Marketing The Core 5Th Canadian Edition By Roger
A. Kerin – Test Bank
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Marketing The Core 5Th Canadian Edition By Roger A. Kerin – Test Bank
Sample Questions
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Chapter 03
Consumer Behaviour
True / False Questions
1.
The purchase decision process begins with information search and ends once the consumer has made a
purchase.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-01 Consumer Purchase Decision Process
2.
Hank is watching television and sees an advertisement for a new snack food that he decides to
purchase. This is an example of recognizing a need.
TRUE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-01 Consumer Purchase Decision Process
Topic: 03-02 Problem Recognition: Perceiving a Need
3.
Information search includes memories of personal experience and casual inquiries with friends.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-03 Information Search: Seeking Value
4.
The evoked set includes both products you are aware of and those you could see upon visiting a store.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-04 Evaluation of Alternatives: Assessing Value
5.
The feeling of post-purchase psychological tension or anxiety is called cognitive dissonance.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-06 Post-purchase Behaviour: Value in Consumption or Use
6.
Mobile devices have made many consumer purchase decisions easier to make.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-05 Purchase Decision: Buying Value
7.
For products such as table salt and milk, consumers spend considerable effort seeking external
information and evaluating alternatives.
FALSE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-07 Involvement and Problem-Solving Variations
8.
Consumers rely on past experience more than external information in routine problem-solving
behaviour.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-02 Distinguish between three variations of the consumer purchase decision process:
routine; limited; and extended problem-solving.
Topic: 03-07 Involvement and Problem-Solving Variations
9.
Limited problem solving exists in high-involvement purchase situations for items such as automobiles,
houses, and financial investments.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-02 Distinguish between three variations of the consumer purchase decision process:
routine; limited; and extended problem-solving.
Topic: 03-07 Involvement and Problem-Solving Variations
10.
Temporal effects include the consumer’s mood or the amount of cash on hand, which can influence
purchase behaviour and choice.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-03 Describe how situational influences affect the consumer purchase decision process.
Topic: 03-08 Consumer Purchase Decision Process Influencers
11.
The need for food is a physiological need.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-11 Motivation and Personality
12.
Personality characteristics are often revealed in a person’s self-concept.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-11 Motivation and Personality
13.
Selective exposure involves interpreting information so that it is consistent with your attitudes and
beliefs.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-12 Perception
14.
Selective retention affects the internal and external information search stage of the purchase decision
process.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-12 Perception
15.
Behavioural learning occurs when a response brought about by one stimulus (cue) is generalized to
another stimulus.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-13 Learning
16.
Stimulus discrimination refers to one’s ability to perceive differences among similar products.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-13 Learning
17.
An attitude is a learned predisposition to respond to an object or class of objects in a consistently
favourable or unfavourable way.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-14 Values; Beliefs; and Attitudes
18.
The online version of word of mouth is called viral marketing.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-05 Identify major socio-cultural influences on consumer behaviour and their effects on
purchase decisions.
Topic: 03-17 Personal Influence
19.
The process by which people acquire the skills, knowledge, and attitudes necessary to function as
consumers is consumer socialization.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-05 Identify major socio-cultural influences on consumer behaviour and their effects on
purchase decisions.
Topic: 03-19 Family Influence
20.
Cultures refer to a learned predisposition to respond to an object or class of objects in a consistently
favourable or unfavourable way.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-06 Discuss the importance of culture and subculture in determining consumer
behaviour.
Topic: 03-20 Culture and Subculture
21.
Values can be defined as what is considered normal and expected about the way people do things in a
specific country or culture.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-06 Discuss the importance of culture and subculture in determining consumer
behaviour.
Topic: 03-21 Global Cultural Diversity
22.
If a global fast-food chain starts a vegetarian restaurant to sell its products in a region where
vegetarianism is high, the fast-food chain is considering the region’s values.
TRUE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-06 Discuss the importance of culture and subculture in determining consumer
behaviour.
Topic: 03-21 Global Cultural Diversity
23.
When a translated word or phrase is retranslated again into the original language by a different
interpreter to catch errors, it is termed as back translation.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-06 Discuss the importance of culture and subculture in determining consumer
behaviour.
Topic: 03-21 Global Cultural Diversity
Multiple Choice Questions
24.
_____ describes the actions a person takes in purchasing and using products and services.
A.Marketing
B. Market research
C. Consumer behaviour
D. Consumer management
Consumer behaviour is defined as the actions a person takes when purchasing and using products and services.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-01 Consumer Purchase Decision Process
25.
The stages a buyer passes through in making choices about which products and services to buy are
referred to as the _____.
A.situational analysis sequence
B. limited problem solving
C. purchase decision process
D. hierarchy of learning
The stages that a consumer passes through when making choices about which products and services to buy is
the purchase decision process.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-01 Consumer Purchase Decision Process
26.
During the purchase decision process, Stewart realizes that the difference between what he has and
what he would like to have is big enough to actually do something about it. Stewart is most likely in the
_____ stage in the purchase decision process.
A.problem recognition
B. alternative evaluation
C. cognitive dissonance
D. routine response behaviour
Problem recognition, the initial step in the purchase decision, occurs when a person realizes that the difference
between what he or she has and what he or she would like to have is big enough to actually do something
about it.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-02 Problem Recognition: Perceiving a Need
27.
When Marty attended his first statistics class, he realized that he ought to buy a calculator or else he
would be unable to do his assignments. In which stage of the consumer purchase decision process was
Marty when he had this realization?
A.information search
B. problem recognition
C. purchase behaviour
D. alternative evaluation
Marty is in the problem recognition stage. Problem recognition, the initial step in the purchase decision, occurs
when a person realizes that the difference between what he or she has and what he or she would like to have is
big enough to actually do something about it.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-02 Problem Recognition: Perceiving a Need
28.
Which stage in the consumer purchase decision process suggests criteria to use for the purchase,
yields brand names that might meet the criteria, and develops consumer value perceptions?
A.problem recognition
B. information search
C. alternative evaluation
D. purchase decision
The information search stage clarifies the problem for the consumer by suggesting criteria, or points to
consider, for the purchase; providing brand names that might meet the criteria; and developing consumer value
perceptions.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-03 Information Search: Seeking Value
29.
Eddie, an avid football fan, is glued to the television every Sunday afternoon as he watches his
favourite teams. He thinks games would be more enjoyable on a big-screen television. Eddie started talking
with his friends to learn more about the various brands of big-screen televisions. Which step of the
purchase decision making process is Eddie in?
A.problem recognition
B. evaluation of alternatives
C. purchase decision
D. information search
After recognizing a problem, consumers begin to search for information about what product or service might
satisfy the newly discovered need.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-03 Information Search: Seeking Value
30.
When an elementary school teacher needed to buy poster boards for her class, she remembered that
she had found some poster boards at three stores. Which of the following terms best describes the
information search method used by the teacher?
A.personal external source
B. external search
C. market-dominated external source
D. internal search
Consumers may scan their memory for knowledge of or previous experiences with products or brands. This
action is called internal search.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-03 Information Search: Seeking Value
31.
A(n) _____ in the consumer purchase decision process occurs when consumers scan their memory for
previous experiences with products or brands.
A.problem recognition
B. internal search
C. external search
D. purchase task
Consumers may scan their memory for knowledge of or previous experiences with products or brands. This
action is called internal search.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-03 Information Search: Seeking Value
32.
An external search for product information is especially important when:
A.the level of interest in a product is high.
B. a review of past experience provides adequate information.
C. the risk of making a wrong purchase decision is low.
D. the item is frequently purchased.
A consumer may undertake an external search for information. This is especially needed when one does not
have much past experience or knowledge, the risk of making a bad decision is high, and the level of interest in
the product is high.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-03 Information Search: Seeking Value
33.
Christina wants to purchase a new computer. She is unsure about what hardware and software she will
need. As a result, she has begun asking for advice from friends and relatives. In addition, she has talked to
several computer salespeople and has looked at some websites. Christina is engaging in _____.
A.problem recognition
B. an internal search
C. an external search
D. a purchase task
Christina is engaging in an external search. The primary sources of external information are personal sources,
such as relatives and friends who the consumer trusts; public sources, such as Google searches on the Internet,
including various product-rating organizations such as Consumer Reports or government agencies; and
marketer-dominated sources, such as information from sellers that includes advertising, company websites,
salespeople, and point-of-purchase displays in stores.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-03 Information Search: Seeking Value
34.
What is the first stage of the purchase decision process?
A.Purchase decision process
B. Problem recognition
C. Purchase decision
D. Alternatives
The stages that a consumer passes through when making choices about which products and services to buy is
the purchase decision process. This process has five stages: problem recognition, information search,
alternative evaluation, purchase decision, and post-purchase behaviour. The first stage is problem recognition.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-02 Problem Recognition: Perceiving a Need
35.
Which of the following is an example of an internal search?
A.A buyer who checks out her favourite brand of hair dryer in a local store before ordering it by mail.
B. A customer searching the Internet for reviews on a high-end hair-straightening gadget.
C. A store trying to maximize the sale of its own in-house brand shampoo.
D. A consumer trying to recall the effect of a particular brand of conditioner when she had used it last.
Consumers may scan their memory for knowledge of or previous experiences with products or brands. This
action is called internal search. Thus, a consumer who tries to recall the effect of a particular brand of
conditioner when she had used it last is doing an internal search.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-03 Information Search: Seeking Value
36.
The factors a consumer uses when considering a purchase are called
A.Evaluative criteria
B. Evoked set
C. Pre-qualified alternatives
D. Make-buy options
The factors considered when evaluating purchase options are collectively called the evaluative criteria.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-04 Evaluation of Alternatives: Assessing Value
37.
Ted is considering which new mobile phone plan he will purchase. Ted is concerned with price but
also wishes to choose a provider with good geographical service coverage and customer service that has
good reviews. This represents:
A.Ted’s evoked set
B. Ted’s evaluative criteria
C. Ted engaging in showrooming
D. Routine problem solving
The factors considered when evaluating purchase options are called the evaluative criteria. In this instance,
Ted’s evaluative criteria include price, coverage and customer service factors.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-04 Evaluation of Alternatives: Assessing Value
38.
Brenda wants to buy a new music system. At which stage does she choose the brand, decide from
whom to buy the system, and decide when to buy it?
A.post-purchase behaviour
B. evaluation of alternatives
C. information search
D. purchase decision
She is at the purchase decision stage. Having examined the alternatives in the evoked set, you are almost ready
to make a purchase decision. Three choices remain: the chosen brand, from whom to buy, and when to buy.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-05 Purchase Decision: Buying Value
39.
After purchasing a new car, Agnes found she was paying more attention to car ads on television and
online. She often found herself pointing out short-comings of cars she considered but did not purchase.
This exemplifies:
A.Limited problem solving
B. Cognitive dissonance
C. Showrooming
D. Antecedent states
After significant purchases, many consumers feel anxiety over whether or not they made the correct choice. A
result is that we often pay attention to advertisements with a critical eye and may even spend time convincing
others, and ourselves, how good the actual product purchased is.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-01 Describe the stages in the consumer purchase decision process.
Topic: 03-06 Post-purchase Behaviour: Value in Consumption or Use
40.
David and Mary decide to buy a house. Once they purchase a house, they start looking to buy the right
set of furniture, a television set, and a refrigerator. Meanwhile, Mary starts purchasing groceries for the
kitchen.
When Mary went out to shop for groceries, she was involved in _____ problem solving.
A.limited
B. regular
C. external
D. routine
For products such as table salt and milk, consumers recognize a problem, make a decision, and spend little
effort seeking external information and evaluating alternatives. The purchase process for such items is virtually
a habit and typifies low-involvement or routine decision-making.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-02 Distinguish between three variations of the consumer purchase decision process:
routine; limited; and extended problem-solving.
Topic: 03-07 Involvement and Problem-Solving Variations
41.
David and Mary decide to buy a house. Once they purchase a house, they start looking to buy the right
set of furniture, a television set, and a refrigerator. Meanwhile, Mary starts purchasing groceries for the
kitchen.
When David and Mary were buying a house, they were involved in _____ problem solving.
A. routine
B. extended
C. limited
D. regular
Extended problem solving exists in high-involvement purchase situations for items such as automobiles,
houses, and financial investments.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 03-02 Distinguish between three variations of the consumer purchase decision process:
routine; limited; and extended problem-solving.
Topic: 03-07 Involvement and Problem-Solving Variations
42.
Which of the following is true of extended problem solving?
A.It occurs when consumers recognize a problem, make a decision, and spend little effort seeking external
information.
B. The purchase process in this type of problem solving is virtually a habit and typifies low-investment
decision-making.
C. It is characterized by low consumer involvement but significant perceived differences among brands.
D. In this type of problem solving, the consumer spends considerable time and effort on external
information search.
In extended problem solving, each of the five stages of the consumer purchase decision process is used in the
purchase, including considerable time and effort on external information search and identifying and evaluating
alternatives.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 03-02 Distinguish between three variations of the consumer purchase decision process:
routine; limited; and extended problem-solving.
Topic: 03-07 Involvement and Problem-Solving Variations
43.
When consumers use each of the five stages of the consumer purchase decision process in the
purchase of a product, and spend considerable time and effort on external information search and in
identifying and evaluating alternatives, they are engaging in _____ problem solving.
A.routine
B. limited
C. extended
D. situational
In extended problem solving, each of the five stages of the consumer purchase decision process is used in the
purchase, including considerable time and effort on external information search and identifying and evaluating
alternatives.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-02 Distinguish between three variations of the consumer purchase decision process:
routine; limited; and extended problem-solving.
Topic: 03-07 Involvement and Problem-Solving Variations
44.
Jamie decides to buy a laptop for himself. He inquires about different brands from his friends who
already have laptops. He also puts up his hunt for the “right laptop” on Facebook, expecting reviews from
friends who own laptops. Isaac, Jamie’s friend who owned a particular laptop, told Jamie that the laptop
had excellent features, and it was one of his best investments. He analyzes the responses and decides to buy
the laptop Isaac has.
Which type of problem solving is Jamie engaged in while purchasing a laptop?
A. extended problem solving
B. selective problem solving
C. limited problem solving
D. routine problem solving
Jamie is engaged in extended problem solving. In extended problem solving, each of the five stages of the
consumer purchase decision process is used in the purchase, including considerable time and effort on external
information search and identifying and evaluating alternatives.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 03-02 Distinguish between three variations of the consumer purchase decision process:
routine; limited; and extended problem-solving.
Topic: 03-07 Involvement and Problem-Solving Variations
45.
Many clothing retailers find that consumer who shop with friends tend to make more purchases than
those who shop alone. This reflects
A.Psychological influences
B. Personal influences
C. Situational influences
D. Economic influences
Situational influences include the purchase task, social & physical surroundings, temporal effects and
antecedent states. In this situation, retailers understand the social surroundings impact on purchase behavior.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-02 Distinguish between three variations of the consumer purchase decision process:
routine; limited; and extended problem-solving.
Topic: 03-08 Consumer Purchase Decision Process Influencers
46.
Jamie decides to buy a laptop for himself. He inquires about different brands from his friends who
already have laptops. He also puts up his hunt for the “right laptop” on Facebook, expecting reviews from
friends who own laptops. Isaac, Jamie’s friend who owned a particular laptop, told Jamie that the laptop
had excellent features, and it was one of his best investments. He analyzes the responses and decides to buy
the laptop Isaac has.
Which of the following has influenced Jamie’s choice?
A. psychological influences
B. market influences
C. socio-cultural influences
D. situational influences
Jamie’s choice was influenced by socio-cultural influences. Socio-cultural influences, which evolve from a
consumer’s formal and informal relationships with other people, also have an impact on consumer behaviour.
These include personal influence, reference groups, family, culture, and subculture.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 03-05 Identify major socio-cultural influences on consumer behaviour and their effects on
purchase decisions.
Topic: 03-17 Personal Influence
47.
Jamie decides to buy a laptop for himself. He inquires about different brands from his friends who
already have laptops. He also puts up his hunt for the “right laptop” on Facebook, expecting reviews from
friends who own laptops. Isaac, Jamie’s friend who owned a particular laptop, told Jamie that the laptop
had excellent features, and it was one of his best investments. He analyzes the responses and decides to buy
the laptop Isaac has.
Isaac shared his laptop experience with Jamie and influenced Jamie. This is an example of _____.
A. word of mouth
B. opinion leadership
C. reference group
D. hard-sell
People influencing each other during conversations is referred to as word of mouth. Word of mouth is perhaps
the most powerful information source for consumers, because it typically involves friends or family who are
viewed as trustworthy.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 03-05 Identify major socio-cultural influences on consumer behaviour and their effects on
purchase decisions.
Topic: 03-17 Personal Influence
48.
Amy is shopping by herself for a dress for an office holiday party. What is she influenced by as she
makes her decision?
A.routine problem solving
B. Psychological influences
C. Social influences
D. Situational influences
Psychology helps marketers understand why and how consumers behave as they do. In particular, concepts
such as motivation and personality; perception; learning; values, beliefs, and attitudes; and lifestyle are useful
for interpreting buying processes and directing marketing efforts.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-10 Psychological Influences on Consumer Behaviour
49.
Amy is buying a new laptop. She is interested in what her peers have to say about laptops. She has a
________ decision to make.
A.routine problem solving
B. psychological
C. social
D. situational
Five situational influences have an impact on the purchase decision process: the purchase task, social
surroundings, physical surroundings, temporal effects, and antecedent states. In this case, Amy is seeking
social influence.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Difficult
Learning Objective: 03-05 Identify major socio-cultural influences on consumer behaviour and their effects on
purchase decisions.
Topic: 03-18 Reference Groups
50.
The ads for debit cards show people who need to make a purchase quickly, but are unable to do so
because the retailer won’t accept a cheque without several types of identification. Which situational
influence is being used to show the benefits offered by the debit card?
A.antecedent states
B. social surroundings
C. physical surroundings
D. temporal effects
Antecedent states include the consumer’s mood or the amount of cash on hand that can influence purchase
behaviour and choice.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Easy
Learning Objective: 03-03 Describe how situational influences affect the consumer purchase decision process.
Topic: 03-09 Situational Influences on Consumer Decisions
51.
Mac is planning to open a retail store, but wants his store to be different from others in the
neighbourhood. He wants to focus his attention on the decor, music, and crowding in his store, which may
alter how purchase decisions are made. These features are referred to as _____.
A.temporal effects
B. physical surroundings
C. social surroundings
D. purchase tasks
Physical surroundings such as decor, music, and crowding in retail stores may alter how purchase decisions are
made.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 03-03 Describe how situational influences affect the consumer purchase decision process.
Topic: 03-09 Situational Influences on Consumer Decisions
52.
Two colleagues discuss where to go for lunch. One says to the other, “It’s noon, so most of the
restaurants will be crowded. But the boss is out of town, so we could take an extra hour and relax a bit.”
Which situational influence does their conversation illustrate?
A.purchase task
B. social surroundings
C. physical surroundings
D. temporal effects
Temporal effects, such as time of day or the amount of time available, will influence where consumers have
breakfast and lunch and what is ordered, as in this scenario.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 03-03 Describe how situational influences affect the consumer purchase decision process.
Topic: 03-09 Situational Influences on Consumer Decisions
53.
_____ is the energizing force that stimulates behaviour to satisfy a need.
A.Self-actualization
B. Antecedent state
C. Motivation
D. Cognitive dissonance
Motivation is the energizing force that stimulates behaviour to satisfy a need.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-11 Motivation and Personality
54.
In the hierarchy of needs, self-preservation and physical well-being are examples of _____ needs.
A.safety
B. esteem
C. self-actualization
D. social
Safety needs involve self-preservation and physical well-being.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-11 Motivation and Personality
55.
_____ needs are concerned with love and friendship.
A.Physiological
B. Safety
C. Social
D. Esteem
Social needs are concerned with love and friendship.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-11 Motivation and Personality
56.
John is interested in looking for a job that provides _____ needs, which are represented by the need
for achievement, status, prestige, and self-respect.
A.physiological
B. safety
C. social
D. esteem
Esteem needs are represented by the need for achievement, status, prestige, and self-respect.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-11 Motivation and Personality
57.
Samantha has worked at a number of stores but feels that she has never been given a job that matches
her expectations. She is looking for a job that gives her personal fulfillment. Which of the following needs
is she focusing on?
A.physiological needs
B. safety needs
C. self-actualization needs
D. personal needs
Self-actualization needs involve personal fulfillment. For example, travel providers offer specialized
educational and exotic trips to enhance a consumer’s life experiences.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-11 Motivation and Personality
58.
Martha is interviewing some candidates for a job opening. She is looking at their _____, which refers
to a person’s character traits that influence behavioural responses.
A.motivation
B. self-actualization
C. personality
D. perception
Personality refers to a person’s character traits that influence behavioural responses.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 03-04 Explain how psychological influences affect consumer behaviour; particularly
consumer purchase decision processes.
Topic: 03-11 Motivation and Personality
Chapter 05
B2B Marketing
True / False Questions
1.
Peter purchases pizza crusts from Cakes & Bakes Co., which uses the flour from Husk Mills LLC to
manufacture the crusts. Here, Cakes & Bakes Co. is the organizational buyer.
TRUE
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-01 The Nature and Size of Organizational Markets
2.
Organizational buyers include all buyers in a nation, including the ultimate consumers.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-01 The Nature and Size of Organizational Markets
3.
The total purchases of ultimate consumers in a year are always far greater than those of organizational
buyers.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-01 The Nature and Size of Organizational Markets
4.
Polyron Inc. reprocesses the products it purchases before selling it to the next buyer. Polyron Inc. is an
industrial firm.
TRUE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-02 Industrial Markets
5.
Wholesalers and retailers that buy physical products and sell them again without any reprocessing are
known as industrial firms.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-03 Reseller Markets
6.
Government units are the federal, provincial, regional, and municipal agencies that buy goods and
services for the constituents that they serve.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-04 Government Markets
7.
Organizations that operate without having financial profit as a goal, and which seek to provide goods
and services for the good of society, are called charitable organizations.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-05 Non-Profit Organizations
8.
Common industry definitions provided by the North American Industry Classification System
(NAICS) facilitate the measurement of economic activity in Canada, Mexico, and the United States.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-06 Measuring Industrial, Reseller, Government, and Non-Profit Markets
9.
Large firms that engage in many different activities are given as many North American Industry
Classification System (NAICS) codes as the number of activities they engage in.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-06 Measuring Industrial, Reseller, Government, and Non-Profit Markets
10.
Content marketing seeks to keep customers engaged through informative and timely communications.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-02 Describe the importance of content marketing to business-to-business (B2B)
marketers.
Topic: 05-07 Content Marketing
11.
Digital communications technologies have made content marketing easier for many companies.
TRUE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 05-02 Describe the importance of content marketing to business-to-business (B2B)
marketers.
Topic: 05-07 Content Marketing
12.
Consumer demand for products and services is derived.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-09 Derived Demand
13.
The demand for the cows at Rockeller’s dairy farm is based on the consumer demand for milk, cheese,
ice cream, cream, and butter. This is an example of inelastic demand.
FALSE
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-09 Derived Demand
14.
Regardless of whether there is an increase or decrease of the price of a B2B product, customers
buying the same quantity signifies an inelastic demand for that product.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-10 Inelastic Demand
15.
For organizational buyers, price is not always the most important criteria.
TRUE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-15 Organizational Buying Criteria
16.
Organizational buying behaviour is the process by which organizations determine the need for goods
and then choose among alternative suppliers.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-04 Describe how buying centres and buying situations influence organizational
purchasing.
Topic: 05-18 The Organizational Buying Process and the Buying Centre
17.
A buying centre is a heterogeneous group consisting of individuals with different goals and
knowledge related to purchase decisions.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-04 Describe how buying centres and buying situations influence organizational
purchasing.
Topic: 05-20 The Buying Centre: A Cross-Functional group
18.
Deciders control the flow of information in the buying centre.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-04 Describe how buying centres and buying situations influence organizational
purchasing.
Topic: 05-20 The Buying Centre: A Cross-Functional group
19.
Freight Systems is a leading courier company. It provides courier services to large international
businesses. It takes care of international customs, duties, and specialized packaging for these large
businesses. It also provides courier services to small domestic organizations. It should use the same
distribution channel for both types of clients.
FALSE
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 05-05 Outline the process of business segmentation.
Topic: 05-23 Size of Customer
20.
Foreroll Inc. decides to shift its focus on firms looking for quality products and good customer service
from those looking simply for lower prices. This is an example of segmenting business market on the basis
of benefits sought.
TRUE
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 05-05 Outline the process of business segmentation.
Topic: 05-26 Benefits Sought
21.
Independent e-marketplaces charge a fee for their services and exist in settings that have thousands of
geographically dispersed buyers and sellers.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-06 Explain the growing importance of and the approaches to online buying for
industrial; reseller; and government markets.
Topic: 05-29 E-Marketplaces: Virtual Organizational Markets
22.
In a reverse auction, a seller puts an item up for sale and would-be buyers are invited to bid in
competition with each other.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-06 Explain the growing importance of and the approaches to online buying for
industrial; reseller; and government markets.
Topic: 05-30 Online Auctions in Organizational Markets
Multiple Choice Questions
23.
_____ is the marketing of products to companies, governments, or not-for-profit organizations for use
in the creation of goods and services that they then produce and market to others.
A.Micromarketing
B. Retail marketing
C. Business marketing
D. Consumer marketing
Business marketing is the marketing of products to companies, governments, or non-profit organizations for
use in the creation of goods and services that they then produce and market to others.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-01 The Nature and Size of Organizational Markets
24.
Which of the following is an organizational buyer?
A.Girl Guides buying mint cookies to sell in their local neighbourhood to raise funds for charity.
B. A girl buying Timbits from Tim Hortons.
C. A couple buying a mega pack of cleaning supplies from Costco for their cottage.
D. A group of friends pooling their funds and buying a Lotto 6/49 ticket.
Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy goods
and services for their own use or for resale. Girl Guides who buy mint cookies for resale are organizational
buyers.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-01 The Nature and Size of Organizational Markets
25.
Which of the following statements represents an organizational buying decision?
A.Mr. Crowe buys a Toyota minivan to commute to work.
B. A dentist buys a new DVD player for her den.
C. Mr. Langley hires a housecleaning service to clean his apartment.
D. A restaurant owner hires a snow removal service to keep the parking lot clear for its clients.
Organizations buy products and services for their own use or for resale. The restaurant owner hires a service
for the use of the restaurant to make sure its clients (ultimate consumers) can reach the restaurant safely.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-01 The Nature and Size of Organizational Markets
26.
Which of the following is true about organizational buyers?
A.Their total purchases in a year are far more than that of ultimate consumers.
B. They purchase and lease smaller amounts of supplies than ultimate consumers.
C. They purchase only business services for their firm.
D. They purchase only raw materials for their firm.
Organizational buyers purchase and lease large volumes of equipment, raw materials, manufactured parts,
supplies, and business services. Because they often buy raw materials and parts, process them, and sell the
upgraded product several times before it is purchased by the final organizational buyer or ultimate consumer,
the total purchases of organizational buyers in a year are far greater than those of ultimate consumers.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-01 The Nature and Size of Organizational Markets
27.
An industrial firm:
A.is distinguished by the amount of energy it uses and the potential for pollution to the environment.
B. in some way reprocesses a product or service it buys before selling it again to the next buyer.
C. employs more than 500 people, who are paid minimum wages with few or no benefits.
D. deals exclusively with federal, provincial, and local governments, and often mediates governmental
agency disputes.
Industrial firms in some way reproduce a product or service they buy before selling it again to the next buyer.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-02 Industrial Markets
28.
Marker Jimmy’s Co., a large cocoa-bean processor, buys cocoa beans and converts the beans into
cocoa powder and cocoa butter, which is sold to companies that manufacture consumer products containing
chocolate. Marker Jimmy’s Co. is operating in a(n) _____ market.
A.reseller
B. vertical
C. industrial
D. business-to-consumer
Marketing organizations operating in an industrial market buy a good or service, reprocess that good or
service, and then sell the product or service to another buyer. In this instance, the cocoa-bean processor buys
cocoa beans, reprocesses them, and then resells them to consumer food manufacturers.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-02 Industrial Markets
29.
A manufacturer of consumer food products for the Chinese market in North America buys several
thousand tonnes of camellia nuts annually. It converts those nuts into cooking oil that is popular among the
Chinese population and then sells it to Chinese supermarkets. The pulp from which the oil is extracted is
sold to beef cattle farmers who use it to fatten their cattle. These transactions occur in the _____ market.
A.vertical
B. reseller
C. business-to-consumer
D. industrial
Marketing organizations operating in an industrial market buy a good or service, reprocess that good or
service, and then sell the product to another buyer. In this case, the company buys camellia nuts, reprocesses
them, and then resells a finished product to Chinese supermarkets. The pulp is sold to beef cattle farmers for
feed.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-02 Industrial Markets
30.
Pride Mobility makes wheelchairs from component parts purchased from Potto Hardware. The
wheelchairs are sold to hospitals, nursing homes, and retailers of health care products. Pride Mobility
operates in a(n) _____ market.
A.business-to-consumer
B. psychographic
C. industrial
D. reseller
Industrial firms in some way reprocess a good or service they buy before selling it again to the next buyer. The
firm buys the mattresses, wheels, metal component parts, etc. and makes wheelchairs and specialty chairs
before selling them to hospitals, nursing homes, and resellers of health care products.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-02 Industrial Markets
31.
Wholesalers and retailers that buy physical products and resell them again without any reprocessing
are _____.
A.industrial firms
B. resellers
C. non-intermediaries
D. facilitators
Wholesalers and retailers that buy physical products and sell them again without any reprocessing are resellers.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-03 Reseller Markets
32.
The reseller market includes:
A.manufacturers and service providers.
B. Retailers and wholesalers.
C. government agencies and service providers.
D. agricultural markets and the mining industry.
Wholesalers and retailers that buy physical products and sell them again without any reprocessing are resellers.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-03 Reseller Markets
33.
The Scotts Company manufactures and sells packaged lawn fertilizers to The Home Depot. The Home
Depot sells these products to the ultimate consumer—the homeowner. The Home Depot is a(n) _____.
A.service provider
B. municipal agency
C. reseller
D. industrial firm
In this scenario, The Home Depot is a reseller. Resellers are wholesalers and retailers who buy physical
products and resell them again without any reprocessing.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-03 Reseller Markets
34.
The Baybuys a variety of kitchen products, such as mixers and blenders, and sells them to amateur
cooks. Sears is an example of a _____.
A.non-profit organization
B. monopolist
C. reseller
D. industrial firm
In this scenario, The Bayis a reseller. Resellers are wholesalers and retailers who buy physical products and
resell them again without any reprocessing.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-03 Reseller Markets
35.
_____ are the federal, provincial, regional, and municipal agencies that buy goods and services for the
constituents that they serve.
A.Industrial firms
B. Resellers
C. Co-operatives
D. Government units
Government units are the federal, provincial, regional, and municipal agencies that buy goods and services for
the constituents that they serve.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-04 Government Markets
36.
When a city-managed library system buys new computers, monitors, and printers for its student
computer labs, it is operating as a(n) _____.
A.industrial market
B. business market
C. government market
D. facilitating agent
Government units are federal, provincial, regional, and municipal agencies (such as a city library system) that
buy goods and services for the constituents they serve.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-04 Government Markets
37.
Many Canadians participate in events like “Run for the Cure” and United Way fundraising campaigns.
These organizations purchase significant amounts of goods and services as
A.Industrial buyers
B. Non-profit organizations
C. Resellers
D. Government buyers
Non-profit organizations operate without having profit as a goal. They still demand significant products and
services and tend to purchase like other organizational buyers.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-05 Non-Profit Organizations
38.
_____ makes easier the measurement of economic activity in Canada, Mexico, and the United States
by providing common industry definitions for these countries.
A.Strategic International Classification (SIC)
B. Federated Domestic and International Classification (FDIC)
C. Federated Trade Codification (FTC)
D. North American Industry Classification System (NAICS)
The North American Industry Classification System (NAICS) provides common industry definitions for
Canada, Mexico, and the United States, which facilitate the measurement of economic activity in the three
member countries of the North American Free Trade Agreement (NAFTA).
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-06 Measuring Industrial, Reseller, Government, and Non-Profit Markets
39.
The North American Industry Classification System (NAICS) provides common industry definitions,
which make easier the measurement of economic activity for member countries of the _____.
A.G7
B. World Trade Organization (WTO)
C. North American Free Trade Association (NAFTA)
D. North Atlantic Treaty Organization (NATO)
The North American Industry Classification System (NAICS) provides common industry definitions for
Canada, Mexico, and the United States, which facilitate the measurement of economic activity in the three
member countries of the North American Free Trade Agreement (NAFTA).
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-06 Measuring Industrial, Reseller, Government, and Non-Profit Markets
40.
Which of the following statements is true about the North American Industry Classification System
(NAICS)?
A.After being used more than 50 years, NAICS was replaced by the Standard Industrial Classification
(SIC) system.
B. NAICS neither permits comparability across countries nor accurately measures new or emerging
industries.
C. NAICS provides a five-digit national industry code to each of the three countries.
D. NAICS groups economic activity to permit studies of market share, demand for goods and services,
competition from imports in domestic markets, and similar studies.
NAICS replaced the SIC system, a version of which had been in place for more than 50 years. SIC neither
permitted comparability across countries nor accurately measured new or emerging industries. NAICS is
consistent with the International Standard Industrial Classification of All Economic Activities, published by
the United Nations. NAICS groups economic activity to permit studies of market share, demand for goods and
services, and similar studies.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-06 Measuring Industrial, Reseller, Government, and Non-Profit Markets
41.
The North American Industry Classification System (NAICS) permits a firm to:
A.find the NAICS codes of its present customers and then obtain NAICS-coded lists for similar firms.
B. get the names of the purchasing agents of all prospective customers.
C. sell to any company within North America as long as it is not a monopoly.
D. engage in benchmarking with companies manufacturing and/or marketing similar products.
The North American Industry Classification System (NAICS) permits a firm to find the NAICS codes of its
present customers and then obtain NAICS-coded lists for similar firms.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 05-01 Identify the distinguishing characteristics of industrial; reseller; government; and
non-profit markets and how they are measured.
Topic: 05-06 Measuring Industrial, Reseller, Government, and Non-Profit Markets
42.
In organizational buying settings, _____ keeps potential customers engaged by providing valuable
information.
A.Content marketing
B. NAICS
C. Derived demand
D. Price elasticity
Content marketing focuses on providing potential customers with timely and relevant information at key points
in the decision process.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-02 Describe the importance of content marketing to business-to-business (B2B)
marketers.
Topic: 05-07 Content Marketing
43.
In selling business equipment, Xerox has found social media incredibly useful for keeping potential
customers informed and engaged. This reflects
A.Derived demand
B. NAICS
C. Reseller markets
D. Content marketing
Xerox, among othersb2b sellers, has found that content marketing works very well through social media
channels. This approach provides potential customers with timely and relevant information.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 05-02 Describe the importance of content marketing to business-to-business (B2B)
marketers.
Topic: 05-07 Content Marketing
44.
Derived demand means the demand for industrial products and services is driven by, or derived from:
A.mathematical formulas and statistical models.
B. the gross national product (GNP).
C. demand for consumer products and services.
D. demand for industrial goods.
Derived demand means that the demand for industrial products and services is driven by, or derived from,
demand for consumer products and services.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-09 Derived Demand
45.
MKL Inc. processes wheat into flour, which is sold to bakeries and pasta makers. What kind of
demand exists for MKL Inc.’s flour?
A.unitized
B. derived
C. consumer
D. applied
Derived demand means that the demand for industrial products and services is driven by, or derived from,
demand for consumer products and services. The demand for flour is driven by consumer demand for pasta
and baked goods, so in this case the demand for flour is a derived demand.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-09 Derived Demand
46.
P & P is a global leader in pallet and container pooling services. Pallets are used for transporting and
storing new appliances such as stoves, freezers, and refrigerators. Which of the following is true about the
demand for P & P’s pallets?
A.There is a high consumer demand for P & P’s pallets.
B. There is elastic demand for P & P’s pallets independent of the sales of pallets but tied to the sales of
appliances.
C. There is derived demand for P & P’s pallets because demand for the pallets is tied to demand for the
appliances.
D. There is inelastic demand for P & P’s pallets tied to the cost of the components of the pallets.
Derived demand means that the demand for industrial products and services is driven by, or derived from,
demand for consumer products and services. The demand for the pallets is driven by the sales of (demand for)
appliances.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-09 Derived Demand
47.
Concert Staging Company (CSC) provides the stage, roof system, lighting, and sound for outdoor
concerts and theatres. The frequency of concerts and theatre events conducted depends on the customers’
decisions to purchase the tickets. The number of concerts and theatre events determine how many times
CSC gets an opportunity to provide its services. Thus, the demand for the services provided by CSC is a(n)
_____ demand.
A.derived
B. unitized
C. holistic
D. applied
Derived demand means that the demand for industrial products and services is driven by, or derived from,
demand for consumer products and services. The demand for Concert Staging Company services is driven by
the sales of tickets to concert/theatre attendees, so it is a derived demand.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-09 Derived Demand
48.
Five Star Windows (FSW) manufactures high-quality, energy-efficient windows for homes and
offices. The number of windows sold is directly linked to the number of new homes built. The sales of
FSW’s windows go up when the economy is strong and many homes are being built. This information
reveals that the demand for FSW’s windows is an example of _____.
A.derived demand
B. the price-quality relationship
C. the acceleration principle
D. price elasticity
Derived demand means that demand for industrial goods and services is driven by, or derived from, the
demand for consumer products. In this case, the demand for windows is a derived demand as it is driven by the
consumer demand for new houses.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-09 Derived Demand
49.
When small changes in price for consumer products can result in large increases or decreases in
demand for the facilities and equipment needed to make the consumer product, it is referred to as _____
demand.
A.horizontal
B. fluctuating
C. discrete
D. unit
Small changes in demand for consumer products can result in large increases or decreases in demand for the
facilities and equipment needed to make the consumer product. This is referred to as fluctuating demand.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-11 Fluctuating Demand
50.
If the price of brake pads goes up, a car manufacturer will still order the same quantity because this
single business product is only a minor portion of the price of the car. This is an example of _____ demand.
A.inelastic
B. vertical
C. fluctuating
D. elastic
Inelastic demand means that regardless of whether there is an increase or decrease of the price of a B2B
product, customers will buy the same quantity.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-10 Inelastic Demand
51.
Which of the following is a market characteristic of products and services purchased within an
organizational context?
A.The focus is on delivery time and post-sale service.
B. Raw and semi-finished goods are predominantly purchased.
C. Demand for industrial products and services is derived.
D. Goods and services are purchased on the basis of specifications that are technical in nature.
Market characteristics of products and services purchased within an organizational context include derived
demand for industrial product and services and the small number of business customers with large purchase
orders.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-08 Characteristics of Organizational Buying
52.
Identify the buying process characteristic from the following dimensions of organizational buying
behaviours.
A.The focus is on delivery time and post-sale service.
B. Raw and semi-finished goods are predominantly purchased.
C. Online buying over the Internet is widespread.
D. Goods and services are purchased on the basis of specifications that are technical in nature.
Extensive online purchase of products and services is a buying process characteristic within an organizational
context.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 05-06 Explain the growing importance of and the approaches to online buying for
industrial; reseller; and government markets.
Topic: 05-27 Online Buying in Organizational Markets
53.
Which of the following is a marketing mix characteristic of the organizational buying behaviour?
A.The focus is on delivery time and post-sale service.
B. Advertising and other promotional forms are technical in nature.
C. Online buying over the Internet is widespread.
D. Goods and services are purchased on the basis of specifications that are technical in nature.
Marketing mix characteristics of organizational buying behaviour include advertising and promotional forms
that are technical in nature.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 05-02 Describe the importance of content marketing to business-to-business (B2B)
marketers.
Topic: 05-07 Content Marketing
54.
Which of the following statements accurately characterizes buying behaviour in organizational
markets?
A.Organizational buying behaviour is similar to consumer buying behaviour since individuals are involved
in both processes.
B. Demand for industrial products is elastic instead of inelastic or derived because companies, not ultimate
consumers, determine the quantity of goods produced.
C. Fewer customers typically exist in organizational markets than in consumer markets.
D. Forecasting is not as important in organizational buying as in consumer buying.
Firms selling to organizations are always restricted to far fewer buyers than firms selling consumer products to
ultimate users.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-13 Number of Potential Buyers
55.
Firms selling consumer goods or services often try to reach thousands or millions of individuals or
households. Firms selling to organizations are often:
A.inclined to try to reach tens of millions.
B. restricted to fewer buyers.
C. under pressure to stay within a fixed target of clients.
D. restricted by government regulations to only a few industrial categories.
The number of potential buyers is much smaller in organizational buying situations. Firms selling to
organizations are often restricted to far fewer buyers.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-13 Number of Potential Buyers
56.
A company that runs its trucks on a mixture of petroleum and ethanol buys its ethanol from the only
large supplier of ethanol that has an ethanol manufacturing facility in the province and is able to meet the
trucking company’s delivery schedules. The selection of ethanol supplier is based on _____.
A.organizational buying criteria
B. derived demand factors
C. marginal demand
D. profit margins
Most commonly used organizational buying criteria include price, ability to meet the quality specifications
required, ability to meet the required delivery schedules, technical capability, warranties and claim policies,
past performance on previous contracts, and production facilities and capacity. The location of the ethanol
supplier and its ability to meet required delivery schedules are examples of organizational buying criteria.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 05-03 Explain which key characteristics of organizational buying make the process
different from consumer buying.
Topic: 05-15 Organizational Buying Criteria