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T OR F: People participate in many cultures and even long-standing cultural traditions can shift, which makes it important for marketers to always be alert to changes.

true

The political/legal environment comprises political parties, governmental organizations, and

a. legislation and laws.

b. citizens.

c. interest groups.

d. for-profit and nonprofit businesses.

e. international influences.

a. legislation and laws.

Strategic efforts to supply consumers with environmentally friendly merchandise are called

a. reduce, reuse, recycle.

b. green marketing.

c. the green generation.

d. environmental exploitation.

e. earth marketing.

b. green marketing.

T OR F: Most companies operate in isolation to produce their products.

false

T OR F: Firms that disingenuously market products or services as environmentally friendly, with the goal of gaining public approval and sales rather than improving the environment, are engaging in greenwashing.

true (green washing = bad, green marketing = good)

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their

a. social concerns.

b. culture.

c. demographics.

d. generational cohorts.

e. religion.

b. culture.

Marketers must consider the entire business process from the point of view of the

a. macroenvironment.

b. corporate partners.

c. immediate environment.

d. competition.

e. consumer.

e. consumer.

T OR F: Consumers' needs and wants, as well as their ability to purchase, depend on a host of factors that change over time.

true

Marketers often decide which population segments to target based on income, because income determines consumer

a. purchasing power.

b. education level.

c. marketing influence.

d. desirability.

e. occupational level.

a. purchasing power.

A generational cohort is a group of people who

a. purchase only one brand of a product throughout their lifetime.

b. grew up and went to school together.

c. have the same beliefs and values as the generation that came before them.

d. have similar purchase behaviors because they have shared the same stage of life.

e. are not open to new things.

d. have similar purchase behaviors because they have shared the same stage of life. (ex: gen-z)

Marketers fear negative word of mouth because when consumers are dissatisfied, they

a. are less likely to say something than when they are satisfied.

b. often want to complain to many people.

c. buy more of the product to prove they were correct in their criticism.

d. often file a lawsuit.

e. don't buy any of the company's other products.

b. often want to complain to many people. (consumers complain to others)

T OR F: The consumer decision process begins with a comparison of available alternatives.

false

T OR F: One benefit of having satisfied customers is that they may spread positive word of mouth.

true

Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process?

a. need recognition

b. postpurchase evaluation

c. information search

d. situational analysis

e. evaluation of alternatives

e. evaluation of alternatives

The consumer buying process begins when

a. a consumer enters a store.

b. consumers' functional needs are greater than their psychological needs.

c. a consumer's performance risk is minimized.

d. a consumer recognizes an unsatisfied need.

e. learning follows perception.

d. a consumer recognizes an unsatisfied need.

Learning refers to a change in a person's thought process or behavior that arises from

a. attitudes.

b. experience.

c. spending.

d. cultural norms.

e. postpurchase dissonance.

b. experience.

The consumer decision process model represents

a. the concept of habitual decision making.

b. the retrieval of an evoked set based on physiological needs.

c. the steps that consumers go through before, during, and after making purchases.

d. the shift from an internal to an external locus of control.

e. the types of decisions all consumers make for each product or service purchase.

c. the steps that consumers go through before, during, and after making purchases.

T OR F: Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.

true

T OR F: A reference group may have direct or indirect influence on your attitude toward a hardware store.

true

T OR F: When considering a purchase decision, people generally buy one product or service instead of another because they perceive it to be a better value.

true

Hospitals, schools, and religious organizations are examples of________ buyers.

a. manufacturing

b. consumer

c. institutional

d. factory agent

e. government agencies

c. institutional

Both the B2B and B2C buying processes begin with

a. central planning.

b. need recognition.

c. postpurchase dissonance.

d. alternative evaluation.

e. order specification.

b. need recognition.

T OR F: Structured proposals are expected by consumers in the B2C process.

false

Whether targeting consumers or resellers, marketers need to focus on

a. creating value for their customers.

b. buying center synergy.

c. private exchange efficiency.

d. corporate profit sharing.

e. reducing derived demand.

a. creating value for their customers.

Unlike manufacturers,________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them.

a. producers

b. consumers

c. resellers

d. raw materials suppliers

e. gatekeepers

c. resellers

The buying decision is likely to be most complex and take longest to complete in a(n)________ B2B buying situation.

a. new buy

b. modified rebuy

c. straight rebuy

d. adapted buy

e. generic buy

a. new buy

T OR F: B2B marketing involves businesses, governments, and consumers.

false

The process through which organizations invite alternative vendors or suppliers to bid on supplying their required components or specifications is formally referred to as

a. specification review.

b. contract development.

c. a bidding initiative.

d. request for proposals.

e. invitation to review.

d. request for proposals.

Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are

a. decentralized and informal.

b. less focused on customer value creation.

c. identical and interchangeable.

d. more formal and structured.

e. based on derived supply analysis.

d. more formal and structured.

If a B2B customer is satisfied with an existing supplier, it will probably engage in a(n)________ to purchase additional quantities of the item.

a. new buy

b. modified rebuy

c. adapted buy

d. straight rebuy

e. generic buy

d. straight rebuy

T OR F: Global expansion often begins when a firm receives an order for its product from another country

true

T OR F: A franchise agreement refers to collaborative relationships between independent firms that do not invest in one another.

false

T OR F: The greater the wealth of people in a country, generally, the better the market opportunity a firm will have in that particular country.

true

Globalization refers to the processes by which goods, services, capital, people, information, and ideas

a. are onshored and offshored.

b. flow across national borders.

c. are integrated through IMF facilitation.

d. are similar in various markets.

e. affect corporate culture.

b. flow across national borders.

T OR F: Jerome wants information about the infrastructure in the countries his company is planning to export to, so he should gather information about the transportation and distribution channels in each country.

true

When entering a foreign market, the least risky entry strategy is

a. franchising.

b. exporting.

c. joint venture.

d. direct investment.

e. strategic alliance.

b. exporting. (selling products produced in your home country to buyers, businesses, or consumers located in another country)

T OR F: In a joint venture, the burden of ownership, control, and profits falls on the market entry firm.

false

T OR F: Tariffs are intended to make imported goods less expensive and thus less competitive with domestic products.

false

T OR F: There is only one global product strategy: to sell a product or service similar to that sold in the home country but with minor adaptations.

false

Tariffs protect domestic producers by

a. making imported products more expensive.

b. increasing brand recognition.

c. reducing the cost of production.

d. offering subsidies to exports.

e. avoiding regulation.

a. making imported products more expensive.