Chapter 15 1 One of the results of adopting the marketing concept is that the firm

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

Chapter 15: Understanding Marketing Processes and Consumer Behaviour

1. ________ is the process of planning and executing the development, pricing, promotion, and

distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational

objectives.

a. Promotion

b. Relationship marketing

c. Marketing

d. Market strategy

e. Market segmentation

Difficulty: 1 Page-Reference: 464

Question ID: 15-1-01 Skill: Knowledge

Objective: 15.1

2. The marketing concept

a. focuses on building products that provide value to customers.

b. excludes input from the Human Resources department.

c. means building a competitive advantage through product differentiation.

d. means that the whole firm is coordinated to achieve one goal: customer satisfaction.

e. does not include the finance department.

Difficulty: 2 Page-Reference: 464

Question ID: 15-1-02 Skill: Knowledge

Objective: 15.1

3. One of the results of adopting the marketing concept is that the firm

a. develops a strong production orientation.

b. spends more money on marketing.

c. hires more top leaders for research and development.

d. spends more time determining what customers want.

e. becomes much more profit oriented.

Difficulty: 2 Page-Reference: 464

Question ID: 15-1-03 Skill: Comprehension

Objective: 15.1

4. The ________ philosophy says that the entire firm is coordinated to serve its present and potential

customers at a profit.

a. marketing concept

b. marketing functions

c. marketing mix

d. product mix

e. marketing research

Difficulty: 1 Page-Reference: 464

Question ID: 15-1-04 Skill: Knowledge

Objective: 15.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

5. According to the marketing concept,

a. the firm must coordinate its marketing and non-marketing activities.

b. customer satisfaction is the firm’s only objective.

c. maximum short-run profit is the firm’s only objective.

d. the marketing department should function independently of the rest of the firm.

e. the finance area becomes critically important because ways must be found to pay for all the

marketing research activity that is necessary.

Difficulty: 2 Page-Reference: 464

Question ID: 15-1-05 Skill: Comprehension

Objective: 15.1

6. Value is determined by comparing a product’s ________________; the formula requires dividing

____________.

a. costs and benefits; benefits by costs

b. price and quality; price by quality

c. price and durability; durability by price

d. quality and durability; quality by durability

e. availability and price; price by availability

Difficulty: 3 Page-Reference: 465

Question ID: 15-1-06 Skill: Application

Objective: 15.1

7. Value compares a product’s benefits with its ________.

a. utility

b. price

c. satisfaction

d. costs

e. convenience

Difficulty: 1 Page-Reference: 464

Question ID: 15-1-07 Skill: Knowledge

Objective: 15.1

8. Coffee, cold medicine, cologne, cars, and toothpaste are examples of

a. consumable goods.

b. market goods.

c. consumer goods.

d. industrial goods.

e. personal goods.

Difficulty: 1 Page-Reference: 467

Question ID: 15-1-08 Skill: Comprehension

Objective: 15.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

9. Conveyors, coal, transistors, steel, and wheat are examples of

a. industrial goods.

b. consumer goods.

c. company goods.

d. production goods.

e. market goods.

Difficulty: 1 Page-Reference: 467

Question ID: 15-1-09 Skill: Comprehension

Objective: 15.1

10. Sales of janitorial services, mainframe computers, and office supplies to other manufacturers are

examples of

a. industrial marketing.

b. service marketing.

c. relationship marketing.

d. consumer marketing.

e. idea marketing.

Difficulty: 1 Page-Reference: 467

Question ID: 15-1-10 Skill: Comprehension

Objective: 15.1

11. Which of the following terms is used to identify products that are used by companies to produce

other products?

a. Service marketing

b. Industrial goods

c. Target markets

d. Consumer goods

e. Disaggregate products

Difficulty: 1 Page-Reference: 467

Question ID: 15-1-11 Skill: Knowledge

Objective: 15.1

12. Hydraulics Inc. makes hydraulic filters for manufacturing companies. What kind of marketing is it

engaged in?

a. Consumer marketing

b. Disaggregate marketing

c. Market planning

d. Industrial marketing

e. Product differentiation

Difficulty: 1 Page-Reference: 467

Question ID: 15-1-12 Skill: Comprehension

Objective: 15.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

13. Which term is used to identify products that are used by companies to produce other products?

a. Target markets

b. Consumer goods

c. Relationship marketing

d. Industrial goods

e. Service marketing

Difficulty: 1 Page-Reference: 467

Question ID: 15-1-13 Skill: Knowledge

Objective: 15.1

14. Marketing of insurance, airlines, investment counsellors, and health clinics are examples of

a. relationship marketing.

b. industrial marketing.

c. service marketing.

d. idea marketing.

e. consumer marketing.

Difficulty: 2 Page-Reference: 467

Question ID: 15-1-14 Skill: Comprehension

Objective: 15.1

15. Advertising to make people more aware of the hazards of drinking and driving is an example of

a. industrial marketing.

b. relationship marketing.

c. service marketing.

d. idea marketing.

e. consumer marketing.

Difficulty: 2 Page-Reference: 467

Question ID: 15-1-15 Skill: Comprehension

Objective: 15.1

16. If Brighten Your World Inc. sells its light bulbs to the Jacobs Motor Company to be used in all of

their cars as headlights, Brighten Your World is engaging in what type of marketing activity?

a. Marketing research

b. Consumer marketing

c. Relationship marketing

d. Aggregate marketing

e. Industrial marketing

Difficulty: 1 Page-Reference: 467

Question ID: 15-1-16 Skill: Comprehension

Objective: 15.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

17. Harley-Davidson offers social incentives through the Harley Owners Group (H.O.G.), the largest

motorcycle club in the world. This is an example of

a. industrial marketing.

b. relationship marketing.

c. consumer marketing.

d. marketing research.

e. international marketing.

Difficulty: 1 Page-Reference: 467

Question ID: 15-1-17 Skill: Comprehension

Objective: 15.1

18. A bricks-and-mortar retail store chain sells DVDs mostly to university students in large Canadian

cities. It wants to expand its business online and hopes to increase sales by offering more convenience in

ordering for busy students. The vice president thinks that opening a Facebook page is a good idea, but

the president claims that social media sites won’t help increase the company’s business. If the following

facts were known, which one would support the argument made by the president?

a. The rapid changes in social media mean that what is relevant today is outdated tomorrow.

b. Combining search ads with social media campaigns generally leads to higher results for products

than just using general search ads by themselves.

c. Brands that are entered in social networks as topics can build customer relations.

d. Social media sites can increase buzz and word of mouth simply by conversation about a product or

business.

e. Social media sites provide real-time discussions that can include the latest DVDs available or

recommendations for DVD purchases.

Difficulty: 1 Page-Reference: 469-470

Question ID: 15-1-18 Skill: Analysis

Objective: 15.1

19. A small pizza chain wants to expand and have a nationwide presence. Some marketing

managers feel that an integrated marketing strategy should be used so the company can develop a

national brand perception. But the CEO thinks that because each local community is different that each

local area should decide on the marketing campaign that will work best. If the following facts were known,

which one would support the CEO’s view?

a. The company decides to pursue a co-branding partnership with either Pepsi or Coke.

b. All employees must wear a standard uniform.

c. The company’s website has links to individual stores so customers can order pizza online.

d. All of the company’s restaurants feature an art deco interior design.

e. The company encourages individual stores to create their own menu options and pricing structure.

Difficulty: 1 Page-Reference: 468-471

Question ID: 15-1-19 Skill: Analysis

Objective: 15.1

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

20. Single-parent families, food preferences, and the number of women entering the workforce are all

external environmental factors marketing managers must consider when analyzing the ________

environment.

a. public relations

b. legal

c. produce

d. economic

e. social and cultural

Difficulty: 1 Page-Reference: 468-469

Question ID: 15-1-20 Skill: Knowledge

Objective: 15.1

21. The five major environmental factors in the marketing environment are

a. political/legal, social/cultural, technological, infrastructure, and competitive.

b. political/legal, economic, intellectual, social/cultural, and competitive.

c. political/legal, social/cultural, technological, economic, and competitive.

d. infrastructure, social/cultural, technological, climatic, and competitive.

e. political/legal, intellectual, technological, economic, and competitive.

Difficulty: 2 Page-Reference: 468

Question ID: 15-1-21 Skill: Knowledge

Objective: 15.1

22. Your cholesterol level may be controlled with either a physical–fitness program or a drug regimen.

The fitness program and the drugs are examples of

a. dissimilar products.

b. contrary products.

c. international products.

d. brand-name competitive products.

e. substitute products.

Difficulty: 1 Page-Reference: 470

Question ID: 15-1-22 Skill: Comprehension

Objective: 15.1

23. All of the following are principal elements of marketing except

a. Place

b. Product

c. Pricing

d. Promotion

e. Productivity

Difficulty: 2 Page-Reference: 471

Question ID: 15-1-23 Skill: Comprehension

Objective: 15.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

24. Who has the responsibility for developing the plan to introduce a new product, service, or idea?

a. The quality assurance manager

b. The marketing manager

c. The sales manager

d. The production manager

e. The public relations manager

Difficulty: 2 Page-Reference: 470

Question ID: 15-1-24 Skill: Knowledge

Objective: 15.2

25. The ________ is a good, service, or idea that is marketed to fill consumer needs and wants.

a. product

b. place

c. profit

d. promotion

e. price

Difficulty: 1 Page-Reference: 472

Question ID: 15-1-25 Skill: Knowledge

Objective: 15.2

26. When an appliance company offers appliances in colours other than the standard white, it is

modifying its

a. place.

b. profit.

c. promotion.

d. price.

e. product.

Difficulty: 2 Page-Reference: 472

Question ID: 15-1-26 Skill: Knowledge

Objective: 15.2

27. Mary has just completed a detailed and focused strategy for gearing her company’s marketing

activities to meet consumer needs and wants. Mary has developed a ________.

a. promotion plan

b. product positioning

c. sales plan

d. marketing plan

e. marketing mix

Difficulty: 2 Page-Reference: 470

Question ID: 15-1-27 Skill: Comprehension

Objective: 15.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

28. ________ is the creation of a product or product image that differs enough from existing products

to attract consumers.

a. New product development

b. Product differentiation

c. Advertising

d. Product promotion

e. Product modification

Difficulty: 2 Page-Reference: 472

Question ID: 15-1-28 Skill: Knowledge

Objective: 15.2

29. Campbell Soup’s use of the red and white label is a way of achieving

a. product differentiation.

b. publicity.

c. relationship marketing.

d. industrial marketing.

e. market segmentation.

Difficulty: 2 Page-Reference: 472

Question ID: 15-1-29 Skill: Comprehension

Objective: 15.2

30. What is the fundamental goal of product differentiation?

a. To increase profit margins

b. To set the company’s products apart from competitive products in the market

c. To maximize market share

d. To more effectively market to industrial consumers

e. To more effectively market to certain demographic segments of the market

Difficulty: 1 Page-Reference: 472

Question ID: 15-1-30 Skill: Comprehension

Objective: 15.2

31. When Maytag creates the perception that its products are more reliable (as shown by the lonely

repairman), it is using a(n) ________ strategy.

a. product differentiation

b. promotion

c. everyday low prices

d. new product development

e. market segmentation

Difficulty: 2 Page-Reference: 472

Question ID: 15-1-31 Skill: Comprehension

Objective: 15.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

32. What results are expected from a successful product differentiation program?

a. The manner in which the product functions must be changed.

b. Differentiation requires that prices be mid-level in order to generate a high volume of sales.

c. Customer response to the product will change.

d. Differentiation requires that prices be high in order to generate a high volume of sales.

e. Promotional plans will not change.

Difficulty: 2 Page-Reference: 472

Question ID: 15-1-32 Skill: Comprehension

Objective: 15.2

33. What results should be expected if a firm uses a low price strategy for its products?

a. Low prices lead to a larger volume of sales.

b. Low prices represent mid-level quality to consumers.

c. Low prices represent low quality to consumers.

d. Profits per unit are higher.

e. Low prices lead to a lower volume of sales.

Difficulty: 2 Page-Reference: 472

Question ID: 15-1-33 Skill: Comprehension

Objective: 15.2

34. In the selling of nails, ________ is likely to be of little consequence, but in the selling of toys, it is

likely to be crucial.

a. promotion

b. product

c. place

d. price

e. profit

Difficulty: 2 Page-Reference: 472-473

Question ID: 15-1-34 Skill: Comprehension

Objective: 15.2

35. Which element of the marketing mix is illustrated by the use of premiums, trading stamps, and

coupons meant to encourage consumers to buy more of a product?

a. Price

b. Promotion

c. Production

d. Place

e. Productivity improvements

Difficulty: 2 Page-Reference: 473

Question ID: 15-1-35 Skill: Comprehension

Objective: 15.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

36. Which of the following is not one of the promotional tools of a marketing manager?

a. Sales promotion

b. Market segmentation

c. Advertising

d. Personal selling

e. Publicity

Difficulty: 2 Page-Reference: 473

Question ID: 15-1-36 Skill: Comprehension

Objective: 15.2

37. All of the following are part of the buyer’s 4 Cs except

a. Convenience

b. Communication

c. Cost

d. Customer solution

e. Creativity

Difficulty: 2 Page-Reference: 473

Question ID: 15-1-37 Skill: Comprehension

Objective: 15.2

38. ________ is the most highly visible component of the marketing mix.

a. Promotion

b. Place

c. Profit

d. Product

e. Price

Difficulty: 2 Page-Reference: 473

Question ID: 15-1-38 Skill: Knowledge

Objective: 15.2

39. Hansen Trucking Company transports detergent from a loading dock in Toronto to a supermarket

shelf in Sherbrooke. This is the ________ element of the marketing mix.

a. ownership

b. form

c. time

d. product

e. place

Difficulty: 2 Page-Reference: 473

Question ID: 15-1-39 Skill: Comprehension

Objective: 15.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

40. It is the middle of August, and Bob has been driving for the last three hours without air

conditioning. He is hot and thirsty, and would like to find something cold to drink. Bob would consider

________ the most important element in the marketing mix for a soft drink marketer.

a. promotion

b. profit

c. place

d. price

e. product

Difficulty: 1 Page-Reference: 473

Question ID: 15-1-40 Skill: Comprehension

Objective: 15.2

41. The four factors in the marketing mix are

a. advertising, sales promotion, publicity, and public relations.

b. marketing managers, a marketing plan, relationship marketing, and profit.

c. price, place, promotion, and product.

d. profit, price, place, and promotion.

e. demographics, psychographics, geographics, and product–use.

Difficulty: 1 Page-Reference: 471

Question ID: 15-1-41 Skill: Knowledge

Objective: 15.2

42. Which of the following is correct with regard to the elements in the marketing mix?

a. Of the four elements, “product” is generally the least important.

b. The elements are all equally important, regardless of the product being sold.

c. Price plays a small role in fresh meat, but a relatively larger role in selling newspapers.

d. Distribution is not very important in marketing gasoline, but it is important for lumber.

e. Promotion is vital in selling toys, but much less important in selling nails.

Difficulty: 1 Page-Reference: 473

Question ID: 15-1-42 Skill: Comprehension

Objective: 15.2

43. Which of the following is correct with regard to price?

a. It refers only to the actual amount of money that consumers pay for a product.

b. It is generally the second-most important element in the marketing mix.

c. In some cases, high prices will actually attract customers by implying that the product is unusually

good.

d. It is more important for industrial goods than it is for consumer goods.

e. All of these.

Difficulty: 2 Page-Reference: 473

Question ID: 15-1-43 Skill: Comprehension

Objective: 15.2

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

44. If you were the manager for Track & Wheels, a local backhoe dealer, which promotional tool

would likely be the best to sell high-priced backhoes?

a. Product placement

b. Price placement

c. Product differentiation

d. Personal selling

e. New product development

Difficulty: 2 Page-Reference: 473

Question ID: 15-1-44 Skill: Comprehension

Objective: 15.2

45. Which term is used to identify the division of a market into categories of customer types?

a. Industrial marketing

b. Marketing mix

c. Customer marketing

d. Market segmentation

e. Market de-categorization

Difficulty: 2 Page-Reference: 473

Question ID: 15-1-45 Skill: Knowledge

Objective: 15.3

46. Groups of people with similar wants and needs that can be expected to show interest in the same

products are called

a. customers.

b. prospects.

c. homogeneous segments.

d. potential customers.

e. target markets.

Difficulty: 1 Page-Reference: 473

Question ID: 15-1-46 Skill: Knowledge

Objective: 15.3

47. When Reader’s Digest identified and classified its readers into young adults, computer owners,

and professionals/managers, it was performing

a. prospect identification.

b. potential customer categorizing.

c. customer identification.

d. homogeneous segmenting.

e. market segmentation.

Difficulty: 2 Page-Reference: 473-474

Question ID: 15-1-47 Skill: Comprehension

Objective: 15.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

48. When GM offers compact cars, vans, trucks, luxury cars, and sports cars with various features at

various price levels it is trying to provide a vehicle for every

a. prospect.

b. potential customer.

c. market segment.

d. customer.

e. market.

Difficulty: 2 Page-Reference: 473-474

Question ID: 15-1-48 Skill: Comprehension

Objective: 15.3

49. Purple Moon markets adventure software to pre-teen girls. This is an example of

a. relationship marketing.

b. mass customization.

c. product differentiation.

d. customer identification.

e. market segmentation.

Difficulty: 1 Page-Reference: 473-474

Question ID: 15-1-49 Skill: Comprehension

Objective: 15.3

50. When Binney and Smith, the makers of Crayola, began marketing the brand “Crayola IQ” to the

so-called “tweens” group, the company was practising

a. product differentiation.

b. mass customization.

c. industrial marketing.

d. market segmentation.

e. customer identification.

Difficulty: 1 Page-Reference: 473-474

Question ID: 15-1-50 Skill: Comprehension

Objective: 15.3

51. The importance of ________ in marketing can be seen in the example of the introduction of

“Crayola IQ” colour pencils because crayons were seen as too “babyish” by 8- to 12-year-olds.

a. language

b. geography

c. demographics

d. history

e. psychology

Difficulty: 1 Page-Reference: 475-477

Question ID: 15-1-51 Skill: Comprehension

Objective: 15.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

52. The blue jean market is quite varied, and people wear them for different reasons and for different

purposes. There are fashion jeans, work jeans, truck-driving jeans, cowboy jeans, etc. To serve this

market better, many firms practice

a. mass marketing strategy.

b. regional marketing.

c. market segmentation.

d. diversified marketing.

e. multi-marketing.

Difficulty: 2 Page-Reference: 475-477

Question ID: 15-1-52 Skill: Comprehension

Objective: 15.3

53. Information about where people live is used to segment markets by

a. religion and social class.

b. demographics.

c. geographic variables.

d. age and income patterns.

e. product-use.

Difficulty: 2 Page-Reference: 475

Question ID: 15-1-53 Skill: Knowledge

Objective: 15.3

54. The best way to segment the market for umbrellas is probably by

a. geographics.

b. product-use.

c. psychographics.

d. random selection.

e. demographics.

Difficulty: 2 Page-Reference: 475

Question ID: 15-1-54 Skill: Comprehension

Objective: 15.3

55. Segmenting a market by postal codes is an example of segmentation by

a. geographics.

b. demographics.

c. psychographics.

d. product-use.

e. random selection.

Difficulty: 2 Page-Reference: 475

Question ID: 15-1-55 Skill: Comprehension

Objective: 15.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

56. The best segmentation basis for small drug stores or dry cleaners would be

a. geographic.

b. demographic.

c. random selection.

d. product-use.

e. psychographic.

Difficulty: 2 Page-Reference: 475

Question ID: 15-1-56 Skill: Comprehension

Objective: 15.3

57. ________ is segmentation by such traits as age, income, gender, ethnicity, and marital status.

a. Random selection

b. Demographics

c. Psychographics

d. Product-use

e. Geographics

Difficulty: 1 Page-Reference: 475

Question ID: 15-1-57 Skill: Knowledge

Objective: 15.3

58. The target market for one business is classified as 20 to 34 years old, married with children, and

earning $45 000 to $65 000 a year. These customers have been classified by

a. geographic.

b. random selection.

c. psychographics.

d. demographics.

e. product-use.

Difficulty: 2 Page-Reference: 475

Question ID: 15-1-58 Skill: Comprehension

Objective: 15.3

59. Which of the following would not be considered a demographic variable?

a. Attitude

b. Religion

c. Gender

d. Income level

e. Race

Difficulty: 2 Page-Reference: 475

Question ID: 15-1-59 Skill: Comprehension

Objective: 15.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

60. People with similar wants and needs constitute ___________, which clearly requires

___________.

a. a demographic market segment; market segmentation

b. a target market; market segmentation

c. a target market; relationship marketing

d. a geographic market segment; relationship marketing

e. a psychographic market segment; relationship marketing

Difficulty: 3 Page-Reference: 473

Question ID: 15-1-60 Skill: Knowledge

Objective: 15.3

61. The process of dividing a market into categories of customers by age is called

a. product-use market segmentation.

b. relationship marketing.

c. geographic market segmentation.

d. psychographic market segmentation.

e. demographic market segmentation.

Difficulty: 1 Page-Reference: 475

Question ID: 15-1-61 Skill: Knowledge

Objective: 15.3

62. Multicultural marketing is part of market segmentation by _________.

a. psychographics

b. demographics

c. geography

d. product-use

e. attitudes

Difficulty: 1 Page-Reference: 476

Question ID: 15-1-62 Skill: Knowledge

Objective: 15.3

63. Which of the following should be considered as one of the demographic variables for market

segmentation?

a. How the product will be used (e.g., athletic footwear vs. dress shoes)

b. Interests, attitudes, and opinions of consumers

c. Income levels, marital status

d. Where people live

e. None of these

Difficulty: 2 Page-Reference: 475

Question ID: 15-1-63 Skill: Knowledge

Objective: 15.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

64. When consumer characteristics such as life styles, opinions, interests, and attitudes are used,

which basis of segmentation is evident?

a. Geographic

b. Psychographic

c. Product positioning

d. Demographic

e. Product-use

Difficulty: 2 Page-Reference: 477

Question ID: 15-1-64 Skill: Knowledge

Objective: 15.3

65. ________ are particularly important to marketers because marketers can, through marketing

efforts, sway consumers‘ likes and dislikes.

a. Demographics

b. Geographics

c. Marital status and age

d. Psychographics

e. Product-use

Difficulty: 3 Page-Reference: 477

Question ID: 15-1-65 Skill: Knowledge

Objective: 15.3

66. Women who purchase clothes for office wear would be segmented using which variable?

a. Level of income

b. Demographic

c. Geographic

d. Product-use

e. Psychographic

Difficulty: 3 Page-Reference: 477

Question ID: 15-1-66 Skill: Comprehension

Objective: 15.3

67. Companies in Poland have succeeded in overcoming consumer resistance to credit by promoting

the safety and desirability of using credit rather than depending solely on cash. This is an example of the

use of a __________ variable in market segmentation.

a. level of income

b. demographic

c. geographic

d. product-use

e. psychographic

Difficulty: 3 Page-Reference: 477

Question ID: 15-1-67 Skill: Comprehension

Objective: 15.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

68. Jennifer has recently bought two pairs of shoes. One pair was for casual wear and the other was

for jogging. Jennifer bought these shoes on the basis of which segmentation variable?

a. Level of income

b. Demographic

c. Geographic

d. Product-use

e. Psychographic

Difficulty: 3 Page-Reference: 477

Question ID: 15-1-68 Skill: Comprehension

Objective: 15.3

69. The Ford Focus is promoted to consumers on the basis of economy, while the Porsche is

promoted on the basis of high performance. This is an example of

a. relationship marketing.

b. product positioning.

c. product differentiation.

d. mass customization.

e. psychographic segmentation.

Difficulty: 2 Page-Reference: 477-478

Question ID: 15-1-69 Skill: Comprehension

Objective: 15.3

70. A group of people in Canada buy all Hard Core Inc. fashion products because they feel the

clothes relate to their rebel lifestyle. What kind of segmentation would best help you define this group of

individuals?

a. Intrinsic segmentation

b. Psychographic segmentation

c. Demographic segmentation

d. Geographic segmentation

e. Product-use variables segmentation

Difficulty: 2 Page-Reference: 477

Question ID: 15-1-70 Skill: Comprehension

Objective: 15.3

71. Bubbly Inc. has decided to introduce a new line of energy drinks. It does not have the financial

resources to widely promote its new product line, but it can make a real impact if it carefully chooses a

specific market segment. The CEO of Bubbly thinks the best idea is to market the product to young

males, but the VP of Marketing thinks that targeting female professionals is much more likely to lead to

success for the new product line. If the following facts were known, which one would support the CEO’s

position?

a. Bubbly determines that producing the new line of energy drinks will be more profitable than

expanding internationally.

b. As a group, young males consume more energy drinks than any other market segment.

c. On a cost-per-ounce basis, energy drinks cost more than other popular beverages.

d. Several of Bubbly’s competitors have recently tried to associate their product with positive social

causes.

e. Different companies define “young” differently.

Difficulty: 2 Page-Reference: 473-478

Question ID: 15-1-71 Skill: Analysis

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

Objective: 15.3

72. Bubbly Inc. has decided to introduce a new line of energy drinks. It does not have the financial

resources to widely promote its new product line, but it can make a real impact if it carefully chooses a

specific market segment. The CEO of Bubbly thinks the best idea is to market the product to young

males, but the VP of Marketing thinks that targeting female professionals is much more likely to lead to

success for the new product line. If the following facts were known, which one would weaken the CEO’s

position?

a. Surveys show that young males have strong brand loyalty to the market leader in energy drinks.

b. On many lifestyle issues, young males are opinion leaders.

c. Companies that sell clothing usually segment markets more carefully than beverage companies do.

d. Targeting a certain market segement does not guarantee success, even if effective positioning is

accomplished.

e. Young males spend a higher percentage of their income on discretionary purchases than other

demographic groups do.

Difficulty: 2 Page-Reference: 473-478

Question ID: 15-1-72 Skill: Analysis

Objective: 15.3

73. Bubbly Inc. has decided to introduce a new line of energy drinks. It does not have the financial

resources to widely promote its new product line, but it can make a real impact if it carefully chooses a

specific market segment. The CEO of Bubbly thinks the best idea is to market the product to young

males, but the VP of Marketing thinks that targeting female professionals is much more likely to lead to

success for the new product line. If the following facts were known, which one would support the VP of

Marketing’s position?

a. The leading companies in the industry tend to target as wide a market as possible.

b. For expensive items such as cars, female professionals are more likely to be loyal to a known

brand.

c. Surveys show that female professionals have a positive opinion of Bubbly’s current products.

d. Compared to the general population, young females consume more energy drinks per person.

e. Male professionals are increasingly reporting a lack of energy while at work.

Difficulty: 2 Page-Reference: 473-478

Question ID: 15-1-73 Skill: Analysis

Objective: 15.3

Business, Eighth Canadian Edition Griffin, Ebert, Starke, Dracopoulos, Lang

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

74. Bubbly Inc. has decided to introduce a new line of energy drinks. It does not have the financial

resources to widely promote its new product line, but it can make a real impact if it carefully chooses a

specific market segment. The CEO of Bubbly thinks the best idea is to market the product to young

males, but the VP of Marketing thinks that targeting female professionals is much more likely to lead to

success for the new product line. If the following facts were known, which one would weaken the VP of

Marketing’s position?

a. An important goal in the company’s annual report is achieving success in the energy drink

market.

b. Young males often have a low awareness of sodapop brands.

c. Professionals have more disposable income than nonprofessionals.

d. In several different market segments there is increased concern about social responsibility issues.

e. Professionals are usually more concerned than nonprofessionals are about the long-term health

effects of energy drinks.

Difficulty: 2 Page-Reference: 473-478

Question ID: 15-1-74 Skill: Analysis

Objective: 15.3

75. For a company that sells energy drinks, which of the following issues would be LEAST relevant

when evaluating the desirability of the young male market segment?

a. The percentage of young males in the general population

b. Attitudes that members of this group have about companies that sell energy drinks

c. The consumption of energy drinks by young males compared to the consumption patterns of other

groups

d. The likelihood of targeting young males if an energy drink company were producing a different

product

e. A company’s reputation for social responsibility when young males purchase energy drinks

Difficulty: 2 Page-Reference: 473-478

Question ID: 15-1-75 Skill: Analysis

Objective: 15.3

76. Primary data are

a. data gathered for primary areas of the firm, like marketing and production.

b. based on facts gathered from library research.

c. based on data newly collected for a specific research purpose.

d. any of the above, depending upon why the marketer is doing the research.

e. gathered by consulting Statistics Canada publications.

Difficulty: 2 Page-Reference: 480

Question ID: 15-1-76 Skill: Knowledge

Objective: 15.4

77. All of the following are examples of secondary data except

a. genealogical records found at the local library.

b. data published by Statistics Canada.

c. brochures published by provincial tourism departments and cited in a university study of travel.

d. surveys filled out by current students on how they selected their college or university.

e. information available from published sources like the Canada Yearbook.

Difficulty: 1 Page-Reference: 480