quality of the wines, she later mentioned that the Pontet Canet tasted like alcoholic grape juice, but the Chateau Margaux had a crisp taste that she really enjoyed. Which of the following stages of the buyer decision process do Simone’s remarks reflect?
Answer: E
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
AACSB: Analytical thinking
49) ________ is a discomfort caused by postpurchase conflict.
Answer: B
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
50) Alice is shopping for a new car, and she has narrowed her decision to a Honda Accord and a Toyota Camry. Both sedans have similar features and prices, but Alice decides to purchase the Honda based on her intuition. Which of the following situations would most likely cause Alice to experience postpurchase dissonance?
Answer: B
Diff: 3
LO: 5-2: Identify and discuss the stages in the buyer decision process.
AACSB: Analytical thinking
51) Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disadvantages of his new riding mower as he learned more about other riding mowers available in the same price range. Bill is in which of the following stages of the buyer decision process?
Answer: C
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
AACSB: Analytical thinking
52) When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the evaluation of alternatives process.
Answer: FALSE
Diff: 1
LO: 5-2: Identify and discuss the stages in the buyer decision process.
53) Personal sources of information normally inform the buyer, but commercial sources legitimize or evaluate products for the buyer.
Answer: FALSE
Diff: 1
LO: 5-2: Identify and discuss the stages in the buyer decision process.
54) The larger the gap between expectations and performance of a product, the greater a consumer’s dissatisfaction.
Answer: TRUE
Diff: 1
LO: 5-2: Identify and discuss the stages in the buyer decision process.
55) Describe the steps of the buyer decision process.
Answer: The buyer decision process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior.
Diff: 2
LO: 5-2: Identify and discuss the stages in the buyer decision process.
56) In which of the following stages of the adoption process does a consumer seek information about a new product?
Answer: A
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
57) In which of the following stages of the adoption process does a consumer consider whether trying a new product makes sense?
Answer: C
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
58) ________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.
Answer: D
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
59) Fred’s faith in Asics, his favorite brand of running shoes, makes him consider other offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. Fred is an opinion leader in his social networking community and best described as a(n) ________.
Answer: C
Diff: 3
LO: 5-3: Describe the adoption and diffusion process for new products.
AACSB: Analytical thinking
60) ________ is the degree to which an innovation appears superior to existing products.
Answer: A
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
61) ________ is the degree to which an innovation fits the values and experiences of potential consumers.
Answer: D
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
62) Electric cars are not considerably different or difficult to drive relative to gas-powered cars. However, this is not aligned with the perceptions or conceptual concerns held by the public about the new technology. This will likely slow the adoption rate due to the ________ of the innovation.
Answer: C
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
AACSB: Analytical thinking
63) ________ is the degree to which an innovation may be tried on a limited basis.
Answer: A
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
64) ________ is the degree to which the results of using an innovation can be observed or described to others.
Answer: E
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
65) Early mainstream adopters are opinion leaders in their communities and adopt new ideas early but carefully.
Answer: FALSE
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
66) Early mainstream adopters are venturesome and typically try new ideas at some risk.
Answer: FALSE
Diff: 1
LO: 5-3: Describe the adoption and diffusion process for new products.
67) Tom usually buys new devices such as PDAs, DVRs, and MP3 players only after his friends and family start owning these devices. In this case, Tom is an innovator.
Answer: FALSE
Diff: 2
LO: 5-3: Describe the adoption and diffusion process for new products.
AACSB: Analytical thinking
68) Identify and describe the stages in the adoption process of a new product.
Answer: Consumers go through five stages in the process of adopting a new product. In the awareness stage, consumers become aware of the new product but lack information about it. Then, consumers seek information about the new product in the interest stage. In the evaluation stage, consumers consider whether trying the new product makes sense. Consumers try the product on a limited basis in the trial stage. Finally, consumers decide to make full use of the product in the adoption stage.
Diff: 2
LO: 5-3: Describe the adoption and diffusion process for new products.
69) Identify the product characteristics that influence the rate of adoption of a product. Explain how each characteristic affects the rate of adoption.
Answer: The five most important product characteristics that influence the rate of a product’s adoption are relative advantage, compatibility, complexity, divisibility, and communicability. Relative advantage is the degree to which an innovation appears superior to existing products; the greater the perceived relative advantage, the sooner the product will be adopted. Compatibility is the degree to which the innovation fits the values and experiences of potential consumers; high compatibility leads to quick adoption. Complexity is the degree to which the innovation is difficult to understand or use; the greater the complexity, the slower the adoption rate. Divisibility is the degree to which the innovation may be tried on a limited basis; the higher the divisibility, the slower the rate of adoption. Finally, communicability is the degree to which the results of using the innovation can be observed or described to others; high communicability lends itself to a higher rate of adoption.
Diff: 2
LO: 5-3: Describe the adoption and diffusion process for new products.
70) When Goodyear sells replacement tires to final consumers, its potential market includes millions of car owners around the world. But its fate in business markets depends on getting orders from only a handful of large automakers. This represents the difference in ________ between business and consumer markets.
Answer: C
Diff: 2
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
AACSB: Analytical thinking
71) Corning produces Gorilla Glass screens that are used in the production of laptops, tablets, and smartphones. Corning promotes its product to final consumers to increase business demand for digital devices made with the specialized, toughened glass. This illustrates ________.
Answer: B
Diff: 2
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
AACSB: Analytical thinking
72) In a straight rebuy, a buyer ________.
Answer: B
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
73) A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n) ________.
Answer: C
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
74) A business buyer is considering a change in product specifications, terms, and possibly suppliers. This buying situation is referred to as a(n) ________.
Answer: A
Diff: 2
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
75) ________ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying and consolidating separate products and services from several suppliers.
Answer: D
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
76) Which of the following statements about buying centers is true?
Answer: A
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
77) A small increase in consumer demand can cause a large increase in business demand.
Answer: TRUE
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
78) A business marketer normally deals with far fewer buyers than a consumer marketer.
Answer: TRUE
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
79) The business buying process tends to be shorter and less formal than the consumer buying process.
Answer: FALSE
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
80) Interpersonal factors are a major influence on business buyer behavior.
Answer: TRUE
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
81) In a straight rebuy, a buyer reorders something without any modifications.
Answer: TRUE
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
82) A company buying a product with modified specifications faces a new-task situation.
Answer: FALSE
Diff: 2
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
83) The buying center consists of key decision makers from both the buying organization and the supplier.
Answer: FALSE
Diff: 1
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
84) A business buyer typically makes the greatest number of decisions in a straight rebuy situation and the fewest in a new-task situation.
Answer: FALSE
Diff: 2
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
85) Explain why business demand is considered a derived demand. Provide an example.
Answer: Business demand is a derived demand because it ultimately derives from the demand for consumer goods. If consumer demand for an end product drops, business demand for all of the components used in that product will also drop. Similarly, when consumer demand for a product increases, business demand for all of the components of that product also increases. For example, tires in the original equipment market for automobiles is derived from consumer demand for new cars.
Diff: 2
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
86) Explain how the decision process in the business market and consumer market differ.
Answer: Business buyers usually face more complex buying decisions than do consumer buyers. Business purchases often involve large sums of money, complex technical and economic considerations, and interactions among many people at many levels of the buyer’s organization. Because the purchases are more complex, business buyers may take longer to make their decisions and are likely to use a more formalized buying process. In the business buying decision process, the buyer and seller are often much more dependent on each other.
Diff: 3
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
AACSB: Analytical thinking
87) Explain the major types of buying situations.
Answer: There are three major types of buying situations. In a straight rebuy, the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department. In a modified rebuy, the buyer wants to modify product specifications, prices, terms, or suppliers. A company buying a product or service for the first time faces a new task situation. In such cases, the greater the cost or risk, the larger the number of decision participants and the greater the company’s efforts to collect information. The new task situation is the marketer’s greatest opportunity and challenge. The marketer not only tries to reach as many key buying influences as possible, but also provides help and information. The buyer makes the fewest decisions in the straight rebuy and the most in the new task decision.
Diff: 2
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
88) In the context of the business buying decision process, what is a buying center? Explain why it presents a major marketing challenge.
Answer: The buying center is the decision-making unit of a buying organization. The buying center consists of all the individuals and units that play a role in the business purchase decision-making process, including the actual users of the product or service, those who make the buying decision, those who influence the buying decision, those who do the actual buying, and those who control buying information. The buying center is not a fixed and formally identified unit within the buying organization. Instead, it is a set of buying roles assumed by different people for different purchases. Within the organization, the size and makeup of the buying center varies for different products and buying situations. The variable nature of the buying center makes it a major marketing challenge. The business marketer must learn who participates in each decision, each participant’s relative influence, and what evaluation criteria each decision participant uses. Sometimes identifying the decision maker is difficult or even impossible, as no one single person may make the purchasing decision.
Diff: 3
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
89) Describe the major factors that influence business buyers.
Answer: Business buyers are heavily influenced by factors in the current and expected economic environment, such as levels of primary demand, the economic outlook, and the cost of money. Business buyers are also affected by supply of key materials and technological, political, and competitive developments in the environment. Finally, culture and customs can strongly influence business buyer reactions to the marketer’s behavior and strategies, especially in the international marketing environment. The business buyer must watch these factors, determine how they will affect the buyer, and try to turn environmental challenges into opportunities. Organizational factors are also important. Each buying organization has its own objectives, strategies, structure, systems, and procedures, and the business marketer must understand these factors well. The buying center usually includes many participants who influence each other, so interpersonal factors also influence the business buying decision process. Each participant in the business buying decision process brings in personal motives, perceptions, and preferences. These individual factors are affected by personal characteristics such as age, income, education, professional identification, personality, and attitudes toward risk.
Diff: 2
LO: 5-4: Define the business market and identify the major factors that influence business buyer behavior.
90) Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market. When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?
Answer: A
Diff: 2
LO: 5-5: List and define the steps in the business buying decision process.
AACSB: Analytical thinking
91) During which stage of the business buying decision process is a buyer most likely to conduct value analysis by carefully studying components to determine if they can be redesigned, standardized, or made less expensively?
Answer: B
Diff: 2
LO: 5-5: List and define the steps in the business buying decision process.
92) Which of the following is considered a major influence on business buyer behavior?
Answer: B
Diff: 1
LO: 5-5: List and define the steps in the business buying decision process.
93) GenX, a manufacturer of sport motorcycles, is seeking a new supplier of motorcycle headlamps and brake lights. After searching trade directories, GenX invites five different suppliers to make formal presentations about how their solutions can create greater value for GenX than competing solutions. GenX is currently in the ________ stage of the business buying decision process.
Answer: E
Diff: 3
LO: 5-5: List and define the steps in the business buying decision process.
AACSB: Analytical thinking
94) Which of the following is most likely the final stage of the business buying decision process?
Answer: E
Diff: 1
LO: 5-5: List and define the steps in the business buying decision process.
95) Which of the following is the means by which companies post purchase requests online and invite suppliers to bid for their business?
Answer: E
Diff: 1
LO: 5-5: List and define the steps in the business buying decision process.
AACSB: Information technology
96) GE operates a company trading site where it posts purchasing needs, invites bids, negotiates terms, and places orders. This is an example of a(n) ________.
Answer: A
Diff: 2
LO: 5-5: List and define the steps in the business buying decision process.
AACSB: Information technology
97) In vendor-managed inventory, buyers share sales information directly with key suppliers.
Answer: TRUE
Diff: 1
LO: 5-5: List and define the steps in the business buying decision process.
98) Business-to-business e-procurement lowers purchasing costs and reduces the time between order and delivery.
Answer: TRUE
Diff: 1
LO: 5-5: List and define the steps in the business buying decision process.
AACSB: Information technology
99) In reverse auctions, companies put their purchasing requests online and invite suppliers to bid for their business.
Answer: TRUE
Diff: 1
LO: 5-5: List and define the steps in the business buying decision process.
100) Discuss the advantages and disadvantages of e-procurement?
Answer: Business-to-business e-procurement yields many benefits. First, it shaves transaction costs and results in more efficient purchasing for both buyers and suppliers. E-procurement reduces the time between order and delivery. And an online-powered purchasing program eliminates the paperwork associated with traditional requisition and ordering procedures and helps an organization keep better track of all purchases. Finally, beyond the cost and time savings, e-procurement frees purchasing people from a lot of drudgery and paperwork. In turn, it frees them to focus on more strategic issues, such as finding better supply sources and working with suppliers to reduce costs and develop new products. The rapidly expanding use of e-procurement, however, also presents some problems. For example, at the same time that the Internet makes it possible for suppliers and customers to share business data and even collaborate on product design, it can also erode decades-old customer-supplier relationships. Many buyers now use the power of the Internet to pit suppliers against one another and search out better deals, products, and turnaround times on a purchase-by-purchase basis.
Diff: 3
LO: 5-5: List and define the steps in the business buying decision process.
AACSB: Information technology
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
