Consumer Behavior Practice Exam
Course Introduction
Consumer Behavior explores the psychological, social, and cultural factors that influence individuals and groups in their buying decisions. This course examines how consumers select, use, and dispose of products and services, delving into topics such as motivation, perception, learning, attitudes, and personality. Students will analyze the impact of social influences, such as family, reference groups, and culture, on purchasing behaviors. Real-world case studies and marketing strategies are used to illustrate how understanding consumer behavior is crucial for creating effective marketing campaigns, building customer loyalty, and driving business success.
Recommended Textbook
Contemporary Marketing 16th Edition by Louis
E. Boone
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Page 2
Chapter 1: Marketing: The Art and Science of Satisfying Customers
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Q1) The basic objective of place marketing is to:
A) attract visitors or new businesses to a particular area.
B) influence others to accept the goals of the sponsoring organization.
C) convince people to attend a sporting or cultural event.
D) bring to the attention of the public some charitable issue.
Answer: A
Q2) Owen buys a car for himself.Owen has created ownership utility.
A)True
B)False
Answer: True
Q3) Relationship marketing relies heavily on:
A) mass marketing and global promotions.
B) technology to store customer data and to customize products/services.
C) strategic alliances and creating competitive advantage.
D) aligning business goals with a social cause.
Answer: B
Q4) Marketing is the indirect connection between a firm and its customers.
A)True
B)False
Answer: False
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Chapter 2: Strategic Planning in Contemporary Marketing
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Q1) The marketing mix decisions which are closely regulated and subject to public scrutiny usually relate to a company's _____ strategy.
A) short-term
B) resource
C) distribution
D) pricing
Answer: D
Q2) What is a strategic window? Give an example of a strategic window that exists today.
Answer: A strategic window is a limited period during which the key requirements of a market and the particular competencies of a firm best fit together. The growth of China has increased the number of strategic windows as their demand for products increases.The auto industry,in particular,is facing a strategic window as the demand for automobiles rises in the Chinese market.
Q3) Supervisory managers tend to focus exclusively on strategic planning.
A)True
B)False
Answer: False
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Chapter 3: The Marketing Environment, Ethics, and Social Responsibility
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Q1) The antitrust laws in the United States were designed to protect the interests of organizations having monopoly positions.
A)True
B)False
Answer: False
Q2) Discuss each of the consumer rights presented by President John F.Kennedy.
Answer: The consumer rights presented by President John F.Kennedy include the following:
a.The right to choose freely from among a range of goods and services.
b.The right to be informed through enough education and product information to become responsible buyers.
c.The right to be heard,if they wish to express their legitimate displeasure to appropriate parties such as sellers,consumer assistance groups,and city or state consumer affairs officers.
d.The right to be safe,implying that the goods and services available to consumers should not be injurious with normal use.Goods and services should be designed in such a way that the average consumer can use them safely.
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Chapter 4: Social Media: Living in the Connected World
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Q1) Every social media channel has an intended use by its community.
A)True
B)False
Q2) Not-for-profit organizations use social media to connect with the general public,the business community,and each other.
A)True
B)False
Q3) An online community manager is the primary decision maker who runs the firm's social media program.
A)True
B)False
Q4) Business-to-business (B2B)firms rarely use social media for marketing their businesses.
A)True
B)False
Q5) A blogging site is a social media platform where users post news items and hold conversations on specified topics.
A)True
B)False
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Chapter 5: E-Business: Managing the Customer Experience
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Q1) The conversion rate is a basic measurement of the percentage of visitors to a website who make purchases at the site.
A)True
B)False
Q2) By enabling the coordination of all promotional activities to produce a unified,customer-focused promotional message,e-marketing helps reach consumers through:
A) personalization.
B) interactive marketing.
C) mass marketing.
D) integrated marketing.
Q3) A(n)_____ is a software program that allows online shoppers to compare the price of a particular product offered by several online retailers.
A) electronic shopping cart
B) extranet
C) electronic storefront
D) bot
Q4) List out the various Internet fraud issues that consumers and businesses face in e-marketing.
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Chapter 6: Consumer Behavior
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Q1) Differentiate between a need and a motive.
Q2) Marketers define the role of each spouse in terms of four categories.List the categories and provide an example of a purchase decision that traditionally falls into each category.
Q3) Human behavior is solely a function of pressures exerted by external environmental forces on the individual.
A)True
B)False
Q4) Briefly describe the steps involved in the consumer decision process.
Q5) Purchasing music from the Apple iTunes website is considered a high-involvement purchase decision because music is a unique personal choice.
A)True
B)False
Q6) Maslow's hierarchy of needs begins with self-actualization needs and progresses to physiological needs at the highest level.
A)True
B)False
Q7) Who are opinion leaders? Why are they important to marketers?
Q8) Describe the three categories of problem-solving behavior with examples.
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Chapter 7: Business-to-Business (B2B)Marketing
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Q1) Purchases made under cost-reimbursement contracts offer more profit potential to the government than the fixed price contracts.
A)True
B)False
Q2) Which of the following stages of the organizational buying process involves comparing vendors' proposals?
A) Searching for potential sources
B) Acquiring and analyzing proposals
C) Recognizing and determining the characteristics of a need
D) Evaluating proposals and selecting suppliers
Q3) Manufacturing the products in-house is always the best way for companies to acquire needed products.
A)True
B)False
Q4) The consumer market equivalent of new-task buying is limited problem solving. A)True
B)False
Q5) Discuss the major categories of business market demand.
Q6) What are the stages involved in a business buying process?
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Chapter 8: Global Marketing
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Q1) Which of the following methods is most likely to counter for the negative effects of dumping?
A) Controlling access to foreign currencies
B) Imposing protective tariffs
C) Imposing excise duty
D) Appealing to the BIS
Q2) A successful implementation of a straight extension strategy creates universal recognition of a product for consumers from country to country.
A)True
B)False
Q3) A simple and inexpensive way for first-time exporters to reach foreign customers is to sell their products to an export trading company.
A)True
B)False
Q4) Firms often use more than one strategy to enter into foreign markets.
A)True
B)False
Q5) Discuss the NAFTA,CAFTA-DR,and FTAA.
Q6) What is the European Union? What are its goals?
Page 10
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Chapter 9: Market Segmentation, Targeting, and Positioning
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Q1) As compared to undifferentiated marketing,applying a micromarketing strategy allows companies to reach larger markets.
A)True
B)False
Q2) In the VALS system,action-motivated consumers are those who:
A) have a set of ideas and morals or principles they live by. B) are influenced by symbols of success.
C) seek physical activity, variety, and adventure.
D) have high energy level and are eager to buy products.
Q3) Business products contribute directly or indirectly to the production of other goods and services for resale.
A)True
B)False
Q4) The Asian American population is more geographically distributed than either Hispanics or African Americans.
A)True
B)False
Q5) Differentiate between a consumer product and a business product.Give examples.
Q6) What is the use of psychographic segmentation to marketers?
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Chapter 10: Marketing Research and Sales Forecasting
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Q1) A quota sample differs from a stratified sample,as in a quota sample,researchers select subsamples by some random process.
A)True
B)False
Q2) List the benefits and limitations of qualitative sales forecasting methods.
Q3) At present,no industry-wide standards define techniques for measuring Web use.
A)True
B)False
Q4) After defining the problem,the next step in the marketing research process is to conduct the exploratory research.
A)True
B)False
Q5) _____ is a quantitative forecasting technique that assigns weights to historical sales data,giving the greatest weight to the most recent data.
A) Delphi technique
B) Test Market
C) Exponential smoothing
D) Jury of executive opinion
Q6) Differentiate between qualitative and quantitative forecasting techniques.
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Chapter 11: Relationship Marketing and Customer Relationship Management (CRM)
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Sample Questions
Q1) Discuss national account selling.List some of its advantages.
Q2) Which of the following marketing exchanges is most likely to be transaction-based?
A) Golf club membership
B) Buying property from a real estate agent
C) Medical care for a person with a chronic illness
D) Annual service contract with a lawn and garden company
Q3) Successful customer relationship management systems reduce costs by empowering customers to find the information they need to manage their own orders.
A)True
B)False
Q4) Which of the following is true of a vertical strategic alliance created by firms in B2B markets?
A) It is created among the firms at the same level of the supply chain.
B) It can only be formed between companies that serve different industry.
C) It is formed when firms that are at adjacent states in the supply chain.
D) It cannot be formed between two firms if their annual revenues are significantly different.
Q5) What is internal marketing? Why is internal marketing important for a firm?
Page 13
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Chapter 12: Product and Service Strategies
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Q1) Career counseling session is an example of a pure service on the goods-services continuum.
A)True
B)False
Q2) Which of the following terms refers to the development of individual offerings that appeal to different market segments while remaining closely related to the existing product line?
A) Line penetration
B) Line innovation
C) Line extension
D) Line cannibalization
Q3) Which of the following variables of service quality best represents the readiness to serve one's customers?
A) Tangibles
B) Assurances
C) Responsiveness
D) Empathy
Q4) How can we distinguish services from goods? Give an example of how buyers can play an important role in the creation of services.
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Chapter 13: Developing and Managing Brand and Product Categories
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Q1) A line extension involves the addition of new sizes,styles,flavors,or related products to an existing group of products.
A)True
B)False
Q2) Private labels typically provide better profit margins than captive brands.
A)True
B)False
Q3) Product positioning refers to consumers' perceptions of a product's attributes,uses,quality,and advantages and disadvantages relative to competing brands.
A)True
B)False
Q4) Brand recognition is the ultimate stage in brand loyalty that leads consumers to refuse alternatives and search extensively for the desired merchandise.
A)True
B)False
Q5) A brand name should give buyers the correct connotation of the product's image. A)True B)False
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Chapter 14: Marketing Channels and Supply Chain Management
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Q1) Distributors adjust for discrepancies in the market's assortment of goods and services through a process known as _____.
A) benchmarking
B) sorting
C) diffusing
D) social referencing
Q2) Which of the following is a form of intermodal coordination where motor carriers deliver shipments to air carriers who transport them between airports,and then turn them over to motor carriers for local delivery?
A) Fishyback service
B) Piggyback service
C) Horseback service
D) Birdyback service
Q3) When a producer grants exclusive rights to a wholesaler or retailer to sell its products in a specific geographic region it practices intensive distribution.
A)True
B)False
Q4) Discuss the three classes of freight carriers.
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Chapter 15: Retailers, Wholesalers, and Direct Marketers
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Q1) Differentiate between a rack jobber and a drop shipper.Give an example for each.
Q2) A discount house offers fewer services to its customers.
A)True
B)False
Q3) Typically,bread and dairy products are delivered to stores by wholesale intermediaries called:
A) drop shippers.
B) rack jobbers.
C) truck wholesalers.
D) clearing agents.
Q4) Which of the following is the most frequently used form of direct marketing?
A) Direct-response retailing
B) Online retailing
C) Telemarketing
D) Direct mail
Q5) Vending machines are classified as a form of automatic merchandising.
A)True
B)False
Q6) How are retailers classified on the basis of form of ownership? Explain the advantages of each type of ownership.
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Chapter 16: Integrated Marketing Communications,
Advertising, and Public Relations
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Q1) Product placement is a form of non-personal selling where:
A) a company pays a fee to have its products displayed prominently at department stores.
B) a company pays a fee to have its products displayed prominently in a film or TV show.
C) a company engages in promotional tie-ins with other firms through co-branding.
D) a company positions its TV commercials during prime hours for its target market.
Q2) The Tostitos BCS National Championship game will feature the top two college football teams competing for the national title.The Tostitos brand name is included in the event's name because Frito-Lay,the manufacturer,paid for:
A) sponsorship.
B) co-branding rights.
C) direct marketing privileges.
D) cooperative advertising.
Q3) Define nonpersonal selling.Discuss advertising as a type of nonpersonal selling.
Q4) Discuss the importance of feedback in the communication process in the context of promotional messages.
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Chapter 17: Personal Selling and Sales Promotion
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Q1) Discuss the different types of consumer-oriented sales promotions.
Q2) Sales promotions encourage immediate action as they impose limited time frames. A)True
B)False
Q3) Network marketing is a form of field selling in customers' homes.
A)True
B)False
Q4) Taking steps to determine that a potential customer has the need,financial capability,and authority to make a purchase is called canvassing.
A)True
B)False
Q5) A salary is a payment tied directly to the sales or profits that a salesperson generates.
A)True B)False
Q6) Since each purchase decision possesses unique circumstances,presentations are:
A) usually flexible and can be modified to suit customer needs.
B) often prepared in detail ahead of time.
C) generally somewhat negative and disorganized to many potential clients.
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D) usually short on detail, lacking current price quotes and specifications.
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Chapter 18: Pricing Concepts
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Q1) State laws requiring sellers to maintain minimum prices for comparable merchandise are called _____ laws.
A) tax-exemption
B) unfair-trade
C) price-discrimination
D) loss-leader
Q2) Explain the two most common cost-oriented pricing procedures: full-cost and incremental-cost.
Q3) A pricing strategy that emphasizes benefits of a product in comparison to the price and quality levels of competing offerings is called _____ pricing.
A) incremental-cost
B) full-cost
C) cost-plus
D) value
Q4) Which of the following is an example of a volume pricing objective?
A) A value-pricing objective
B) A profit maximization objective
C) A market-share objective
D) A target-return objective
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Chapter 19: Pricing Strategies
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Q1) Which of the following pricing approaches is best suited for a company that is expanding into the global market and will be facing rather low foreign marketing costs?
A) Standard worldwide price
B) Dual pricing
C) Market-differentiated pricing
D) Transfer pricing
Q2) Discuss the four major types of pricing policies,as well as flexible alternatives.
Q3) Retailers achieve opening price point by pricing a quality private-label product above those of manufacturer's brands.
A)True
B)False
Q4) Every online marketer is inherently a global marketer who must understand the internal and external conditions that affect global pricing strategies.
A)True
B)False
Q5) Explain psychological pricing and give three examples of this concept.
Q6) What are the disadvantages of promotional pricing?
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Chapter 20: Your Career in Marketing
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Q1) The primary function of a purchasing agent is to purchase the goods,materials,supplies,and services required by a consumer.
A)True
B)False
Q2) Cover letters should always be addressed as,"To whom it may concern."
A)True
B)False
Q3) Which of the following is most likely to serve as a testimonial to your performance in academic and work settings?
A) Résumé
B) Cover letter
C) Letter of recommendation
D) Online application
Q4) Purchasing managers oversee account services,creative services,and media services departments.
A)True
B)False
Q5) List the elements of an effective letter of recommendation.
Q6) Explain the three basic formats used in preparing a résumé.
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Chapter 21: Developing an Effective Marketing Plan
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Q1) An exit strategy is a plan for a firm to leave the market.
A)True
B)False
Q2) A marketing plan is not reevaluated once it is completely implemented.
A)True
B)False
Q3) The need for a business plan is more acutely felt in a small company than in a large multinational company.
A)True
B)False
Q4) The mission statement puts into words an organization's overall purpose and reason for being.
A)True
B)False
Q5) A marketing plan is a detailed description of the resources and actions needed to achieve stated marketing objectives.
A)True
B)False
Q6) Describe the different components of a business plan.
Q7) What are the reasons a company should develop a marketing plan?
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Chapter 22: Financial Analysis in Marketing
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Q1) Which of the following statements is true of markup?
A) A marketer's markup exerts no influence on its image as perceived by customers.
B) Retailers who offer more services charge larger markups to cover their costs.
C) Markups typically are stated as percentages of net interest expenses.
D) Retailers with a lower turnover rate can make a profit by charging a smaller markup.
Q2) Which of the following profitability ratios measures the firm's efficiency in generating sales and profits from the total amount invested in the company?
A) Inventory turnover
B) Gross profit margin
C) Return on assets
D) Net interest expense
Q3) The difference between assets and liabilities of a company is referred to as owner's equity.
A)True
B)False
Q4) Explain the difference between an income statement and a balance sheet.
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