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The two major types of markets in business are the consumer market and the government
market.
76. The business-to-business (B2B) market involves the marketing of goods and services to
institutions that sell, rent, produce or supply goods to others.
77. When classifying a product as a consumer product or a B2B product, the primary factor
to consider is the financial status of the buyer.
78. Price is the determining factor as to whether a good is classified as a consumer product or
a B2B product.
79.
Chapter 13 – Marketing: Helping Buyers Buy
The purchase of a cash register is likely a B2B product.
80. The consumer market consists of all the individuals or organizations that want goods and
services in order to produce other goods and services to sell, rent, or supply to others.
81. Helen, a manager for Marshall Manufacturing, spends much of her time reviewing the
global, technological, socio-cultural, competitive, and economic factors that can influence
the success of her firm’s marketing efforts. Helen’s efforts indicate that she is involved
with environmental scanning.
Feedback: Environmental scanning is the process of identifying the factors than can affect
marketing success.
82. A cup of yogurt is an example of a product that is always classified as a consumer good.
Feedback: The determining factor as to classification of a good is the buyer’s reason for
buying a product and the way it will be used. A cup of yogurt could be classified a B2B good
if it is bought by a restaurant to resell to its customers.
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83. Products such as computers, telecommunications equipment, PDAs, and other
manufactured or mass produced items are always classified as B2B products.
Feedback: The determining factor as to classification of a good is the buyer’s reason for
buying a product and the way it will be used. Computers, telecommunications equipment,
PDAs could easily fall into the category of consumer products.
84. Market segmentation is the process of dividing a market into several groups whose
members have dissimilar characteristics.
85. Selecting which groups an organization can serve profitably is called target marketing.
86. With careful attention to controlling costs and quality, businesses can successfully satisfy
consumers with a standardized product for different markets.
87.
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Target marketing is a business strategy that focuses a firm’s marketing efforts towards a
potentially profitable segment of a larger market.
88. Because consumers differ in age, educational level, income, and tastes, firms will be
more likely to succeed if they target a segment of a market and develop goods and
services specially tailored to that group.
89. Firms developing products for a narrow segment of a market are less likely to profitably
satisfy that group’s needs.
90. Demographic segmentation divides a market into segments based on the customer’s
location.
91.
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Psychographic segmentation involves dividing a market into segments based on lifestyle,
values, attitudes, or interests.
92. Separating a market by the amount of the product consumed is known as volume
segmentation.
93. The strategy of focusing on small but profitable market segments is called micro
marketing.
94. One-to-one marketing refers to developing a unique mix of goods and services for each
individual customer.
95.
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Travel agencies demonstrate a one-to-one marketing strategy when they develop unique
vacation packages for individual customers.
96. One-to-one marketing is seldom used in B2B markets.
97. Mass marketing means developing products and promotions using little segmentation.
98. A basic principle of relationship marketing is that firms should concentrate on producing
and promoting products that appeal to large groups of people.
99.
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Relationship marketing makes heavy use of media such as television, radio and
newspapers, to convince large groups of customers to buy a standardized product.
100. Relationship marketing moves away from mass production and toward custom-made
goods and services.
101. Relationship marketing is rather easy to implement in the B2B market but almost
impossible to use in the consumer market due to the sheer size of the consumer market.
102. Firms adopting a relationship marketing strategy often establish a database of
information about each customer.
103.
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Relationship marketing depends on understanding individual consumers and responding
quickly to their wants and needs.
104. Consumer behavior is influenced by the attitudes, values, and ways of doing things
that are passed from one generation to the next.
105. The set of values, attitudes, and ways of doing things that result from belonging to a
certain ethnic, religious, or racial group is called that group’s cognitive dissonance.
106. Learning involves changes in an individual’s behavior resulting from previous
experiences and information.
107.
Chapter 13 – Marketing: Helping Buyers Buy
A reference group is society’s accepted values, attitudes, and ways of doing things that
consumers have to learn.
108. Cognitive dissonance refers to the confusion and frustration people experience when
they compare different products they rarely use before making a purchase.
109. In order to be successful, marketers avoid small market segments in favor of larger
targets.
Feedback: Marketers have discovered that small market segments can be very profitable. In
fact, niche marketing, which finds small but profitable market segments and designs custom-
made products for those groups, has become very popular.
110. The purpose of market segmentation is to identify the features of a product that will
appeal to as many customers as possible.
Feedback: Market segmentation attempts to divide the overall market into several groups
whose members have similar characteristics.
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111. Using advances in technology to maintain databases of customer information is more
important for firms involved in mass marketing than it is for those firms using relationship
marketing.
Feedback: Mass marketing tries to develop products that appeal to large groups of consumers
without customizing them. Thus the individual preferences of consumers are not critical to
firms using mass marketing. However, in relationship marketing the goal is to retain
customers over time by offering products that are customized to precisely meet their needs.
This requires the firm to know more about individual customers. Hence, maintaining a
database of customer information is critical to the relationship marketing approach.
112. Melanie is a sales representative for a college textbook publisher. She spends a great
deal of time visiting college professors who have already adopted one of her books for use
in her classes. She makes sure they have all the supplements to the book they need and are
informed about when new editions will be available. Melanie’s emphasis on keeping her
existing customers satisfied is consistent with the philosophy of relationship marketing.
Feedback: The goal of relationship marketing is to keep individual customers over time by
offering them new products that exactly meet their requirements.
113.
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Top management at Prinze Auto Sales has decided to replace their traditional marketing
approach with an approach that emphasizes relationship marketing. Under this new
approach, Prinze’s salespeople will be expected to devote less time to current customers
and a larger share of their time searching for new customers.
Feedback: The goal of relationship marketing is to keep individual customers over time by
offering them new products that exactly meet their requirements, so the salespeople at Prinze
would be encouraged to spend more time contacting existing customers and satisfying their
wants.
114. Click Computers has established a Web site where its customers can get the latest
information about the company’s products, offer suggestions about improving products
and service, and contact technical support via e-mail. The company has even added a chat
room that allows customers to communicate with each other. Click’s approach indicates
that it is trying to utilize relationship marketing.
Feedback: Relationship marketing tends to lead away from mass production and toward
custom-made goods and services. One-way messages in mass media give way to a personal
dialogue among participants. This may occur within a well-designed Web site.
115.
Chapter 13 – Marketing: Helping Buyers Buy
Jason bought an expensive new sports car last week. Immediately after the purchase, he
worried that he paid too much, and that a less expensive model with better gas mileage
would have been a wiser choice. Marketers refer to the doubts Jason is experiencing as
post-purchase stress syndrome.
Feedback: Marketers use the term cognitive dissonance to refer to the doubts consumers often
experience after making a purchase.
116. La Shawna is fascinated by movie stars and others in the entertainment industry. She
often changes her dress, speech, and mannerisms in response to the latest trends in
Hollywood. When big name stars publicly support a social cause, she tends to support it as
well. La Shawna’s behavior suggests that people in show business are an important
reference group for her.
Feedback: A reference group is a group that an individual uses as a reference point in the
formation of attitudes, values and behavior.
117. In general, the broader the market a firm tries to serve, the better its chances of
success.
Feedback: The best segmentation strategy is to use all the variables to come up with a
consumer profile that’s sizable, reachable, and profitable. On the one hand, that may mean not
segmenting the market at all and instead going after the total market. On the other hand, it
may mean going after smaller and smaller segments.
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118. B2B marketers include manufacturers, retailers, hospitals, and the government.
119. The B2B market involves fewer trades and fewer dollars spent than the consumer
market because there are so many more consumers than there are businesses.
120. Marketing strategies used effectively in the business-to-business markets are exactly
the same as strategies used by marketers in consumer markets.
121. In business-to-business markets, sellers rely on wholesalers and retailers to efficiently
distribute their products.
122.
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The number of customers in business-to-business markets is quite large compared to the
number of customers in the consumer market.
123. Buyers in the B2B market tend to make more rational decisions than buyers in the
consumer market.
124. There is much more emphasis on personal selling in the consumer markets than in the
B2B markets.
125. Business-to-business markets tend to be geographically concentrated.
126.
Chapter 13 – Marketing: Helping Buyers Buy
Advertising, public relations and product management are some of the careers available to
a marketing major.
127. Jose has accepted a sales position at Business Solutions Corporation. Prior to this job,
Jose worked in the electronics department of a retail store selling personal computers to
consumers. In his new job at Business Solutions, Jose will sell personal computers to
businesses. Despite the fact that the products sold to these two customer groups are quite
similar, Jose is likely to find that purchasing decisions by buyers in the two markets will
be influenced by different factors.
Feedback: Buyers in the business-to-business market tend to be more rational than buyers in
the consumer market. Industrial buyers often use buying specifications and carefully weigh
the “total product offer” including quality, price, and service.
128. Marketing goods and services to the B2B market relies more heavily on advertising
than marketing efforts aimed toward the consumer market.
Feedback: The strategies used in business-to-business markets are often quite different from
those used in the consumer market because the buyers are so different. B2B buyers expect
personal service, while advertising, a non-personal promotional strategy, can more effectively
reach the large number of customers in the consumer market.
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130. ________ is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
A. Selling
B. Advertising
C. Marketing
D. Mixing markets
131. Which of the following marketing eras refers to the time period from our country’s
first settlers through the early 1900s?
A. production era
B. selling era
C. marketing era
D. customer relationship era
132. The business philosophy of “produce as much as you can because there is a limitless
market” is consistent with which of the following marketing eras?
A. production era
B. selling era
C. marketing era
D. customer relationship era
