CHAPTER 6

CONSUMER AND BUSINESS BUYER BEHAVIOR MULTIPLE CHOICE QUESTIONS 1. _________________ refers to the buying behavior of final consumers. a. Consumer buyer behavior b. Target market buying c. Market segment buying d. Business buying behavior Answer: (a) Di i!"#$%: (&) Pa'e: &(& 2. ____________ is individuals and households who buy goods and services for personal consumption. a. The target market b. market segment c. The consumer market d. The ethnographic market Answer: (!) Di i!"#$%: (&) Pa'e: &(&) &(* !. ccording to the te"t# the merican consumer market consists of$ a. 1%& million consumers. b. 2%' million consumers. c. !() million consumers. d. '!% million consumers.

Answer: (+) Di i!"#$%: (,) Pa'e: &(& '. *nderstanding consumer buying behavior is not easy. The answers are often locked deep within the consumer+s head. The central ,uestion for marketers is$ a. how much money is the consumer willing to spendb. how much does the consumer need the product being offered for salec. how much does a discount or a coupon affect the purchase rated. how do consumers respond to various marketing efforts the company might useAnswer: (-) Di i!"#$%: (,) Pa'e: &(*

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). The starting point in understanding how consumers respond to various marketing efforts the company might use is the$ a. .ipinski model of buying behavior. b. stimulus/response model of buyer behavior. c. 0reudian model of buying behavior. d. Maslow+s model of life/cycle changes. Answer: (+) Di i!"#$%: (*) Pa'e: &(*) .i'"re 6/& 1. ccording to the stimulus/response model of buyer behavior 2as presented in your te"t3# the place where consumers process marketing stimuli prior to making a purchase decision is called the$ a. consumer+s value chain. b. consumer+s cognitive schema. c. consumer+s black bo". d. consumer+s thoughts/emotions network.

Answer: (!) Di i!"#$%: (*) Pa'e: &(*) .i'"re 6/& (. Consumer purchases are influenced strongly by cultural# social# personal# and$ a. psychographic characteristics. b. psychological characteristics. c. psychometric characteristics. d. supply and demand characteristics. Answer: (+) Di i!"#$%: (*) Pa'e: &(*) &(,) .i'"re 6/* %. ______________ is the most basic cause of a person+s wants and behaviors. a. Culture b. 4ocial class c. 5ersonality d. .ifestyle Answer: (a) Di i!"#$%: (&) Pa'e: &(, &. child in the *nited 4tates is normally e"posed to all of the following values 67C65T$ a. achievement and success. b. activity and involvement. c. material comfort. d. collectivism.

Answer: (-) Di i!"#$%: (,) Pa'e: &(,

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18. Marketers are always trying to spot ____________ in order to discover new products that might be wanted. a. opinion graphers b. dissonant groups c. cultural shifts d. benchmarks Answer: (!) Di i!"#$%: (*) Pa'e: &(, 11. The cultural shift toward _____________ has resulted in more demand for casual clothing and simpler home furnishings. a. liberal political causes b. conservative political causes c. informality d. downsi9ing Answer: (!) Di i!"#$%: (*) Pa'e: &(, 12. ________________ is a group of people with shared value systems based on common life e"periences and situations. a. culture b. subculture c. lifestyle composite d. social class

Answer: (+) Di i!"#$%: (*) Pa'e: &(, 1!. :ispanics are often called an emerging market. ;hich of the following general product categories do not sell well to :ispanicsa. automobiles b. computers c. photography e,uipment d. generics Answer: (-) Di i!"#$%: (,) Pa'e: &(0 1'. frican merican consumers are strongly motivated by$ a. ,uality and ability to return merchandise. b. ,uality and selection. c. stores who honor their cultural traditions. d. stores who have store credit. Answer: (+) Di i!"#$%: (,) Pa'e: &(0

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1). The fastest growing and most affluent *.4. demographic segment is the$ a. :ispanic merican consumers. b. frican merican consumers. c. Middle 6astern/ merican consumers. d. sian merican consumers. Answer: (-) Di i!"#$%: (,) Pa'e: &(1 11. The greatest barrier to effectively marketing to the sian merican market is thought to be$ a. reluctance to grant credit to this group. b. language and cultural traditions. c. the urban nature of their neighborhoods. d. lack of a mass media that reaches this group. Answer: (+) Di i!"#$%: (*) Pa'e: &(6 1(. Mature consumers are becoming a very attractive market. Currently# the )8 and older population is estimated to be about ___________ strong. a. () million b. %) million c. &) million d. 11) million Answer: (a) Di i!"#$%: (,) Pa'e: &(6 1%. <elatively permanent and ordered divisions in a society whose members share similar values# interests# and behaviors are called$ a. cultures. b. subcultures. c. social classes. d. social factors. Answer: (!) Di i!"#$%: (&) Pa'e: &(6 1&. ;hich of the following is most true about social class in mericaa. 4ocial class is not determined by a single factor. b. 4ocial class is determined by income. c. 4ocial class lines are fi"ed. d. 4ocial class lines are rigid. Answer: (a) Di i!"#$%: (*) Pa'e: &(6

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28. ccording to the characteristics of the ma=or merican social classes# the _________________ are the social elite who live on inherited wealth and have well/known family backgrounds. a. upper/uppers b. lower/uppers c. upper/middles d. upper/lowers Answer: (a) Di i!"#$%: (&) Pa'e: &(2) Ta+#e 6/& 21. ccording to the characteristics of the ma=or merican social classes# the _________________ are primarily concerned with >attaining the better things in life.? They have attained positions as professionals# independent businesspersons# and corporate managers. a. upper/uppers b. lower/uppers c. upper/middles d. upper/lowers Answer: (!) Di i!"#$%: (*) Pa'e: &(2) Ta+#e 6/& 22. ccording to the characteristics of the ma=or merican social classes# the _________________ are the class who leads a >working/class lifestyle.? They depend heavily on relatives for economic and emotional support. a. upper/uppers b. lower/uppers c. upper/middles d. working class Answer: (-) Di i!"#$%: (*) Pa'e: &(2) Ta+#e 6/& 2!. 4ybil# 4ara# and @anice are all on the school tennis team. They are very proud of the fact that the team pulled together to accomplish the goal of winning a state championship for their school. ;hich is the best characteri9ation of the relationship between these three girls and the rest of their school tennis teama. group b. trend setters c. A .4 pattern d. lifestyle concept Answer: (a) Di i!"#$%: (*) Pa'e: &(6

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2'. Broups which have a direct influence and to which a person belongs are called$ a. membership groups. b. facilitative groups. c. bonding groups. d. social groups. Answer: (a) Di i!"#$%: (&) Pa'e: &(6 2). s a form of a reference group# the _______________ are ones to which the individual wishes to belong. a. secondary groups b. facilitative groups c. primary groups d. aspirational groups Answer: (-) Di i!"#$%: (*) Pa'e: &(6 21. The __________________ is a person within a reference group who# because of special skills# knowledge# personality# or other characteristics# e"erts influence on others. a. facilitator b. referent actor c. opinion leader d. social role player Answer: (!) Di i!"#$%: (&) Pa'e: &(2 2(. 6ven though buying roles in the family change constantly# the ___________ has traditionally been the main purchasing agent for the family. a. wife b. husband c. teenage children d. grandparent Answer: (a) Di i!"#$%: (&) Pa'e: &(3 2%. a. b. c. d. ma=or reason for the changing traditional purchasing roles for families is that$ the economic conditions are forcing more teens to work. more women than ever hold =obs outside the home. children are spending more time on the ;eb. men and women now shop together or >shop until you drop? for entertainment purposes.

Answer: (+) Di i!"#$%: (,) Pa'e: &(3

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2&. 2n3 ________________ consists of the activities people are e"pected to perform according to the persons around them. a. behavior b. attitude c. role d. status Answer: (!) Di i!"#$%: (&) Pa'e: &(( !8. The stages through which families might pass as they mature over time is a description of what is called the$ a. adoption process. b. lifestyle cycle. c. Values and Lifestyle (VALS) topology. d. family life cycle. Answer: (-) Di i!"#$%: (*) Pa'e: &(( !1. ______________ is a person+s pattern of living as e"pressed in his or her activities# interests# and opinions. a. role b. status c. position d. lifestyle

Answer: (-) Di i!"#$%: (*) Pa'e: &(( !2. ccording to the 4<C Consulting+s Values and Lifestyles (VALS) typology# _____________________ consumers are those that buy based upon their desire for activity# variety# and risk taking. a. principle/oriented b. status/oriented c. action/oriented d. value/oriented Answer: (!) Di i!"#$%: (*) Pa'e: *44 !!. ccording to 0orrester+s Technographics scheme for segmenting Cnternet customers according to motivation# desire# and ability to invest in technology# __________ are the biggest spenders on computer technology. They adopt new technology for home# office# and personal use before most others. a. Dew ge Durturers b. 0ast 0orwards c. Techno/4trivers d. Mouse 5otatoes

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Answer: (+) Di i!"#$%: (,) Pa'e: *4& !'. ______________ is2are3 a person+s uni,ue psychological characteristics that lead to relatively consistent and lasting responses to his or her own environment. a. 5sychographics b. 5ersonality c. Eemographics d. .ifestyle Answer: (+) Di i!"#$%: (*) Pa'e: *4& !). The basic premise of the _____________ is that people+s possessions contribute to and reflect their identitiesF that is# >we are what we have.? a. lifestyle concept b. self/concept c. personality concept d. cognitive concept Answer: (+) Di i!"#$%: (*) Pa'e: *4& !1. _____________ is a need that is sufficiently pressing to direct the person to seek satisfaction of the need. a. motive b. want c. demand d. re,uirement

Answer: (a) Di i!"#$%: (*) Pa'e: *4* !(. a. b. c. d. good synonym for motive is a2n3 _____________. omen need drive cue

Answer: (!) Di i!"#$%: (*) Pa'e: *4* !%. The theory of motivation that views people as responding to urges that are repressed but never fully under control was developed by$ a. Marshall. b. Gant. c. 0reud. d. Maslow. Answer: (!) Di i!"#$%: (,) Pa'e: *4*

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!&. Er. Gen Gaser designs ,ualitative research to probe consumers+ hidden# subconscious motivations. :e speciali9es in using nondirective and pro=ective techni,ues to uncover underlying emotions and attitudes towards brands and buying situations. ;hich of the following terms would most appropriately describe what Er. Gaser is doinga. market segment research b. cohort research c. psychodemographic research d. motivation research Answer: (-) Di i!"#$%: (*) Pa'e: *4,) Mar5e$in' a$ 67r5 6/& '8. ccording to Maslow+s :ierarchy of Deeds# the lowest order of needs are called$ a. self/actuali9ation needs. b. social needs. c. safety needs. d. physiological needs. Answer: (-) Di i!"#$%: (&) Pa'e: *40) .i'"re 6/, '1. ccording to Maslow+s :ierarchy of Deeds# the highest order of needs are called$ a. self/actuali9ation needs. b. social needs. c. safety needs. d. physiological needs. Answer: (a) Di i!"#$%: (*) Pa'e: *40) .i'"re 6/, '2. __________________ is the process by which people select# organi9e# and interpret information to form a meaningful picture of the world. a. <eadiness b. 4electivity c. 5erception d. Motivation Answer: (!) Di i!"#$%: (*) Pa'e: *41 '!. 5eople can form different perceptions of the same stimulus because of three perceptual processes. These processes are best described as being$ a. selective attention# selective distortion# and selective retention. b. subliminal perception# selective remembrance# selective forgetting. c. closure# modeling# and perceptual screening. d. needs distortion# wants analysis# and perceptual screening. Answer: (a) Di i!"#$%: (,) Pa'e: *40) *41

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''. Gellye is a loyal 4ony user. :er television# EAE player# cassette player# and AC< are all 4ony products. ;hen she hears or sees ads for 4ony products# she almost always remembers the good points about the brand. Cn addition# when she hears or sees an ad for a competing product that points out the strengths of its products# she tends forget these points ,uickly or does not process them at all. The process that Gellye is has gone through is best described as being one of$ a. selective retention. b. selective attention. c. selective distortion. d. stimulus actuali9ation. Answer: (a) Di i!"#$%: (,) Pa'e: *41 '). Cn 1&)(# a researcher announced that he had flashed the phrases >6at popcorn? and >Erink Coca/Cola? on a screen in a movie theater every five seconds for 1H!88th of a second. :e reported that although viewers did not consciously recogni9e these messages# they absorbed them subconsciously and bought )% percent more popcorn and 1% percent more Coke. This process was eventually named$ a. deceptive advertising. b. subliminal advertising. c. psychological manipulation. d. psychological modeling and transfusion. Answer: (+) Di i!"#$%: (*) Pa'e: *41 '1. _______________ describes changes in an individual+s behavior arising from e"perience. a. Modeling b. Motivation c. 5erception d. .earning Answer: (-) Di i!"#$%: (&) Pa'e: *41 '(. a. b. c. d. ___________ is a strong internal stimulus that calls for action. drive cue response perception

Answer: (a) Di i!"#$%: (&) Pa'e: *41

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'%. @ack .erma has a special relationship with his dog# Chris. 4eeing dog toys in a pet store window# hearing of a special price on dog food during a television commercial# or talking with a friend and receiving a recommendation a on kennel are all forms of __________# which may eventually impact @ack+s purchasing decisions and responses to the ob=ects he has seen or heard about. a. drives b. cues c. reinforcements d. dyads Answer: (+) Di i!"#$%: (*) Pa'e: *41 '&. Cf a consumer describes a car as being the >most economical car on the market#? then this descriptor is a2n3$ a. rule. b. attitude. c. belief. d. cue. Answer: (!) Di i!"#$%: (*) Pa'e: *41 )8. Cf a consumer tells friends >C like my car more than any other car on the road#? then the consumer has e"pressed a2n3$ a. rule. b. attitude. c. belief. d. cue. Answer: (+) Di i!"#$%: (*) Pa'e: *46 )1. ___________ puts people into a frame of mind of liking or disliking things# of moving toward or away from them. a. rule b. n attitude c. belief d. cue Answer: (+) Di i!"#$%: (*) Pa'e: *46 )2. ;hich of the following is DIT one of the five stages of the buyer decision processa. need recognition b. brand identification c. information search d. purchase decision Answer: (+) Di i!"#$%: (*) Pa'e: *42) .i'"re 6/0

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)!. ccording to the buyer decision process suggested in the te"t# the first stage is characteri9ed as being one of$ a. awareness. b. information search. c. need recognition. d. demand formulation. Answer: (!) Di i!"#$%: (&) Pa'e: *42) .i'"re 6/0 )'. The buying process can be triggered by a2n3 __________ when one of the person+s normal needsJhunger# thirst# se"Jrises to a level high enough to become a drive. a. awareness b. e"ternal stimuli c. internal stimuli d. e"periential motivation Answer: (!) Di i!"#$%: (*) Pa'e: *42 )). The stage in the buyer decision process in which the consumer is aroused to search for more information is called$ a. information search. b. evaluation of alternatives. c. search for needs. d. perceptual search. Answer: (a) Di i!"#$%: (&) Pa'e: *43 )1. The consumer can obtain information from any of several sources. Cf the consumer were to obtain information from handling# e"amining# or using the product# then the consumer would have obtained the information by using a2n3$ a. personal source. b. commercial source. c. informative source. d. e"periential source. Answer: (-) Di i!"#$%: (*) Pa'e: *43 )(. :ow the consumer processes information to arrive at brand choices occurs during which stage of the buyer decision processa. need recognition b. information search c. evaluation of alternatives d. purchase decision Answer: (!) Di i!"#$%: (&) Pa'e: *43

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)%. Benerally# the consumer+s purchase decision will be to buy the most preferred brand# but two factors can come between the purchase intention and the purchase decision. These two factors are best described as being$ a. the cost and availability of the product. b. the attitude of others and the cost of the product. c. the availability of the product and une"pected situational factors. d. the attitude of others and une"pected situational factors. Answer: (-) Di i!"#$%: (*) Pa'e: *4( )&. ;ith respect to postpurchase behavior# the larger the gap between e"pectations and performance$ a. the greater likelihood of re/purchase. b. the greater the customer+s dissatisfaction. c. the less likely the consumer will be influenced by advertising. d. the less likely the consumer will need sales confirmation and support. Answer: (+) Di i!"#$%: (*) Pa'e: *4( 18. Cognitive dissonance occurs in which stage of the buyer decision process modela. need recognition b. information search c. evaluation of alternatives d. postpurchase conflict Answer: (-) Di i!"#$%: (*) Pa'e: *4( 11. company must always guard against dissatisfying customers. In average# a satisfied customer tells ! people about a good purchase e"perience. dissatisfied customer# however# on average gripes to ________ people. a. ( b. & c. 11 d. !8

Answer: (!) Di i!"#$%: (,) Pa'e: *&4 12. The _________________ is the mental process through which an individual passes from first hearing about an innovation to final adoption. a. adoption process b. consumption process c. innovation process d. new product development process Answer: (a) Di i!"#$%: (*) Pa'e: *&4

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1!. ll of the following are part of the adoption process that consumers may go through when considering an innovation 67C65T$ a. awareness. b. process. c. interest. d. trial. Answer: (+) Di i!"#$%: (*) Pa'e: *& 1'. ;ith respect to adopter categories# the _______________ are guided by respect# are the opinion leaders in their communities# and adopt new ideas early but carefully. a. seekers b. innovators c. early adopters d. early ma=ority Answer: (!) Di i!"#$%: (*) Pa'e: *&,) .i'"re 6/1 1). ;ith respect to adopter categories# the ___________________ are skeptical and they adopt an innovation only after a ma=ority of people have tried it. a. early adopters b. early ma=ority c. late ma=ority d. laggards Answer: (!) Di i!"#$%: (*) Pa'e: *&,) .i'"re 6/1 11. 4everal characteristics are especially important in influencing an innovation+s rate of adoption. _________ is the degree to which the innovation may be tried on a limited basis. a. <elative advantage b. 4ynchroni9ation c. Compatibility d. Eivisibility Answer: (-) Di i!"#$%: (,) Pa'e: *&, 1(. Cf a company makes products and services for the purpose of reselling or renting them to others at a profit or for use in the production of other products and services# then the company is selling to the$ a. business market. b. international market. c. consumer market. d. private sector market.

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Answer: (a) Di i!"#$%: (&) Pa'e: *&1 1%. ll of the following are among the primary differences between a business market and a consumer market 67C65T$ a. purchase decisions to satisfy needs. b. market structure and demand. c. the nature of the buying unit. d. the types of decisions and the decision process involved. Answer: (a) Di i!"#$%: (,) Pa'e: *&1 1&. The business marketer normally deals with _____________ than the consumer marketer does. a. far greater but smaller buyers b. far greater and larger buyers c. far fewer but far larger buyers d. far fewer and smaller buyers Answer: (!) Di i!"#$%: (*) Pa'e: *&1 (8. ;hen demand comes 2as it does in the business market3 from the demand for consumer goods# this form of demand is called$ a. kinked demand. b. inelastic demand. c. cyclical demand. d. derived demand. Answer: (-) Di i!"#$%: (*) Pa'e: *&1 (1. Beneral Motors buys steel because consumers buy cars. Cf consumer demand for cars drops# so will Beneral Motors+ demand for steel. This is an e"ample of the relationships found in$ a. kinked demand. b. inelastic demand. c. cyclical demand. d. derived demand. Answer: (-) Di i!"#$%: (*) Pa'e: *&1 (2. That business markets have more buyers involved in the purchase decision is evidence of which of the following characteristic differences between business and consumer marketsa. market structure and demand b. the nature of the buying unit c. types of decisions made d. type of decision process itself

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Answer: (+) Di i!"#$%: (,) Pa'e: *&1/*&6 (!. 5urchases in the business market often involve large sums of money# comple" technical and economic considerations# and interactions among many people at many levels of the buyer+s organi9ation. This is evidence of which of the following characteristic differences between business and consumer marketsa. market structure and demand b. the nature of the buying unit c. types of decisions made and the decision process d. type of business classification Answer: (!) Di i!"#$%: (,) Pa'e: *&6 ('. The place in the business buying behavior model where interpersonal and individual influences might interact is called the$ a. environment. b. response. c. stimuli. d. buying center. Answer: (-) Di i!"#$%: (*) Pa'e: *&6/*&() .i'"re 6/6 (). Cn a _______________# the buyer reorders something without any modifications. a. habitual rebuy b. straight rebuy c. modified rebuy d. new task buy Answer: (+) Di i!"#$%: (&) Pa'e: *&2 (1. Cn a _______________# the buyer wants to change something about product specifications# prices# terms# or suppliers. a. habitual rebuy b. straight rebuy c. modified rebuy d. new task buy Answer: (!) Di i!"#$%: (&) Pa'e: *&2 ((. ;hen a firm buys a product or service for the first time# it is facing a$ a. habitual rebuy situation. b. straight rebuy situation. c. modified rebuy situation. d. new task situation.

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Answer: (-) Di i!"#$%: (&) Pa'e: *&2 (%. The >in? suppliers are most likely to get nervous and feel pressure to put their best foot forward in which of the following types of buying situationsa. modified rebuy b. new task buying c. straight rebuy d. indirect rebuy Answer: (a) Di i!"#$%: (*) Pa'e: *&2 (&. Cf a firm were to bid to do a >turnkey? operation where they would choose a building site# design a cement factory to build the plant# hire construction crews# assemble materials and e,uipment to run the new factory# and turn over the finished factory ready to operate to the owners# the bidding firm would be using which of the followinga. core process products selling b. design products selling c. reciprocal selling d. systems selling Answer: (-) Di i!"#$%: (*) Pa'e: *&3 %8. The decision/making unit of a buying organi9ation is called its _____________$ all the individuals and units that participate in the business decision/making process. a. buying center b. purchasing center c. bidding center d. demand/supply center Answer: (a) Di i!"#$%: (&) Pa'e: *&3) *&( %1. Considering the ma=or influences on business buyer behavior# as shown in a model in the te"t# under which influence stage would you e"pect to find the influences of authority# status# empathy# and persuasivenessa. environmental b. organi9ational c. interpersonal d. individual Answer: (!) Di i!"#$%: (*) Pa'e: **4) .i'"re 6/2

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%2. The stage of the business buying process where the buyer describes the characteristics and ,uantity of the needed item is called$ a. problem recognition. b. general need description. c. product specification. d. proposal solicitation. Answer: (+) Di i!"#$%: (*) Pa'e: **,/**1) .i'"re 6/3 %!. Cf a buying team is asked by the purchasing department to rank the importance of reliability# durability# price# and other attributes of an item# then the team is going through a business buying process stage called$ a. problem recognition. b. general need description. c. product specification. d. proposal solicitation. Answer: (+) Di i!"#$%: (*) Pa'e: **,/**1) .i'"re 6/3 %'. ________________ is the stage of business buying where an organi9ation decides on and specifies the best technical product characteristics for a needed item. a. 5roblem recognition b. Beneral need description c. 5roduct specification d. 5roposal solicitation Answer: (!) Di i!"#$%: (*) Pa'e: **, %). _________________ is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned# standardi9ed# or made by less costly methods of production. a. Cost analysis b. Irder analysis c. 5roduct analysis d. Aalue analysis Answer: (-) Di i!"#$%: (,) Pa'e: **, %1. <eviewing trade directories# doing a computer search# or phoning other companies for recommendations would be methods that an interested buyer might perform in which of the following stages of the business buying process modela. problem recognition b. vendor analysis c. product specification d. supplier search

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Answer: (-) Di i!"#$%: (&) Pa'e: **, %(. 0actors such as supplier reputation for repair and servicing capabilities are important criteria for evaluation at which stage in the business buying processa. problem recognition b. supplier search c. supplier selection d. order/routine specification Answer: (!) Di i!"#$%: (*) Pa'e: **0 %%. Blanket contracts are typically part of which of the following stages in the business buying processa. general need description b. product specification c. supplier selection d. order/routine specification Answer: (-) Di i!"#$%: (*) Pa'e: **0) **1 %&. The stage of the business buying process in which the buyer writes the final order with the chosen supplier2s3# listing the technical specifications# ,uantity needed# e"pected time of delivery# return policies# and warranties is called$ a. general need description. b. product specification. c. supplier selection. d. order/routine specification. Answer: (-) Di i!"#$%: (*) Pa'e: **0 &8. The _______________ may lead the buyer to continue# modify# or drop the arrangement that has been entered into by the buyer and seller. a. performance review b. order/routine specification c. supplier selection d. general need description Answer: (a) Di i!"#$%: (&) Pa'e: **1 &1. Cncreasingly# business buyers are purchasing all kinds of products and services electronically# either through electronic data interchange links 26EC3 or on the Cnternet. The descriptive term for such purchases# e"changes# and links is$ a. e/marketing. b. e/commerce. c. e/procurement. d. e/transaction.

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Answer: (!) Di i!"#$%: (*) Pa'e: **1 &2. 6/purchasing by businesses has its drawbacks and problems. More than %8 percent of companies say that __________ is the leading barrier to e"panding electronic links with customers and partners. a. security b. privacy c. cost d. lack of correct technology Answer: (a) Di i!"#$%: (*) Pa'e: **2) **3 TRUE8.ALSE QUESTIONS &!. Ine of the beauties of studying consumer buying behavior is its simplicity. Answer: (.a#se) Di i!"#$%: (&) Pa'e: &(&) &(* &'. ;ith respect to studying consumer or buyer behavior# the central ,uestion for marketers is$ >:ow do consumers respond to various marketing efforts the company might use-? Answer: (Tr"e) Di i!"#$%: (&) Pa'e: &(* &). Cn a simple model of buyer behavior# marketing and other stimuli are processed in a consumer+s black bo". Answer: (Tr"e) Di i!"#$%: (&) Pa'e: &(*) .i'"re 6/& &1. Cf consumers have a cultural shift toward greater concern about health and fitness# then a correct marketing response would be to manufacture or market health and fitness services# e"ercise e,uipment# and sports clothing. Answer: (Tr"e) Di i!"#$%: (&) Pa'e: &(, &(. Cf the *.4. population of Asian Americans were a separate nation# its buying power of K)88 billion annually would rank twelfth in the free world. Answer: (.a#se) Di i!"#$%: (,) Pa'e: &(0 &%. The fastest growing and most affluent racial or ethnic subculture within the *nited 4tates culture is the sian merican group. Answer: (Tr"e) Di i!"#$%: (*) Pa'e: &(1

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&&. Cn the *nited 4tates# a source of concern is the fi"ed lines between social classes and the problems that this rigidity brings. Answer: (.a#se) Di i!"#$%: (*) Pa'e: &(6 188. Cnherited wealth characteri9es the lower upper social class category. Answer: (.a#se) Di i!"#$%: (*) Pa'e: &(2) Ta+#e 6/& 181. *pper lowers in the *nited 4tates social class lead a >working/class lifestyle.? Answer: (.a#se) Di i!"#$%: (&) Pa'e: &(2) Ta+#e 6/& 182. Ipinion leaders are people within a reference group who# because of special skills# knowledge# personality# or other characteristics# e"ert influence on others. Answer: (Tr"e) Di i!"#$%: (&) Pa'e: &(2 18!. ;omen account for nearly one/half of all hardware purchases. The most accurate correlation with this e"ample would be that of changing social class distinctions. Answer: (.a#se) Di i!"#$%: (&) Pa'e: &(3 18'. person+s lifestyle is reflected by his or her activities# interests# and opinions.

Answer: (Tr"e) Di i!"#$%: (&) Pa'e: &(( 18). Cn the A .4 typology# action-oriented buyers base their purchases on the actions and opinions of others. Answer: (.a#se) Di i!"#$%: (,) Pa'e: *44 181. good illustration of the >Mouse 5otatoes? lifestyle 2as described by 0orrester+s Technographics scheme3 would be a person who is dedicated to interactive entertainment and willing to spend for the latest in >technotainment.? Answer: (Tr"e) Di i!"#$%: (&) Pa'e: *4& 18(. person+s self/concept is also called the self/image.

Answer: (Tr"e) Di i!"#$%: (&) Pa'e: *4& 18%. nother term for motive is self/concept.

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Answer: (.a#se) Di i!"#$%: (&) Pa'e: *4* 18&. The highest order of needs within Maslow+s hierarchy of needs scheme is esteem needs such as self/esteem# recognition# or status. Answer: (.a#se) Di i!"#$%: (,) Pa'e: *4*) .i'"re 6/, 118. 4elective attention is the tendency for people to screen out most of the information to which they are e"posed. Answer: (Tr"e) Di i!"#$%: (&) Pa'e: *40 111. Dumerous studies by psychologists and consumer researchers have found no link between subliminal messages and consumer behavior. Answer: (Tr"e) Di i!"#$%: (*) Pa'e: *41 112. .earning occurs through the interplay between drives# stimuli# cues# responses# and reinforcement. Answer: (Tr"e) Di i!"#$%: (*) Pa'e: *41 11!. <esearch has shown that attitudes are relatively easy to change while beliefs are e"tremely difficult to change. Answer: (.a#se) Di i!"#$%: (,) Pa'e: *41/*42 11'. The buyer decision process model begins with information search. Answer: (.a#se) Di i!"#$%: (*) Pa'e: *42) .i'"re 6/0 11). The larger the gap between e"pectations and performance# the greater the consumer+s dissatisfaction. Answer: (Tr"e) Di i!"#$%: (*) Pa'e: *4( 111. The early ma=ority segment of adopter classification scheme shown in the te"t are characteri9ed as being guided by respectJthey are the opinion leaders in their communities# and adopt new ideas early but carefully. Answer: (.a#se) Di i!"#$%: (*) Pa'e: *&,) .i'"re 6/1 11(. Cn the adopter classification scheme# innovators account for about half of the bell/shaped adoption curve. Answer: (.a#se) Di i!"#$%: (*) Pa'e: *&,) .i'"re 6/1

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11%. The business market consists of all the organi9ations that buy goods and services to use in the production of other products and services that are sold# rented# or supplied to others. Answer: (Tr"e) Di i!"#$%: (&) Pa'e: *&1 11&. The business market is huge# however# at present the consumer market still involves more dollars and items for sale. Answer: (.a#se) Di i!"#$%: (*) Pa'e: *&1 128. Business buyers usually face more simple situations when purchasing than do consumers because of the amount of information that they have prior to purchase. Answer: (.a#se) Di i!"#$%: (*) Pa'e: *&6 121. straight rebuy occurs when a business buyer wants to modify product specifications# prices# terms# or suppliers. Answer: (.a#se) Di i!"#$%: (&) Pa'e: *&2 122. The buying center# by its very nature# is a fi"ed and formally identifiable unit within an organi9ation. Answer: (.a#se) Di i!"#$%: (*) Pa'e: *&3 12!. *nlike consumer buying behavior# business buying behavior is not influenced by interpersonal factors. Answer: (.a#se) Di i!"#$%: (*) Pa'e: **4) **&) .i'"re 6/2 12'. The first stage of the business buying process is that of problem recognition. Answer: (Tr"e) Di i!"#$%: (*) Pa'e: **&) .i'"re 6/3 12). Aalue analysis is performed in the supplier search stage of the business buying process model. Answer: (.a#se) Di i!"#$%: (,) Pa'e: **, 121. Cn business buying# M<I stands for maintenance# repair# and operations. Answer: (Tr"e) Di i!"#$%: (*) Pa'e: **1

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ESSAY QUESTIONS 12(. :arley/Eavidson Motorcycle Company has used consumer behavior studies to advance the organi9ation+s knowledge about its consumers. This strategy has been pivotal in meeting the challenge of the @apanese motorcycle manufacturers. :ow has :arley/Eavidson used focus groups to keep up with its shifting market and varying consumer tastes- ;hat information has the company obtained about its customersAnswer: :arley/Eavidson uses focus groups to e"plore its consumers+ feelings about the company+s products. 0or e"ample# cut/and/paste collages of pictures 2assembled by representative consumers3 showed how consumers felt about the company+s motorcycles. This focus group e"ercise was then followed by a more e"tensive 211#888 surveys3 battery of psychological# sociological# and demographic ,uestions that attempted to classify :arley users into distinct groups 2advertising could then be directed toward these specific groups3. The company found that :arley customers were buying more than =ust motorcycles when the company+s product was purchased. The customers were making a lifestyle statement and displaying an attitude. These lifestyle statements and attitudes were then captured in advertisements directed toward the target audiences. The company believes that knowledge of consumer behavior is very important to the overall success of their strategy and campaigns. Di i!"#$%: (*) Pa'e: &3(/&(& 12%. Eefine the consumer market and briefly describe the elements of a simple model of buying behavior as identified in your te"t. Answer: The consumer market is made up of all the final consumers of products and services combined. simple model of consumer behavior consists of 213 marketing and other stimuli 2such as the '5s Lproduct# price# place# and promotionM and environmental forces Leconomic# technological# political# and cultural forcesM3# 223 the buyer+s black bo" 2that includes the buyer+s characteristics and the buying decision process3# and 2!3 the buyer+s responses 2which includes product choice# brand choice# dealer choice# purchase timing# and purchase amount3. Di i!"#$%: (*) Pa'e: &(*) .i'"re 6/& 12&. Eescribe the importance of culture# subculture# and social class influences on consumer buying behavior. Answer: Culture is the most basic cause of a person+s wants and behavior. 4ubcultures are smaller groups of shared value systems based upon common life e"periences or situations. 4ubcultures often make up significant market segments. 4ocial classes are relatively

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permanent and ordered divisions in a society whose members share similar values# interests# and behaviors related to product preferences and purchase behaviors. Di i!"#$%: (*) Pa'e: &(,/&(6 1!8. Briefly# characteri9e the :ispanic# frican merican# and sian merican subcultures found in the *nited 4tates market. Answer: a3. :ispanic mericans consist of Cuban# Me"ican# Central merican# 4outh merican# and 5uerto <ican peoples. They are appro"imately !) million strong# and buy more than K'88 billion worth of goods and services each year. They are e"pected to grow by 1' percent in the ne"t 28 years. They are somewhat easy to reach through the growing number of 4panish media stations and publications. This group has long been a target for food# beverages# and household care items. b3. frican mericans# if a separate nation# would 2with a buying power of K)88 billion annually3 rank twelfth in the free world. This group is growing in affluence and sophistication. They are strongly motivated by ,uality and selection. They are brand loyal and do less shopping around. c3. sian mericans are the fastest/growing and most affluent of the subculture segments. They now number 18 million with a disposable income of K22& billion annually. They are estimated to reach !8 million by 28)8. 5resently# the Chinese group is the largest. Di i!"#$%: (*) Pa'e: &(,/&(1 1!1. Eescribe what a group is# and the various forms of groups that 2according to the te"t3 a consumer might be a part of. Answer: group is two or more people who interact to accomplish individual or mutual goals. Types of groups would include$ a3. Membership groupsJgroups that have a direct influence and to which a person belongs. b3. <eference groupsJserve as a direct 2face/to/face3 or indirect points of comparison or reference in forming a person+s attitudes or behavior. c3. spirational groupsJone to which the individual wishes to belong. Di i!"#$%: (*) Pa'e: &(6) &(2 1!2. .ist and briefly describe the five categories of 0orrester+s Technographics scheme# which segments consumers according to motivation# desire# and ability to invest in technology.

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Answer: The five categories as outlined in the te"t include$ a3. 0ast 0orwardsJthe biggest spenders on computer technology. 0ast 0orwards are early adopters of new technology for home# office# and personal use. b3. Dew ge DurturersJalso big spenders but focused on technology for home uses# such as a family 5C. c3. Mouse 5otatoesJconsumers who are dedicated to interactive entertainment and willing to spend for the latest in >technotainment.? d3. Techno/4triversJconsumers who use technology primarily to gain a career edge. e3. :andshakersJolder consumers# typically managers# who don+t touch computers at work and leave that to younger assistants. Di i!"#$%: (,) Pa'e: *4& 1!!. .ist and briefly describe Maslow+s :ierarchy of Deeds. Answer: Beginning at the bottom of the pyramid model$ a3. physiological needsJhunger# thirst b3. safety needsJsecurity# protection c3. social needsJsense of belonging# love d3. esteem needsJself/esteem# recognition# status e3. self/actuali9ation needsJself/development and reali9ation Di i!"#$%: (*) Pa'e: *4*) *40) .i'"re 6/, 1!'. Eiscuss and illustrate the difference between an attitude and a belief. Answer: belief is a descriptive thought that a person holds about something. n attitude is a person+s consistently favorable or unfavorable evaluations# feelings# and tendencies toward an ob=ect or idea. Beliefs may be based on knowledge# opinion# or faith# and they may carry an emotional charge. ttitudes are primarily feelings of like and dislike. ttitudes are difficult to change. Di i!"#$%: (*) Pa'e: *41/*42 1!). Cdentify each of the stages of the buyer decision process. Be sure to give a brief description of each stage. Answer: a3. Deed recognition$ The first stage of the buyer decision process# in which the consumer recogni9es a problem or need. The buyer senses a difference between his or her actual state and some desired state. The need can be triggered by internal or e"ternal stimuli.

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b3. Cnformation search$ The stage of the buyer decision process in which the consumer is aroused to search for more informationF the consumer may simply have heightened attention or may go into active information search. c3. 6valuation of lternatives$ The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. The consumer can use product attributes# degrees of importance# brand beliefs# total product satisfaction# or an evaluation procedure to perform alternative evaluation. d3. 5urchase decision$ The stage in the buyer decision process in which the consumer actually buys the product. 0actors that can influence this action phase are$ the purchase intention# the attitudes of others# and une"pected situational factors. e3. 5ostpurchase behavior$ The stage of the buyer decision process in which consumers take further action after purchase based upon their satisfaction or dissatisfaction. The considerations are the consumer+s e"pectations and the product+s perceived performance. Cognitive dissonance can set in# and must be dealt with before complete satisfaction can be achieved. Di i!"#$%: (,) Pa'e: *42/*&4) .i'"re 6/0 1!). 5eople differ in their readiness to adopt or try new products. Take each of the five adopter groups mentioned in the te"t and give a synonym or brief description of each primary characteristic that sets each particular group apart from the others. Answer: a3. CnnovatorsJventuresomeJthey try new ideas at some risk. b3. 6arly adoptersJrespectedJthey are the opinion leaders in their communities and adopt new ideas early but carefully. c3. 6arly ma=orityJdeliberateJalthough they are rarely leaders# they adopt new ideas before the average person. d3. .ate ma=orityJskepticalJthey adopt an innovation only after a ma=ority of people have tried it. e3. .aggardsJtradition boundJthey are suspicious of changes and adopt the innovation only when it has become something of a tradition itself. Di i!"#$%: (*) Pa'e: *&,) .i'"re 6/1 1!1. n innovative product+s rate of adoption is influenced by five characteristics. .ist and then briefly discuss each of these characteristics. Answer: a3. <elative advantageJthe degree to which an innovation appears superior to e"isting products. b3. CompatibilityJthe degree to which the innovation fits the values and e"periences of potential consumers. c3. Comple"ityJthe degree to which the innovation is difficult to understand or use. d3. EivisibilityJthe degree to which the innovation may be tried on a limited basis.

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e3. CommunicabilityJthe degree to which the results of using the innovation can be observed or described to others. Di i!"#$%: (*) Pa'e: *&,) *&0 1!(. 6"plain how business markets differ from consumer markets. Answer: The main differences include market structure and demand# the nature of the buying unit# and the types of decisions and the decision process within the two. Business markets are geographically concentrated and have derived# inelastic# and fluctuating demand. Buying is more professional and involves more people. Eecisions are more comple"# more formali9ed# and the buyer and seller are more dependent upon one another. Di i!"#$%: (*) Pa'e: *&1 1!%. There are three types of buying situations faced by the business buyer. .ist and briefly e"plain or characteri9e each of these situations. Answer: a3. 4traight rebuyJthe buyer reorders something without any modifications. Ct is usually handled on a routine basis by the purchasing department. b3. Modified rebuyJthe buyer wants to modify product specifications# prices# terms# or suppliers. More people in the firm are involved in this situation. c3. Dew/taskJa company buys a product for the first time. Cn such cases# the greater the cost or risk# the larger the number of decision participants and the greater their efforts to collect information will be. Di i!"#$%: (*) Pa'e: *&2 1!&. .ist and define the stages in the business buying decision process. Answer: 2a3 5roblem recognition$ the stage in which someone in the company recogni9es a problem or need that can be met by ac,uiring a good or a service. 2b3 Beneral need description$ the stage in which the company describes the general characteristics and ,uantity of a needed item. 2c3 5roduct specification$ the stage in which the buying organi9ation decides on and specifies the best technical product characteristics for a needed item. 2d3 4upplier search$ the stage in which the buyer tries to find the best vendors. 2e3 5roposal solicitation$ the stage in which the buyer invites ,ualified suppliers to submit proposals. 2f3 4upplier selection$ the stage in which the buyer reviews proposals and selects a supplier or suppliers.

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2g3 Irder/routine specification$ the stage in which the buyer writes the final order with the chosen supplier2s3# listing the technical specifications# ,uantity needed# e"pected time of delivery# return policies# and warranties. 2h3 5erformance review$ the stage in which the buyer rates its satisfaction with suppliers# deciding whether to continue# modify# or drop them. Di i!"#$%: (,) Pa'e: **&/**1) .i'"re 6/3 APPLICATION QUESTION 1'8. Cn the past few years# 0rito/.ay snack foods introduced several new products to their already e"tensive line of chips. The new products were a >baked? potato chip and a >reduced fat? potato chip. *sing information found in the chapter on factors that influence consumer behavior# indicate cultural# social# personal# and psychological ,uestions that would be useful to answer so that meaningful market segments can be derived for either of these two new products 2pick one of the two products3. Be specific in your recommendations. Answer: The purpose of this ,uestion is to get students to review information found in the chapter and in .i'"re 6/*. This ,uestion may be given as a take/home assignment since it re,uires e"tended thought. Cn order to construct an answer# the student should consider the following$ a3 CultureJany relevant variables within the general culture# subculture# and social class structure should be identified. 0or e"ample# what types of mericans have an affinity for snack foods# which groups prefer a more healthy or reduced diet# do particular subcultures have different preferences in snack foods# do the different subcultures have different views toward healthy lifestyles# and do social class and income 2or occupational3 variables have any impact on the ,uestionb3 4ocialJwould groups influence the acceptability of the new products# would there be peer pressure 2such as with >stop smoking? campaigns3# what family dynamics would come into play in the selection of the new products 2would a Mom that wants a healthy lifestyle have more influence than children who want traditional snack items3# and would either of the new products have an elevated status because of their newnessc3 5ersonalJin this section such factors as the consumer+s age and life/cycle stage# occupation# economic situation# lifestyle# and personality and self/concept should be e"amined. 0or e"ample# would these new products be aimed at those that are already participating in a health/related lifestyle# with respect to product selection# or should the products be aimed at those that have problems and are looking for healthy alternatives to solve their problemsd3 5sychologicalJa consumer+s motivation# perception# learning# and beliefs and attitudes would certainly be impacted by the adoption of either of these two new products. Eoes the consumer look at these two new products as being inferior to the older# more preferred products# how much does the consumer really know about these

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products# and what beliefs or attitudes must be formed or changed for the products to be successful4tudents should construct their answers using some type of plan that is similar to the ideas presented above unless other more specific instructions are given. 4tudents should feel free to construct their own ,uestions# however# the ,uestions should be useful in determining market segments that could be targeted by the company for sales and promotional efforts. Di i!"#$%: (,) Pa'e: &(,/*42) .i'"re 6/*

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