Archive for November 2017

Market researchers for a local bakery determined that Jewish people consume 63 percent of the portion of bagels sold in New York City. This is an example of ___________ influence on consumer buying decision processes.

Market researchers for a local bakery determined that Jewish people consume 63 percent of the portion of bagels sold in New York City. This is an example of ___________ influence on consumer buying decision processes.



a. demographic
b. situational
c. subcultural
d. role
e. social class




Answer: C

A culture can be divided into subcultures according to

A culture can be divided into subcultures according to



a. personality characteristics of individuals in that culture.
b. motives that members of that cultural group have for their behavior.
c. geographic regions or human characteristics, such as age or ethnic background.
d. income levels.
e. information to which consumers allow themselves to be exposed.




Answer: C

According to Coleman's social class categories, the social class that includes approximately 40 percent of the population, shops for bargains, and buys sports and recreational equipment is the

According to Coleman's social class categories, the social class that includes approximately 40 percent of the population, shops for bargains, and buys sports and recreational equipment is the



a. upper class.
b. middle class.
c. first class.
d. working class.
e. lower class.





Answer: D

According to Coleman's major social class categories, which of the following social classes in our culture has these characteristics: lives in well-kept neighborhoods, likes fashionable items, and is often found in management positions?

According to Coleman's major social class categories, which of the following social classes in our culture has these characteristics: lives in well-kept neighborhoods, likes fashionable items, and is often found in management positions?



a. Lower class
b. Upper class
c. Middle class
d. Working class
e. First class




Answer: C

Which of the following statements regarding social class is true?

Which of the following statements regarding social class is true?



a. A social class is a closed aggregate of people with similar social ranking.
b. The criteria used to group people into social classes do not vary from one culture to another.
c. A social class is an open aggregate of people with similar social ranking.
d. A social class is a ranking of people by other members of society into positions
of social respect.
d. A social class is an open aggregate of people with different social rankings.





Answer: C

The three major types of reference groups are:

The three major types of reference groups are:



a. membership, aspirational, and advocacy.
b. advocacy, avoidance, and approach.
c. aspirational, disassociative, and membership.
d. actual, implied, and desired.
e. family, peer group, and media.





Answer: C

Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop at Sarah's, a local store where the Kappas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Jennifer is influenced by

Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop at Sarah's, a local store where the Kappas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Jennifer is influenced by



a. personality.
b. a reference group.
c. a consideration set.
d. a knowledge base.
e. a role conflict.



Answer: B

Shaun is going shopping with his dad to buy his first baseball glove for Little League. He listens to his dad talk to the salesperson at the sporting goods store, watches him examine the stitching in the glove and then rub his finger over the leather palm. Shaun's observations are part of his

Shaun is going shopping with his dad to buy his first baseball glove for Little League. He listens to his dad talk to the salesperson at the sporting goods store, watches him examine the stitching in the glove and then rub his finger over the leather palm. Shaun's observations are part of his



a. consumer development.
b. attitude development.
c. purchasing evaluation.
d. consumer socialization.
e. consumer attitude.




Answer: D

The development of a person's self-concept is a function of

The development of a person's self-concept is a function of



a. learning.
b. psychological and social factors.
c. reference groups and opinion leaders.
d. roles and family influences.
e. subcultures.





Answer: B

Changing people's attitudes toward a firm and its marketing program is

Changing people's attitudes toward a firm and its marketing program is




a. simple when advertisements are used.
b. impossible, even if the firm uses advertisements.
c. a long, expensive, and difficult task that may require extensive advertising campaigns.
d. unnecessary, since consumer attitudes are of little importance.
e. rarely attempted through the use of marketing practice.




Answer: C

What consumer research method consists of a series of adjectives, phrases, or sentences regarding an object, with subjects indicating the intensity of their feelings toward this object by reacting to these adjectives, phrases, or sentences?

What consumer research method consists of a series of adjectives, phrases, or sentences regarding an object, with subjects indicating the intensity of their feelings toward this object by reacting to these adjectives, phrases, or sentences?



a. Projective specification
b. Patronage clarification
c. Group interview
d. Attitude scale
e. Depth interview





Answer: D

An attitude is

An attitude is



a. an internal trait that makes a person unique.
b. a set of actions that a person in a particular position is supposed to perform.
c. a competence in performing activities.
d. a person's behavior caused by information and experience.
e. one's evaluation, feelings, and behavioral tendencies toward an object or idea.




Answer: E

Luis likes shopping at Stein Mart, a discount department store, because he likes the prices, products, and services the store provides. His selection of this store as a regular stop when shopping is influenced by ___________ motives.

Luis likes shopping at Stein Mart, a discount department store, because he likes the prices, products, and services the store provides. His selection of this store as a regular stop when shopping is influenced by ___________ motives.



a. self-concept
b. self-image
c. projective
d. depth
e. patronage




Answer: E

The U.S. Army recruits soldiers based on the slogan, "An army of one," implying that people can reach their full personal potential in the U.S. Army. This is an appeal to what need according to Maslow's hierarchy of needs?

The U.S. Army recruits soldiers based on the slogan, "An army of one," implying that people can reach their full personal potential in the U.S. Army. This is an appeal to what need according to Maslow's hierarchy of needs?



a. Safety
b. Esteem
c. Self-actualization
d. Physiological
e. Social





Answer: C

Jana now feels that her teeth are not white enough after seeing advertisements for whitening toothpaste. Marketers promote these brands based on ___________ needs, appealing to sex appeal.

Jana now feels that her teeth are not white enough after seeing advertisements for whitening toothpaste. Marketers promote these brands based on ___________ needs, appealing to sex appeal.



a. physiological
b. esteem
c. self-actualization
d. psychological
e. social




Answer: A

According to Maslow's hierarchy of needs,

According to Maslow's hierarchy of needs,



a. individuals simultaneously try to satisfy all five levels of needs.
b. self-actualization needs are the most important needs to be met for most individuals.
c. individuals first address needs at the top of the pyramid and then move down to the lower level needs.
d. levels of needs are different for everyone, and we all try to satisfy them in a different order.
e. individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.





Answer: E

Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least important. These needs, in order from most to least important are

Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least important. These needs, in order from most to least important are



a. psychological, physiological, safety, social, and esteem.
b. physiological, safety, esteem, social, and self-actualization.
c. physiological, psychological, safety, social, and esteem.
d. physiological, safety, social, and esteem, self-actualization.
e. physiological, esteem, safety, self-actualization, and psychological.





Answer: D

Which of the following statements about how a consumer organizes inputs that reach awareness is most accurate?

Which of the following statements about how a consumer organizes inputs that reach awareness is most accurate?



a. Inputs are organized by individuals to produce meaning, and this organizational process is usually a slow one.
b. Organization of information inputs is not always needed to produce meaning.
c. Inputs that reach awareness are organized and interpreted in much the same way by all consumers.
d. Because a person interprets information in terms of what is familiar, only one interpretation of organized inputs is possible.
e. Inputs that reach awareness are organized to produce meaning, and this meaning is interpreted in light of what is familiar to the individual.




Answer: E

Selective exposure refers to

Selective exposure refers to




a. targeting only certain parts of the total market.
b. admitting only certain inputs into consciousness.
c. the circumstances or conditions that exist when a consumer is making a purchase decision.
d. the process of selecting, organizing, and interpreting information inputs to produce meaning.
e. remembering inputs that support personal feelings and beliefs and forgetting those that do not.




Answer: B

Perception is a three-step process that involves

Perception is a three-step process that involves



a. motivation, personality, and attitudes.
b. classifying, recording, and eliminating information received through the senses.
c. collecting, eliminating, and organizing information inputs.
d. selecting, organizing, and interpreting information inputs.
e. anticipating, classifying, and discarding information inputs.




Answer: D

The primary psychological influences on consumer behavior are:

The primary psychological influences on consumer behavior are:




a. perception, motives, learning, attitudes, personality, and lifestyles.
b. attitudes, perception, retention, exposure, roles, and lifestyles.
c. attitudes, perception, social class, culture, and learning.
d. perception, motives, reference groups, social class, and personality.
e. lifestyles, personality, perception, motives, attitudes, and culture.


Answer: A

________ are situational influences that include the characteristics and interactions of others who are present when a purchase decision is being made, such as friends, relatives, and salespeople.

________ are situational influences that include the characteristics and interactions of others who are present when a purchase decision is being made, such as friends, relatives, and salespeople.



a. Physical surroundings
b. Social surroundings
c. Purchase reasons
d. Buyer's momentary mood and condition
e. Pressures created by time factors




Answer: B

The five categories of situational influences are:

The five categories of situational influences are:



a. product involvement level, physical surroundings, social surroundings, time perspective, and purchase reason.
b. antecedent states, physical surroundings, social surroundings, time perspective, and space dimensions.
c. social surroundings, physical surroundings, time pressures, purchase reason, and lifestyles.
d. purchase reason, time perspective, social surroundings, physical surroundings, and buyer's momentary mood.
e. store atmosphere, location, aromas, sounds, and lighting.




Answer: D

The three major categories of influences on the consumer buying decision process are:

The three major categories of influences on the consumer buying decision process are:



a. situational influences, demographic influences, and psychological influences.
b. social influences, situational influences, and marketer-dominated influences.
c. demographic influences, situational influences, and marketer-dominated influences.
d. situational influences, social influences, and psychological influences.
e. marketer-dominated influences, psychological influences, and person-specific influences.




Answer: D

Cognitive dissonance is

Cognitive dissonance is



a. the congruence between external and internal searches for product information.
b. a function of the manner in which the manufacturer of the product describes its attributes.
c. satisfaction with the purchase.
d. the establishment of criteria for comparing products.
e. doubts that occur because the buyer questions whether the decision to purchase the product was right.



Answer: E

A customer shopping for a fax machine tells a salesperson that it is important for the fax machine to have several attributes. It must use plain paper, be able to make copies, be compatible with all other fax machines, and not require a separate phone line. The buyer has expressed his or her

A customer shopping for a fax machine tells a salesperson that it is important for the fax machine to have several attributes. It must use plain paper, be able to make copies, be compatible with all other fax machines, and not require a separate phone line. The buyer has expressed his or her




a. framing characteristics.
b. service characteristics.
c. consideration set.
d. evaluative criteria.
e. information search criteria.




Answer: D

In the consumer buying decision process, the information search stage

In the consumer buying decision process, the information search stage




a. yields a group of brands that a buyer views as possible alternatives.
b. involves a buyer becoming aware of the need for a product.
c. is not necessary when the buyer is involved in extensive decision making.
d. occurs immediately after evaluation of alternatives.
e. is lengthy for routine response buying behavior.



Answer: A

Within the information search step of the consumer buying decision process, what two primary aspects exist?

Within the information search step of the consumer buying decision process, what two primary aspects exist?





a. Consideration sets and evoked sets
b. Personal information and non-personal information
c. Selective retention and selective distortion
d. Internal search and external search
e. Company-produced information and internal information



Answer: D

As Steve is shopping for groceries, he notices a product on the shelf and remembers that he is about to run out of it at home. In terms of the consumer buying decision process, Steve just experienced

As Steve is shopping for groceries, he notices a product on the shelf and remembers that he is about to run out of it at home. In terms of the consumer buying decision process, Steve just experienced




a. problem recognition.
b. high involvement.
c. post-purchase evaluation.
d. information search.
e. evaluation of alternatives.




Answer: A

Problem recognition occurs when a consumer

Problem recognition occurs when a consumer



a. searches for information to resolve a problem.
b. becomes aware that there is a difference between a desired state and an actual condition.
c. recognizes a need.
d. evaluates her or his purchase.
e. is exposed to a television advertisement.




Answer: B

The five major stages of the consumer buying decision process, in order, are

The five major stages of the consumer buying decision process, in order, are




a. information search, establishment of product criteria, evaluation of alternatives, purchase, and post-purchase evaluation.
b. problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.
c. problem recognition, information search, evaluation of alternatives, post-purchase evaluation and purchase.
d. information search, evaluation of alternatives, purchase, trial adoption period, and post-purchase evaluation.
e. problem recognition, purchase, evaluation of alternatives, post-purchase evaluation, and rebuy.




Answer: B

Marissa goes to Target to purchase school supplies for her two children. As she is approaching the check-out counter, she sees a vase she just has to have and buys it immediately. Marissa's purchase of the vase is an example of

Marissa goes to Target to purchase school supplies for her two children. As she is approaching the check-out counter, she sees a vase she just has to have and buys it immediately. Marissa's purchase of the vase is an example of



a. limited problem solving.
b. impulse buying.
c. routinized response behavior.
d. addictive consumption.
e. situational involvement.



Answer: B

Extended problem solving is the type of consumer problem-solving process that

Extended problem solving is the type of consumer problem-solving process that




a. involves no conscious planning but rather a powerful and persistent urge to buy something.
b. is the most complex problem-solving behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.
c. requires a moderate amount of time for information gathering and search.
d. is the creation and maintenance of a collection of products that satisfy a person's needs and wants.
e. requires very little search-and-decision effort and is practiced when buying low-cost and frequently purchased products.



Answer: B

Jenny plans to buy a new swimsuit for her spring break cruise. She has not seen this year's styles and thus will do some comparison shopping before making a purchase decision. Jenny is engaging in

Jenny plans to buy a new swimsuit for her spring break cruise. She has not seen this year's styles and thus will do some comparison shopping before making a purchase decision. Jenny is engaging in



a. routinized response behavior.
b. extended problem solving.
c. limited problem solving.
d. impulse buying.
e. intensive problem solving.




Answer: C

When a consumer purchases products occasionally or needs information about an unfamiliar brand in a familiar product category, he or she will most likely engage in

When a consumer purchases products occasionally or needs information about an unfamiliar brand in a familiar product category, he or she will most likely engage in



a. enduring purchase behavior.
b. routinized response behavior.
c. extended problem solving.
d. impulse searching.
e. limited problem solving.




Answer: E

Routinized response behavior is what a consumer does when

Routinized response behavior is what a consumer does when



a. purchasing an unfamiliar product.
b. buying frequently purchased, low-cost items that need little effort.
c. an information search is extensive and may involve consulting with friends and family.
d. buying products that require a moderate amount of time for information gathering and deliberation.
e. he or she enters the problem recognition stage of the consumer buying decision process.




Answer: B

While shopping at a Kroger grocery store, Tom sees a display of his favorite brand of diet cola. He buys a six-pack to take home for the weekend. This purchase process would be described as

While shopping at a Kroger grocery store, Tom sees a display of his favorite brand of diet cola. He buys a six-pack to take home for the weekend. This purchase process would be described as




a. routinized response behavior.
b. extended problem solving.
c. limited problem solving.
d. situational perception.
e. enduring involvement.




Answer: A

The three most widely recognized types of consumer problem solving are:

The three most widely recognized types of consumer problem solving are:



a. limited problem solving, extended problem solving, and routinized response behavior.
b. extended problem solving, enduring problem solving, and situational problem solving.
c. planned problem solving, impulse buying, and limited problem solving.
d. internal problem solving, external problem solving, situational behavior.
e. responsive behavior, planned behavior, and impulsive problem solving.



Answer: A

A major determining factor in deciding which type of problem-solving process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's

A major determining factor in deciding which type of problem-solving process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's



a. motivational structure.
b. routinized response behavior.
c. level of involvement.
d. cognitive dissonance.
e. evaluative criteria.




Answer: C

Justin is purchasing his third car in the past five years. He has been a car enthusiast ever since he was a little boy. He likes to spend his free time looking at car magazines, going to car shows, and watching NASCAR. Justin's interest in cars is referred to as

Justin is purchasing his third car in the past five years. He has been a car enthusiast ever since he was a little boy. He likes to spend his free time looking at car magazines, going to car shows, and watching NASCAR. Justin's interest in cars is referred to as



a. situational involvement.
b. dynamic involvement.
c. enduring involvement.
d. dynamic buying behavior.
e. situational buying behavior.



Answer: C

Many aspects of consumer buying decisions are affected by the individual's level of involvement. Level of involvement is

Many aspects of consumer buying decisions are affected by the individual's level of involvement. Level of involvement is




a. the importance and intensity of interest in a product in a particular situation.
b. the buyer's perception, motives, and abilities.
c. the amount of external search that an individual puts into the decision-making process.
d. the particular circumstance or environment in which consumers find themselves.
e. a combination of an individual's demographic factors.



Answer: A

Abercrombie & Fitch is developing a program to get to know its customers. Which of the following is not a reason why A&F needs to understand consumer buying behavior?

Abercrombie & Fitch is developing a program to get to know its customers. Which of the following is not a reason why A&F needs to understand consumer buying behavior?



a. customer's reactions to marketing strategy can impact the firm's success
b. all customers are the same when it comes to buying behavior
c. a firm should create a marketing mix that satisfies customers
d. it helps the marketer predict how consumers will respond to marketing strategies
e. the marketing concept stresses that a firm should know its customers




Answer: B

There are a lot of skateboard manufacturers in the market, but the BMW Streetcarver is the only one with stabilizers and wheel design based on BMW's automobile. This technology gives the BMW Streetcarver better control at high speeds and around sharp turns than any other brand. What type of positioning is BMW using with its $495 skateboard?

There are a lot of skateboard manufacturers in the market, but the BMW Streetcarver is the only one with stabilizers and wheel design based on BMW's automobile. This technology gives the BMW Streetcarver better control at high speeds and around sharp turns than any other brand. What type of positioning is BMW using with its $495 skateboard?



A) parallel market positioning
B) distinction positioning
C) repositioning
D) differentiation positioning
E) head-to-head positioning



Answer: D

A perceptual map is most like a:

A perceptual map is most like a:



A) consumer map of likes and dislikes.
B) database.
C) pyramid design.
D) two-dimensional matrix.
E) three-dimensional cube.


Answer: D

Cross-tabulations can be used to:

Cross-tabulations can be used to:



A) graphically show how competitors rate the products against which they must compete.
B) compare television viewing times and age.
C) create a bell curve.
D) prove the hypothesis that some people prefer to watch cable news, NASCAR racing, and major league sports rather than dramas and sitcoms.
E) create a perceptual map of generic competitors.



Answer: B

Hallmark grouped its scrapbook supplies and photo albums into one product group because:

Hallmark grouped its scrapbook supplies and photo albums into one product group because:



A) competitors relate to them better for benchmarking purposes.
B) customers relate to them better since that is how they view their purchase.
C) it is easier to estimate the industry sales for fewer market-product combinations.
D) it is more profitable to define product groupings in terms of large market segment because it reduces manufacturing and marketing costs.
E) its competitors engage in no product groupings.



Answer: B

Audi has developed a mid-sized station wagon that has 340 horsepower and is able to go from standing still to sixty miles an hour in 6.5 seconds. The base price of the car is $61,625. The automaker predicts that 80 percent of its buyers will be men with 60 percent of them married. The median age of these men will be 45 with median household incomes of $200,000. Audi should use a _____ strategy to sell its newly developed car.

Audi has developed a mid-sized station wagon that has 340 horsepower and is able to go from standing still to sixty miles an hour in 6.5 seconds. The base price of the car is $61,625. The automaker predicts that 80 percent of its buyers will be men with 60 percent of them married. The median age of these men will be 45 with median household incomes of $200,000. Audi should use a _____ strategy to sell its newly developed car.



A) harvesting
B) market development
C) market penetration
D) market segmentation
E) needs differentiation



Answer: D

Which of the following is the best example of repositioning?

Which of the following is the best example of repositioning?



A) When sales of Crest toothpaste plateaued, marketers used a bundling strategy to get customers to buy the toothpaste and a toothbrush.
B) Snickers introduced a dark chocolate version of its original milk chocolate candy bar.
C) Slow sales of soup led the Campbell Soup Company to promote recipes using soup as a main ingredient.
D) While continuing to make its computers designed for business purposes, Packard Bell introduced a computer for ultimate consumers.
E) Starbucks Coffee Company licenses another company to manufacture and market Starbucks coffee-flavored ice cream.



Answer: C

J. T. Baker is a company that sells mercury spill cleanup products to companies that use mercury in their production process. J.T. Baker sells aspirators for cleaning up larger spills, gloves, scoops, absorbents for eliminating vapors, and a mercury indicator paste for finding small droplets. Any of these supplies can be purchases separately or as a kit. J.T. Baker uses _____ segmentation to sell its products.

J. T. Baker is a company that sells mercury spill cleanup products to companies that use mercury in their production process. J.T. Baker sells aspirators for cleaning up larger spills, gloves, scoops, absorbents for eliminating vapors, and a mercury indicator paste for finding small droplets. Any of these supplies can be purchases separately or as a kit. J.T. Baker uses _____ segmentation to sell its products.



A) benefits sought
B) buying condition
C) demographic
D) geographic
E) nature of goods




Answer: E

The target market for cooking books is predominantly female and over 25 while the readership for comic books is mainly males between the ages of 15 to 25. This is important _____ information for a publisher to know.

The target market for cooking books is predominantly female and over 25 while the readership for comic books is mainly males between the ages of 15 to 25. This is important _____ information for a publisher to know.



A) geographic
B) demographic
C) socioeconomic
D) benefits sought
E) behavior



Answer: B

Nyquil advertises that it alleviates "the nighttime, sniffling, sneezing, coughing, aching, stuffy head, fever" and helps you get the rest you need to get better. Nyquil uses a segmentation strategy based on _____ variables.

Nyquil advertises that it alleviates "the nighttime, sniffling, sneezing, coughing, aching, stuffy head, fever" and helps you get the rest you need to get better. Nyquil uses a segmentation strategy based on _____ variables.




A) geographic
B) socioeconomic
C) benefits sought
D) product knowledge
E) demographic



Answer: C

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids _____, which often leads to extremely high research, engineering, and manufacturing expenses.

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids _____, which often leads to extremely high research, engineering, and manufacturing expenses.



A) the extra cost of developing and producing additional versions of the product
B) a service gap
C) indirect distribution and logistics problems
D) strategic planning
E) amortization costs




Answer: A

Laws require children under a certain age to ride in car seats, but not all children are the same size and not all cars are made the same. As a result, it is sometimes difficult to determine whether the child is riding in the best seat. Nissan has launched a safety initiative on its Internet websites, Snug Kids, to provide parents with specific information to help them find the right child seat for their Nissan or Infiniti product lines. This is an example of a _____ strategy.

Laws require children under a certain age to ride in car seats, but not all children are the same size and not all cars are made the same. As a result, it is sometimes difficult to determine whether the child is riding in the best seat. Nissan has launched a safety initiative on its Internet websites, Snug Kids, to provide parents with specific information to help them find the right child seat for their Nissan or Infiniti product lines. This is an example of a _____ strategy.



A) repositioning
B) harvesting
C) market aggregation
D) product differentiation
E) targeted differentiation



Answer: D

There is a large Chinese population in British Columbia. The Hong Kong Bank of Canada (HKBC) tries to design its services to attract first-generation Chinese. HKBC uses a _____ strategy.

There is a large Chinese population in British Columbia. The Hong Kong Bank of Canada (HKBC) tries to design its services to attract first-generation Chinese. HKBC uses a _____ strategy.



A) market aggregation
B) harvesting
C) mass marketing
D) market segmentation
E) product development



Answer: D

Selecting target markets mean using criteria such as cost of reaching the segment and :

Selecting target markets mean using criteria such as cost of reaching the segment and :



A) size and expected growth
B) and reach of marketing investment
C) and potential growth and density of population
D) matching organizational objectives and profit orientation
E) size and usage rate forecasts



Answer: A

One of the following is not a criteria when forming segments:

One of the following is not a criteria when forming segments:



A) potential for higher profits and ROI
B) similarity of needs
C) feasibility of reaching reasonable costs
D) fewer customer complaints
E) difference in needs of buyers among segments




Answer: D

Mass customization has been made possible by _______ and _______.

Mass customization has been made possible by _______ and _______.



A) toll free service, friendly customer service representatives.
B) Internet ordering, flexible manufacturing and marketing processes.
C) computer-aided design (CAD), Internet ordering.
D) toll free service, computer-aided design (CAD)
E) Internet ordering, friendly customer service representative





Answer: B

Markets should not be segmented when:

Markets should not be segmented when:



A) the customer does not want to be segmented
B) it is against the law
C) the economic clouds turn dark and dangerous
D) the company might be growing too fast
E) expenses exceed potential revenues from segmenting



Answer: E

There are a lot of skateboard manufacturers in the market, but the BMW Streetcarver is the only one with stabilizers and wheel design based on BMW's automobile. This technology gives the BMW Streetcarver better control at high speeds and around sharp turns than any other brand. What type of positioning is BMW using with its $495 skateboard?

There are a lot of skateboard manufacturers in the market, but the BMW Streetcarver is the only one with stabilizers and wheel design based on BMW's automobile. This technology gives the BMW Streetcarver better control at high speeds and around sharp turns than any other brand. What type of positioning is BMW using with its $495 skateboard?




A) parallel market positioning
B) distinction positioning
C) competitive positioning
D) product positioning
E) head-to-head positioning



Answer: D

A perceptual map is a:

A perceptual map is a:



A) consumer map of likes and dislikes.
B) database.
C) pyramid design.
D) two-dimensional graph.
E) three-dimensional cube.

Answer: D

A market-product grid is:

A market-product grid is:



A) a framework to graphically show how competitors rate the products against which they must compete.
B) a framework to relate the segments of a market to products offered or potential marketing actions by the firm.
C) the framework which creates a bell curve.
D) explains the hypothesis that some people prefer to watch cable news, NASCAR racing, and major league sports rather than dramas and sitcoms.
E) a perceptual map of generic competitors.



Answer: B

Hallmark grouped its scrapbook supplies, photo albums and such into one product group because:

Hallmark grouped its scrapbook supplies, photo albums and such into one product group because:



A) competitors relate to them better for benchmarking purposes.
B) customers relate to them better since all of these products may be used to record memories.
C) it is easier to estimate the industry sales for fewer market-product combinations.
D) it is more profitable to define product groupings in terms of large market segment because it reduces manufacturing and marketing costs.
E) its competitors engage in no product groupings.




Answer: B

The 80/20 rule is a concept which suggests:

The 80/20 rule is a concept which suggests:



A) eighty percent of a firm's inventory should be readily available, and twenty percent should be reserved for emergency demand.
B) eighty percent of a firm's first time users will become brand loyal and twenty percent of the firm's first time users will use the product only once.
C) eighty percent of a firm's sales are obtained from twenty percent of its customers.
D) eighty percent of a firm's expenditures are tax deductible and twenty percent are not.
E) eighty percent of a firm's products will ultimately be sold at the original mark-up price, and twenty percent will not.


Answer: C

The slogan used for all Jergens lotions is "Love Your Body." An ad for Jergens Ultra Healing lotion tells dry-skin sufferers that the lotion, "locks moisture in and throws away the key. " Jergens is using a strategy based on __________ variable.

The slogan used for all Jergens lotions is "Love Your Body." An ad for Jergens Ultra Healing lotion tells dry-skin sufferers that the lotion, "locks moisture in and throws away the key. " Jergens is using a strategy based on __________ variable.



A) geographic
B) socioeconomic
C) benefits sought
D) product knowledge
E) demographic



Answer: C

Audi has developed a mid-sized station wagon that has 340 horsepower and is able to go from zero-to-sixty kilometres an hour in 6.5 seconds. The base price of the car is $61,625. The automaker predicts that 80 percent of its buyers will be men with 60 percent of them married. The median age of these men will be 45 with median household incomes of $200,000. What types of segmentation variables is Audi using?

Audi has developed a mid-sized station wagon that has 340 horsepower and is able to go from zero-to-sixty kilometres an hour in 6.5 seconds. The base price of the car is $61,625. The automaker predicts that 80 percent of its buyers will be men with 60 percent of them married. The median age of these men will be 45 with median household incomes of $200,000. What types of segmentation variables is Audi using?



A) socioeconomic and psychographic
B) demographic and socioeconomic
C) benefits sought and psychographic
D) psychographic and behaviour
E) demographic and benefits sought



Answer: E

The headline of the ad for the Sleep Number bed by Select Comfort read, "5 Reasons Why You'll Sleep Better on a Sleep Number Bed." From this information, you know that Select Comfort uses __________ segmentation.

The headline of the ad for the Sleep Number bed by Select Comfort read, "5 Reasons Why You'll Sleep Better on a Sleep Number Bed." From this information, you know that Select Comfort uses __________ segmentation.



A) benefits sought
B) psychographic
C) demographic
D) socioeconomic
E) behavior



Answer: A

In 2002, Nike began selling Air Jordan XVII with a price tag of $200. The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox. Nike is targeting a market it identifies as "keepers," people who buy the shoes, keep them under their bed and when friends come over, show them the shoes. Selling to the market segment called "keepers" probably means Nike is using which of the following types of customer characteristic variables to segment this market?

In 2002, Nike began selling Air Jordan XVII with a price tag of $200. The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox. Nike is targeting a market it identifies as "keepers," people who buy the shoes, keep them under their bed and when friends come over, show them the shoes. Selling to the market segment called "keepers" probably means Nike is using which of the following types of customer characteristic variables to segment this market?



A) demographics
B) psychographics
C) usage
D) benefits sought
E) behavior




Answer: B

Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin' B.B.Q. Sauce. She wants to target local people who like the special blend of mustard-based barbecue sauce. The easiest method for segmenting her market is to use __________ segmentation variables.

Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin' B.B.Q. Sauce. She wants to target local people who like the special blend of mustard-based barbecue sauce. The easiest method for segmenting her market is to use __________ segmentation variables.



A) age
B) behavior
C) socioeconomic
D) geographic
E) perceptual



Answer: D

AMF wants to build a state-of-the-art bowling alley in Canada. Marketing research shows that Canadians who live in British Columbia, Alberta, Saskatchewan and Manitoba enjoy bowling. Eastern Canadians do not like to bowl. This would be an important __________ segmentation variable for AMF.

AMF wants to build a state-of-the-art bowling alley in Canada. Marketing research shows that Canadians who live in British Columbia, Alberta, Saskatchewan and Manitoba enjoy bowling. Eastern Canadians do not like to bowl. This would be an important __________ segmentation variable for AMF.



A) lifestyle
B) geodemographic
C) geographic
D) demographic
E) psychographic




Answer: C

Cmax.com allows customers to visit its website and design a sneaker to their own personal specifications. This website would particularly appeal to people who exercise regularly and are very aware of what shoe styles fit comfortably on their feet. This would be descriptive of which type of market segmentation variable?

Cmax.com allows customers to visit its website and design a sneaker to their own personal specifications. This website would particularly appeal to people who exercise regularly and are very aware of what shoe styles fit comfortably on their feet. This would be descriptive of which type of market segmentation variable?



A) psychographic
B) demographic
C) socioeconomic
D) usage
E) behavior and usage



Answer: A

A market-product grid is a framework to relate:

A market-product grid is a framework to relate:



A) estimated expenses for products sold to various market segments.
B) total anticipated revenue for each product to market segments.
C) total anticipated profit for each product to segments.
D) the segments of a market to products offered or potential marketing actions by the firm.
E) the segments of a market to the relative market share compared to closest competitor.




Answer: D

GM offers different vehicles to meet the needs of clients that range form low-income to middle-class to upper class. They sell specific cars to each group in order to meet the needs of all groups. This is an example of:

GM offers different vehicles to meet the needs of clients that range form low-income to middle-class to upper class. They sell specific cars to each group in order to meet the needs of all groups. This is an example of:



A) dual distribution.
B) market segmentation.
C) product differentiation.
D) market penetration.
E) full coverage marketing.



Answer: B

Audi has developed a mid-sized station wagon that has 340 horsepower and is able to go from zero-to-sixty kilometres an hour in 6.5 seconds. The base price of the car is $61,625. The automaker predicts that 80 percent of its buyers will be men; 60 percent of them married. The median age of these men will be 45 with median household incomes of $200,000. Audi should use a __________ strategy to sell its newly developed car.

Audi has developed a mid-sized station wagon that has 340 horsepower and is able to go from zero-to-sixty kilometres an hour in 6.5 seconds. The base price of the car is $61,625. The automaker predicts that 80 percent of its buyers will be men; 60 percent of them married. The median age of these men will be 45 with median household incomes of $200,000. Audi should use a __________ strategy to sell its newly developed car.



A) harvesting
B) market development
C) market penetration
D) market segmentation
E) needs differentiation



Answer: D

Which of the following is the best example of repositioning?

Which of the following is the best example of repositioning?



A) When sales of Crest toothpaste reached a plateau, marketers used a bundling strategy to get customers to buy the toothpaste and a toothbrush.
B) Snickers introduced a dark chocolate version of its original milk chocolate candy bar.
C) Cadillac changed their philosophy with the introduction of new cars accompanied by an aggressive advertising campaign to reach a younger market.
D) While continuing to make its computers designed for business purposes, Packard Bell introduced a computer for ultimate consumers.
E) Starbucks Coffee Company licenses another company to manufacture and market Starbucks coffee-flavoured ice cream.



Answer: C

A perceptual map most closely resembles a:

A perceptual map most closely resembles a:



A) graph with horizontal and vertical axes.
B) topographic map.
C) hierarchical pyramid with the lowest level having many more examples than the top.
D) cross-tabulation table.
E) bell curve.



Answer: A

SwissAir tried to expand, but because of a variety of reasons, it failed and had to declare bankruptcy. Prior to declaring bankruptcy, SwissAir engaged in several cost-cutting efforts, which alienated its customer base. After much effort, the company began operations again with the hope of attracting its previous customers back. Because it feared that a __________ strategy would not undo the damage to the brand name, the company opted for a new name and new look.

SwissAir tried to expand, but because of a variety of reasons, it failed and had to declare bankruptcy. Prior to declaring bankruptcy, SwissAir engaged in several cost-cutting efforts, which alienated its customer base. After much effort, the company began operations again with the hope of attracting its previous customers back. Because it feared that a __________ strategy would not undo the damage to the brand name, the company opted for a new name and new look.




A) segmentation
B) differentiation
C) repositioning
D) probability
E) inference





Answer: C

Kellie Johnson makes jams and jellies that sell under the brand name of Yesterday's Kitchen. In developing a marketing strategy to sell her product line, she decided to buy an ad in the local shopper's newspaper that is well read in her region of the country. Johnson has just:

Kellie Johnson makes jams and jellies that sell under the brand name of Yesterday's Kitchen. In developing a marketing strategy to sell her product line, she decided to buy an ad in the local shopper's newspaper that is well read in her region of the country. Johnson has just:



A) selected target market segments to reach.
B) formed products to be sold into groups.
C) developed a market-product grid and estimating size of markets.
D) taken marketing actions to reach target markets.
E) formed prospective buyers into segments.


Answer: D

Five general criteria are often used to pick target segments. They include the size of the market, expected growth of the market, competitive position of the firm with respect to the market, and compatibility with the organization's objectives and resources. What is the fifth criterion?

Five general criteria are often used to pick target segments. They include the size of the market, expected growth of the market, competitive position of the firm with respect to the market, and compatibility with the organization's objectives and resources. What is the fifth criterion?



A) cost of reaching the segment
B) time required to create awareness
C) need to conform to government regulations
D) how long target market members have been customers
E) amount of publicity likely to result


Answer: A

J. T. Baker is a company that sells mercury, spill cleanup, products to companies that use mercury in their production process. J.T. Baker sells aspirators for cleaning up larger spills, gloves, scoops, absorbents for eliminating vapours, and a mercury indicator paste for finding small droplets. These supplies can be purchased separately or as a kit. J.T. Baker uses __________ segmentation to sell its products.

J. T. Baker is a company that sells mercury, spill cleanup, products to companies that use mercury in their production process. J.T. Baker sells aspirators for cleaning up larger spills, gloves, scoops, absorbents for eliminating vapours, and a mercury indicator paste for finding small droplets. These supplies can be purchased separately or as a kit. J.T. Baker uses __________ segmentation to sell its products.



A) benefits sought
B) buying condition
C) demographic
D) geographic
E) nature of goods


Answer: A

Department stores often use Goldfarb's classification system to understand the lifestyles of consumers in nearby neighborhoods. What customer characteristics does this type of segmentation examine?

Department stores often use Goldfarb's classification system to understand the lifestyles of consumers in nearby neighborhoods. What customer characteristics does this type of segmentation examine?



A) demographic
B) socioeconomic
C) psychographic
D) benefits sought
E) usage



Answer: C

The target market for cookbooks is predominantly female and over 25 while the readership for comic books is mainly males between the ages of 15 to 25. This is important __________ information for a publisher to know.

The target market for cookbooks is predominantly female and over 25 while the readership for comic books is mainly males between the ages of 15 to 25. This is important __________ information for a publisher to know.





A) geographic
B) demographic
C) socioeconomic
D) benefits sought
E) behavior



Answer: B

Nyquil advertises that it alleviates "the night time, sniffling, sneezing, coughing, aching, stuffy head, fever" and helps you get the rest you need to get better. Nyquil uses a segmentation strategy based on __________ variables.

Nyquil advertises that it alleviates "the night time, sniffling, sneezing, coughing, aching, stuffy head, fever" and helps you get the rest you need to get better. Nyquil uses a segmentation strategy based on __________ variables.



A) geographic
B) socioeconomic
C) benefits sought
D) product knowledge
E) demographic



Answer: C

Northern Exposure is a magazine targeted to consumers who live in Northern Quebec . Given this information, you know its publisher selected its readership through __________ segmentation.

Northern Exposure is a magazine targeted to consumers who live in Northern Quebec . Given this information, you know its publisher selected its readership through __________ segmentation.



A) geographic
B) demographic
C) socioeconomic
D) benefits sought
E) behavior



Answer: A

Modern Maturity magazine is a publication that is sent to all AARP members (who by organization definition have to be at least 50-years-old to join). The market segment for Modern Maturity magazine was defined by:

Modern Maturity magazine is a publication that is sent to all AARP members (who by organization definition have to be at least 50-years-old to join). The market segment for Modern Maturity magazine was defined by:



A) usage rates.
B) usage patterns.
C) buyer situations.
D) demographic characteristics.
E) psychographic characteristics.




Answer: D

The strategy of using different marketing mix activities, such as product features or advertising, to help the consumers perceive a product as being different and better than competing products.

The strategy of using different marketing mix activities, such as product features or advertising, to help the consumers perceive a product as being different and better than competing products.



A) Product differentiation
B) Market differentiation
C) market segmentation
D) Niche strategy
E) Psychographic segmentation



Answer: A

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________, which often leads to extremely high research, engineering, and manufacturing expenses.

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________, which often leads to extremely high research, engineering, and manufacturing expenses.



A) the extra cost of developing and producing additional versions of the product
B) a service gap
C) indirect distribution and logistics problems
D) strategic planning
E) amortization costs



Answer: A

Marketers use market segmentation to:

Marketers use market segmentation to:



A) link market needs to an organization's marketing program.
B) map out product positioning strategies.
C) develop specific marketing actions related to the 4 P's.
D) increase overall sales, profits and/or other organizational goals.
E) do all of the above.



Answer: E

Laws require children under a certain age to ride in car seats, but not all children are the same size and not all cars are made the same. As a result, it is sometimes difficult to determine whether the child is riding in the best seat. Nissan has launched a safety initiative on its Internet website, Snug Kids, to provide parents with specific information to help them find the right child seat for their Nissan or Infiniti product lines. This is an example of a __________ strategy.

Laws require children under a certain age to ride in car seats, but not all children are the same size and not all cars are made the same. As a result, it is sometimes difficult to determine whether the child is riding in the best seat. Nissan has launched a safety initiative on its Internet website, Snug Kids, to provide parents with specific information to help them find the right child seat for their Nissan or Infiniti product lines. This is an example of a __________ strategy.



A) repositioning
B) harvesting
C) market aggregation
D) product differentiation
E) targeted differentiation



Answer: D

There is a large Chinese population in British Columbia. The Hong Kong Bank of Canada (HSBC) tries to design its services to attract first-generation Chinese. HSBC uses a __________ strategy.

There is a large Chinese population in British Columbia. The Hong Kong Bank of Canada (HSBC) tries to design its services to attract first-generation Chinese. HSBC uses a __________ strategy.



A) market aggregation
B) harvesting
C) mass marketing
D) market segmentation
E) product development




Answer: D

5 Criteria for forming market segments:

5 Criteria for forming market segments:



1. simplicity and cost-effectiveness of assigning potential buyers to segments
2. potential for increased profit
3. similarity of needs of potential buyers within a segment
4. difference of needs of buyers among segments
5. potential of a marketing action to reach a segment

5 steps of the market segmentation process:

5 steps of the market segmentation process:

1. Group potential buyers into segments
2. group products to be sold into categories
3. develop a market-product grid and estimate size of markets
4. select target markets
5. take marketing actions to reach target markets

Which of the following forecasting techniques would be most accurate for estimating sales revenues for Waste Treatment Inc.'s commercial garbage disposal equipment for next year?

Which of the following forecasting techniques would be most accurate for estimating sales revenues for Waste Treatment Inc.'s commercial garbage disposal equipment for next year?



A) a survey of buyers' intentions forecast
B) a technological forecast
C) a jury of expert opinion forecast
D) a Delphi forecast
E) trend extrapolation




Answer: A

An experimenter had people choose the sweeter juice from two containers, a red one and a yellow one. The respondents expressed a definite preference although the juice was exactly the same. The experimental independent variable was the:

An experimenter had people choose the sweeter juice from two containers, a red one and a yellow one. The respondents expressed a definite preference although the juice was exactly the same. The experimental independent variable was the:




A) sweetness of the juice.
B) relative temperature of the beverages.
C) color of the containers.
D) decision task.
E) preference for each juice.




Answer: C

Which of the following is the BEST example of a dichotomous question that might be asked on a survey about consumer online privacy?

Which of the following is the BEST example of a dichotomous question that might be asked on a survey about consumer online privacy?



A) How have your buying habits changed since you started using the Internet?
B) On average, how many hours a week are you on the Internet?
C) What kind of websites do you visit?
D) Are you concerned about your privacy when you are on the Internet?
E) How do you pay for purchases you make online?



Answer: D

Responsys.com did a survey of e-commerce companies concerning consumer privacy issues. What kind of questions were the survey participants responding to when they were asked whether they agreed or disagreed with the following statement, "E-commerce will continue to grow significantly."?

Responsys.com did a survey of e-commerce companies concerning consumer privacy issues. What kind of questions were the survey participants responding to when they were asked whether they agreed or disagreed with the following statement, "E-commerce will continue to grow significantly."?



A) semantic differential scale
B) fixed alternative
C) nonmutually exclusive
D) Likert scale
E) open-ended



Answer: B

Due to India's developing communications infrastructure, 97 percent of all surveys are done in person, and most of this research is held in surroundings that are most comfortable for the participants. Interviewers could gather 6 to 10 housewives at a home that match the participants' socioeconomic backgrounds. Because the women would be comfortable, they would be willing to give their opinions about products, how they use them, and special needs they might have. These women would be participating in a:

Due to India's developing communications infrastructure, 97 percent of all surveys are done in person, and most of this research is held in surroundings that are most comfortable for the participants. Interviewers could gather 6 to 10 housewives at a home that match the participants' socioeconomic backgrounds. Because the women would be comfortable, they would be willing to give their opinions about products, how they use them, and special needs they might have. These women would be participating in a:



A) mall intercept interview.
B) focus group.
C) dichotomous survey.
D) Likert interview.
E) differential interview.



Answer: B

Someone making the statement, "Before we begin this project we'll have to hire someone to interview people to find out how many people in a 50-mile radius could use our service, what their average income is, and what their occupations are." is preparing to:

Someone making the statement, "Before we begin this project we'll have to hire someone to interview people to find out how many people in a 50-mile radius could use our service, what their average income is, and what their occupations are." is preparing to:



A) collect primary data.
B) collect internal secondary data.
C) collect external secondary data.
D) perform a sensitivity analysis.
E) use probability sampling.



Answer: A

Lauder's Leading Lipstick Index tracks sales of lipsticks. It has noted that during every economic downturn the sale of lipstick goes up, and since the fall of 2001, sales have been steadily increasing for all brands. According to one expert, "When things get tough, women buy lipstick." Lauder's Leading Lipstick Index gathers _____ data.

Lauder's Leading Lipstick Index tracks sales of lipsticks. It has noted that during every economic downturn the sale of lipstick goes up, and since the fall of 2001, sales have been steadily increasing for all brands. According to one expert, "When things get tough, women buy lipstick." Lauder's Leading Lipstick Index gathers _____ data.



A) experimental
B) test marketing
C) ethnographic
D) internal secondary
E) observational



Answer: E

The Census Bureau gathers data on immigration, population shifts, education, income, age, and ethnicity. It has specialists who compile, analyze the data, and publish the data. The Census Bureau uses _____ data to describe the population.

The Census Bureau gathers data on immigration, population shifts, education, income, age, and ethnicity. It has specialists who compile, analyze the data, and publish the data. The Census Bureau uses _____ data to describe the population.



A) primary
B) external secondary
C) observational
D) internal secondary
E) ethnographic



Answer: A

Responsys.com did a survey of some e-commerce companies concerning consumer privacy issues. As a result of the survey, the company announced that 70 percent of all e-commerce companies believe that more government regulation of online privacy is inevitable. Since, Responsys.com did not survey every e-commerce company, how did is it able to make this statement?

Responsys.com did a survey of some e-commerce companies concerning consumer privacy issues. As a result of the survey, the company announced that 70 percent of all e-commerce companies believe that more government regulation of online privacy is inevitable. Since, Responsys.com did not survey every e-commerce company, how did is it able to make this statement?



A) through the use of statistical inference
B) through the use of universe sampling
C) by collecting secondary data
D) by collecting observational data
E) through data mining



Answer: A

An ESPN.com-commissioned study by Copernicus Marketing Consulting and Research wanted know to if sports-centreed males are spending as much time on the computer digesting sports information as they are spending in front of their televisions. This is an example of a:

An ESPN.com-commissioned study by Copernicus Marketing Consulting and Research wanted know to if sports-centreed males are spending as much time on the computer digesting sports information as they are spending in front of their televisions. This is an example of a:



A) hypothesis.
B) constraint.
C) measure of success.
D) extrapolation.
E) decision.



Answer: B

Richard Magnus runs the national outreach office for the Evangelical Lutheran Church. His organization compiles data on immigration, population shifts, education, income, age, and ethnicity that he uses to determine where there is a need for a new church. These compiled data are an example of _____ and help the church understand who its customers are.

Richard Magnus runs the national outreach office for the Evangelical Lutheran Church. His organization compiles data on immigration, population shifts, education, income, age, and ethnicity that he uses to determine where there is a need for a new church. These compiled data are an example of _____ and help the church understand who its customers are.



A) consultative marketing
B) concept testing
C) test marketing
D) tactical support tools
E) marketing research



Answer: E

On a survey about children's cereal, a mother of three toddlers was asked if she frequently fed her children sweetened cereal. Which of the following statements best describes this question?

On a survey about children's cereal, a mother of three toddlers was asked if she frequently fed her children sweetened cereal. Which of the following statements best describes this question?



A) This question is open-ended because it requires the respondent to explain behaviour.
B) This question is an example of a leading question.
C) This question is ambiguous because it does not explain what is meant by the word frequently.
D) This is a poorly worded question because it requires nonmutually exclusive answers.
E) This is an example of a well-phrased dichotomous survey question.




Answer: C
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