Chapter 15 3 Successful pricing strategies are often created to meet a firm's

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

14. Since a person’s cholesterol level can be controlled with either a physical-fitness program or a

drug regimen, this means that fitness programs and cholesterol drugs compete as substitute products.

a. True

b. False

Difficulty: 2 Page-Reference: 470

Question ID: 15-2-145 Skill: Comprehension

Objective: 15.1

15. The four Ps of the marketing mix are product, pricing, promotion, and place, and the most

important of these is price.

a. True

b. False

Difficulty: 1 Page-Reference: 471

Question ID: 15-2-146 Skill: Comprehension

Objective: 15.2

16. In terms of the 4 Ps, promotion is more important in selling toys than it is in selling nails.

a. True

b. False

Difficulty: 1 Page-Reference: 473

Question ID: 15-2-147 Skill: Comprehension

Objective: 15.2

17. In terms of the 4 Ps, the product is probably more important in selling toothpaste than in selling

cars.

a. True

b. False

Difficulty: 1 Page-Reference: 472

Question ID: 15-2-148 Skill: Comprehension

Objective: 15.2

18. The term “product” includes goods, services, or the ideas that attempt to meet a consumer’s

needs.

a. True

b. False

Difficulty: 1 Page-Reference: 472

Question ID: 15-2-149 Skill: Knowledge

Objective: 15.2

19. With respect to the 4 Ps, “price” refers only to the actual amount of money that consumers must

pay for a product or service.

a. True

b. False

Difficulty: 1 Page-Reference: 472

Question ID: 15-2-150 Skill: Comprehension

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

Objective: 15.2

20. Successful pricing strategies are often created to meet a firm’s profit objectives regardless of the

buyers’ purchase objectives.

a. True

b. False

Difficulty: 2 Page-Reference: 472

Question ID: 15-2-151 Skill: Comprehension

Objective: 15.2

21. The marketing plan is a detailed and focused strategy for gearing marketing activities to meet

consumer needs and wants.

a. True

b. False

Difficulty: 1 Page-Reference: 470

Question ID: 15-2-152 Skill: Knowledge

Objective: 15.2

22. When Campbell’s markets its soups in distinctive red-and-white cans, it is practicing product

differentiation.

a. True

b. False

Difficulty: 1 Page-Reference: 472

Question ID: 15-2-153 Skill: Comprehension

Objective: 15.2

23. Segmentation is a strategy for analyzing consumers, not products.

a. True

b. False

Difficulty: 1 Page-Reference: 473

Question ID: 15-2-154 Skill: Knowledge

Objective: 15.3

24. The four most important ways of segmenting markets are by geographic, demographic,

psychographic, and product-use variables.

a. True

b. False

Difficulty: 1 Page-Reference: 475

Question ID: 15-2-155 Skill: Knowledge

Objective: 15.3

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

25. Geographic variables are less important to Pepsi than to Coke.

a. True

b. False

Difficulty: 1 Page-Reference: 475

Question ID: 15-2-156 Skill: Comprehension

Objective: 15.3

26. Psychographic and geographic variables are similar in that neither can generally be changed by

marketing efforts.

a. True

b. False

Difficulty: 2 Page-Reference: 475-477

Question ID: 15-2-157 Skill: Comprehension

Objective: 15.3

27. When marketers segment markets based on demographics, they are doing so on the basis of

factors like age, education, family size, and income, but not on the basis of factors like nationality, race,

and religion.

a. True

b. False

Difficulty: 1 Page-Reference: 475-476

Question ID: 15-2-158 Skill: Knowledge

Objective: 15.3

28. Factors such nationality, race, and religion are psychographic variables in market segmentation.

a. True

b. False

Difficulty: 2 Page-Reference: 475

Question ID: 15-2-159 Skill: Knowledge

Objective: 15.3

29. Campbell’s Soup has discovered that millennials are buying less soup than the population as a

whole. This is an illustration of the importance of demographic variables in marketing.

a. True

b. False

Difficulty: 2 Page-Reference: 475-476

Question ID: 15-2-160 Skill: Comprehension

Objective: 15.3

30. Burberry, whose plaid-lined gabardine raincoats have been a symbol of British tradition since

1856, is repositioning itself as a global luxury brand like Gucci and Louis Vuitton. This is an example of

segmentation based on product-use variables.

a. True

b. False

Difficulty: 2 Page-Reference: 477

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

Question ID: 15-2-161 Skill: Comprehension

Objective: 15.3

31. A car like the Ford Focus tends to be positioned on the basis of economy, while a Porsche tends

to be positioned on the basis of performance.

a. True

b. False

Difficulty: 2 Page-Reference: 477

Question ID: 15-2-162 Skill: Comprehension

Objective: 15.3

32. Psychographic variables are more difficult to change than demographic variables.

a. True

b. False

Difficulty: 2 Page-Reference: 477

Question ID: 15-2-163 Skill: Knowledge

Objective: 15.3

33. Segmentation must be done carefully, as a group of people may share an age category, income,

level, or some other segmentation variable but their spending habits may be quite different.

a. True

b. False

Difficulty: 2 Page-Reference: 478

Question ID: 15-2-164 Skill: Knowledge

Objective: 15.3

34. Market research is the study of what buyers need and how best to meet those needs.

a. True

b. False

Difficulty: 1 Page-Reference: 478

Question ID: 15-2-165 Skill: Knowledge

Objective: 15.4

35. In terms of the 4 Ps, market research is useful for the product, price, and promotion aspects, but

not very useful for the distribution aspect.

a. True

b. False

Difficulty: 1 Page-Reference: 473

Question ID: 15-2-166 Skill: Comprehension

Objective: 15.4

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

36. Market research can be used at almost any point in a product’s existence, but it is most commonly

used when a new or altered product is being considered.

a. True

b. False

Difficulty: 1 Page-Reference: 478-479

Question ID: 15-2-167 Skill: Comprehension

Objective: 15.4

37. Secondary data are generally more useful than primary data because secondary data are more

voluminous, more readily available, and cheaper to obtain.

a. True

b. False

Difficulty: 1 Page-Reference: 480

Question ID: 15-2-168 Skill: Comprehension

Objective: 15.4

38. Lextel Ltd. is involved in a market research study. They have already studied the current situation

to determine which needs exist. Their next step is to begin collecting data.

a. True

b. False

Difficulty: 1 Page-Reference: 480

Question ID: 15-2-169 Skill: Application

Objective: 15.4

39. Hostess Frito-Lay, the maker of Doritos, spent a year studying how to best reach its target market

(teenagers). The researchers hung around shopping malls, schools, and fast-food outlets to watch teens.

This is an example of primary data gathering.

a. True

b. False

Difficulty: 1 Page-Reference: 480

Question ID: 15-2-170 Skill: Comprehension

Objective: 15.4

40. When Procter & Gamble sent video crews into households in the U.K., Germany, and China to

capture people’s daily routines and product interaction, this was an example of both primary data

gathering and the use of observation as a market research method.

a. True

b. False

Difficulty: 1 Page-Reference: 480

Question ID: 15-2-171 Skill: Comprehension

Objective: 15.4

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

41. One disadvantage of the experimentation method of conducting marketing research is its high

cost.

a. True

b. False

Difficulty: 2 Page-Reference: 481

Question ID: 15-2-172 Skill: Knowledge

Objective: 15.4

42. Video mining is used by retailers mainly to catch shoplifters.

a. True

b. False

Difficulty: 1 Page-Reference: 480

Question ID: 15-2-173 Skill: Comprehension

Objective: 15.4

43. At The Bay, online customer satisfaction surveys have replaced the “mystery shopper” system the

company used to use.

a. True

b. False

Difficulty: 1 Page-Reference: 481

Question ID: 15-2-174 Skill: Knowledge

Objective: 15.4

44. The main benefit of focus groups is that the people in the group get to actually try the product and

then give their opinion about it.

a. True

b. False

Difficulty: 1 Page-Reference: 481

Question ID: 15-2-175 Skill: Comprehension

Objective: 15.4

45. Data mining allowed the insurance company Farmers Group to determine that a sports car is not

an exceptionally high insurance risk if it’s not the only family car.

a. True

b. False

Difficulty: 1 Page-Reference: 482

Question ID: 15-2-176 Skill: Knowledge

Objective: 15.4

46. The major influences on consumer behaviour are psychological, personal, social, and cultural.

a. True

b. False

Difficulty: 2 Page-Reference: 482

Question ID: 15-2-177 Skill: Knowledge

Objective: 15.5

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

47. Information seeking is the first stage in the consumer buying process.

a. True

b. False

Difficulty: 2 Page-Reference: 483

Question ID: 15-2-178 Skill: Knowledge

Objective: 15.5

48. A consumer who recognizes that he or she is thirsty during a shopping trip is in the information

seeking stage of the consumer buying process.

a. True

b. False

Difficulty: 3 Page-Reference: 483-484

Question ID: 15-2-179 Skill: Comprehension

Objective: 15.5

49. Suppose that you have just obtained your first job after graduation, and you conclude that your

new income will allow you purchase items that were once too expensive for you. You are in the

information seeking stage of the consumer buying process.

a. True

b. False

Difficulty: 2 Page-Reference: 483-484

Question ID: 15-2-180 Skill: Comprehension

Objective: 15.5

50. You and your spouse notice that the sports car you currently own is not going to be suitable for

travelling when the new baby comes along. You are in the problem recognition stage of the consumer

buying process.

a. True

b. False

Difficulty: 2 Page-Reference: 483-484

Question ID: 15-2-181 Skill: Comprehension

Objective: 15.5

51. You have just purchased a new Chevrolet. While driving, you notice that a new Ford has stopped

beside the road and has its hazard lights blinking. You smile but decide to stop anyway to help out. You

are in the evaluation of alternatives stage of the consumer buying process.

a. True

b. False

Difficulty: 2 Page-Reference: 484

Question ID: 15-2-182 Skill: Comprehension

Objective: 15.5

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

52. Before buying a new cell phone, you might read about different brands, or ask a sales clerk for a

recommendation, or rely on your own past experience. All of these actions illustrate that you are in the

information seeking stage of the consumer buying process.

a. True

b. False

Difficulty: 2 Page-Reference: 484

Question ID: 15-2-183 Skill: Comprehension

Objective: 15.5

53. Emotional motives lead to irrational thinking and usually wrong decisions.

a. True

b. False

Difficulty: 2 Page-Reference: 484

Question ID: 15-2-184 Skill: Knowledge

Objective: 15.5

54. A consumer who is dissatisfied with a product the first time it is used will normally try the product

one more time (but only one more time) to give it another chance.

a. True

b. False

Difficulty: 2 Page-Reference: 484

Question ID: 15-2-185 Skill: Comprehension

Objective: 15.5

55. Consumer markets are more important to a company than commercial markets because

consumer markets are observable daily and are visible to the public.

a. True

b. False

Difficulty: 2 Page-Reference: 485

Question ID: 15-2-186 Skill: Comprehension

Objective: 15.6

56. Unlike most consumers, organizational buyers are professional, specialized, and expert.

a. True

b. False

Difficulty: 2 Page-Reference: 485

Question ID: 15-2-187 Skill: Knowledge

Objective: 15.6

57. Foreign customers typically differ from domestic buyers in language, customs, business practices,

and consumer behaviour.

a. True

b. False

Difficulty: 1 Page-Reference: 486

Question ID: 15-2-188 Skill: Knowledge

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

Objective: 15.7

58. Marketing managers have learned through experience that the Canadian marketplace is the real

proving ground for products and, if successful here, those products may be exported and marketed

internationally without much change.

a. True

b. False

Difficulty: 2 Page-Reference: 486-487

Question ID: 15-2-189 Skill: Comprehension

Objective: 15.7

59. Small business don’t generally fail because of location problems.

a. True

b. False

Difficulty: 2 Page-Reference: 489

Question ID: 15-2-190 Skill: Knowledge

Objective: 15.7

1. What is the ratio for value?

Difficulty: 2 Page-Reference: 465

Question ID: 15-3-191 Skill: Knowledge

Objective: 15.1

2. List the four forms of utility.

Difficulty: 2 Page-Reference: 465

Question ID: 15-3-192 Skill: Knowledge

Objective: 15.1

3. What is a consumer good?

Difficulty: 2 Page-Reference: 467

Question ID: 15-3-193 Skill: Knowledge

Objective: 15.1

4. List the five environmental factors in a company’s external environment.

Difficulty: 2 Page-Reference: 468

Question ID: 15-3-194 Skill: Knowledge

Objective: 15.1

5. List the four elements in the marketing mix.

Difficulty: 2 Page-Reference: 471

Question ID: 15-3-195 Skill: Knowledge

Objective: 15.2

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

6. What is a product?

Difficulty: 2 Page-Reference: 472

Question ID: 15-3-196 Skill: Knowledge

Objective: 15.2

7. What is a target market?

Difficulty: 2 Page-Reference: 473

Question ID: 15-3-197 Skill: Knowledge

Objective: 15.3

8. Identify four bases for market segmentation.

Difficulty: 2 Page-Reference: 475

Question ID: 15-3-198 Skill: Knowledge

Objective: 15.3

9. What are the psychographic variables used in market segmentation?

Difficulty: 1 Page-Reference: 477

Question ID: 15-3-199 Skill: Knowledge

Objective: 15.3

10. What is secondary data?

Difficulty: 2 Page-Reference: 480

Question ID: 15-3-200 Skill: Knowledge

Objective: 15.4

11. What is primary data?

Difficulty: 2 Page-Reference: 480

Question ID: 15-3-201 Skill: Knowledge

Objective: 15.4

12. List four basic methods for collecting marketing research data.

Difficulty: 2 Page-Reference: 480-481

Question ID: 15-3-202 Skill: Knowledge

Objective: 15.4

13. What is the first step in the consumer buying process?

Difficulty: 2 Page-Reference: 483

Question ID: 15-3-203 Skill: Knowledge

Objective: 15.5

14. What is the last step in the consumer buying process?

Difficulty: 2 Page-Reference: 484

Question ID: 15-3-204 Skill: Knowledge

Objective: 15.5

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

15. List the components of the organizational market.

Difficulty: 2 Page-Reference: 485

Question ID: 15-3-205 Skill: Knowledge

Objective: 15.6

16. What is the institutional market?

Difficulty: 2 Page-Reference: 485

Question ID: 15-3-206 Skill: Knowledge

Objective: 15.6

1. What is marketing?

Difficulty: 2 Page-Reference: 464

Question ID: 15-4-207 Skill: Knowledge

Objective: 15.1

2. Describe the four utilities provided by marketing.

Difficulty: 2 Page-Reference: 465

Question ID: 15-4-208 Skill: Knowledge

Objective: 15.1

3. Describe the difference between consumer goods and industrial goods.

Difficulty: 1 Page-Reference: 467

Question ID: 15-4-209 Skill: Comprehension

Objective: 15.1

4. What are the major external factors that affect a tobacco company? Give an example of these

factors.

Difficulty: 3 Page-Reference: 467-470

Question ID: 15-4-210 Skill: Comprehension

Objective: 15.1

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

5. Choose three different consumer products to demonstrate how the importance of the marketing mix

elements varies.

Difficulty: 2 Page-Reference: 470-473

Question ID: 15-4-211 Skill: Comprehension

Objective: 15.2

6. What are the four principal elements of marketing which managers rely on in planning and

implementing marketing strategies?

Difficulty: 2 Page-Reference: 470-473

Question ID: 15-4-212 Skill: Knowledge

Objective: 15.2

7. When marketing a product, it is vital that a firm creates a marketing mix. Briefly discuss the

strategies that combined account for the marketing mix.

Difficulty: 3 Page-Reference: 470-473

Question ID: 15-4-213 Skill: Comprehension

Objective: 15.2

8. Identify and briefly describe the 4 Ps of marketing.

Difficulty: 1 Page-Reference: 470-473

Question ID: 15-4-214 Skill: Knowledge

Objective: 15.2

9. What is a target market? Briefly explain how a well-defined target market is important to a company.

Difficulty: 3 Page-Reference: 473-474

Question ID: 15-4-215 Skill: Comprehension

Objective: 15.3

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

10. What is a market segment? How does a marketing manager use information about a market

segment? In what ways would a market likely be segmented?

Difficulty: 2 Page-Reference: 475-478

Question ID: 15-4-216 Skill: Comprehension

Objective: 15.3

11. What is product positioning?

Difficulty: 2 Page-Reference: 477-478

Question ID: 15-4-217 Skill: Knowledge

Objective: 15.3

12. Discuss the effects that demographics can have an effect on marketing strategies.

Difficulty: 2 Page-Reference: 475-477

Question ID: 15-4-218 Skill: Comprehension

Objective: 15.3

13. Give some specific examples of how some companies have already capitalized on changing

demographics.

Difficulty: 2 Page-Reference: 475-477

Question ID: 15-4-219 Skill: Comprehension

Objective: 15.3

14. What is market segmentation and why is it important?

Difficulty: 2 Page-Reference: 473-474

Question ID: 15-4-220 Skill: Comprehension

Objective: 15.3

15. What is a market segment? How does a marketing manager use information about a market

segment? In what ways would a market likely be segmented?

Difficulty: 2 Page-Reference: 473-474

Question ID: 15-4-221 Skill: Comprehension

Objective: 15.3

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

16. Market research can occur at any point in a product’s existence. Briefly discuss each step in the

research process.

Difficulty: 2 Page-Reference: 480

Question ID: 15-4-222 Skill: Knowledge

Objective: 15.4

17. Describe the key factors that influence the consumer buying process.

Difficulty: 3 Page-Reference: 483

Question ID: 15-4-223 Skill: Knowledge

Objective: 15.5

18. How does an understanding of consumer behaviour help a marketing manager? Include the

meaning of the major factors influencing consumer behaviour.

Difficulty: 2 Page-Reference: 482-483

Question ID: 15-4-224 Skill: Comprehension

Objective: 15.5

19. Identify the five steps in the consumer buying process.

Difficulty: 1 Page-Reference: 483

Question ID: 15-4-225 Skill: Knowledge

Objective: 15.5

20. What must a marketing manager do to successfully market products or services in an

international market?

Difficulty: 2 Page-Reference: 486-487

Question ID: 15-4-226 Skill: Comprehension

Objective: 15.7

21. Explain how international promotion is different from domestic promotion.

Difficulty: 1 Page-Reference: 487

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

Chapter 15—Understanding Marketing Processes and Consumer Behaviour

Question ID: 15-4-227 Skill: Comprehension

Objective: 15.6

22. What marketing factors are appropriate for successful small business firms? Discuss how these

factors figure in the failure of other small firms.

Difficulty: 2 Page-Reference: 488-489

Question ID: 15-4-228 Skill: Comprehension

Objective: 15.7