Q&A Hero

Q: The size and number of JCPenney direct mail pieces like catalogs that are designed and mailed to consumers would determine how much paper JCPenney needs to buy. This is an example of __________.A. derived demandB. reciprocityC. a tying agreementD. derived supplyE. elastic supply

Q: According to the textbook, JCPenney buys paper for which of the following medium(s)?A. in-store signageB. special advertising inserts in magazines such as CosmopolitanC. newspaper inserts and direct mail piecesD. annual and 10K reportsE. point-of-purchase displays

Q: Figure 5-5Figure 5-5 above summarizes how buy classes affect buying center tendencies in different ways. Identify the buy-class situations A, B, and C.

Q: What are the five stages of the organizational buying process? Describe at least three differences from the consumer buying process.

Q: Which of the following statements about Trek Bicycles is FALSE?A. Trek's Eco Design initiative is an example of sustainable procurement.B. Trek has an extensive product line of bicycles.C. Trek has always been on the cutting edge, using the latest innovations in its designs.D. Trek views the bicycle as an important form of alternative transportation, not just as recreation.E. Trek's business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles, such as motorcycles and all terrain vehicles (ATVs).

Q: Figure 5-6B In Figure 5-6B above, as the number of sellers increases, the price A. increases. B. stays the same. C. has no relation to the number of sellers. D. decreases. E. fluctuates depending on economic conditions.

Q: Figure 5-6B Which type of auction does Figure 5-6B above represent? A. traditional auction B. vertical auction C. reverse auction D. horizontal auction E. reciprocal auction

Q: Figure 5-6B As shown in Figure 5-6B above, what type of online auction does one buyer and many sellers typify? A. forward auction. B. reverse auction. C. traditional auction. D. vertical auction. E. bidder's war.

Q: Reverse auctionsA. are buyer-initiated.B. benefit the sellers significantly more than the buyers.C. have an increasing number of buyers as the auction progresses.D. do not allow sequential bidding.E. have many buyers at the start of the auction.

Q: Reverse auctionsA. are seller-initiated.B. benefit the sellers significantly more than the buyers.C. have an increasing number of buyers as the auction progresses.D. put downward pressure on prices.E. have many buyers.

Q: A reverse auction refers to an online auctionA. where firms may sell their overstock - unused raw materials, packaging, and tools - to the highest bidder.B. in which a manufacturer offers to share its facilities, inventory, or services with other smaller firms that are invited to bid in competition with each other.C. in which a smaller manufacturer seeks to share the facilities, inventory, or services of a larger firm, and invites those firms to bid in competition with each other.D. in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.E. where firms seek to purchase other firms' overstock - unused raw materials, packaging, and tools - while trying to find the lowest price possible.

Q: Figure 5-6A In Figure 5-6A above, as the number of buyers increases, the price A. increases. B. decreases. C. stays the same. D. has no relation to the number of buyers. E. fluctuates depending on economic conditions.

Q: Figure 5-6A Which type of auction does Figure 5-6A above represent? A. reverse auction B. horizontal auction C. vertical auction D. diagonal auction E. traditional auction

Q: Figure 5-6A As shown in Figure 5-6A above, what type of online auction does one seller and many buyers typify? A. forward auction. B. reverse auction. C. traditional auction. D. vertical auction. E. bidder's war.

Q: eBay is the predominant person-to-person trading community in the world. eBay is an example of a(n)A. Webfront operation.B. clicks-and-mortar store.C. e-marketplace.D. noncompetitive market.E. integrated market.

Q: The predominant person-to-person trading community in the world isA. Facebook.B. Amazon.C. NASDAQ.D. CraigsList.E. eBay.

Q: Which of the following statements about e-marketplaces that act as independent trading communities is FALSE?A. These trading communities allow buyers to easily compare offerings from various sellers.B. Independent trading communities charge a fee for their service.C. Independent trading communities often consist of thousands of geographically dispersed buyers and sellers.D. This independent type of trading community is favored by large companies.E. Independent trading communities often operate in an environment where demand and supply fluctuations cause volatile prices.

Q: For e-marketplaces, large companies tend to favor __________ that link them with their network of qualified suppliers and customers.A. centralized marketsB. decentralized marketsC. private exchangesD. segregated marketsE. independent trading communities

Q: Small businesses benefit from independent __________ like Plastics Net, Hospital Network.com, and Textile Web.A. WebfrontsB. clicks-and-mortarC. e-marketplacesD. iMarketsE. integrated markets

Q: E-marketplace can take two different formats, which areA. bricks-and-mortar exchanges and clicks-and-mortar exchanges.B. privately-owned trading communities and open-to-the-public trading communities.C. networked exchanges or public trading communities.D. independent trading communities or private exchanges.E. public exchanges and networked exchanges.

Q: Another name for an e-marketplace is a(n)A. WebXChange.B. WebMart.C. 2B1 marketplace.D. C2C market forum.E. B2B exchange.

Q: Another name for an e-marketplace is a(n)A. e-hub.B. E-place.C. e-trade.D. E-xchange.E. 4NXchange.

Q: E-Marketplaces refer toA. virtual or holographic purchasing marketspaces that allow manufacturers to estimate demand based upon different changes in environmental forces.B. websites that allow consumers to make direct purchases from a manufacturer rather than through a traditional retail outlet.C. online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services.D. computer simulations that allow manufacturers to estimate how much inventory to keep on hand based upon different purchasing scenarios.E. a computer database co-sponsored by the U.S. Department of Commerce and the World Trade Organization (WTO) that houses all public access records for the purpose of aiding American and global businesses.

Q: Online buying in organizational markets is prominent because Internet technologyA. allows companies to increase their innovation cycles.B. substantially increases brand loyalty.C. can convey timely information quickly.D. narrows the potential customer base for many products.E. totally eliminates marketing costs.

Q: Business-to-business electronic commerce over the InternetA. is nearly equivalent to consumer electronic commerce when measured by the total dollar value of all online transactions.B. is at least four times greater than consumer electronic commerce when measured by the total dollar value of all online transactions.C. has dramatically decreased since face-to-face communication between a firm's salesforce and its potential customers is so important.D. is impossible to estimate since companies will not share information.E. has never been popular since timely information is unavailable or deemed to be proprietary.

Q: A software company has updated its logo. It now needs to order new letterhead and business cards. This purchase would be aA. modified rebuy.B. straight rebuy.C. new buy.D. standard reorder.E. class buy.

Q: A university's marketing department typically purchases backpacks with its logo embroidered on them for all incoming freshmen. This year, because they've heard complaints, the marketing chair wants to buy similar backpacks but find one that is a little more durable. This is an example of aA. new buy.B. straight rebuy.C. make-buy.D. modified rebuy.E. standard reorder.

Q: The department secretary orders pens, copy paper, and printer ink cartridges for the department from the Corporate Express catalog nearly every month. This is an example of aA. new buy.B. straight rebuy.C. modified rebuy.D. make-buy.E. standard reorder.

Q: An assistant heard his supervisor in the supply room yell, "Call Crate & Barrel - we need another case of its coffee mugs for the conference next week." The supervisor was asking the assistant to make aA. new buy.B. straight rebuy.C. modified rebuy.D. make-buy.E. standard reorder.

Q: At the weekly meeting for Choice Hotels, the marketing manager said, "We need an inexpensive creative way to increase awareness of our hotels among people who travel by automobile. To do that, I want to find some new media that the other hotel chains are not using." The purchase of this new media for the hotel chains' advertising would be an example of aA. new buy.B. straight rebuy.C. converted rebuy.D. modified rebuy.E. initial buy.

Q: Buy classes refer to the three types of organizational buying situations:A. buy, lease, and rent.B. new buy, make, and reprocess.C. manufacturing contracts, consulting contracts, service contracts.D. new buy, straight rebuy, and modified rebuy.E. new buy, refurbish, and used buy.

Q: The three types of organizational buy classes areA. industrial, reseller, and government.B. consumer products, industrial goods, and services.C. users, influencers, and deciders.D. straight purchase, barter, and countertrade.E. new buy, straight rebuy, and modified rebuy.

Q: Organizations face three specific kinds of buying situations. They are new buy, straight rebuy, and modified rebuy. Collectively, these situations are referred to asA. industrial buying behavior.B. reseller buying behavior.C. buy classes.D. purchase criteria.E. consideration sets.

Q: Beth is part owner of a chain of auto repair shops. Her company was considering adding tire sales in some of its facilities, and several people were slated to meet to discuss the idea. Beth gathered information about possible distributors. Her son had been laid off from a job with one of them, so she removed this company from the group she was preparing to present to the others. Here, Beth was acting in what role in the buying center?A. gatekeeperB. deciderC. userD. obstructionistE. power-broker

Q: Cassidy is part of the buying center for a large manufacturer. Her field of expertise is logistics and she is responsible for choosing transportation providers for the company. A sales representative for Yellow Roadway, a successful trucking firm, regularly buys Cassidy's secretary lunch. The representative does this because she views the secretary as a(n) __________ and wants to be sure that information about her company reaches Cassidy.A. gatekeeperB. deciderC. influencerD. obstructionistE. power-broker

Q: An IT engineer specifies the type of electronic shopping cart to be used on the company's new website. The engineer also chooses the supplier who receives the contract to provide the software. In the buying center, this person is the __________.A. gatekeeperB. deciderC. brokerD. influencerE. user

Q: For routine orders, the decider is usuallyA. the buyer or purchasing manager.B. the CEO.C. the COO.D. the head of R&D.E. the customer.

Q: Within the buying center, deciders are people whoA. have the formal authority and responsibility to select the supplier and negotiate the terms of the contract.B. control the flow of information in the buying center.C. have the formal or informal power to select or approve the supplier that receives the contract.D. affect the buying decision usually by helping define the specifications for what is bought.E. actually use and evaluate the product or service.

Q: Lara assumed the __________ role in the buying center when she shook the salesperson's hand and said, "Ms. Hron, we would like to accept your bid. I'll expect 48 boxes of ring shank nails to be delivered by November 8th, and we will pay the agreed-upon price of $21.74 per box."A. gatekeeperB. brokerC. buyerD. influencerE. user

Q: Within the buying center, influencers are people whoA. have the formal authority and responsibility to select the supplier and negotiate the terms of the contract.B. control the flow of information in the buying center.C. affect the buying decision usually by helping define the specifications for what is bought.D. have the formal or informal power to select or approve the supplier that receives the contract.E. actually use and evaluate the product or service.

Q: Becca, an office manager for a small construction company, met with representatives from Xerox and Minolta, along with the President and the accountant, to compare options for a new copier for the office. Since she made most of the copies, Becca wanted to see the features of the machines, though her boss would have to approve the final purchase. Becca has what role in the buying center?A. purchasing agentB. deciderC. buyerD. userE. motivator

Q: On a visit to Conner Industries, a West Plains Band Saw salesperson heard a production employee saying, "This band saw has a 36-inch wheel that could really save us time, and with its adjustable height, it can be operated by someone tall like me as well as by our shorter workers. I bet this would speed up my production time by 30 percent. Why don't we order this band saw?" The person the salesperson heard giving input has which buying center role?A. purchasing agentB. deciderC. buyerD. userE. motivator

Q: Buying Center PhotoAs shown in buying center photo above, an organization's buying center includes individuals who can play one or more of the following roles EXCEPT:A. gatekeepers.B. deciders.C. buyers.D. product champions.E. influencers.

Q: All of the following are roles in a buying center EXCEPT:A. specifiers.B. deciders.C. buyers.D. influencers.E. users.

Q: Which of the following statements most closely describes the people in the buying center of a medium-sized manufacturing plant?A. The composition of the buying center remains constant over long periods of time.B. The buying center avoids cross-functional teams whenever possible.C. The composition of the buying center depends on the specific item being purchased.D. The purchasing manager is an occasional member of the buying center.E. Most government units use a formal buying center to arrive at buying decisions.

Q: Most large multistore chain resellers use __________ that are highly formalized to arrive at buying decisions.A. buying committeesB. merchandise procurement centersC. sustainable procurement committeesD. stakeholder groupsE. purchasing divisions

Q: Large multistore chain retailers such as Sears, Safeway, and Target use a highly formalized buying center that is referred to as a(n)A. ad hoc committee.B. buying committee.C. merchandise procurement center.D. purchasing department.E. purchasing control system.

Q: A buying center refers toA. an online trading community that brings together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services.B. the department within a firm responsible for the logistics of placing, tracking, and delivering orders to other departments within the firm.C. the department within a firm responsible for the logistics of placing, tracking, and delivering orders to ultimate consumers.D. the group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.E. the department within a firm that allows purchases to be made from a centralized location from multiple vendors at the same time.

Q: General Electric manufactures electric motors for its clothes dryers. The firm uses a formal vendor rating system to evaluate suppliers and notify those whose parts did not meet quality standards. If a supplier fails to correct the problem, GE will drop it as a future supplier. Which stage in the organizational buying decision process would GE make this evaluation?A. purchase decision stageB. information search stageC. postpurchase behavior stageD. alternative evaluation stageE. problem recognition stage

Q: What is the last stage of the organizational buying decision process?A. information searchB. postpurchase behaviorC. alternative evaluationD. purchase decisionE. purveyor review

Q: During the next-to-last stage of the organizational buying decision process, the organizationA. drafts specifications.B. formally rates suppliers that were used.C. evaluates supplier facilities.D. awards the contract.E. recognizes a need for change.

Q: At which stage of the organizational buying decision process would purchasing assess the financial status of potential suppliers?A. problem recognitionB. information searchC. alternative evaluationD. purchase decisionE. postpurchase behavior

Q: The second stage in the consumer purchase decision process involves searching for information, which may include an internal search and/or an external search. What is this stage called?A. postpurchase behaviorB. alternative evaluationC. purchase decisionD. problem recognitionE. information search

Q: VALS groups of consumers who are motivated by __________ are those who desire social or physical activity, variety, and risk.A. idealsB. rewardsC. achievementD. self-expressionE. success

Q: In the VALS framework, achievement-motivated consumers who have a lower levels of education and household income than Achievers are called __________.A. BelieversB. ExperiencersC. StriversD. MakersE. Survivors

Q: The initial stage in the consumer purchase decision process involves perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. What is this stage called?A. postpurchase behaviorB. alternative evaluationC. purchase decisionD. problem recognitionE. information search

Q: Consumer behavior refers toA. the aspects of a consumer's decision-making processes that cannot be measured.B. the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.C. the five stages a buyer passes through in making choices about which product and service to investigate, purchase, and consume.D. the mental and social processes related to purchasing that are innate in a person from birth.E. those purchasing behaviors that result from (1) repeated experience and (2) reasoning.

Q: The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions, are referred to asA. purchase intentions.B. market research.C. consumer behavior.D. consumer conduct.E. purchase protocols.

Q: Many automobile dealerships employ a non-negotiable or no-haggle price strategy to sell their cars. A customer who wants to buy a new or used car would pay the posted price. These dealers probably adopted this pricing policy becauseA. the industry was discussing the abandonment of self-regulation practices.B. women have an intense dislike of price negotiation, yet still want to buy a car.C. many recent immigrants into the United States are not accustomed to negotiation.D. women distrust men in general and car salesmen in particular.E. a sluggish economy guarantees that negotiations would produce negative profit per vehicle.

Q: Which of the following statements about how women buy new cars today is most accurate?A. Women have definite likes or dislikes when buying a new car, but they don't feel comfortable expressing their opinions.B. Most women actually enjoy the price negotiation process.C. The issue of "speed" is an important factor to men but not really important to women.D. Women are more likely to make their new car purchase selection as a result of information provided by a friend or a relative than from promotional information.E. Women care more about exterior styles and lines and men are more concerned with cargo space and gas mileage.

Q: Enlightened carmakers have hired women designers, engineers, and marketing executives to better understand the way women decide to buy new cars. They learned thatA. meeting the expectations of men during the new-car purchasing process was more difficult than meeting those of women.B. men make the majority of new-car purchasing decisions.C. women and men think differently about the new-car buying experience.D. women care more about quality than men.E. men care more about price than women.

Q: Women influence what percentage of new car-buying decisions?A. 15 percentB. 20 percentC. 40 percentD. 60 percentE. 80 percent

Q: Women make what percentage of new-car buying decisions?A. 15 percentB. 30 percentC. 45 percentD. 60 percentE. 80 percent

Q: In the VALS framework, a person's resources include all of the following EXCEPT:A. materialB. physicalC. temporalD. psychologicalE. demographic

Q: Which of the following statements about the VALS framework is FALSE?A. Consumers are inspired by one of three primary motivations - ideals, achievement, and self-expression - that give meaning to their self or the world and govern their activities.B. Consumers are motivated to buy products and services and seek experiences that give shape, substance, and satisfaction to their lives.C. The VALS framework seeks to explain why and how consumers make purchase decisions.D. The VALS framework identifies eight consumer segments.E. A consumer's gender and age have a direct effect on placement within a VALS consumer segment.

Q: The VALS framework segments consumers is based onA. their primary motivation for buying products and their resources.B. their demographics.C. their product usage, age, and gender.D. where they live.E. their media usage and their demographics.

Q: The VALS framework is an example ofA. a personality assessment.B. cognitive learning theory.C. a psychographic system.D. a study on the hierarchy of needs.E. geodemographic segmentation.

Q: Which of the following statements about psychographics is most accurate?A. Psychographics is unable to provide actionable information about potential customers since the data obtained from the research is too subjective to be reliably interpreted and acted upon.B. Although helpful in segmenting markets, psychographics is limited in its ability to target consumers.C. Psychographics combines demographic data, psychological data, and actual spending data of consumers to create VALS profiles.D. Psychographics combines psychology, lifestyle, and demographics to uncover consumer motivations for buying and using offerings.E. Psychographic data is extremely vulnerable to current social trends and therefore is best suited to new market-product combinations rather than existing ones.

Q: Another name for the analysis of consumer lifestyles is __________.A. demographicsB. psychographicsC. social statisticsD. physiological needsE. sociographics

Q: Lifestyle refers toA. the set of behaviors that is a result of spending one's time and money as one pleases.B. a mode of living that is defined by one's personal moral philosophy.C. the similar values, interests, and behaviors that members of society share.D. a self-defined identification of belonging to a lower, lower-middle, middle, upper-middle, or upper class in terms of values, attitudes, and beliefs.E. a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.

Q: The Ford Escape Hybrid SUV was the first SUV on the market to be powered by both electricity and gasoline. Ford has targeted not only people who are excited about technology but also those who want to contribute to cleaner air. Ford set a goal to attract 20,000 buyers a year for this SUV. Ford is trying to change consumer attitudes byA. changing beliefs about the extent to which a brand has a specific attribute.B. changing the perceived importance of a specific attribute.C. adding a new attribute.D. reducing the perceived risk of the product.E. providing stimulus generalization to prospective buyers.

Q: What attitude change approach did Colgate marketers use to encourage consumers to purchase its product when it began to include the antibacterial agent triclosan in its product?A. changing beliefs about the extent to which a brand has certain attributesB. changing the perceived importance of attributesC. adding new attributes to the productD. providing free trials of the new productE. obtaining a seal of approval to reduce consumers' risk and encourage purchases

Q: Beliefs refer toA. a person's consistent behaviors or responses to recurring situations.B. a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.C. the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.D. a consumer's subjective perception of how a product or brand performs on different attributes.E. the moral and ethical precepts that guide a person's behavior.

Q: Which of the following statements is FALSE about attitudes?A. Marketers are primarily concerned with American core values when developing advertising messages.B. Attitudes are learned.C. Attitudes are shaped by one's values and beliefs.D. An attitude results in responses that are consistently favorable or unfavorable way.E. Personal values affect attitudes by influencing the importance assigned to specific product attributes.

Q: If you hold a personal value of thriftiness, then you probably will have a favorable __________ toward automobiles with good fuel economy.A. beliefB. valueC. attitudeD. motivationE. perception

Q: An attitude refers toA. a person's consistent behaviors or responses to recurring situations.B. the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.C. a consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.D. the feelings one has about the preferable modes of conduct that tend to persist over time.E. a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.

Q: Which of the following statements about brand loyalty is most accurate?A. Learning has little effect on brand loyalty because most habits are instinctual.B. Brand loyalty increases the perceived risk associated with impulse purchases.C. The incidence of brand loyalty is steadily rising in North America.D. Brand loyalty results from the positive reinforcement of previous actions.E. The best way to enhance brand loyalty is to brand all new products with the same brand name.

Q: Brand loyalty refers toA. the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.B. a favorable attitude toward and consistent purchase of a single brand over time.C. a formalized agreement of a vendor to carry one brand over another because it views the quality of that brand to be superior to all others.D. the willingness of consumers to try a new brand in a brand line based upon their satisfaction with other brands in the line.E. the faith that other products manufactured by the same company with the same brand name will be of the same quality.

Q: Research has found that for many products, including soft drinks, coffee, and cosmetics, consumers are unable to distinguish among brands in blind tests (i.e., taste or other use of the products without labels). Nonetheless, even when prices are similar, consumers have strong preferences for specific brands. They may buy out of habit, which is the basis ofA. extended problem solving.B. limited problem solving.C. routine problem solving.D. high-involvement problem solving.E. personal problem solving.

Q: Advertising explains that the drug Plavix works by preventing plaque buildup in arteries that can cause heart attack and stroke. This is an example ofA. using a cognitive learning technique.B. using a behavioral learning technique.C. reducing perceived risk.D. creating stimulus generalization.E. using an attitudinal learning technique.