Carla and John earn $7000 each month. After paying taxes of $1000, the two pay $4000 necessities (like food, rent, insurance, and transportation). This leaves them how much in discretionary income?

A)$7000

B)$3000

C)$6000

D)$2000

E)This cannot be determined from the information provided.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: 1 EasyLearning Objective: 05-01Page: 114Blooms: ApplyTopic: Economic Needs Affect Most Buying DecisionsDiscretionary income is what is left of income after paying taxes and paying for necessities.

2 INCORRECT According to the text, the economic-buyer theory:

A)

says that most consumers do not know the economic value of products they purchase.

B)explains why people behave the way they do.

C)includes psychological variables and social influences.

D)is too simplistic to explain consumer behavior.

E)assumes that consumers always buy the lowest price alternative.

Feedback:AACSB: Analytic

Level of Difficulty: EasyLearning Objective: 05-01Blooms: ApplyTopic: Economic Needs Affect Most Buying DecisionsMost marketing managers think that buyer behavior is not as simple as the economic-buyer model suggests.

3 INCORRECT The Body Shop by L'Oreal, a chain of personal care products and spas, boasts of

its dedication to natural cosmetic products developed without the use of animal testing or unfair labor practices. This appeal is designed to meet customers:

A)physiological needs.

B)safety needs.

C)economic needs.

D)social and personal needs.

E)green needs.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: MediumLearning Objective: 05-02Blooms: UnderstandTopic: Psychological Influences within an IndividualMarketing appeals that make claims about the social and environmental benefits of products are attempting to meet customers' personal and social needs.

4 INCORRECT Carmela Sanchez is planning to buy a pair of running shoes. Recently, she has

been noticing more Adidas advertising in magazines. This is an example of:

A)a physiological need.

B)dissonance.

C)need satisfaction.

D)selective exposure.

E)a consumer expectation.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 05-02Blooms: ApplyTopic: Psychological Influences within an IndividualSelective exposure is when our eyes and minds seek out and notice only

information that interests us.

5 INCORRECT When Taco Bell shows a large close-up of a chicken taco in a television ad, it is:

A)encouraging selective retention.

B)hoping to encourage extensive problem solving by the audience.

C)appealing to the social needs of the audience.

D)appealing to the economic needs of the audience.

E)using a cue to encourage a particular response to the hunger drive.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 05-02Blooms: ApplyTopic: Psychological Influences within an IndividualDepending on the cues (products, signs, ads, and other stimuli in the environment) an individual chooses some specific response to satisfy a drive.

6 INCORRECT A person's social class is determined by all of the following variables except

_____.

A)ethnicity

B)occupation

C)education

D)income level

E)type and location of housing

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 05-03Blooms: RememberTopic: Social Influences Affect Consumer BehaviorIn most countries, social class is closely related to a person's occupation, but it may also be influenced by education, community participation, where a person lives, income, possessions, social skills, and other factors. Ethnicity does not determine a person's social class.

7

INCORRECT Reference-group influence would be weakest for determining which particular _____ a person buys.

A)watch

B)cosmetics

C)clothing

D)laundry soap

E)car

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 05-03Blooms: ApplyTopic: Social Influences Affect Consumer BehaviorReference influence is stronger for products that others "see" and which relate to status in the group.

8 INCORRECT Outdoor merchandiser Bass Pro Shops creates giant retail stores filled with

hunting and fishing exhibits to attract customers, entertain them, and keep them in stores for long periods of time. This retailing strategy is based on the idea that:

A)economic needs influence the buyer decision process.

B)family life cycles affect a person's consumer decisions.

C)characteristics of the purchase situation influence consumer behavior.

D)single people are more willing to try new brands.

E)customers are motivated by their physiological needs.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 05-04Blooms: ApplyTopic: Individuals Are Affected by the Purchase SituationSurroundings can affect buying behavior. For example, the excitement at an on-site auction may stimulate impulse buying, but checking out an auction online might lead to a different response. Bass Pro Shops places exciting outdoor-adventure exhibits in stores to attract consumers and stimulate purchases.

9 INCORRECT Consumers go through six steps when deciding to accept or reject a new idea. In

this adoption process:

A)the confirmation step follows the decision step.

B)the evaluation step follows the trial step.

C)the awareness step follows the interest step.

D)the trial step follows the awareness step.

E)the final result is dissonance.

Feedback:AACSB: AnalyticLevel of Difficulty: MediumLearning Objective: 05-05Blooms: UnderstandTopic: The Consumer Decision ProcessIn the adoption process, an individual moves through some fairly definite steps: awareness, interest, evaluation, trial, decision, and confirmation.

10 CORRECT For consumers making high-involvement purchases that require extensive

problem solving, the steps of the consumer-decision process progress as follows:

A)

need awareness, problem solving, purchase decision, post-purchase evaluation.

B)

need awareness, routinized response, purchase decision, post-purchase evaluation.

C)need awareness, purchase decision, dissonance.

D)

problem solving, purchase decision, post-purchase evaluation, need awareness.

E)purchase decision, post-purchase evaluation, problem solving.

Feedback:Learning Objective: 05-05Topic: The Consumer Decision ProcessBlooms: AnalyzeAACSB: AnalyticLevel of Difficulty: MediumFor high-involvement purchases that require extensive problem solving, the steps of the consumer decision process occur in this order: need awareness, extensive problem solving, purchase decision, and post-purchase evaluation. The customer has to conduct extensive problem solving whenever he or she is uncertain how to meet an important need.

Which of the following is not true regarding organizational

buyers?

A)

Buyers for all kinds of organizations (governments, nonprofit groups, intermediaries) tend to buy in much the same way as do manufacturers.

B)

The basic aspects of business customer buying behavior tend to be quite similar in the U.S. and in international markets.

C)

Marketing strategies aimed at them are often tailored to each individual customer.

D)

Their purchases are made to help their organizations meet the demands for their products.

E)Their needs are usually harder to define than for final consumers.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 06-01Blooms: UnderstandTopic: Organizational Customers Are DifferentIt is often easier to understand an organization's needs because most organizations make purchases for the same basic reason. They buy goods and services that will help them meet the demand for the goods and services that they in turn supply to their markets.

2 INCORRECT All of the following statements about organizational buyers are true except:

A)business and organizational clients are "customers."

B)not all organizational customers are business firms.

C)organizational buyers rarely focus on economic factors.

D)

marketing managers often refer to organizational customers collectively as the "business-to-business" market.

E)

organizational buyers make purchases primarily to satisfy their own customers and clients.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: MediumLearning Objective: 06-01Blooms: UnderstandTopic: Organizational Customers Are DifferentOrganizations typically focus on economic factors when they make purchase decisions and are usually less emotional in their buying than final consumers.

3 INCORRECT Procurement officer, supply manager, purchasing agent, and buyer are titles for

an organization's:

A)marketing managers.

B)purchasing managers.

C)executive officers.

D)warehouse managers.

E)accountants.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 06-02Blooms: RememberTopic: Many Different People May Influence a DecisionMany organizations rely on specialists to ensure that purchases are handled sensibly. These specialists have different titles in different firms, such as procurement officer, supply manager, purchasing agent, or buyer. Basically, they are all purchasing managers.

4 INCORRECT A modified rebuy would be most likely when:

A)a railroad plans to change from steel to aluminum rail cars to cut weight.

B)a car producer is developing a sportier car which will require wider tires.

C)a bread producer is placing its weekly order for flour.

D)a computer producer is buying new assembly line equipment.

E)a shoe factory needs more glue to attach heels to its shoes.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 06-03Blooms: ApplyTopic: Organizational Buyers Are Problem SolversA modified rebuy would be most likely when a car producer is developing a sportier car which will require wider tires. In this case, the purchase specifications would only require some review and modifications.

5 INCORRECT Today, when a buyer can't specify all of the details of what it will need in the

future, the relationship with a supplier is most likely to involve:

A)an auction.

B)a procurement hub.

negotiated contracts.

C)

D)competitive bids.

E)no agreement.

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 06-04Blooms: ApplyTopic: Buyer-Seller Relationships in Business MarketsWhen a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve negotiated contracts.

6 INCORRECT Close buyer-seller relationships have many advantages for a firm, but one key

disadvantage is:

A)firms with close relationships can expect more from the partnership.

B)long-term commitments to another organization reduce flexibility for a firm.

C)closely-tied firms often share tasks at lower total cost.

D)information sharing can lead to efficient decisions and better planning.

E)buyer-seller relationships foster mutual trust and a long-term outlook.

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 06-04Blooms: UnderstandTopic: Buyer-Seller Relationships in Business MarketsClose buyer-seller relationships are not always advantageous. For buyers, long-term commitments can reduce flexibility. As a result, buyers and sellers should choose closer relationships where the benefits outweigh the costs.

7 INCORRECT To sell to manufacturers, marketers need to understand important

characteristics of those firms. Which of the following is not characteristic of the manufacturing sector in the United States?

A)The majority of manufacturing firms are small - 10 or fewer employees.

B)Owners are frequently the purchasers in manufacturing firms.

C)Small manufacturers tend to have formal buying procedures and guidelines.

D)

Large manufacturers tend to highly formal buying procedures and guidelines.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 06-05Blooms: UnderstandTopic: Manufacturers Are Important CustomersUnlike larger firms, small manufacturers tend to have informal buying procedures and guidelines.

8 INCORRECT The U.S. government would not publish NAICS data that gives:

A)the total sales volume of the four steel manufacturers in a geographic area.

B)the number of employees for similar two-digit industry groups.

C)the total sales volume of the only textile equipment manufacturer in a state.

D)the sales volumes of similar two-digit industry groups.

E)the number of establishments for various industry groups.

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 06-05Blooms: UnderstandTopic: Manufacturers Are Important CustomersThe government does not provide detail when only one or two plants are located in an area. Textile equipment manufacturer, being the only plant in a state would not find a place in the NAICS code.

9 INCORRECT Large wholesale and retail buyers typically:

A)pay close attention to each of the products they buy.

B)don't trust automatic inventory control methods.

C)see themselves as selling agents for manufacturers.

D)buy most of their products as straight rebuys.

E)use new-task buying for most product purchases.

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 06-06Blooms: UnderstandTopic: Retailers and Wholesalers Buy for Their CustomersRetailers and wholesalers usually carry a large number of products. Most intermediaries buy their products on a routine, automatic reorder basis—

straight rebuys.

10 CORRECT When selling to _____, marketers must expect to use advertising, rely heavily on

e-commerce for purchases and customer service, and make pitches to whomever is in charge (or their administrative assistant).

A)small service firms

B)big box retailers

C)large manufacturers

D)governments

E)final consumers

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: MediumLearning Objective: 06-06Blooms: UnderstandTopic: Producers of Services – Smaller and More Spread OutMarketing to small service firms is characterized by reliance on advertising, e-commerce transactions, and personal selling to "whomever is in charge."

Marketing research:

A)

should be planned by research specialists who understand research techniques better than marketing managers.

B)is needed to keep marketing managers in touch with their markets.

C)consists mainly of survey design and statistical techniques.

D)is only needed by producers who have long channels of distribution.

E)All of these alternatives are correct.

Feedback:AACSB: AnalyticLevel of Difficulty: 1 EasyLearning Objective: 07-01Page: 166Blooms: UnderstandTopic: Effective Marketing Requires Good InformationMarketing managers need accurate information about what is happening in the market. Marketing managers use marketing research to get the required information.

2 INCORRECT An outside sales force can provide customers with up-to-date inventory levels,

product prices, delivery dates, and so forth by accessing information on the firm's own:

A)marketing model.

B)marketing dashboard.

C)intranet.

D)JIT system.

E)EDI system.

Feedback:AACSB: AnalyticLevel of Difficulty: MediumLearning Objective: 07-01Blooms: ApplyTopic: Changes Are Under Way in Marketing Information SystemsIntranet is a system for linking computers within a company. It works like the Internet. Information is easily searched and available on demand. It is simple to "publish" new information to a website as soon as it becomes available.

3

INCORRECT The first thing a marketing manager should do if one of his firm's products drops in sales volume is:

A)conduct a survey to see what is wrong.

B)define the problem.

C)set research priorities.

D)do a situation analysis.

E)interview representative customers.

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 07-02Blooms: ApplyTopic: Defining the Problem – Step 1Defining the problem is the first step in the marketing research process to study the drop in sales volume.

4 INCORRECT Which of the following actions would not take place during a situation analysis?

A)Review of all relevant secondary data

B)Phone and email surveys

C)Informal talks with people familiar with the industry, problem, or situation

D)Internet search

E)Review of information found in an MIS

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 07-03Blooms UnderstandTopic: Analyzing the Situation – Step 2Surveys are used to collect problem-specific data and are not part of the situation analysis. A situation analysis occurs in the second step of the marketing research process, whereas data collection takes place during Step 3.

5 INCORRECT Data which have already been collected in a previous study are called _____ data,

while data that are generated by a phone survey this month of key customers are called _____ data.

A)primary; secondary

B)primary; intranet

C)secondary; primary

D)secondary; experimental

E)intranet; sample

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 07-03Blooms: RememberTopic: Analyzing the Situation – Step 2Primary data is information specifically collected to solve a current problem. Secondary data refers to information that has been collected or published already.

6 INCORRECT Which of the following statements is accurate regarding qualitative research?

A)Qualitative research seeks structured responses.

B)

Qualitative research can easily be summarized in numbers such as percentages.

C)A common application of qualitative research is the focus group.

D)Qualitative research makes regular use of multiple choice questions.

E)Telephone surveys are the most popular qualitative research.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: MediumLearning Objective: 07-04Blooms: UnderstandTopic: Getting Problem-Specific Data – Step 3Qualitative research seeks in-depth, open-ended responses, not yes or no answers. The researcher tries to get people to share their thoughts on a topic—without giving them many directions or guidelines about what to say.

7 INCORRECT Which of the following is not a good example of the observation method of

marketing research?

A)

The manager of a supermarket occasionally walks through the store to see what customers are doing.

B)A drugstore installs optical scanners at its checkout counters.

C)

The owner of a shopping center puts a counting device at the entrance to count how many cars come in.

D)A store manager studies videotapes of consumers shopping in the store.

E)All of these are good examples of observation research.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 07-04Blooms: UnderstandTopic: Getting Problem-Specific Data – Step 3In the observation method, researchers try to see or record what the subject does naturally. They don't want the observing to influence the subject's behavior.

8 INCORRECT Which of the following research methods primarily uses observation as a means

of collecting data?

A)Focus group

B)Telephone survey

C)Ethnography

D)Test marketing

E)Internet research

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 07-04Blooms: UnderstandTopic: Getting Problem-Specific Data – Step 3In marketing research, ethnography involves studying customers in their homes or at work. Video cameras can be useful for ethnography because subjects often don't know their behavior is being recorded.

9 INCORRECT The response rate to a survey affects:

A)who is in the population for a marketing research study.

B)whether a statistical package can be used to analyze the data.

C)how representative the sample is.

D)the attentiveness of the researchers.

E)the speed at which a response is given.

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 07-04Blooms: UnderstandTopic: Interpreting the Data – Step 4How well a sample represents the total population affects the results. Results from a sample that is not representative may not give a true picture.

10 CORRECT In an international setting, marketers should partner with locals to conduct

marketing research for all the following reasons except:

A)locals know the local marketing situation of their respective nations.

B)

foreigners have great difficulty gathering accurate information on foreign markets.

C)

locals are less likely to make mistakes based on misunderstanding the customs.

D)locals are experts who know the firm's business the best.

E)local know the language and circumstances of the customers they study.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 07-04Blooms: UnderstandTopic: International Marketing ResearchSince locals know the situation, language, customs, and circumstances of their own people, marketers should partner with locals when conducting research in an international setting. However, since locals are not experts on the firm's business, marketing managers have to work collaboratively to carry out successful research projects.

"Product" means:

A)all the services needed with a physical good.

B)a physical good with all its related services.

C)the need-satisfying offering of a firm.

D)all of a firm's producing and distribution activities.

E)a well-packaged item with a well-advertised brand name.

Feedback:AACSB: AnalyticLevel of Difficulty: Easy

Learning Objective: 08-01Blooms: RememberTopic: What Is a Product?Product has been defined as the need-satisfying offering of a firm.

2 INCORRECT A company with a large product assortment might:

A)have many product lines with little selection in each.

B)have a single product line.

C)have many individual products.

D)All of these choices are correct.

Feedback:AACSB: AnalyticLevel of Difficulty: 1 EasyLearning Objective: 08-01Page: 197Blooms: UnderstandTopic: Whole Product Lines Must Be Developed TooA product assortment is the set of all product lines and individual products that a firm sells. A firm may have multiple product lines or a single product line within its assortment.

3 INCORRECT Dole isn't just a fruit brand. Consumers can purchase a large variety of salads,

fruit cups, juices, healthy snacks, and smoothies under the Dole brand name. This illustrates:

A)brand equity.

B)family brand.

C)dealer brand.

D)individual brand.

E)brand insistence.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: MediumLearning Objective: 08-03Blooms: ApplyTopic: What Kind of Brand to UseSome branders use the same brand name for several products. This is known as a family brand. Examples of family brands include Dole, Keebler, and Sears. These brands offer a variety of individual products under the same brand name.

4 INCORRECT Nonrecognition of the brand name of a firm's product is likely to be least

important for:

A)coal.

B)a music CD.

C)lubricating oils for machinery.

D)cold tablets.

E)replacement auto repair parts.

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 08-03Blooms: ApplyTopic: Achieving Brand Familiarity Is Not EasyNonrecognition of the brand name is least important for a commodity like coal which is relatively homogenous.

5 INCORRECT If members of the target market for an Ford's Fiesta automobile do not initially

recognize the brand name, but compelling advertising results in more members remembering the brand, we say the Ford Fiesta has achieved:

A)brand rejection.

B)brand preference.

C)brand nonrecognition.

D)brand insistence.

E)brand recognition.

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 08-03Blooms: ApplyTopic: Achieving Brand Familiarity Is Not Easy Brand recognition means the ability of customers to remember a brand.

6 INCORRECT Trends in packaging include the use of materials that can be recycled, reused, or

reduced. Such "green" packaging primarily serves to _____ the product.

A)promote

B)protect

C)enhance

D)sell

E)diversify

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 08-04Blooms: UnderstandTopic: Packaging Promotes, Protects, and EnhancesIn one form or another, packaging serves to promote, protect, or enhance the product. Packaging made of recyclable material enhances the product in the eyes of eco-conscious consumers.

7 INCORRECT Since rental car firms, airlines, and tax return businesses don't sell tangible

goods, they offer _____ instead of warranties.

A)services

B)discounts

C)service guarantees

D)rewards programs

E)installations

Feedback:AACSB: Reflective ThinkingLevel of Difficulty: EasyLearning Objective: 08-05Blooms: RememberTopic: Warranty Policies Are a Part of Strategy PlanningFor service companies that don't offer tangible goods, service guarantees are becoming more common as a way to attract and keep customers.

8 INCORRECT If a consumer product is used regularly and usually bought frequently and

routinely with little thought (although branding may be important), this product is:

A)a routine product.

B)a specialty product.

a homogeneous shopping product.

C)

D)a staple product.

E)a casual product.

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 08-06Blooms: RememberTopic: Consumer Product ClassesStaples are products that are bought often, routinely, and without much thought like breakfast cereal, canned soup, and most other packaged foods used almost every day in almost every household.

9 CORRECTHaving a competitive price is likely to:

A)

be more important for a homogeneous shopping product than for a specialty product.

B)

be more important for a heterogeneous shopping product than for a homogeneous shopping product.

C)be more important for an emergency product than for a staple.

D)keep a product from falling into the "unsought" product class.

E)None of these alternatives is correct.

Feedback:AACSB: AnalyticLevel of Difficulty: EasyLearning Objective: 08-06Blooms: UnderstandTopic: Consumer Product ClassesSince homogeneous shopping products are products the customer sees as basically the same, customers usually decide on which products to buy based on price.

10 INCORRECT Kohler is a kitchen-and-bath plumbing manufacturer that differentiates its sinks,

faucets, and toilets through the use of bold fashionable designs. This illustrates how:

A)

makers of convenience products try to stimulate impulse buying at the point of purchase.

B)

makers of shopping products try to get customers to view their products as different from others in the category.

C)

makers of specialty products use limited distribution and higher prices to enhance the prestige of the brand.

D)

makers of unsought products use aggressive promotion and personal selling to make customers aware of their need for a product.

E)makers of shopping products use economies of scale to offer lowest prices.

Feedback:AACSB: AnalyticLevel of Difficulty: HardLearning Objective: 08-07Blooms: AnalyzeTopic: Consumer Product ClassesAs a maker of sinks, faucets, and toilets, Kohler offers goods classified as shopping products. The fact the Kohler seeks to differentiate its products by adding bold fashionable designs illustrates how makers of shopping products seek ways to keep customers from viewing their products as the same as all others in the category.