Armstrong Mai12 Tif 05

Marketing: An Introduction, 12e (Armstrong/Kotler)

Chapter 5 Understanding Consumer and Business Buyer Behavior

1) ________ refers to the practice of including ethnic themes within a company's mainstream marketing.

A) Cross-cultural marketing

B) Buzz marketing

C) Viral marketing

D) Guerilla marketing

E) Cause marketing

Answer: A

Difficulty: Easy

Chapter LO: 1

Course LO: Identify and discuss the factors influencing consumer buying behavior

2) Which of the following is most likely a true statement about social class?

A) Members of a social class vary drastically in their values, interests, and behaviors.

B) In the United States, the lines between social classes are fixed and rigid.

C) Social classes show distinct product preferences in areas such as clothing.

D) Wealth is a more important variable than education in measuring social class.

E) Consumers of the same age belong to the same social class.

Answer: C

Difficulty: Moderate

Chapter LO: 1


3) Which of the following is a social factor that influences consumer buying behavior?

A) family

B) life-cycle stage

C) economic situation

D) personality

E) occupation

Answer: A

Difficulty: Easy

Chapter LO: 1


4) A shoe company's ads feature the members of a popular country music band. Product sales increase significantly among the band's fans. From the fans' viewpoint, the band is a(n) ________.

A) membership group

B) reference group

C) laggard

D) subculture

E) late-majority adopter

Answer: B


Chapter LO: 1


AACSB: Analytic thinking

5) ________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.

A) Opinion leaders

B) Late mainstream adopters

C) Strangers

D) Barnacles

E) Lagging adopters

Answer: A

Difficulty: Easy

Chapter LO: 1


6) Which of the following types of marketing involves creating opinion leaders to serve as brand ambassadors to spread the word about a company's products?

A) social marketing

B) traditional marketing

C) buzz marketing

D) direct marketing

E) values marketing

Answer: C

Difficulty: Easy

Chapter LO: 1


7) Opinion leaders are also known as ________.

A) lagging adopters

B) leading adopters

C) early mainstream adopters

D) late mainstream adopters

E) barnacles

Answer: B


Chapter LO: 1

Course LO: Discuss how marketers can develop a safe and effective online presence

AACSB: Information technology

8) When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ________.

A) pushing one-way commercials at customers

B) identifying and targeting late adopters

C) developing print and radio advertisements

D) generating person-to-person brand conversations

E) withdrawing from online social networks

Answer: D


Chapter LO: 1



9) Which term refers to the activities a person is expected to perform according to the people around him or her?

A) motive

B) role

C) cue

D) status

E) attitude

Answer: B

Difficulty: Easy

Chapter LO: 1


10) A(n) ________ reflects the general esteem given to the different roles of a person by society.

A) motive

B) attitude

C) belief

D) tradition

E) status

Answer: E

Difficulty: Easy

Chapter LO: 1


11) Which of the following is a personal factor that influences a consumer's buying behavior?

A) life-cycle stage

B) motivation

C) status

D) family

E) social networks

Answer: A

Difficulty: Easy

Chapter LO: 1


12) A marketing firm has been assigned the task of watching trends in personal income, savings, and interest rates. The marketing firm is most likely gathering information about consumers' ________.

A) social network usage rates

B) economic situations

C) occupational needs

D) purchasing perceptions

E) brand affiliations

Answer: B

Difficulty: Easy

Chapter LO: 1


13) Which of the following is a psychographic characteristic of a consumer?

A) gender

B) age

C) lifestyle

D) occupation

E) economic status

Answer: C


Chapter LO: 1


14) ________ refers to the unique psychological characteristics that distinguish a person or group.

A) Personality

B) Lifestyle

C) Status

D) Attitude

E) Role

Answer: A

Difficulty: Easy

Chapter LO: 1


15) Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand?

A) brand perception

B) brand architecture

C) brand personality

D) brand loyalty

E) brand equity

Answer: C

Difficulty: Easy

Chapter LO: 1


16) A(n) ________ is a need that is sufficiently pressing to direct a person to seek satisfaction.

A) stimulus

B) motive

C) cue

D) perception

E) attitude

Answer: B

Difficulty: Easy

Chapter LO: 1


17) According to Sigmund Freud's theory, a person's buying decisions are ________.

A) easily revealed through online marketing surveys and questionnaires

B) affected by motives that the person is completely aware of

C) always driven by the need for status and independence

D) motivated by needs that are arranged in a hierarchy

E) affected by subconscious, hidden motivations

Answer: E


Chapter LO: 1


18) Which of the following needs in Maslow's hierarchy is generally satisfied last?

A) physiological needs

B) social needs

C) esteem needs

D) self-actualization needs

E) safety needs

Answer: D


Chapter LO: 1


19) According to Maslow's hierarchy of needs, which of the following is most likely an esteem need?

A) love

B) security

C) hunger

D) self-development

E) status

Answer: E


Chapter LO: 1


20) According to Maslow's hierarchy of needs, which of the following is true?

A) The most pressing needs are placed at the top of the hierarchy.

B) Physiological needs include a sense of belonging and love.

C) An individual will try to satisfy least pressing needs first.

D) Lower-level needs are fulfilled before higher-level needs.

E) All needs in the hierarchy are biological needs.

Answer: D


Chapter LO: 1


21) People tend to interpret new information in a way that will support what they already believe. This is called ________.

A) selective retention

B) selective distortion

C) selective attitude

D) selective attention

E) selective learning

Answer: B


Chapter LO: 1


22) ________ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands.

A) Selective retention

B) Selective distortion

C) Selective attention

D) Restraint bias

E) Subliminal perception

Answer: A


Chapter LO: 1


23) A(n) ________ becomes a motive when it is directed toward a particular stimulus object.

A) cue

B) drive

C) response

D) belief

E) attitude

Answer: B

Difficulty: Easy

Chapter LO: 1


24) ________ are minor stimuli that influence where, when, and how a person responds to an idea.

A) Cues

B) Drives

C) Motives

D) Needs

E) Attitudes

Answer: A

Difficulty: Easy

Chapter LO: 1


25) A(n) ________ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

A) role

B) cue

C) drive

D) attitude

E) motive

Answer: D

Difficulty: Easy

Chapter LO: 1


26) Which of the following is the first stage of the buyer decision process?

A) need recognition

B) information search

C) alternative evaluation

D) purchase decision

E) postpurchase behavior

Answer: A


Chapter LO: 2


27) Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find something in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process.

A) product evaluation

B) alternative evaluation

C) need recognition

D) information search

E) purchase decision

Answer: D


Chapter LO: 2



28) Which of the following sources of product information can marketers control completely?

A) public sources

B) personal sources

C) commercial sources

D) experimental sources

E) experiential sources

Answer: C


Chapter LO: 2


29) Which of the following is a commercial source of product information?

A) acquaintances

B) family and friends

C) dealer Web sites

D) consumer rating organizations

E) Internet searches

Answer: C


Chapter LO: 2



30) Which of the following is an experiential source of product information?

A) salespeople

B) using the product

C) Internet searches

D) packaging

E) mass media

Answer: B


Chapter LO: 2



31) The most effective sources of information about a product tend to be ________ sources.

A) commercial

B) public

C) experimental

D) personal

E) paid

Answer: D

Difficulty: Easy

Chapter LO: 2


32) In which of the following stages of the buyer decision process does a consumer compare multiple products with similar attributes?

A) alternative evaluation

B) need recognition

C) information search



Answer: A


Chapter LO: 2


33) Jeff is in the process of buying a new car. He carefully analyzes the features that he wants in a car, and perceives significant differences in price, quality, and features among three of his favorite models. He rates the models on each factor and ranks them in the order of his preference. To which of the following stages of the buyer decision process will Jeff most likely proceed next?

A) postpurchase behavior

B) evaluation of alternatives

C) information search

D) need recognition

E) purchase decision

Answer: E


Chapter LO: 2



34) Simone bought two bottles of wine from two vineyards in Bordeaux. When asked for an opinion on the quality of the wines, she later mentioned that the Pontet Canet tasted like alcoholic grape juice, but the Chateau Margaux had a crisp taste that she really enjoyed. Which of the following stages of the buyer decision process do Simone's remarks reflect?

A) information search

B) situational analysis

C) alternative evaluation



Answer: E


Chapter LO: 2



35) ________ is a discomfort caused by postpurchase conflict.

A) Selective retention

B) Cognitive dissonance

C) Selective attention

D) Restraint bias

E) Subliminal perception

Answer: B


Chapter LO: 2



36) Alice is shopping for a new car, and she has narrowed her decision to a Honda Accord and a Toyota Camry. Both sedans have similar features and prices, but Alice decides to purchase the Honda based on her intuition. Which of the following situations would most likely cause Alice to experience postpurchase dissonance?

A) The price of the Honda Accord increases by a huge margin.

B) The price of the Toyota Camry falls due to an increase in demand.

C) The Honda Accord meets all her expectations and satisfies her needs.

D) The Toyota Camry experiences technical failures that lead to a recall.

E) The maintenance costs of the Honda Accord decrease significantly over time.

Answer: B

Difficulty: Difficult

Chapter LO: 2



37) Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvantages of his new car as he learned more about other cars available in the same price range. Bill is in which of the following stages of the buyer decision process?

A) purchase decision

B) need recognition

C) postpurchase behavior

D) information search

E) alternate evaluation

Answer: C


Chapter LO: 2



38) In which of the following stages of the adoption process does a consumer seek information about a new product?

A) interest

B) adoption

C) evaluation

D) awareness

E) trial

Answer: A

Difficulty: Easy

Chapter LO: 3


39) In which of the following stages of the adoption process does a consumer consider whether trying a new product makes sense?

A) interest

B) adoption

C) evaluation

D) awareness

E) trial

Answer: C

Difficulty: Easy

Chapter LO: 3


40) ________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

A) Latent innovators

B) Early adopters

C) Early mainstream adopters

D) Lagging adopters

E) Late mainstream adopters

Answer: D

Difficulty: Easy

Chapter LO: 3


41) Fred's faith in his favorite brand makes him consider new initiatives and products introduced by the brand. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. Fred is an opinion leader in his social networking community. Fred is best described as a(n) ________.

A) lagging adopter

B) innovator

C) early adopter

D) early mainstream adopter

E) late mainstream adopter

Answer: C


Chapter LO: 3



42) ________ is the degree to which an innovation appears superior to existing products.

A) Relative advantage

B) Compatibility

C) Complexity

D) Divisibility

E) Communicability

Answer: A

Difficulty: Easy

Chapter LO: 3


43) ________ is the degree to which an innovation fits the values and experiences of potential consumers.


B) Divisibility

C) Complexity

D) Compatibility

E) Communicability

Answer: D

Difficulty: Easy

Chapter LO: 3


44) ________ is the degree to which an innovation is difficult to understand or use.


B) Compatibility

C) Complexity

D) Divisibility

E) Communicability

Answer: C

Difficulty: Easy

Chapter LO: 3


45) ________ is the degree to which an innovation may be tried on a limited basis.

A) Divisibility

B) Compatibility

C) Communicability

D) Relative advantage

E) Complexity

Answer: A

Difficulty: Easy

Chapter LO: 3


46) ________ is the degree to which the results of using an innovation can be observed or described to others.


B) Compatibility

C) Complexity

D) Divisibility

E) Communicability

Answer: E

Difficulty: Easy

Chapter LO: 3


47) Which of the following is true of business markets?

A) The business marketer normally deals with far more but far smaller buyers than the consumer marketer does.

B) Business markets generally involve far less money and items than do consumer markets.

C) Business demand is derived demand as it ultimately derives from the demand for consumer goods.

D) A small percentage decrease in consumer demand can cause a large increase in business demand.

E) The total demand for business products is much affected by price changes in the short run.

Answer: C

Difficulty: Easy

Chapter LO: 4

Course LO: Describe the business buying process

48) Which of the following generally increases the total demand for business products?

A) an increase in product price

B) a reduction in the number of business buyers

C) an increase in consumer demand

D) low buyer demand

E) high production costs

Answer: C


Chapter LO: 4


49) In a straight rebuy, a buyer ________.

A) wants to obtain the same product from a lower-priced supplier

B) reorders something without any modifications

C) considers a product or service for the first time

D) needs a modified product to suit new requirements

E) finds new ways to add value to the same product

Answer: B

Difficulty: Easy

Chapter LO: 4


50) A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n) ________.

A) modified rebuy

B) new task situation

C) straight rebuy

D) dual distribution system

E) exclusive distribution system

Answer: C

Difficulty: Easy

Chapter LO: 4


51) A business buyer is considering a change in product specifications, terms, and possibly suppliers. This buying situation is referred to as a(n) ________.

A) modified rebuy

B) new-task situation

C) straight rebuy

D) dual distribution channel

E) exclusive distribution channel

Answer: A


Chapter LO: 4


52) ________ is defined as a business strategy where business buyers prefer to buy a complete solution to a problem from a single seller rather than buying separate products and services from several suppliers.

A) Modified rebuy

B) Straight rebuy

C) New task buying

D) Systems selling

E) Supplier development

Answer: D

Difficulty: Easy

Chapter LO: 4


53) Which of the following statements about buying centers is true?

A) The buying center is a fixed and formally identified unit within a buying organization.

B) Roles in the buying center are specified in the organizational chart of a firm.

C) The CEO of an organization is always the decision maker in a buying center.

D) An individual's role in a buying center does not change with time.

E) Some buying centers involve informal participants.

Answer: E

Difficulty: Easy

Chapter LO: 4


54) Voorhees' Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market. When the owner, Jason Voorhees, went to reuse some of his coops, he noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying process was Voorhees in when he decided to replace his old coops?

A) problem recognition

B) general need description

C) product specification

D) product value analysis

E) performance review

Answer: A


Chapter LO: 5



55) During which stage of the business buying process is a buyer most likely to conduct value analysis by carefully studying components to determine if they can be redesigned, standardized, or made less expensively?

A) general need recognition

B) product specification

C) proposal solicitation

D) order-routine specification

E) performance review

Answer: B


Chapter LO: 5


56) Mike's, a chain of department stores, regularly purchases plastic bags from a certain supplier. The store decides to switch to less expensive bags made of biodegradable plastic. The change will promote an environmentally-friendly image for the department store and cut costs. This approach to cost reduction most likely occurred in the ________ stage of the business buying process.




D) supplier search

E) proposal solicitation

Answer: C


Chapter LO: 5



57) GenX, a manufacturer of sport motorcycles, is seeking a new supplier of motorcycle headlamps and brake lights. After searching trade directories, GenX invites five different suppliers to make formal presentations about how their solutions can create greater value for GenX than competing solutions. GenX is currently in the ________ stage of the business buying process.




D) supplier search

E) proposal solicitation

Answer: E


Chapter LO: 5



58) Which of the following is most likely the final stage of the business buying process?


B) product specification

C) proposal solicitation

D) order-routine specification

E) supplier performance review

Answer: E

Difficulty: Easy

Chapter LO: 5


59) Which of the following is the means by which companies post purchase requests online and invite suppliers to bid for their business?

A) extranet links

B) intranet connections

C) trading exchanges

D) traditional procurement

E) reverse auctions

Answer: E

Difficulty: Easy

Chapter LO: 5



60) Which of the following do organizational buyers use when they want to connect with important suppliers and create direct procurement accounts?

A) extranet links

B) intranet links

C) search engines

D) trading exchanges

E) reverse auctions

Answer: A


Chapter LO: 5



61) Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables.

Answer: TRUE

Difficulty: Easy

Chapter LO: 1


62) Consumers within a social class tend to exhibit similar buying behaviors.

Answer: TRUE

Difficulty: Easy

Chapter LO: 1


63) A consumer's buying behavior is often influenced by reference groups to which the consumer does not belong.

Answer: TRUE

Difficulty: Easy

Chapter LO: 1


64) A role consists of the activities people are expected to perform according to the people around them.

Answer: TRUE

Difficulty: Easy

Chapter LO: 1


65) People use the same products and services as they progress through each life-cycle stage.

Answer: FALSE

Difficulty: Easy

Chapter LO: 1


66) According to Maslow's theory, safety and social needs must be fulfilled after self-actualization needs.

Answer: FALSE


Chapter LO: 1


67) Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe.

Answer: TRUE

Difficulty: Easy

Chapter LO: 1


68) Advertisements are internal stimuli that influence consumer needs.

Answer: FALSE


Chapter LO: 1


69) When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the alternative evaluation process.

Answer: FALSE

Difficulty: Easy

Chapter LO: 2


70) Personal sources of information normally inform the buyer, but commercial sources legitimize or evaluate products for the buyer.

Answer: FALSE

Difficulty: Easy

Chapter LO: 2


71) The larger the gap between expectations and performance of a product, the greater a consumer's dissatisfaction.

Answer: TRUE

Difficulty: Easy

Chapter LO: 2


72) Early adopters are opinion leaders in their communities and adopt new ideas early but carefully.

Answer: TRUE

Difficulty: Easy

Chapter LO: 3


73) Innovators are tradition-bound and adopt an innovation only when it has become something of a tradition itself.

Answer: FALSE

Difficulty: Easy

Chapter LO: 3


74) Ben usually buys new devices such as PDAs, DVRs, and MP3 players only after his friends and family start owning these devices. In this case, Ben is an innovator.

Answer: FALSE


Chapter LO: 3



75) A small increase in consumer demand can cause a large increase in business demand.

Answer: TRUE

Difficulty: Easy

Chapter LO: 4


76) A business marketer normally deals with far fewer buyers than a consumer marketer does.

Answer: TRUE

Difficulty: Easy

Chapter LO: 4


77) The business buying process tends to be longer and more formalized than the consumer buying process.

Answer: TRUE

Difficulty: Easy

Chapter LO: 4


78) A buyer and seller are less dependent on each other in a business buying process than in a consumer buying process.

Answer: FALSE

Difficulty: Easy

Chapter LO: 4


79) In a straight rebuy, a buyer reorders something without any modifications.

Answer: TRUE

Difficulty: Easy

Chapter LO: 4


80) A company buying a product with modified specifications faces a new-task situation.

Answer: FALSE


Chapter LO: 4


81) The buying center consists of key decision makers from both the buying organization and the supplier.

Answer: FALSE

Difficulty: Easy

Chapter LO: 4


82) Of the different types of buying situations, a buyer makes the fewest decisions in a new-task situation and the most in a straight rebuy.

Answer: FALSE


Chapter LO: 4


83) In vendor-managed inventory, buyers share sales information directly with key suppliers.

Answer: TRUE

Difficulty: Easy

Chapter LO: 5


84) Business-to-business e-procurement lowers purchasing costs and reduces the time between order and delivery.

Answer: TRUE

Difficulty: Easy

Chapter LO: 5



85) In reverse auctions, companies put their purchasing requests online and invite suppliers to bid for their business.

Answer: TRUE

Difficulty: Easy

Chapter LO: 5


86) Explain the cultural factors that influence consumer behavior.

Answer: Culture is the most basic cause of a person's wants and behavior. Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important market segments. Social classes are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Unlike nationality or ethnic subculture, social class is determined by a combination of many variables, such as occupation, income, education, and wealth. Social scientists have identified seven social classes within the American culture, ranging from upper class to lower class.


Chapter LO: 1


87) Describe the buying behavior and characteristics of different subcultures in the United States.

Answer: Many subcultures make up important market segments, and marketers often design products and marketing programs tailored to their needs. Examples of three such important subculture groups are Hispanic American, African American, and Asian American consumers.

Hispanics represent a large, fast-growing market. Although Hispanic consumers share many characteristics and behaviors with the mainstream buying public, there are also distinct differences. They tend to be deeply family oriented and make shopping a family affairchildren have a big say in what brands they buy. Older, first-generation Hispanic consumers tend to be very brand loyal and to favor brands and sellers who show special interest in them. Younger Hispanics, however, have shown increasing price sensitivity in recent years and a willingness to switch to store brands. African American consumers are more price-conscious than other segments; they are also strongly motivated by quality and selection. Asian American consumers are the most affluent U.S. demographic segment and are the second-fastest-growing population subsegment after Hispanics. As a group, Asian American consumers shop frequently and are the most brand conscious of all the ethnic groups. They can be fiercely brand loyal.


Chapter LO: 1


AACSB: Diverse and multicultural work environments

88) Explain the concepts of word-of-mouth influence, opinion leaders, and buzz marketing.

Answer: Word-of-mouth influence can have a powerful impact on consumer buying behavior. The personal words and recommendations of trusted friends, associates, and other consumers tend to be more credible than those coming from commercial sources. Most word-of-mouth influence happens naturally: Consumers start chatting about a brand they use or feel strongly about one way or the other. Often, however, rather than leaving it to chance, marketers can help to create positive conversations about their brands. Marketers of brands subjected to strong group influence must figure out how to reach opinion leaderspeople within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others. Marketers try to identify opinion leaders for their products and direct marketing efforts toward them. Buzz marketing involves enlisting or even creating opinion leaders to serve as "brand ambassadors" who spread the word about a company's products. For example, Nike created a ton of buzz worldwide during the 2012 London Olympics when it shod 400 of its Nike-sponsored athletes in can't-miss incandescent green/yellow Volt Flyknit shoes. The shoes became the talk of the Olympics. Many companies now create brand ambassador programs in an attempt to turn influential but everyday customers into brand evangelists.

Difficulty: Easy

Chapter LO: 1


89) A consumer's behavior is influenced by social factors, such as the consumer's small groups, family, and social roles and status. Explain the differences among these social factors.

Answer: Many small groups influence a person's behavior. Groups that have a direct influence and to which a person belongs are called membership groups. Reference groups serve as direct or indirect points of comparison or reference in forming a person's attitudes or behaviors. An aspirational group is one to which the individual wishes to belong. Reference groups expose a person to new behaviors and lifestyles, influence a person's attitudes and self-concept, and create pressures to conform that may affect the person's product and brand choices. Opinion leaders are also included in reference groups. Family members can strongly influence buyer behavior and is the most important consumer buying organization in society. Marketers are interested in the changing roles and influence of each family member, particularly as male and female purchasing roles evolve and children wield more purchasing influence. Within groups, including families, the position of an individual is defined by role and status. A role consists of the activities people are expected to perform according to the persons around them, while status is the general esteem given to that role. People tend to choose products that fit their roles and status.

Difficulty: Easy

Chapter LO: 1


90) What are personality traits, and how do they affect purchase behavior? Explain with an example.

Answer: Personality refers to the unique psychological characteristics that distinguish a person or group. Personality is described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Personality can be useful in analyzing consumer behavior for certain product or brand choices. Consumers are likely to choose brands with personalities that match their own. A brand personality is the specific mix of human traits that may be attributed to a particular brand. One researcher identified five brand personality traits: sincerity (down-to-earth, honest, wholesome, and cheerful), excitement (daring, spirited, imaginative, and up to date), competence (reliable, intelligent, and successful), sophistication (glamorous, upper class, charming), and ruggedness (outdoorsy and tough). Most well-known brands are strongly associated with one particular trait: the Ford F150 with "ruggedness," Apple with "excitement," the Washington Post with "competence," Method with "sincerity," and Gucci with "class" and "sophistication." Hence, these brands will attract persons who are high on the same personality traits.


Chapter LO: 1



91) Explain Maslow's hierarchy of needs.

Answer: Maslow suggested that our unfulfilled needs motivate us and that our needs are arranged in a hierarchy. That hierarchy includes these needs: physiological, safety, social, esteem, and self-actualization. Maslow suggested that we fulfill the lower-level, basic needs first before moving up the hierarchy. Until more important, basic needs such as safety are fulfilled, an individual has little interest in higher-level needs such as esteem and self-actualization. When that need is satisfied, it will stop being a motivator, and the person will then try to satisfy the next most important need. For example, starving people (physiological need) will not take an interest in the latest happenings in the art world (self-actualization needs) nor in how they are seen or esteemed by others (social or esteem needs) nor even in whether they are breathing clean air (safety needs). But as each important need is satisfied, the next most important need will come into play.


Chapter LO: 1


92) Describe the steps of the buyer decision process.

Answer: The buyer decision process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior.

1. Need Recognition: The buying process starts with need recognitionthe buyer recognizes a problem or need. The need can be triggered by internal stimuli when one of the person's normal needsfor example, hunger or thirstrises to a level high enough to become a drive. A need can also be triggered by external stimuli.

2. Information Search: An interested consumer may or may not search for more information. If the consumer's drive is strong and a satisfying product is near at hand, he or she is likely to buy it then. If not, the consumer may store the need in memory or undertake an information search related to the need.

3. Evaluation of Alternatives: Marketers need to know about alternative evaluation, that is, how the consumer processes information to arrive at brand choices. Unfortunately, consumers do not use a simple and single evaluation process in all buying situations. Instead, several evaluation processes are at work. The consumer arrives at attitudes toward different brands through some evaluation procedure.

4. Purchase Decision: In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. The first factor is the attitudes of others. The second factor is unexpected situational factors. The consumer may form a purchase intention based on factors such as expected income, expected price, and expected product benefits. However, unexpected events may change the purchase intention.

5. Postpurchase Behavior: After purchasing the product, the consumer will either be satisfied or dissatisfied and will engage in postpurchase behavior of interest to the marketer. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The larger the gap between expectations and performance, the greater the consumer's dissatisfaction.


Chapter LO: 2


93) Identify and describe the stages in the adoption process of a new product.

Answer: Consumers go through five stages in the process of adopting a new product. In the awareness stage, consumers become aware of the new product but lack information about it. Then, consumers seek information about the new product in the interest stage. In the evaluation stage, consumers consider whether trying the new product makes sense. Consumers try the product on a limited basis in the trial stage. Finally, consumers decide to make full use of the product in the adoption stage.


Chapter LO: 3


94) Identify the product characteristics that influence the rate of adoption of a product. Explain how each characteristic affects the rate of adoption.

Answer: The five most important product characteristics that influence the rate of a product's adoption are relative advantage, compatibility, complexity, divisibility, and communicability. Relative advantage is the degree to which an innovation appears superior to existing products; the greater the perceived relative advantage, the sooner the product will be adopted. Compatibility is the degree to which the innovation fits the values and experiences of potential consumers; high compatibility leads to quick adoption. Complexity is the degree to which the innovation is difficult to understand or use; the greater the complexity, the slower the adoption rate. Divisibility is the degree to which the innovation may be tried on a limited basis; the higher the divisibility, the slower the rate of adoption. Finally, communicability is the degree to which the results of using the innovation can be observed or described to others; high communicability lends itself to a higher rate of adoption.


Chapter LO: 3


95) Explain why business demand is considered a derived demand.

Answer: Business demand is derived demand because it ultimately derives from the demand for consumer goods. If consumer demand for an end product drops, business demand for all of the components used in that product will also drop. Similarly, when consumer demand for a product increases, business demand for all of the components of that product also increases.


Chapter LO: 4


96) Explain how the decision process in the business market and consumer market differ.

Answer: Business buyers usually face more complex buying decisions than do consumer buyers. Business purchases often involve large sums of money, complex technical and economic considerations, and interactions among many people at many levels of the buyer's organization. Because the purchases are more complex, business buyers may take longer to make their decisions and are likely to use a more formalized buying process. In the business buying process, the buyer and seller are often much more dependent on each other.


Chapter LO: 4



97) Explain the major types of buying situations.

Answer: There are three major types of buying situations. In a straight rebuy, the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department. In a modified rebuy, the buyer wants to modify product specifications, prices, terms, or suppliers. A company buying a product or service for the first time faces a new task situation. In such cases, the greater the cost or risk, the larger the number of decision participants and the greater the company's efforts to collect information. The new task situation is the marketer's greatest opportunity and challenge. The marketer not only tries to reach as many key buying influences as possible, but also provides help and information. The buyer makes the fewest decisions in the straight rebuy and the most in the new task decision.


Chapter LO: 4


98) In the context of the business buying process, what is a buying center? Explain why it presents a major marketing challenge.

Answer: The buying center is the decision-making unit of a buying organization. The buying center consists of all the individuals and units that play a role in the business purchase decision-making process, including the actual users of the product or service, those who make the buying decision, those who influence the buying decision, those who do the actual buying, and those who control buying information. The buying center is not a fixed and formally identified unit within the buying organization. Instead, it is a set of buying roles assumed by different people for different purchases. Within the organization, the size and makeup of the buying center varies for different products and buying situations. The variable nature of the buying center makes it a major marketing challenge. The business marketer must learn who participates in each decision, each participant's relative influence, and what evaluation criteria each decision participant uses. Sometimes identifying the decision maker is difficult or even impossible, as no one single person may make the purchasing decision.


Chapter LO: 4


99) Describe the major factors that influence business buyers.

Answer: Business buyers are heavily influenced by factors in the current and expected economic environment, such as levels of primary demand, the economic outlook, and the cost of money. Business buyers are also affected by supply of key materials and technological, political, and competitive developments in the environment. Finally, culture and customs can strongly influence business buyer reactions to the marketer's behavior and strategies, especially in the international marketing environment. The business buyer must watch these factors, determine how they will affect the buyer, and try to turn environmental challenges into opportunities. Organizational factors are also important. Each buying organization has its own objectives, strategies, structure, systems, and procedures, and the business marketer must understand these factors well. The buying center usually includes many participants who influence each other, so interpersonal factors also influence the business buying process. Each participant in the business buying decision process brings in personal motives, perceptions, and preferences. These individual factors are affected by personal characteristics such as age, income, education, professional identification, personality, and attitudes toward risk.


Chapter LO: 4


100) What are the potential disadvantages of e-procurement?

Answer: While e-procurement offers plenty of advantages for buyers and suppliers, the rapidly expanding use of e-procurement could also present some problems. For example, at the same time that the Internet makes it possible for suppliers and customers to share business data and even collaborate on product design, it can also erode decades-old customersupplier relationships. Many buyers now use the power of the Internet to pit suppliers against one another and search out better deals, products, and turnaround times on a purchase-by-purchase basis. E-procurement can also create potential security concerns. Although home shopping transactions can be protected through basic encryption, the secure environment that businesses need to carry out confidential interactions is sometimes still lacking. Companies are spending millions for research on defensive strategies to keep hackers at bay. Cisco Systems, for example, specifies the types of routers, firewalls, and security procedures that its partners must use to safeguard extranet connections. In fact, the company goes even further; it sends its own security engineers to examine a partner's defenses and holds the partner liable for any security breach that originates from its computers.


Chapter LO: 5



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