If self-interest creates misunderstanding about role expectations, the end result is
frustration and conflict for the whole channel.
a. True
b. False
Fixed costs vary with the number of units produced or sold.
a. True
b. False
Scenario 6.2
Use the following to answer the questions.
Both the Racer and the Strider were very popular choices for family vans. Racer noticed
that the majority of its customers were families with 3 or more children, and so they
developed commercials that featured larger families. They also produced commercials
that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario
and her husband were currently shopping for a van for their family. As Alicia listened to
an advertisement on the television about the Strider, she noticed that the Strider cost
about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the
Racer, which also cost about $27,000, but had gas mileage of about 21 mpg. She also
liked the way the family was portrayed in the Racer ad, showing the children in the
back seats having plenty of room, watching the DVD players, and having their own
sound controls. When she spoke to Carlos, her husband, about how much she liked the
Racer van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia
didn’t agree with that number, he produced a magazine ad that supported his claim of
the 16 mpg for the Racer. Alicia couldn’t believe that she had made such an error in
hearing what the gas mileage was for the Racer and the Strider.
The fact that Alicia had remembered the gas mileage of the Racer incorrectly is most
likely
an example of:
a. selective expression.
b. selective retention.
c. perceptual extension.
d. perceptual bias.
e. selective distortion.
A firm that considers costs and revenue secondary to competitors’ prices when setting
its own prices is using a competition-based pricing strategy.
a. True
b. False
An advertisement from a ski lodge extolling the benefits of a summer getaway in the
mountains uses promotion to:
a. combat competitive promotional efforts.
b. stimulate demand.
c. reduce sales fluctuations.
d. encourage product trial.
e. retain loyal customers.
A marketing information system provides an irregular and unstructured flow of
information from internal sources within the organization.
a. True
b. False
Consumers view the illegal downloading of copyrighted materials as more unethical if
the person’s motivation is primarily for fun, then if it is for personal gain.
a. True
b. False
Scenario 6.1
Use the following to answer the questions.
Consumers use information from many sources when making purchasing decisions,
including information from friends and family members. One of the most dissatisfying
consumer experiences is with auto repair. Aware of this, Kate has asked several of her
friends and family members where they have their cars repaired, since she has
experienced a problem starting her car when the weather is cold. Kate has heard that
Skola’s Auto Repair has reasonable prices, but it can be difficult to get an appointment.
Steve, one of Kate’s friends, had a very poor experience with Skola’s. However, once he
complained to them, they fixed the situation and now he prefers their auto repair shop
over others. Positive feelings generated by satisfaction with Skola’s response will
become part of Steve’s:
a. consideration set.
b. motives.
c. selective retention.
d. response.
e. attitude.
Within the information search step of the consumer buying decision process, the two
primary aspects that exist are:
a. consideration and evoked sets.
b. personal information and non-personal information.
c. selective retention and selective distortion.
d. internal search and external search.
e. company-produced information and internal information.
Perception is a process in which an individual selects, organizes, and interprets
information received through the sense organs.
a. True
b. False
When a consumer purchases products occasionally or needs information about an
unfamiliar brand in a familiar product category, he or she will most likely engage in:
a. perceptual mapping.
b. routinized response behavior.
c. extended decision making.
d. impulse searching.
e. limited decision making.
Technology affects the types of products offered to consumers.
a. True
b. False
On-time delivery is crucial to a business customer, since a late delivery may hold up a
production line or cause the firm to lose sales.
a. True
b. False
Managing customer relationships requires identifying patterns of______ the most
promising and profitable customers.
a. demographics
b. buying behavior
c. retailer information
d. personality differences
e. stock market cycles and then using that information to focus on
Demand depends only on the price of the product.
a. True
b. False
A core competency is something a company does extremely well, which sometimes
gives it an advantage over its competition.
a. True
b. False