Basic Marketing A Marketing Strategy Planning Approach 18th Edition by Perreault – Test Bank A+

$35.00

Basic Marketing A Marketing Strategy Planning Approach 18th Edition by Perreault – Test Bank A+

Name: Basic Marketing A Marketing Strategy Planning Approach 18th Edition by Perreault – Test Bank A+
SKU: Basic Marketing A Marketing Strategy Planning Approach 18th Edition by Perreault – Test Bank A+
Price: 35.0 USD
Availability: InStock

$35.00

SKU: Basic Marketing A Marketing Strategy Planning Approach 18th Edition by Perreault – Test Bank A+

Description

The economic-buyer theory assumes that consumers know all the facts and logically compare choices.
True False

Most economists assume that consumers are “economic buyers” who logically evaluate choices to get the greatest satisfaction from spending their time and money.
True False

Economic needs include such things as self-respect, accomplishment, fun, freedom and relaxation.
True False

The “economic buyer” view of consumers says that individuals will only buy the cheapest goods and services available–regardless of quality.
True False

Economic needs are concerned only with getting the best quality at the lowest price.
True False

Most marketing managers think that the economic-buyer theory explains buyer behavior very well.
True False

According to the text, consumer buying decisions are influenced by economic needs, psychological variables, social influences, and the purchase situation.
True False

Motivation, perception, learning, attitudes, trust, and lifestyle are psychological variables which affect consumer buying.
True False

Family, social class, reference groups, and culture are the psychological variables that affect a consumer’s buying decisions.
True False

Wants are the basic forces that motivate a person to do something.
True False

Wants are needs which are learned during a person’s life.
True False

A drive is a strong stimulus that encourages action to reduce a need.
True False

Food, liquid, sex, and rest are examples of physiological needs.
True False

Examples of personal needs include self-esteem, accomplishment, fun, freedom, and relaxation.
True False

The “hierarchy of needs” model suggests that most products must fill more than one need at the same time.
True False

According to the Hierarchy of Needs, consumers are motivated to first satisfy their higher-order needs, then they will focus on their lower-level needs.
True False

Motivation theory suggests that a consumer would not try to satisfy physiological and safety needs until social and personal needs have been completely satisfied.
True False

Motivation theory suggests that only one need can be satisfied at a time.
True False

Consumers do not usually see or hear all the stimuli that come their way.
True False

In selective exposure we screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
True False

“Selective exposure” refers to a person’s ability to screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
True False

Learning is a change in a person’s thought processes caused by prior experience.
True False

According to learning theory, a cue is likely to result in a consumer response only if there is a drive to satisfy.
True False

Reinforcement of a response decreases the likelihood of the same response the next time the drive occurs.
True False

Reinforcement strengthens the relationship between the cue and the response.
True False

Adding lemon scent to Pledge furniture polish is an example of using a positive cue.
True False

A perfume ad that suggests that people who use the product have more appeal to the opposite sex is an example of a positive cue.
True False

That “new car” smell that includes an aroma of leather and wood is an example of using a positive cue.
True False

Many needs are culturally (or socially) learned.
True False

Americans’ preoccupation with deodorants is an example of a culturally learned need.
True False

An attitude is a person’s point of view about something, and usually involves liking or disliking.
True False

The main difference between attitudes and beliefs is that beliefs always involve liking or disliking, but attitudes don’t necessarily involve liking or disliking.
True False

Beliefs are not as action-oriented as attitudes.
True False

Beliefs are more action-oriented than attitudes.
True False

Beliefs may help shape a consumer’s attitudes but don’t necessarily involve any liking or disliking.
True False

A consumer’s belief about a product may have a positive or negative effect on his or her attitudes about the product.
True False

Attitudes are very good predictors of intention to buy.
True False

It is easier for a marketer to work with existing attitudes than to try to change them.
True False

It is possible for marketing managers to change or create new attitudes about goods and services–but overcoming negative attitudes is a really tough job.
True False

Trust is the confidence a person has in the promises or actions of another person, brand, or company.
True False

Highly trusted people, brands, and companies have many disadvantages in the marketplace.
True False

An expectation is an outcome or event that a person anticipates or looks forward to.
True False

Consumers may evaluate a product not just on how well it performs but on how it performs relative to their expectations.
True False

In light of the relationships between consumer expectations and satisfaction, it’s usually best for promotion to slightly “over promise” what the firm can actually deliver.
True False

Activities, Interests and Opinions are the “AIO” variables used in lifestyle analysis.
True False

Attitudes, Income and Opinions are the “AIO” variables used in lifestyle analysis.
True False

Psychographics is the analysis of a person’s day-to-day pattern of living as expressed in that person’s Activities, Interests, and Opinions.
True False

The VALS approach to understanding consumer behavior considers values, attitudes, and lifestyles.
True False

Consumer buying decisions are affected by social influences such as motivation, perception, learning, attitudes, and personality.
True False

Buying responsibility and purchase influence between husband and wife vary greatly–depending on the product and the specific family.
True False

Income by itself is usually a pretty good measure of social class.
True False

According to the text, the U.S. social class system is much more rigid than those in most countries.
True False

According to the text, the U.S. social class system is usually measured in terms of occupation, education, and housing arrangements.
True False

People who have the same amount of income–but who are in different social classes–tend to spend their income in the same way.
True False

Given the same income, consumers in different social classes will handle themselves and their money very differently.
True False

The group of people to whom an individual looks when forming attitudes about a particular topic is his reference group for that topic.
True False

A person normally has several reference groups.
True False

Reference group influence is likely to be greater for products which will not be seen by other individuals.
True False

Reference groups are more important when others will be able to “see” which product or brand we’re using.
True False

An opinion leader is usually wealthier and better educated than the people he or she influences.
True False

Opinion leaders for one subject or product are also usually opinion leaders for many other subjects or products.
True False

Word-of-mouth publicity from opinion leaders can be favorable or unfavorable.
True False

Marketers who want to aim at people within several different cultures usually will be able to use the same marketing mix for all of them.
True False

Planning for cultural differences in international markets is easier than in domestic markets.
True False

The reaction of Italian women to Swiffer is an example of cultural influence.
True False

Needs, benefits sought, attitudes, motivation, and even how a consumer selects certain products all vary depending on the purchasing situation.
True False

Different purchase situations may require different marketing mixes, even though the same target market is involved.
True False

The consumer decision process begins when a consumer becomes aware of an unmet need.
True False

As part of the basic problem-solving steps, a consumer searches for information, identifies alternatives and what factors are important, and then evaluates one or more products before deciding how best to meet a need.
True False

How much effort is put into a buying decision depends on the economic needs, psychological variables, social influences, purchase situation, and the amount of risk involved.
True False

Consumers use extensive problem solving when they put SOME effort into deciding how to satisfy a need.
True False

Consumers use limited problem solving when they put MUCH effort into deciding how to satisfy a need.
True False

Limited problem solving is used by consumers when some effort is required in deciding the best way to satisfy a need.
True False

A consumer interested in making a low involvement purchase is most likely to use “limited problem solving”–rather than one of the other levels of problem solving.
True False

Limited problem solving is used when the consumer has a lot of experience in meeting a need and has no need for additional information.
True False

Routinized response behavior is typical for low-involvement purchases.
True False

Finding her favorite brand of shampoo temporarily out of stock, a supermarket shopper is more likely to take part in routinized response behavior than limited problem solving.
True False

The idea of a decision process implies that consumers always apply rational processes in their buying decisions.
True False

Dissonance takes place when an individual is NOT confident about the rightness of a decision.
True False

After making a purchase, buyers often wonder if they made the right choice. The resulting tension is called dissonance.
True False

The power of negative purchase experiences is greater than that of positive experiences.
True False

The adoption process refers to the steps individuals go through on the way to accepting or rejecting a new idea.
True False

The steps in the adoption process are awareness, interest, evaluation, trial, decision, and confirmation.
True False

In the evaluation stage of the adoption process, a consumer begins to give the product a mental trial, applying it to his or her personal situation.
True False

In the confirmation stage of the adoption process, the adopter continues to rethink the decision and searches for support for the decision.
True False

In the adoption process, the confirmation step usually precedes the decision step.
True False

In international marketing, it’s important to rely on intuition and to generalize the cultural influences on consumer behavior from one country to another.
True False

It’s hazardous to rely on intuition in generalizing about cultural influences on consumer behavior from one country to another.
True False

Multiple Choice Questions

Which of the following would be most helpful for predicting why a final consumer selects one of several similar brands?
A. population data
B. consumer spending patterns
C. behavioral science theories
D. consumer income
E. all would be equally helpful

An economic buyer is a person who
A. logically compares choices to get the greatest satisfaction from spending time and money.
B. makes buying decisions based only on price.
C. will not pay extra for convenience.
D. always buys products at the lowest price possible.
E. is averse to spending time and money.

An “economic buyer” is a person who:
A. Makes buying decisions based on behavioral needs rather than economic needs.
B. Logically compares choices to get the greatest satisfaction from expenditures of time and money.
C. Always buys the product that has the lowest price.
D. Is not willing to pay extra for convenience.
E. All of the above.

Economists’ economic-buyer theory assumes that:
A. income data are very useful for predicting consumer behavior.
B. buyers logically compare choices in order to maximize their satisfaction.
C. consumers should purchase only low-priced products.
D. All of the above.
E. None of the above.

_____ are concerned with making the best use of a consumer’s time and money—as the consumer judges it.
A. Economic needs
B. Psychological needs
C. Social influences
D. Behavioral influences
E. Perceptual needs

Which of the following is an “economic need”?
A. Desire for self-satisfaction and convenience.
B. Desire for efficiency in the use of the consumer’s money.
C. Desire for efficiency in the use of the consumer’s time and money.
D. Desire for prestige and paying a high price for the best quality.
E. Desire for status and paying a high price for the best quality.

Which of the following is NOT an economic need?
A. Dependability in use
B. Hunger
C. Economy of use
D. Convenience
E. Efficiency in use

Which of the following is NOT an economic need of consumers?
A. Convenience.
B. Dependability in use.
C. Economy of purchase.
D. Efficiency.
E. Hunger.

At Home Depot, a customer can purchase a gallon of one-coat paint that contains the ingredients for both a primer and a color. What is the primary economic need being satisfied by this type of paint?
A. Dependability in use
B. Economy of purchase
C. Improvement of earnings
D. Convenience

A magazine ad for GEICO car insurance shows the GEICO gecko lying down while the copy reads, “Don’t take high car insurance rates lying down.” What primary economic need is being satisfied in this magazine ad?
A. Convenience
B. Improvement of earnings
C. Dependability in use
D. Economy of purchase

An application for the iPhone that includes voice directions for a built-in GPS system can be helpful in finding a motel that is “off the beaten track”. What is the primary economic need being satisfied by this app.
A. Economy of purchase
B. Dependability in use
C. Efficiency in use
D. Convenience

In a television commercial for Maytag appliances, the spokesperson “Old Lonely” acts bored because no one is calling him to schedule a repair of their appliances. What is the primary economic need being illustrated in this TV ad?
A. Dependability in use
B. Convenience
C. Economy of purchase
D. Improvement of earnings

A busy mom stops at a 7-Eleven store on the way home from work to purchase some bread, milk, and ice cream. What primary economic need is being satisfied by the 7-Eleven?
A. Dependability in use
B. Economy of purchase
C. Efficiency in operation
D. Convenience

The statement, “Of course people will buy our product–each of its features is better than the competition,” most closely reflects which consumer behavior concept?
A. psychographics
B. reference groups
C. needs
D. competitive advantage
E. the economic-buyer theory

The economists’ view of buyers
A. puts a great deal of emphasis on differences in buying behavior related to individual differences among consumers.
B. is based on the idea that consumers value time and select the first alternative they learn about.
C. assumes that they always buy the lowest-price alternative.
D. emphasizes psychological variables rather than social influences.
E. None of the above is true.

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.

The “economic-buyer” model:
A. is seen as too simplistic by most marketing managers.
B. assumes that consumers are affected by psychological variables and social influences.
C. suggests that men and women behave differently as buyers.
D. assumes that buyers don’t have enough information to make logical choices–and as a result buy products that are not a good value.
E. None of the above is correct.

____ is one of the psychological variables that affects a person’s buying behavior.
A. Perception
B. Family
C. Social class
D. Reference groups
E. Convenience

Which of the following is NOT a psychological variable?
A. Culture.
B. Personality.
C. Learning.
D. Perception.
E. Attitudes.

Which of the following is NOT a psychological variable?
A. Attitudes
B. Social class
C. Motivation
D. Learning
E. Perception

Regarding consumer motivation, the text states that:
A. needs are the basic forces which motivate people to do something.
B. all needs and wants are caused by drives.
C. wants are learned needs.
D. the terms “needs” and “wants” mean the same thing.
E. both A and C.

What are the basic forces that motivate a person to do something?
A. Desires.
B. Drives.
C. Actions.
D. Aspirations.
E. Needs.

Wants
A. are an effort to satisfy a drive.
B. are more basic than needs.
C. are strong stimuli that encourage action to reduce a need.
D. are needs that are learned during a person’s life.
E. remain the same during a person’s life.

Marci Bello is status-oriented. When she buys clothing she only considers items with well-known “labels” that her friends will notice. This behavior illustrates
A. satisfying a need.
B. satisfying a want.
C. satisfying a belief.
D. the “economic buyer” model of buyer behavior.
E. All of the above are equally good answers.

A _____ is a strong stimulus that encourages action to reduce or satisfy a need.
A. want
B. motivation
C. drive
D. desire
E. deed

When a consumer actually purchases a particular product it is the direct result of a
A. need.
B. want.
C. drive.
D. desire for physical well-being.
E. None of the above is more true than the others.

Good marketing managers know that
A. marketing strategies can’t influence consumer “wants.”
B. marketers can’t create internal drives in consumers.
C. it is not that difficult to develop a marketing strategy that gets consumers to do what they don’t want to do.
D. All of the above are true.
E. None of the above is true.

After working for 18 hours, Katrina arrived home exhausted and wanted to go straight to sleep. Katrina’s need to sleep is a ______________ need.
A. psychological
B. social
C. physiological
D. behavioral
E. emotional

Frustrated by a lack of freedom to make decisions at her work, Betty quit her job to find one with greater independence. What type of need motivated Betty’s actions?
A. Psychological
B. Social
C. Physiological
D. Economic
E. Cultural

The text discusses a four-level hierarchy of needs. Which of the following is NOT included in that model?
A. Social needs.
B. Psychological needs.
C. Safety needs.
D. Physiological needs.
E. Personal needs.

Ranked from lowest level to highest level, the “hierarchy of needs” model includes:
A. personal, social, safety, and physiological needs.
B. physiological, safety, social, and personal needs.
C. safety, personal, social, and physiological needs.
D. social, personal, safety, and physiological needs.
E. physiological, safety, personal, and social needs.

According to the “hierarchy of needs” model, the first needs most people try to satisfy are their ______________ needs.
A. safety
B. personal
C. physiological
D. social
E. any of the above

Physiological needs are concerned with
A. protection and physical well-being.
B. love, friendship, status, and esteem.
C. an individual’s need for personal satisfaction.
D. biological needs.
E. responsibility and independence.

______ needs are concerned with things that involve a person’s interaction with others.
A. Physiological
B. Safety
C. Biological
D. Personal
E. Social

Needs such as accomplishment and relaxation, which are unrelated to what others think or do, are known as:
A. physiological needs.
B. safety needs.
C. social needs.
D. personal needs.
E. biological needs.

Which of the following are examples of “personal needs”?
A. Needs for food, liquid, and rest.
B. Needs for accomplishment, fun, and freedom.
C. Needs for solutions, protection, and physical well-being.
D. Needs for love and friendship.
E. Needs for status and connecting with others.

L’Oreal advertises its hair color with the popular tagline, “So it costs a bit more. But I’m worth it!” Here, L’Oreal’s marketing effort focuses on satisfying what level in the hierarchy of needs?
A. Social needs
B. Safety needs
C. Physiological needs
D. Personal needs

Newman’s Own (a salad dressing brand) donates 100 percent of its after-tax profits to progressive causes. Newman’s Own is focusing on satisfying what level in the hierarchy of needs?
A. Social needs
B. Personal needs
C. Safety needs
D. Physiological needs

Hallmark advertises its gift items with the popular tagline, “When you care enough to send the very best.” Here, Hallmark’s marketing effort focuses on satisfying what level in the hierarchy of needs?
A. Social
B. Safety
C. Physiological
D. Personal

Harley Owners Group connects motorcycle riders to one another. This group is focusing on satisfying what level in the hierarchy of needs?
A. Safety
B. Physiological
C. Social
D. Personal

Allstate Insurance promotes its auto and home insurance by telling consumers, “You’re in good hands with Allstate.” Which of the following types of needs is Allstate trying to satisfy?
A. Personal needs.
B. Social needs.
C. Physiological needs.
D. Safety needs.
E. Behavioral needs.

The American Heart Association promotes its awareness campaign with the popular tagline, “Learn and Live.” Here, The American Heart Association’s marketing effort focuses on satisfying what level in the hierarchy of needs?
A. Social
B. Safety
C. Physiological
D. Personal

At its Web site, Tylenol identifies the top headache triggers and offers solutions to headache sufferers. Tylenol is focusing on satisfying what level in the hierarchy of needs?
A. Physiological needs.
B. Behavioral needs.
C. Personal needs.
D. Safety needs.
E. Social needs.

In the PSSP Hierarchy of Needs model, which level is illustrated by a Fidelity campaign on TV that proclaims its IRA is a sound investment for the future?
A. Personal needs
B. Physiological needs
C. Social needs
D. Safety needs

The Cleveland Water Department promotes its safe water with a catchy tagline, “The label says Fiji because it’s not bottled in Cleveland.” Here, the Cleveland Water Department’s marketing effort focuses on satisfying what level in the hierarchy of needs?
A. Physiological
B. Social
C. Safety
D. Personal

The California Dairy Association promotes its milk campaign with the popular tagline, “Got milk?” Here, the California Dairy Association’s marketing effort focuses on satisfying what level in the hierarchy of needs?
A. Social
B. Safety
C. Physiological
D. Personal

In the PSSP Hierarchy of Needs model, which level is illustrated by a “Got Milk?” magazine campaign that encourages customers to drink more milk?
A. Physiological needs
B. Safety needs
C. Social needs
D. Personal needs

A marketing manager who wants to apply the “hierarchy of needs” model should keep in mind that:
A. most consumers are already satisfied and promotion will be needed to “create a need.”
B. the same marketing mix might satisfy two or more levels of need.
C. not enough attention is focused on physiological needs.
D. “social needs” focus on the psychological variables in consumer behavior.
E. None of the above is true.

Motivation theory
A. suggests that most products must fill more than one need at a time.
B. suggests that we are obsessed with lower-level needs.
C. explains why marketing efforts targeted at affluent consumers should always focus on lower-level needs.
D. suggests that individuals choose a specific response depending on cues.
E. emphasizes that, for greatest satisfaction, higher level needs should not be our focus.

Which of the following statements about “needs” is true?
A. A higher level need may develop before lower level needs are all satisfied.
B. If lower level needs are reasonably satisfied, those at higher levels become more dominant.
C. A particular product may satisfy more than one need at the same time.
D. All of the above are true.
E. None of the above is true.

Which of the following statements about “hierarchy of needs” is FALSE?
A. As soon as lower level needs are reasonably satisfied, those at higher levels become more dominant.
B. A higher level need may develop before lower level needs are satisfied.
C. The order in which needs are satisfied always follows a definite pattern–with lower level needs being satisfied first.
D. A particular product may satisfy more than one need at a time.
E. All of the above are true.

When studying consumer needs, a marketer should:
A. know that a product may be a want or a need depending on what the consumer has learned during his/her life.
B. try to understand how the marketing mix can satisfy a set of needs, rather than only one.
C. realize that he or she cannot create needs, merely identify them.
D. all of the above.
E. none of the above.

Psychological theories of motivation and needs suggest that:
A. connecting with others is an example of a personal need.
B. a particular good or service might satisfy different levels of needs at the same time.
C. all consumers satisfy needs in the same order.
D. the desire for a better world is an example of a social need.
E. All of the above are true statements.

_____ refers to how we gather and interpret information from the world around us.
A. Retention
B. Perception
C. Attitude
D. Learning
E. Lifestyle analysis

Which of the following is not a selective process used in gathering and interpreting information from the world around us?
A. Selective exposure
B. Selective perception
C. Selective retention
D. Selective attention

Which of the following is NOT one of the selective processes?
A. Selective perception.
B. Selective distribution.
C. Selective exposure.
D. Selective retention.
E. All of the above are selective processes.

The fact that our eyes and minds seek out and notice only information that interests us is called:
A. conscious cognition.
B. selective exposure.
C. selective retention.
D. preconscious perception.
E. selective perception.

______ refers to processes that screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
A. Selective exposure
B. Selective learning
C. Selective retention
D. Selective attention
E. Selective perception

When consumers screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs, this is called:
A. selective retention.
B. selective exposure.
C. selective perception.
D. selective dissonance.
E. selective cognition.

When consumers screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs, this is called:
A. cognitive perception.
B. selective perception.
C. selective retention.
D. conscious perception.
E. selective exposure.

Consumers remembering only what they want to remember is called:
A. conscious response.
B. selective retention.
C. selective exposure.
D. cognitive learning.
E. selective perception.

While planning a vacation, Betty Jo visited the Web site of a package tour provider and closed a pop-up ad without even noticing what it was for. This is an example of
A. selective retention.
B. selective exposure.
C. selective perception.
D. selective learning.
E. selective action.

When listening to music on the radio, many consumers automatically switch stations when commercials begin to run, and they search until they find another station that is playing music. This tendency is an example of:
A. Selective exposure.
B. Selective perception.
C. Selective retention.
D. Selective learning.
E. Selective reception.

Tammi Soloft has itchy eyes and a stuffy nose, and suddenly becomes aware of many TV ads for allergy products that she never noticed before. This illustrates:
A. selective exposure.
B. selective perception.
C. selective retention.
D. reinforced cognition.
E. None of the above.

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.

On his way to a GM dealership to pick up a new truck he has purchased, Ian Mann hears a Ford ad that says that Ford trucks have more power than Chevy trucks. Ian thought that the ad said that the Chevys had more power. This illustrates
A. selective perception.
B. learning.
C. selective retention.
D. reinforcement.
E. selective exposure.

After his Political Science class, Andre only remembered the parts of his professor’s lecture that he agreed with. This is an example of:
A. selective retention.
B. selective exposure.
C. selective information.
D. selective attention.
E. selective action.

_____ is a change in a person’s thought processes caused by prior experience.
A. Selective retention
B. Processing
C. Wanting
D. Learning
E. Perception

Which of the following is NOT a major step in the learning process?
A. Dissonance
B. Drive
C. Response
D. Cues
E. Reinforcement

The order of the steps in the learning process is:
A. drive, cue, response, reinforcement.
B. cue, response, drive, reinforcement.
C. cue, response, reinforcement, drive.
D. drive, response, reinforcement, cue.
E. reinforcement, drive, cue, response.

Which of the following statements about the learning process is TRUE?
A. A cue is a strong stimulus which drives an individual.
B. Learning occurs only when a drive is satisfied.
C. Cues are the causes of drives.
D. Reinforcement strengthens the relationship between a cue and a response.
E. All of the above are true.

Which of the following statements about learning is NOT correct?
A. Satisfaction with a product purchase is reinforcement.
B. Repeated reinforcement is likely to lead to routine buying.
C. A marketing manager can use a package as a “cue.”
D. Reinforcement in the learning process weakens the relationship between a cue and a response.
E. Almost all consumer behavior is learned.

Which of the following statements concerning reinforcement is FALSE?
A. Reinforcement of the learning process occurs when the response is followed by satisfaction.
B. Reinforcement strengthens the relationship between the cue and the response.
C. Reinforcement leads to satisfaction and an increase in the drive.
D. Repeated reinforcement leads to development of a habit.
E. If an experience is satisfactory, positive reinforcement occurs.

Which of the following observations about learning is NOT true?
A. Learning is rarely based on direct experience.
B. Consumer learning may result from things that marketers do.
C. Learning can be based on indirect experience or associations.
D. Consumer learning may result from stimuli that have nothing to do with marketing.
E. Almost all consumer behavior is learned.

A movie theater runs a film clip that shows pictures of candy, popcorn and soft drinks prior to running the featured movie. The intent is to get theater patrons to make purchases at the concession stand in the theater lobby. This process is an example of which of the following behavioral influences on buying behavior?
A. Attitudes.
B. Beliefs.
C. Selective processes.
D. Learning.
E. None of the above.

In the learning process, _____ can be in the form of products, signs, ads, and other stimuli in the environment.
A. reinforcement
B. responses
C. signals
D. retention
E. cues

Which of the following is an example of using a cue to attract consumers?
A. Using a label with red, white, and blue colors to stir patriotic feelings.
B. Adding lemon scent to a soap.
C. Using a package that looks like the one for a popular brand.
D. Adding pine scent to a cleansing fluid.
E. All of the above are examples.

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.

A divorced dad commuting to work on a major highway notices a billboard for McDonald’s any-size $1 soft drink. This billboard is an example of a(n):
A. reinforcement.
B. response.
C. drive.
D. cue.
E. attitude.

A grocery store sprays an aerosol scent that smells like fresh baked bread near its packaged bakery items. This is
A. a case of a manager developing a need.
B. likely to have no effect because selective retention will eliminate any effect of the smell.
C. a case of linking a response with a drive.
D. an example of trying to link a cue with a marketing mix.
E. a violation of the selective processes.

An attitude is:
A. the same as an “intention to buy.”
B. a person’s point of view about something.
C. easy to change.
D. the same as a belief.
E. All of the above.

An attitude:
A. is easily changed.
B. is a person’s point of view toward something.
C. is the same as opinion and belief.
D. is a reliable indication of intention to buy.
E. All of the above are true statements.

_____ is a person’s point of view towards a product, an advertisement, a salesperson, a firm, or an idea.
A. An attitude
B. A belief
C. A preference
D. An impression
E. A cue

Attitudes are:
A. things we believe strongly enough to be willing to take some action.
B. more action-oriented than beliefs.
C. reasonably enduring points of view about something.
D. usually thought of as involving liking or disliking.
E. All of the above.

Regarding consumer buying behavior,
A. attitudes affect the selective processes, learning, and buying decisions.
B. many consumers with a favorable attitude toward a product may have no intention to buy it.
C. beliefs are less action-oriented than attitudes.
D. All of the above are true.
E. None of the above is true.

Some marketers stretch the meaning of “attitude” to include:
A. intention to buy.
B. needs.
C. beliefs.
D. psychographics.
E. actual purchasing behavior.

Consumers’ attitudes can be learned from:
A. exposure to the attitudes of others.
B. promotion which is directed toward them.
C. previous experiences.
D. All of the above could be true.
E. None of the above.

When dealing with consumer attitudes, marketers should know that:
A. it is usually easier to change a negative attitude about a product than to reinforce a positive attitude.
B. consumer attitudes tend to be enduring.
C. attitudes are very good predictors of how people will behave.
D. all of the above.
E. none of the above.

Which of the following observations concerning beliefs is NOT TRUE?
A. Beliefs don’t necessarily involve any liking or disliking.
B. A belief is a person’s opinion about something.
C. Beliefs may help shape a consumer’s attitudes.
D. Beliefs are more action-oriented than attitudes.
E. All of the above are true.

The statement, “I like Southwest Air,” is an example of a(n):
A. belief
B. intention
C. attitude
D. drive
E. none of the above

The statement, “Almond Joy is made with real almonds” is an example of:
A. a belief
B. an intention
C. an attitude
D. none of the above

The statement, “I plan to see the new Tom Hanks movie,” is an example of:
A. a drive
B. reinforcement
C. an attitude
D. a belief
E. an intention

Which of the following would be the most difficult task facing a marketing manager?
A. Discover the attitudes of the firm’s target market.
B. Change existing negative attitudes.
C. Create new attitudes toward his or her brand.
D. Promote existing attitudes.
E. Strengthen existing positive attitudes.

_____ is an outcome or event that a person anticipates or looks forward to.
A. A response
B. A need
C. A desire
D. An expectation
E. An attitude

An expectation is
A. an event that a person likes to remember.
B. a positive cue.
C. an unfulfilled need.
D. an outcome that a person looks forward to.
E. None of the above.

Trust is the confidence a person has in the promises or actions of
A. another person.
B. a brand.
C. a company.
D. a recommender.
E. All of the above.

Psychographics may also be called
A. personality analytics.
B. social group dynamics.
C. lifestyle analysis.
D. opinion insight.
E. attitude measures.

The AIO items used in life-style analysis include:
A. activities, intentions, and opinions.
B. attitudes, intentions, and opinions.
C. attitudes, income, and opinions.
D. activities, interests, and opinions.
E. attitudes, interests, and opinions.

Psychographics or life-style analysis analyzes an individual’s:
A. opinions.
B. demographics.
C. activities.
D. interests.
E. All of the above.

Psychographics is the analysis of a person’s day-to-day pattern of living as expressed in that person’s
A. safety, social, and personal needs.
B. actions, interests, and occupation.
C. activities, interests, and opinions.
D. culture, beliefs, and attitudes.
E. psychological and physiological needs.

Studying a consumer’s psychographic characteristics will help marketers understand the target audience’s hobbies, politics, and _______________ _______________.
A. geographic area
B. age bracket
C. family size
D. income level
E. recreational interests

In psychographics AIO analysis, all of the following are examples of “activities” EXCEPT:
A. age.
B. entertainment.
C. club membership.
D. shopping.
E. hobbies.

VALS and GeoVALS are examples of services offered by research firms to assist in:
A. Learning analysis.
B. Lifestyle analysis.
C. Reinforcement analysis.
D. Belief analysis.
E. Expectation analysis.

Consumer buying behavior is affected by:
A. opinion leaders.
B. social class.
C. physiological, safety, social, and personal needs.
D. reference groups.
E. all of the above.

_____ is a social influence that affects a person’s buying behavior.
A. Perception
B. Family
C. Motivation
D. Learning
E. Attitude

Which of the following is NOT a social influence in consumer buying?
A. Social class
B. Beliefs
C. Family
D. Reference groups
E. Culture

Current consumer research suggests that the family’s purchasing agent is now:
A. the husband.
B. the children.
C. the wife.
D. it varies, depending on the product and the family.

Peter Janca noticed during a weekly grocery shopping that 7-Up was on sale. Even though he could have saved money with the 7-Up, Peter bought Mountain Dew because that’s the brand his children prefer. Peter was responding to:
A. selective exposure.
B. dissonance.
C. marketing influence.
D. social influence.
E. a drive.

According to the text, your social class level does not depend directly on your:
A. type and location of housing.
B. income level.
C. occupation.
D. education.
E. Any of the above.

The social class system in the U.S.
A. does not affect how people spend, but does affect how they save.
B. may put people with the same income level in different social classes.
C. is based on a person’s educational level.
D. is much more rigid than in Europe and Asia.
E. does not affect people’s attitudes.

According to the text, social class in the U.S. is usually measured in terms of:
A. income.
B. occupation, education, and housing arrangements.
C. income, occupation, and education.
D. race, religion, and occupation.
E. income, occupation, and religion.

“Social class” in the U.S. is usually measured in terms of:
A. race, religion, and occupation.
B. occupation, education, and type and location of housing.
C. income.
D. income, occupation, and education.
E. income, occupation, and religion.

In the US, social class groupings are typically based on all of the following EXCEPT:
A. type of housing.
B. education.
C. community participation.
D. occupation.
E. location of housing.

Which of the following statements about social class is NOT true?
A. The various classes tend to have different attitudes and beliefs.
B. The various classes tend to spend, save, and borrow money differently.
C. People with the same income level may be in different social classes.
D. In the U.S., the social class system is less rigid than in most other countries.
E. In the U.S., the system for measuring social class is based mainly on a person’s income.

Which of the following statements about social class is false?
A. The various classes tend to have different attitudes.
B. The various classes tend to save money in different ways.
C. Income by itself can be a pretty good measure of social class.
D. The various classes tend to have different beliefs.
E. The various classes tend to borrow money in different ways.

Which of the following statements concerning social class is FALSE?
A. Income by itself is usually a good measure of social class.
B. In most countries, social class is closely related to a person’s occupation.
C. In most countries, there is a general relationship between income level and social class.
D. Almost every society has some social class structure.
E. The U.S. class system is far less rigid than those in most countries.

Which of the following statements about social class is False?
A. People in different social classes tend to have different beliefs and feelings.
B. People with the same income level are always in the same social class.
C. Variables such as occupation, education, and type of housing form the basis of simple approaches for measuring social class.
D. The U. S. class system is far less rigid than those in most other countries.
E. None of the above statements is false.

______ refers to the people to whom an individual looks when forming attitudes about a particular topic.
A. Family
B. A social class
C. An ethnic group
D. A focus group
E. A reference group

Reference group
A. influence is so strong that a person normally has only one reference group.
B. influence is greatest for older people.
C. influence is equally strong for all products and brands.
D. members may not even know the people who influence their values and attitudes.
E. Both B and C are true.

A good marketing manager knows that
A. a consumer’s reference group may consist of people with whom the consumer has no face-to-face contact.
B. most consumers have only one reference group.
C. a consumer’s family is not a reference group.
D. reference groups usually have the most influence on purchases of products which are not easily seen by others.
E. None of the above is true.

Which of the following observations about reference groups is FALSE?
A. Reference groups are people to whom an individual looks when forming attitudes about a particular topic.
B. An individual usually has a single reference group for all topics.
C. An individual may make buying decisions based on what the group thinks.
D. Reference group influence is stronger for products that others “see.”
E. Reference group influence is stronger for products that relate to status in the group.

Reference-group influence would be WEAKEST for determining which particular ______________ a person buys.
A. watch
B. cosmetics
C. clothing
D. laundry soap
E. car

Reference group influence is likely to have the strongest effect on the particular BRAND of ______________ purchased.
A. dishwasher detergent
B. frozen peas
C. batteries
D. watch
E. Reference group influence would be about the same for each of these products.

Natasha Talbott was interested in a new set of golf clubs. She discussed the various types with some knowledgeable friends and relied on their advice. Natasha’s friends were acting as:
A. an economic influence.
B. routinized decision-makers.
C. a social class.
D. a lifestyle group.
E. a reference group.

In the Jockey underwear ads using young people on the beach and the slogan, “Let ’em know you’re Jockey”, the company is hoping to use __________ groups to influence consumer behavior.
A. cultural
B. family
C. opinion
D. reference
E. social

When Ariat gave boots away to popular rodeo riders, other riders began asking for the Ariat brand and Western stores were eager to sell the boots. Ariat used _____________ groups to influence consumer behavior.
A. social
B. family
C. reference
D. cultural
E. opinion

Opinion leaders:
A. are usually better educated.
B. are usually wealthier.
C. are people who influence others.
D. are rarely actually involved in product-related discussions with the people who “follow” them.
E. All of the above.

Opinion leaders
A. for one subject are also usually opinion leaders for other subjects too.
B. are usually wealthier and better educated than their followers.
C. can really help a marketing mix by providing favorable word-of-mouth publicity.
D. All of the above are true.
E. None of the above is true.

Which of the following statements about opinion leaders is true?
A. Opinion leaders are usually wealthier and better educated than others.
B. Opinion leaders on one subject aren’t necessarily opinion leaders on another.
C. Firms always aim their marketing mixes at general consumers, not opinion leaders.
D. Favorable publicity from opinion leaders rarely helps a marketing mix.
E. Opinion leaders are the same as reference groups.

The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous group of people is a(n):
A. culture.
B. family.
C. evoked set.
D. social class.
E. reference group.

The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people is a(n):
A. tradition.
B. class.
C. society.
D. culture.
E. ethnicity.

The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people is called a(n):
A. personal environment.
B. culture.
C. motivation.
D. learned set.
E. opinion set.

With respect to culture and consumer behavior,
A. culture is the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people.
B. culture may exert many subtle influences on other aspects of consumer behavior.
C. different cultural subgroups are likely to require different marketing mixes.
D. all of the above are correct.
E. none of the above is correct.

A college student on her way to take an exam remembers that she doesn’t have a pencil with an eraser–which the instructor asked everyone to bring. The store where she stops doesn’t have regular pencils–but it does sell Scripto mechanical pencils priced at $2.95. That is what she buys. This case illustrates the effect of:
A. personal environment.
B. culture.
C. purchase situation.
D. learned set.
E. dissonance.

A salesperson driving to visit a client located two hours away has a tire blow out on the highway. He walks about a mile to the next exit where he finds a service station. The owner of the station says he can replace the blown tire, but it will cost twice as much as it would to purchase a tire in the salesperson’s home city. The salesperson, not wanting to be late for his appointment, agrees to pay the higher price in order to get back on the road. This case illustrates the effect of ____________ __________ on buying behavior.
A. cultural background
B. social groups
C. purchase situation
D. learning situation
E. reference groups

An on-site auction may stimulate a different response than an online auction. This is an example of ___________ affecting the purchase decision.
A. demographics
B. time
C. surroundings
D. task
E. culture

The consumer decision process begins with
A. a routinized response.
B. need awareness.
C. information search.
D. problem solving.
E. alternative evaluation.

Which of the following is NOT an important problem-solving step for a consumer trying to satisfy a need?
A. search for information
B. identify alternatives
C. set criteria
D. evaluate alternatives
E. none of the above (i.e., all are important steps)

When consumers use a problem-solving process to make purchase decisions, what is the next step after they become aware of a problem?
A. Evaluating alternative solutions.
B. Gathering information about possible solutions.
C. Deciding on the appropriate solution.
D. Evaluating the decision.
E. Making the commitment to purchase a particular product or service.

Behavioral scientists recognize different levels of consumer problem solving. Which of the following is not one of these levels?
A. Routinized response behavior
B. Limited problem solving
C. Rational problem solving
D. Extensive problem solving
E. All of the above are recognized levels of problem solving.

Which of the following is NOT one of the levels of consumer problem solving discussed in the text?
A. Dissonance problem solving
B. Routinized response behavior
C. Extensive problem solving
D. Limited problem solving
E. None of the above, i.e. all four are discussed.

When a consumer puts much effort into deciding how to satisfy a need, he engages in
A. extensive problem solving.
B. critical problem solving.
C. routinized response behavior.
D. limited problem solving.
E. intensive problem solving.

What is the likely level of involvement in a purchase decision for a new couch?
A. Extensive.
B. Limited.
C. Low.
D. Moderate.
E. Routine.

Extensive problem solving probably would be required by a recent college graduate in the purchase of:
A. living room furniture.
B. a color TV set.
C. a new home.
D. a sports car.
E. all of the above.

Extensive problem solving probably would NOT be required by young newly-marrieds in the purchase of:
A. a stereo system.
B. soft drinks.
C. a home.
D. a DVD player.
E. a car.

Lars Sorenson is a college student who needs to purchase a suit for job interviews. In the past his father has helped him buy suits. This time, he is the sole decision maker and is paying for the $450 suit with money he earned at his part-time job. Lars is concerned about good fit and good value so he visits several stores before making his purchase. For Lars, this situation seems to be one of:
A. Routinized response behavior.
B. Low involvement purchasing.
C. Extensive problem solving.
D. Limited problem solving.
E. Adoption purchasing.

Chelsea is buying her first flat panel television. She wants to make the right decision, so she consults several Web sites for product reviews, talks to friends and salespeople at electronics stores, determines several key criteria, and evaluates six different sets. For her flat panel purchase, Chelsea used
A. extensive problem solving.
B. focused information search.
C. routinized response behavior.
D. limited problem solving.
E. low involvement buying.

Limited problem solving is used
A. when consumers put much effort into deciding how to satisfy a need.
B. for purchases that have little importance or relevance for the customer.
C. by consumers when some effort is required in deciding the best way to satisfy a need.
D. when consumers regularly select a particular way of satisfying a need when it occurs.
E. mostly for impulse purchases.

Monica does not find her regular brand of shampoo at the store. She looks at the bottles of three brands before deciding on the Shine-On brand. Monica has engaged in
A. limited problem solving.
B. intensive problem solving.
C. routinized response behavior.
D. extensive problem solving.
E. analytical problem solving.

What is the level of involvement in a purchase decision for a small kitchen appliance?
A. Extensive.
B. Limited.
C. Low.
D. Moderate.
E. Routine.

Limited problem-solving probably would NOT be required in the purchase of:
A. running shoes.
B. an encyclopedia.
C. new suit.
D. coffee maker.
E. fast-food restaurant meal.

Chapter 07

Business and Organizational Customers and Their Buying Behavior

True / False Questions

There are more final consumers than business and organizational customers, so more is purchased by final consumers.
True False

Organizational buyers are often referred to as the B2B market.
True False

Organizational buyers are also referred to as industrial or intermediate buyers.
True False

The process of organizational buying is entirely different from consumer buying.
True False

Like final consumers, organizations make purchases to satisfy specific needs, but their basic need is for goods and services that will help them satisfy their own customers or clients.
True False

Business and organizational customers are selective buyers who buy for the sole purpose of resale.
True False

Organizations always focus on economic factors when they make purchase decisions and are never as emotional as final consumers in their buying behavior.
True False

Dependability of supply is usually much less important than price for most business customers.
True False

The approaches used to serve business customers in international markets are even more varied than those required to reach individual consumers.
True False

Organizational buyers often buy on the basis of a set of purchasing specifications.
True False

A description of what a firm wants to buy is called its purchasing specifications, whether that description is written or electronic.
True False

Purchasing specifications should be used only with products where quality is highly standardized.
True False

Purchase specifications for services are usually very simple because services tend to be very standardized.
True False

Purchasing managers seldom use purchasing specifications to buy on the Internet.
True False

Purchasing specifications may be very simple (with only a brand name or part number) or very detailed (as with services).
True False

ISO 9000 is a way for a supplier to document that its quality procedures meet internationally recognized standards.
True False

ISO 9000 is only relevant to domestic suppliers.
True False

ISO 9000 is only relevant to international suppliers.
True False

ISO 9000 is relevant to both domestic and international suppliers.
True False

With ISO 9000 someone is responsible for quality at every step.
True False

ISO 9000 reduces the need for a customer to conduct its own audit of a supplier’s quality procedures.
True False

Purchasing managers are buying specialists for organizations and may have a lot of power.
True False

“Multiple buying influence” means that several people in an organization share in making a purchase decision, but top management is never involved.
True False

Multiple-buying influence means that the buyer shares the purchasing decision with several people.
True False

Multiple buying influence means that several people except top management share in making a purchase decision.
True False

A buying center is generally thought of as all the people who participate in or influence a purchase.
True False

In a large company, the “buying center” refers to all of the purchasing managers who work for the firm:
True False

A seller’s marketing mix should satisfy BOTH the needs of the customer company and the needs of individuals in the buying center.
True False

A requisition is a request to buy something.
True False

A person who needs to purchase something usually completes a requisition.
True False

A firm’s social values and economic needs can sometimes clash.
True False

A straight rebuy is a routine repurchase that may have been made many times before.
True False

New-task buying is an in-between process where some review of the buying situation is done.
True False

Straight-rebuy buying takes longer than modified-rebuy or new-task buying and offers more chance for promotion impact by the seller.
True False

Few purchasing managers have been able to turn over any of their order placing to computers because so few organizational purchases are routine.
True False

The Internet is making even straight rebuys more competitive.
True False

When a variety of information sources are readily available in new-task buying, a buyer is much less likely to use a trusted source.
True False

Most purchasing managers use search engines as their FIRST step to satisfy new or unfamiliar questions.
True False

Specialized search engines can help a business buyer search for products by description.
True False

Specialized search engines can help a business buyer search for products using purchase specifications.
True False

Specialized search engines can help a business buyer search for products by inspection.
True False

A business buyer who uses general purpose and/or specialized search engines may reduce the need to arrange for custom-produced items.
True False

White papers, case studies, blogs, and videos are all ways for a seller’s Web site to provide a buyer with useful content.
True False

Online communities are one way for buyers to connect with others who have already dealt with a similar need.
True False

As B2B buyers rely more on social networks, it’s more likely that communications from sellers will have even more influence.
True False

A bid is the terms of sale offered by different suppliers in response to the purchase specifications posted by the buyer.
True False

The Internet is making it faster and easier for organizational buyers to use competitive bidding procedures.
True False

Procurement sites operate for the benefit of buyers by directing suppliers to them at one convenient site.
True False

At a procurement site, competition among sellers is likely to increase.
True False

Reverse auctions work best for differentiated products.
True False

Reverse auctions, unlike regular auctions, operate for the benefit of buyers.
True False

Reverse auctions, unlike regular auctions, operate for the benefit of sellers.
True False

Reverse auctions foster competition among buyers.
True False

Reverse auctions are less effective when the value provided to a customer comes from a complete marketing mix, not just a low price.
True False

So far, B2B e-commerce has had little effect on the way organizations make purchase decisions and deal with suppliers.
True False

Internet tools used in the B2B market that focus primarily on lowering price do not always lower TOTAL purchasing costs.
True False

In business markets, suppliers usually want close relationships with customers; however, there’s little benefit to the customer of having closer relationships with suppliers.
True False

A close buyer-seller relationship in a business market may reduce a firm’s flexibility.
True False

A long-term commitment by an organization to a partner may reduce flexibility.
True False

In business markets, a seller would always prefer to have a closer relationship with a customer.
True False

In business markets, buyer-seller relationships tend to be an “all-or-nothing” arrangement–either very close or not at all close.
True False

Although we talk about close “relationships” between firms in business markets, in practice it is just the relationship between the salesperson and purchasing manager that becomes close.
True False

In cooperative relationships in a business market, the buyer and seller work together to jointly achieve both mutual and individual objectives.
True False

Just-in-time delivery reliably helps to get products and store them long before the customer needs them.
True False

Just-in-time relationships between buyers and sellers usually require operational linkages and information sharing.
True False

Negotiated contract buying means agreeing to contracts that allow for changes in the purchase arrangements.
True False

Negotiated contract buying would be used when the buyer knows precisely what he wants and the requirements of the job aren’t likely to change as the job is done.
True False

Relationship-specific adaptations involve changes in a firm’s product or procedures that are unique to the needs or capabilities of a relationship partner.
True False

Specific adaptations are usually made when the buying organization chooses to outsource.
True False

Relationship-specific adaptations are usually not required when the buying organization uses outsourcing.
True False

To protect themselves from unpredictable events, most purchasing managers seek several dependable sources of supply.
True False

Most manufacturers are quite small, with 250 or fewer employees.
True False

Compared to final consumers, manufacturers tend to be more spread out geographically.
True False

In the U.S., many factories are concentrated in rural areas.
True False

It is very common for manufacturers to concentrate in certain geographic areas and by type of industry.
True False

The U.S. government collects and publishes data by the NAICS codes.
True False

The term “NAICS” stands for New Auto Industry Classification Survey.
True False

The U.S. government reports data on the number of firms, sales volume, and number of employees by NAICS code.
True False

Firms that are described by NAICS code 3152 are more similar than firms described by NAICS code 31.
True False

In the market composed of service producers, most firms are small and geographically dispersed.
True False

There are about 16 times as many service firms as manufacturing firms.
True False

Purchasing managers are even more likely to be involved in buying by small service firms than in buying by large producers.
True False

Purchases by small service firms are often handled by whoever is in charge.
True False

Most retail and wholesale buyers see themselves as purchasing agents for their target customers.
True False

Sales reps calling on large food retailers often must make their sales presentations to a buyer who doesn’t have the final decision responsibility.
True False

Most wholesalers and retailers pay very close attention to each item they handle, treating most products as new-task purchases.
True False

A retail buyer who is “open to buy” has funds budgeted to spend during the current time period.
True False

If a buyer is “open to buy,” this means that he generated more sales than he expected.
True False

If the money has not yet been spent, retail buyers are called resident buyers.
True False

Independent buying agents who work in central markets, representing several wholesaler or retailer customers, are called resident buyers.
True False

Resident buyers are employees of chain stores who buy in central markets for their employers.
True False

Resident buyers are independent buying agents who work in central markets for several retailer or wholesaler customers based in outlying areas or other countries.
True False

The government is the largest customer group in all countries.
True False

Government is one of the smallest groups (in sales volume) of customers in the United States.
True False

When selling to government customers, both competitive bids and negotiated contracts are common.
True False

To share in the government market, it is advantageous to be on the list of approved suppliers.
True False

To compete in the government market, it is very important that marketing mixes are well matched with different bid procedures.
True False

The Internet is not very useful for firms that want to target government markets.
True False

Although outright influence peddling is common in some international markets, it is not allowed under the Foreign Corrupt Practices Act.
True False

Multiple Choice Questions

Regarding U.S. business and organizational customers,
A. more goods and services are purchased by business and organizational customers than by final consumers.
B. there are more business and organizational customers than final consumers.
C. there are more manufacturers than all other types of business and organizational customers combined.
D. more goods and services are purchased by government buyers than by all other business and organizational customers.
E. Both B and D are true.

Which of the following is a business or organizational customer?
A. Producers of goods or services.
B. A retailer.
C. A wholesaler.
D. A government agency.
E. All of the above are business and organizational customers.

Which of the following are NOT “business and organizational customers?”
A. Wholesalers
B. Manufacturers
C. Financial institutions
D. Government units
E. All of the above ARE business and organizational customers.

Which of the following is NOT an organizational buyer?
A. The Red Cross buying office supplies.
B. A sporting goods retailer buying skis.
C. A law office buying a background music service.
D. A country club buying tennis balls for a tournament.
E. All of the above are organizational buyers.

Which of the following is NOT an example of an organizational buyer?
A. A government buyer purchasing a new desk for the mayor’s office.
B. A woman buying cookware to sell to her friends and neighbors.
C. A sales rep buying a new necktie to make a good impression.
D. A wholesaler buying a delivery truck.
E. None of the above is a good example.

Which of the following is a business or organizational customer, as opposed to an individual final consumer?
A. A wholesaler purchasing merchandise for resale.
B. A business executive who purchases a new suit.
C. A teacher who fills her car with gasoline.
D. A homeowner who buys flowers at a garden center.
E. None of the above.

The college or university that you attend is considered which type of organizational customer?
A. Producer.
B. Intermediary.
C. Government.
D. Nonprofit.

John Deere is considered which type of organizational customer?
A. Producer.
B. Intermediary.
C. Government.
D. Nonprofit.

Bank of Omaha is an example of what type of organizational customer?
A. Government
B. Nonprofit
C. Producer
D. Intermediary
E. Resident buyer

Macy’s is considered which type of organizational customer?
A. Producer.
B. Intermediary.
C. Government.
D. Nonprofit.

Radio Shack is an example of what type of organizational customer?
A. Retailer
B. Producer
C. Government
D. Nonprofit
E. Wholesaler

The St. Louis Symphony is an example of what type of organizational customer?
A. Government
B. Wholesaler
C. Intermediary
D. Resident buyer
E. Nonprofit

Concerning consumer and business markets:
A. promotion to consumer markets usually relies more heavily on the use of personal selling.
B. it is often easier to define customer needs in business markets.
C. a marketing mix directed at an organizational customer is usually less precisely adjusted to the needs of the specific customer.
D. All of the above are true.
E. None of the above is true.

As compared to final consumers, organizations
A. always focus on economic factors.
B. have more varied needs, and require more varied marketing mixes.
C. have needs that are often easier to understand.
D. always set out detailed information about the performance standards the product must meet when quality is highly standardized.
E. are usually more emotional in their buying than final consumers.

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.

Organizational customers:
A. Purchase goods and services in order to satisfy their customers and clients.
B. Are more emotional in their buying than final consumers.
C. Try to consider the total cost of selecting a supplier, not just the initial cost of the product.
D. Typically focus on behavioral needs instead of economic factors in making purchases.
E. Both A and C.

In comparison to the buying of final consumers, the purchasing of organizational buyers:
A. is strictly economic and not at all emotional.
B. is always based on competitive bids from multiple suppliers.
C. leans basically toward economy, quality, and dependability.
D. is even less predictable.
E. Both A and C are true statements.

If a firm targets business and organizational markets,
A. the geographic location of the customer is likely to be less important than in segmenting consumer markets.
B. NAICS codes may help in segmenting manufacturers but not producers of services.
C. each customer may need to be treated as a different segment.
D. All of the above are true.
E. None of the above is true.

Organizational buying based on a written (or electronic) description of a product is called buying by ______________.
A. purchasing specifications
B. inspection
C. negotiated contract

_____ is a written or electronic description of what the firm wants to buy.
A. An estimate
B. A negotiated contract
C. A new market order
D. A purchase order
E. A set of purchasing specifications

A set of ________________ contains a written or electronic description of what a firm wants to buy.
A. requirements
B. purchasing specifications
C. blueprints
D. quality certifications
E. request forms

Purchasing specifications may include:
A. the product grade
B. the brand name
C. the part number
D. all of the above
E. none of the above

Purchasing specifications
A. may simply include a brand name or part number when purchasing requirements are complicated.
B. for services, as compared to goods, tend to be detailed because services are usually performed before they’re purchased.
C. for services, as compared to goods, tend to be detailed because services are more standardized than goods.
D. are often simple for manufactured items with highly standardized quality.
E. None of the above are correct.

Which of the following buying methods would a supermarket buyer be MOST LIKELY to use in the purchase of grade A large eggs?
A. Purchasing specifications
B. Competitive bidding
C. Negotiated contract

Which of the following products would be bought using purchasing specifications?
A. 100 gallons of Du Pont brand muriatic acid.
B. 1,000 700MB CD-Rs.
C. 50 pounds of number 10 USX nails.
D. all of the above.
E. none of the above.

Which of the following buying methods would a purchasing manager be most likely to use on the Internet?
A. Inspection
B. Negotiated contract
C. Purchasing specifications

____ is a way for a supplier to document its quality procedures according to internationally recognized standards.
A. ISO 2000
B. ISO 9000
C. ISO 3000
D. ISO 8000
E. ISO 3001

Which of the following statements about ISO 9000 is NOT TRUE?
A. ISO 9000 is a way for a supplier to document its quality procedures according to internationally recognized standards.
B. ISO 9000 reassures a customer that the supplier has effective quality checks in place after it conducts a personal quality audit.
C. Some customers will not buy from a supplier who does not have ISO 9000 certification.
D. One requirement for ISO 9000 certification is that a company must show outside auditors who is responsible for quality every step of the way.
E. ISO 9000 helps organizational customers who are considering a new supplier.

Which of the following statements about ISO 9000 is FALSE?
A. ISO 9000 is a way for government suppliers to document their quality procedures, but it does not apply to other organizational suppliers.
B. A supplier that has met the ISO 9000 standard is always better than one that has not.
C. ISO 9000 applies to international suppliers only.
D. All of the above are false.
E. None of the above is false.

Buying specialists for organizations are commonly called:
A. supply agents.
B. vendor agents.
C. value analysts.
D. purchasing managers.
E. consumer buyers.

A specialist within a company who is responsible for all of the company’s major purchases is called all of the following EXCEPT:
A. supply manager.
B. procurement officer.
C. buyer.
D. salesperson.
E. purchasing agent.

A purchasing manager:
A. Is basically a clerk who fills out paperwork to place orders.
B. Is the only person a business-to-business salesperson ever needs to see in order to make a sale to a buying organization.
C. May specialize by product area if he/she works for a large organization.
D. Is only interested in finding the lowest possible price for a product.
E. All of the above.

Purchasing managers in business markets (compared to buyers in consumer markets) are generally:
A. fewer in number.
B. more technically qualified.
C. less emotional in their buying motives.
D. more insistent on dependability and quality.
E. all of the above.

_____ are responsible for working with suppliers and arranging the terms of sale.
A. Gatekeepers
B. Deciders
C. Influencers
D. Users
E. Buyers

During the purchase of janitorial services for a new building, Teresa has responsibility for working with suppliers and arranging the terms of the sale. In this role, Teresa appears to be acting as
A. a gatekeeper.
B. a decider.
C. a buyer.
D. a user.
E. an influencer.

In a buying center, which of the following are likely to be influencers?
A. Purchasing managers who arrange the terms of the sale.
B. People who supply information for evaluating alternatives.
C. People who have the power to select or approve suppliers.
D. People who control the flow of information.
E. Purchasing managers who shield users or other deciders.

In the purchase of a new computer monitor, which of the following is an example of a user?
A. A purchasing manager who arranges the terms of the sale.
B. An IT manager who supplies information for evaluating alternatives.
C. A secretary whose computer monitor is being replaced.
D. A receptionist who controls the flow of information.
E. A supply manager who helps write specifications.

Among the multiple buying influences, ____ control the flow of information within the organization.
A. gatekeepers
B. deciders
C. influencers
D. information agents
E. buyers

During the purchase of new tooling at Acme Tool and Die, which of the following is an example of a gatekeeper?
A. Sara, a purchasing manager, arranges the terms of the sale.
B. Ross, from R&D, supplies information for evaluating alternatives.
C. Charlotte, in manufacturing, has the power to select or approve suppliers.
D. Andre, a research assistant, gathers and distributes information about alternatives.
E. Rita, from the manufacturing floor, will use the new tooling.

Regarding organizational buying, the people who have the power to select or approve the supplier–especially for larger purchases–are called:
A. influencers.
B. deciders.
C. buyers.
D. gatekeepers.
E. users.

ABC Technologies manufactures computer accessories, such as modems and network cards. Even though the company has several purchasing managers, the company president has final authority on all purchases over $500, including the selection of the supplier. In the typical buying center in this company, the company president would have the primary role of:
A. User.
B. Buyer.
C. Influencer.
D. Decider.
E. Gatekeeper.

Natalie Simopoulos, director of procurement at Grecian Glass Company must approve every purchase order, and Anthony Markatos, purchasing manager, must authorize any sales rep who wants to talk to a Grecian Glass employee. Natalie and Anthony are acting as _____ and _____, respectively.
A. decider and gatekeeper
B. influencer and user
C. gatekeeper and influencer
D. buyer and decider
E. user and gatekeeper

A furniture producer has decided to buy its upholstery cloth from new suppliers. The president has given the purchasing manager responsibility to make the final selections and negotiate the terms. The purchasing manager looks through books with samples and specifications, and then calls salespeople to make presentations to the production manager, who is concerned about how easy the cloth will be to cut and sew. In this case, the purchasing manager is
A. an influencer.
B. a buyer.
C. a decider.
D. a gatekeeper.
E. all of the above.

For new-task buying, a good salesperson will try to contact the potential customer’s:
A. deciders.
B. gatekeepers.
C. influencers.
D. buyers (purchasing managers).
E. All of the above.

If many individuals are involved in a buying decision, this is:
A. a multiple input situation.
B. a selective rebuy.
C. a modified rebuy.
D. a multiple buying influence situation.
E. a straight rebuy.

Multiple buying influence is MOST likely to occur in which of the following purchases?
A. Note pads.
B. A voice-mail phone system.
C. A replacement for a broken chair.
D. Gasoline.
E. Paper clips.

A _____ refers to all of the people who participate in or influence a purchase.
A. procurement department
B. bidding group
C. set of gatekeepers
D. sales analysis group
E. buying center

A “buying center”
A. may vary from purchase to purchase.
B. refers to all the purchasing agents in a large firm.
C. is usually identified on a firm’s organization chart.
D. is usually controlled by the purchasing manager.
E. is usually located in major wholesale markets.

When a salesperson calls on a new business prospect,
A. he may have trouble identifying all of the buying center members.
B. he usually must see the purchasing manager first.
C. the probability of encountering a gatekeeper is high.
D. All of the above are true.
E. None of the above is true.

Regarding organizational buying,
A. a “national accounts” sales force often makes sense when firms with many facilities buy from a central location.
B. purchasing managers are more likely to be found in large organizations.
C. a geographically bound salesperson can be at a real disadvantage.
D. All of the above are true.
E. None of the above is true.

Vendor analysis is a(n)
A. analytic processing of requests to buy something from a vendor.
B. formal rating of suppliers on all relevant areas of performance.
C. analytic processing of requests to sell something to a vendor.
D. request to buy something.
E. written description of what the firm wants to buy.

Vendor analysis
A. ensures objectivity by disregarding whether a supplier has been used in the past.
B. emphasizes the emotional factors in a purchase decision.
C. is used less now that multiple buying influence is more common.
D. All of the above are true.
E. None of the above is true.

Vendor analysis:
A. Has the sole objective of getting the lowest possible price on a particular product or service from the supplier.
B. Does not take into account the behavioral needs of purchasing managers and others involved in the buying decision.
C. Is a formal rating of suppliers on all relevant areas of performance.
D. All of the above.
E. A and C only.

When a company creates a rating form for its suppliers and rates their on-time delivery, product quality, service advice, and so forth, in order to determine which suppliers to put on an approved list of suppliers for specific products, this process is called a(n):
A. JIT rating.
B. resident buyer analysis.
C. vendor analysis.
D. ISO 9000 certification.
E. buying center analysis.

Vendor analysis
A. emphasizes the emotional factors in a purchase decision.
B. is a formal procedure used by a vendor’s salespeople to be certain that all members of a buying center have been contacted.
C. is used less now that multiple buying influence is more common.
D. is likely to favor a vendor that offers the customer the lowest total cost associated with the purchase.
E. None of the above is true.

The goal of vendor analysis is
A. just getting a low price from the supplier on a given part or service.
B. just satisfying the needs of the customer company.
C. lowering the total costs associated with purchases.
D. satisfying the needs of the individuals who influence the purchase.
E. focusing buyers and sellers on just the economic factors needed to reduce costs.

Regarding selling to organizational buyers,
A. the buyer’s individual needs can be ignored when there is multiple buying influence.
B. purchasing managers are usually more emotional than final consumers.
C. a purchasing manager’s emotional needs should be emphasized as well as his economic needs.
D. sellers should try to avoid purchasing managers, since they usually can’t make the final buying decision.
E. All of the above are true.

A typical purchasing manager:
A. buys strictly on economic needs.
B. tries to satisfy both individual needs and company needs.
C. seeks the lowest possible cost.
D. has the final decision on all purchases.
E. All of the above.

Purchasing managers
A. are, in general, not very well educated.
B. always buy from the lowest price supplier.
C. may be willing to pay more to reduce personal risk.
D. are usually the last ones a salesperson sees, after the order has been approved by the gatekeepers.
E. None of the above is true.

Most purchasing managers:
A. reject “vendor analysis” as too subjective.
B. want to be “sold” by persuasive salespeople.
C. spend most of their time on new-task buying.
D. stress dependability as well as lower cost and higher quality.
E. dislike the higher risk that is involved in buying from a supplier that meets the ISO 9000 standard.

Organizational buyers:
A. rely on many sources of information in addition to salespeople when making purchase decisions.
B. may use vendor analysis to make certain that all relevant areas of a purchase decision have been considered.
C. are likely to do little search for additional information if the purchase is unimportant.
D. tend to be more rational–and less emotional–in their buying decisions than final consumers.
E. All of the above are true.

Organizational buyers:
A. are producers’ agents.
B. are problem solvers.
C. base purchasing decisions entirely on company needs.
D. are not affected by emotional needs.
E. All of the above are true.

A requisition
A. is only used for nonroutine purchases.
B. is the same as a purchase order.
C. sets the terms under a negotiated contract.
D. is a formal contract between a buyer and a seller.
E. none of the above is true.

An office manager needs office supplies, so he fills out a form indicating what he needs and sends it to the purchasing department to be ordered. This form is usually called
A. a purchase order.
B. a requisition.
C. a vendor analysis.
D. a buying center request.
E. the start of the adoption process.

A person who needs to purchase something usually completes a
A. requisition.
B. supply form.
C. contract.
D. certificate of purchase.
E. vendor analysis.

All of the following are true of requisitions except
A. it is a request to buy something.
B. it is frequently handled online to cut time and paper shuffling.
C. its processing usually takes a few hours for both simple and complex purchases.
D. it is a form of centralized control.
E. its administrative costs can be $50 or more.

Which of the following is NOT one of the organizational buying processes discussed in the text?
A. Multiple task buying.
B. Modified rebuy buying.
C. New-task buying.
D. Straight rebuy buying.
E. None of the above, i.e., all are buying processes.

Which of the following is NOT one of the organizational buying processes discussed in the text?
A. Straight rebuy buying
B. Modified rebuy buying
C. Important task buying
D. New-task buying
E. None of the above, i.e., all are buying processes.

Multiple buying influence should be expected in:
A. vendor buying.
B. straight rebuy buying.
C. modified rebuy buying.
D. new-task buying.
E. none of the above.

Regarding new-task organizational buying, which of the following are likely to be involved?
A. Top managers.
B. Purchasing manager.
C. Production process engineers.
D. Production line supervisors.
E. All of the above.

Regarding new-task organizational buying, which of the following persons is LEAST likely to be involved?
A. A competitor’s purchasing manager.
B. A purchasing manager.
C. A production line supervisor.
D. The company president.
E. A research assistant.

New-task buying
A. is a routine repurchase that may have been made many times before.
B. occurs when an organization has a new need and the customer wants a great deal of information.
C. is an in-between process where some review of the buying situation is done.
D. occurs when an organization has a routine need and the customer wants only minimal information.
E. involves no review of suppliers.

A buyer who has not purchased from a vendor in the past is MOST LIKELY to buy from that vendor when there is:
A. straight rebuy buying.
B. selective buying.
C. new-task buying.
D. selective task buying.
E. modified rebuy buying.

Which of the following buying situations gives a seller the most chance for promotion impact?
A. Selective task buying
B. Modified rebuy buying
C. New-task buying
D. Straight rebuy buying
E. All of the above are equal.

For which of the following would an organization most likely engage in new task buying?
A. A small portable welding machine for use in making repairs.
B. A new desktop copying machine.
C. Dishwashing detergent for use in a restaurant.
D. A new desk chair to replace one that had broken.
E. A 10,000 square foot prefabricated steel building for use as a warehouse.

When a company is trying to decide which type of smart phone to purchase for its sales staff and has never had to make that specific type of purchase before, this buying situation is called a(n):
A. Straight rebuy.
B. New-task buy.
C. JIT buy.
D. Modified rebuy.
E. ISO 9000 buy.

Sweets Galore, the manufacturer of Rainbow brand lollipops, decided to expand into manufacturing liqueur-filled chocolate truffles. Its buying process for the chocolates, liqueurs, and molds was extensive, and included setting product specifications and evaluating sources of supply. This is an example of a
A. straight buy.
B. modified rebuy.
C. straight rebuy.
D. new-task buy.
E. simplified rebuy.

Definitely Scrumptious Co., a cookie manufacturer, decides to expand into cake manufacturing. It begins the buying process for cake molds, toppings, and icing equipment by setting product specifications and evaluating sources of supply. This is an example of a
A. simplified buy.
B. straight rebuy.
C. modified rebuy.
D. straight buy.
E. new-task buy.

Straight rebuy
A. decisions, as contrasted with modified rebuys, are more likely to involve multiple buying influence.
B. vendor selections are likely to be made by a purchasing manager–without consulting anyone else.
C. decisions are infrequent, but they typically take longer to make than new-task buying decisions.
D. decisions usually involve getting negotiated bids from suppliers.
E. decisions cannot be influenced by advertising.

A straight rebuy is MOST likely to occur for:
A. a new computer network.
B. a pension plan which meets the new government regulations.
C. paper supplies for the copy equipment.
D. electronic components for a new product.
E. executive chairs for a new office building.

A vendor is MOST likely to make a sale if the buyer has bought from the vendor before and is doing:
A. straight rebuy buying.
B. selective buying.
C. multiple task buying.
D. modified rebuy buying.
E. new-task buying.

A vendor is LEAST LIKELY to make a sale if the buyer has not bought from the vendor before and is doing:
A. straight rebuy buying.
B. selective buying.
C. new-task buying.
D. selective task buying.
E. modified rebuy buying.

A straight rebuy
A. involves setting product specifications and evaluating sources of supply.
B. occurs when an organization has a new need and the customer wants a great deal of information.
C. is an in-between process where some review of the buying situation is done.
D. occurs when an organization has a new need but the customer wants only minimal information.
E. is a routine repurchase that may have been made many times before.

Organizational buyers:
A. tend to rely almost totally on salespeople as their source of information.
B. prefer formal procedures for rating vendors over informal approaches like vendor analysis.
C. are likely to do little search for additional information if the purchase is unimportant.
D. tend to be more emotional than final consumers–because their jobs are at risk if a problem arises.
E. None of the above is true.

Percy Malik, purchasing agent for Black Mountain Chemical Industries, routinely signs purchase orders for office supplies without further consideration. At Black Mountain, purchases of office supplies are
A. a modified rebuy.
B. a necessity.
C. Somewhat Insignificant Commodity (SIC) items.
D. a selective rebuy.
E. a straight rebuy.

A sales representative calls on a prospective business customer only to find that the customer has an established relationship with another supplier that seems to be working well. The customer is not interested in considering other suppliers. The customer is currently in a ____________________ situation.
A. straight rebuy
B. modified rebuy
C. new-task
D. extensive problem-solving
E. limited problem-solving

Home Sweet Home Co. manufactures and sells handmade wooden furniture. Its manager routinely orders 50 cartons of Supreme Furniture Polish and 10 bottles of Ultra Sheen Varnish from the same vendor. This is an example of a
A. straight buy.
B. modified rebuy.
C. new-task buy.
D. straight rebuy.
E. simplified buy.

Circle Z Tires is a retailer of car tires. Unless the store manager requests something different, every month there is an automatic order of 10 XZ Performance Tires and 12 J-1 wheels from Box Tire Supply. This is an example of a
A. new-task buy.
B. modified rebuy.
C. straight rebuy.
D. modified buy.
E. simplified buy.

Rosalinda’s Steak House purchases 70 T-bone steaks every Friday — including last Friday. Last Friday’s order was an example of a
A. straight buy.
B. modified rebuy.
C. new-task buy.
D. straight rebuy.
E. simplified buy.

A purchase having some multiple influence and requiring some information would fit the description of a
A. new-task buy.
B. modified buy.
C. straight rebuy.
D. modified rebuy.
E. simplified buying.

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.

A modified rebuy is MOST likely to occur for:
A. file folders.
B. brooms.
C. paper clips.
D. a desk.
E. copier paper.

Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm’s purchasing agent MOST LIKELY to use?
A. Selective buying
B. Modified rebuy buying
C. Intensive buying
D. New-task buying
E. Straight rebuy buying

In his last order, the bakery manager at Bread of the Earth Bakery purchased a different brand of whole wheat flour from his regular supplier, Best Bakery Supplies. This is an example of a
A. modified rebuy.
B. straight buy.
C. straight rebuy.
D. new-task buy.
E. simplified buy.

Purchasing managers rely on Internet ______________ ______________ to quickly identify new supplies.
A. Procurement engines
B. Online communities
C. Purchasing sites
D. Search engines

A report on a seller’s Web site that describes how an organizational buyer can make a better decision on a particular topic is called a(n):
A. mission statement.
B. white paper.
C. executive summary.
D. online community.
E. outsource.

A report on a seller’s Web site that describes how one of its customers solved a specific problem by using the seller’s products is called a(n):
A. white paper.
B. outsource.
C. executive summary.
D. case study.
E. mission statement.

Regarding e-commerce Web site resources:
A. Purchasing specifications are commonly used online to describe what a firm wants to buy.
B. Online auction sites commonly operate for the benefit of sellers.
C. Competitive bidding systems commonly drive down prices at procurement hubs.
D. Online reverse auctions sites commonly operate for the benefit of buyers.
E. All of the above are true.

Regarding B2B e-commerce:
A. Procurement sites foster competition among sellers.
B. Online auction sites foster competition among buyers.
C. Reverse auction sites foster competition among sellers.
D. All of the above are correct.
E. None of the above is correct.

_______ are the terms of sale offered by different suppliers in response to the purchase specifications posted by the buyer.
A. Competitive bids
B. Purchasing rebuys
C. Legal bonds
D. Requisitions
E. Reverse auctions

Charles Wood, purchasing manager for a company that makes golf carts, posted the purchase specifications for the seats on a new golf cart model his firm is building. Four suppliers submitted _____ that included the terms of sale each had to offer.
A. operational linkages
B. a reverse auction
C. negotiated contracts
D. competitive bids
E. defined sales procedures

Reverse auctions are MOST effective
A. when the value provided to the customer comes from a complete marketing mix.
B. when customers are most interested in low prices.
C. when specific adaptations are needed.
D. for highly differentiated products.
E. when only one supplier is bidding.

When an industrial company invites its suppliers to bid online for a contract for one of its components and makes all suppliers’ bids visible for the other bidders to see, this is an example of a(n):
A. ISO 9000 analysis.
B. vendor analysis.
C. JIT analysis.
D. reverse auction.
E. buying center.

Which of the following statements about close buyer-seller relationships in business markets is False?
A. In close relationships, buyers and suppliers can share tasks at a lower total cost of doing business.
B. The buyer can gain a more dependable source of supply.
C. Buyers and suppliers can engage in joint problem solving.
D. Long-term commitments on larger order quantities often cause the supplier to raise its selling price.
E. None of the above statements is false.

In business markets, close buyer-seller relationships
A. may improve the profits of both the buyer and the seller.
B. are almost always desirable from the seller’s point of view, but not from the buyer’s point of view.
C. may have benefits, but they usually increase a firm’s uncertainty and risk.
D. None of the above.
E. All of the above.

Close buyer-seller relationships may not make sense because:
A. Flexibility may be reduced for the firms involved.
B. Not all purchases are important enough to the buyer to justify a close relationship with a supplier.
C. Some suppliers do not want to deal with buyers who place small orders.
D. There are situations when the buyer could get reduced prices by letting suppliers compete for the buyer’s business.
E. All of the above.

With respect to buyer-seller relationships in business markets,
A. relationships benefit sellers, but not customers.
B. some customers simply are not interested in a close relationship with a supplier.
C. customer firms are better off selecting suppliers with competitive bids rather than establishing a relationship with a single vendor.
D. All of the above are true.
E. None of the above is true.

All of the following are key dimensions of relationships in business markets EXCEPT:
A. cooperation.
B. information sharing.
C. operational linkages.
D. non-specific adaptations.
E. legal bonds.

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?
A. legal bonds
B. new-task sharing
C. cooperation
D. operational linkages
E. information sharing

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?
A. information sharing
B. legal bonds
C. cooperation
D. operational linkages
E. all of the above are key dimensions

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?
A. legal bonds
B. relationship-specific adaptations
C. joint inspection
D. operational linkages
E. information sharing

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?
A. legal bonds
B. relationship-specific adaptations
C. cooperation
D. operational linkages
E. bid rigging

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?
A. legal bonds
B. relationship-specific recycling
C. cooperation
D. operational linkages
E. information sharing

Which of the following is NOT a key dimension of buyer-seller relationships in business markets?
A. Competition.
B. Information sharing.
C. Relationship-specific adaptations.
D. Operational linkages.
E. Legal bonds.

Suppliers to business markets often
A. provide information about industry trends.
B. must manage inventory and delivery carefully–to provide customers with just-in-time delivery.
C. serve as technical consultants to their customers.
D. All of the above are true.
E. None of the above is true.

In business markets, close buyer-seller relationships
A. often involve a number of people from different areas in both the buyer and supplier firms.
B. may be based on regular, good-faith reviews rather than legal contracts.
C. can help reduce uncertainty and risk.
D. usually focus on driving down joint costs.
E. All of the above.

A close buyer-seller relationship in a business market:
A. may require relationship-specific adaptations by the seller, the customer, or both.
B. may result in the seller accepting a lower price.
C. may increase the buyer’s “switching costs.”
D. may not involve a contract that spells out each party’s responsibilities.
E. All of the above are true.

Operational linkages are
A. direct ties between the internal operations of buyer and seller firms.
B. changes in a firm’s product or procedures that are unique to its relationship partner.
C. connections that outline contractual obligations.
D. services that link a buyer’s production and purchasing departments.
E. websites that help buyers conduct reverse auctions.

Which of the following statements about operational linkages is FALSE?
A. Operational linkages may involve the routine activities of individuals who almost become part of the customer’s operations.
B. Operational linkages are direct ties between the internal operations of the buyer and seller firms.
C. Operational linkages involve only occasional coordination of activities between buying and selling firms.
D. Just-in-time delivery is an example of an operational linkage.
E. None of the above is false.

_____ refers to reliably getting products there exactly before the customer needs them.
A. Total quality shipping
B. Effective gatekeeping
C. Just-in-time delivery
D. On-time vendor management
E. Assured outsourcing

When a purchasing manager knows roughly what is needed but can’t describe it exactly–or when the purchasing arrangement may change as the job progresses–then buying is likely to be by:
A. negotiated contract.
B. description.
C. inspection.

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. a reverse auction.
B. a procurement hub.
C. negotiated contracts.
D. competitive bids.
E. all of the above.

Which of the following situations would involve negotiated contract buying?
A. Design and manufacture a new computer accessory.
B. Produce and deliver 1,000 tons of tomatoes.
C. Manufacture and ship 500 secretarial chairs.
D. All of the above.
E. None of the above.

Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying.
A. description
B. negotiated contract
C. inspection

When a large aircraft manufacturer like Boeing obtains a contract to build a new type of jet airliner, this transaction is most likely a(n):
A. Negotiated contract buy
B. Straight rebuy
C. Modified rebuy
D. ISO 9000 buy
E. JIT buy

Rico Paving Contractors enters into a contract with Valley Supply for the purchase of 100 bags of cement per week for the next 16 weeks at a price of $15 per bag. The contract also includes a condition that allows prices to be revised if costs go up more than $1 per bag. This purchase involves
A. an indefinite delivery contract.
B. negotiated contract buying.
C. a good faith purchase.
D. cost reimbursement contracting.
E. price allocation purchasing.

A catalog merchant wants to build a new distribution center that will improve inventory management, storage of products, shipping, and returns. The company develops a close relationship with UPS, its main supplier of shipping services. UPS helps the catalog merchant design its new distribution center so that it coordinates well with the shipping processes at UPS. This arrangement reduces shipping costs and improves service to the catalog merchant’s customers. This situation is an example of:
A. Information sharing.
B. Negotiated contract buying.
C. Legal bonds.
D. Competition.
E. Relationship-specific adaptations.

Chu’s Coating Services, a painting company, designs a set of four paint colors that will only be used by custom motorcycle maker Walker County Choppers. This decision is an example of
A. competitive bidding.
B. just-in-time delivery.
C. insourcing.
D. operational linkages.
E. a relationship-specific adaptation.

Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally.
A. gatekeeping
B. resident buying
C. competitive bidding
D. outsourcing
E. auctioning

Organizational buyers purchase the same product from more than one source
A. if no supplier has a superior marketing mix.
B. to help ensure continuing supplies.
C. because a single vendor usually doesn’t want all of the business.
D. if vendor analysis results in a “tie score” for the different suppliers.
E. None of the above is true.

Regarding the size of manufacturing concerns, large firms (with more than 250 employees)
A. outnumber small firms more than two to one.
B. account for nearly half of all the manufacturing establishments.
C. are few in number but their employees account for nearly half of all employed people.
D. provide no more “value added” than the many small firms.
E. None of the above is true.

Regarding the manufacturers’ market, large firms (with more than 250 employees)
A. account for the majority of the total “value added” by all manufacturers.
B. are very few compared to the many small firms.
C. employ about half of all people employed in manufacturing.
D. All of the above are true.
E. None of the above is true.

Regarding the business (manufacturing) market, small firms (with fewer than 10 employees)
A. are not very numerous compared to the very large firms.
B. account for the vast majority of the total employment provided by all manufacturers.
C. are the majority of all firms, but account for less than 3 percent of “value added” by manufacturing.
D. amount to nearly two million establishments.
E. None of the above is true.

Regarding the market composed of manufacturers in the United States:
A. Most manufacturers are quite large.
B. Manufacturers tend to be concentrated in specific areas.
C. There are a large number of manufacturers compared to the number of final consumers.
D. Small manufacturers account for most of the “value added” by manufacturing.
E. All of the above.

Which of the following statements about manufacturers is true?
A. Most manufacturers have more than 50 employees.
B. Small manufacturer with less than 50 employees account for half of the total dollar value added.
C. Small manufacturers now have purchasing procedures just as formal as large manufacturers.
D. Manufacturers with less than 50 employees have more employees overall than manufacturers with 50 or more employees.
E. Marketers often segment industrial markets on the basis of customer size.

Which of the following statements about manufacturers is true?
A. Industrial customers are concentrated in countries that are at the more advanced stages of economic development.
B. Manufacturing output in the U.S. is shrinking.
C. Countries with cheap labor have a slow rate of growth.
D. Many factories are concentrated in rural areas of the U.S.
E. Currently, U.S. manufacturing output is at its lowest point since 1980.

What percentage of total U.S. “value added” is produced by manufacturers which employ 250 or more employees?
A. 40 percent
B. Almost 60 percent
C. 30 percent
D. Less than 5 percent
E. 10 percent

U.S. business manufacturing markets tend to be concentrated:
A. by industry.
B. with a relatively few large manufacturing plants.
C. by geographical location.
D. All of the above.
E. Only B and C above.

U.S. manufacturers:
A. all employ many workers.
B. are evenly spread throughout the country.
C. tend to concentrate by industry.
D. do not locate close to competitors.
E. Both C and D.

If a firm targets business and organizational markets,
A. NAICS codes may be helpful for segmenting potential customers in Europe but not those in the U.S.
B. each customer may need to be treated as a different segment.
C. competing manufacturers are often clustered in geographic locations.
D. All of the above are true.
E. Both B and C are true.

The U.S. government collects and publishes data by _____ codes — groups of firms in similar lines of business.
A. JIT
B. MFG LIST
C. PRIZM USA
D. NAPCS
E. NAICS

“NAICS” means:
A. North American Initiative for Competitive Structure.
B. North American Industry Classification System.
C. New Auto Industry Classification System.
D. National Automakers Industry Classification System.
E. National Apparel Industry Classification System.

When looking at NAICS codes:
A. The fewer numbers in the code, the more general the industry classification is.
B. The more numbers in the code, the more general the industry classification is.
C. The fewer numbers in the code, the more specific the industry classification is.
D. The more numbers in the code, the more specific the industry classification is.
E. Both A and D.

You have just been asked by your manager to compile data on firms in California that have a specific 4-digit NAICS code. You should know
A. that there are no 4-digit NAICS codes.
B. that there is only one firm to find, since each firm has its own 4-digit NAICS code.
C. that it is possible that no data will be available, even if there is one large firm in California in that 4-digit industry.
D. that she is talking about the New Auto Industry Classification Survey.
E. that none of the above is true.