mm mc qs philip kotler
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Chapter 1: Defining Marketing for the 21st Century
GENERAL CONCEPT QUESTIONS
Multiple Choice
1. Good marketing is no accident, but a result of careful planning and ________.
a. execution
b. selling
c. strategies
d. tactics
e. research
Answer: a Page: 4 Level of difficulty: Medium
2. Marketing is both an “art” and a “science”—there is constant tension between the formulated
side of marketing and the ________ side.
a. creative
b. selling
c. management
d. forecasting
e. behavior
Answer: a Page: 4 Level of difficulty: Easy
3. The most formal definition of marketing is ________.
a. meeting needs profitably
b. identifying and meeting human and social needs
c. the 4Ps (Product, Price, Place, Promotion)
d. an organizational function and a set of processes for creating, communicating, and delivering,
value to customers, and for managing customer relationships in ways that benefit the organization and
its stake holders.
e. improving the quality of life for consumers
Answer: d Page: 6 Level of difficulty: Medium
4. Marketing management is ________.
a. managing the marketing process
b. monitoring the profitability of the companies products and services
c. selecting target markets
d. developing marketing strategies to move the company forward
e. the art and science of choosing target markets and getting, keeping, and growing customers
through creating, delivering, and communicating superior customer value
Answer: e Page: 6 Level of difficulty: Easy
5. Global marketers must decide ________.
a. which countries to enter
b. how to enter each country (as an exporter, licenser, joint venture partner, contract
manufacturer, or solo manufacturer)
c. how to adapt their product and service features to each country
d. how to price their products in different countries
e. all of the above
Answer: e Pages: 11–12 Level of difficulty: Medium
6. Mohan Sawhney has proposed the concept of ________ to describe a cluster of complementary
products and services that are closely related in the minds of consumers but are spread across a diverse
set of industries.
a. metamarket
b. vertical integration
c. horizontal integration
d. betamarket
e. synchronized marketing
Answer: a Page: 12 Level of difficulty: Hard
7. The ________ promises to lead to more accurate levels of production, more targeted
communications, and more relevant pricing.
a. Age of Globalization
b. Age of Deregulation
c. Industrial Age
d. Information Age
e. Production Age
Answer: d Page: 13 Level of difficulty: Medium
8. Many countries have ________ industries to create greater competition and growth
opportunities.
a. open-market
b. deregulated
c. regulated
d. scientifically segmented
e. created mass market
Answer: b Page: 13 Level of difficulty: Medium
9. Customers are showing greater price sensitivity in their search for ________.
a. the right product
b. the right service
c. the right store
d. value
e. relationships
Answer: d Page: 14 Level of difficulty: Medium
10. ________ can be seen as the development, design, and implementation of marketing programs,
processes, and activities that recognizes the breadth and interdependencies of their effects.
a. Niche marketing
b. Holistic marketing
c. Relationship marketing
d. Supply-chain marketing
e. Demand-centered marketing
Answer: b Page: 17 Level of difficulty: Medium
11. ________ marketing has the aim of building mutually satisfying long-term relations with key
parties such as customers, suppliers, distributors, and other marketing partners in order to earn and
retain their business.
a. Holistic
b. Demand-based
c. Direct
d. Relationship
e. Synthetic
Answer: d Pages: 17–18 Level of difficulty: Easy
12. Companies who form a ________ collect information on each customer’s past transactions,
demographics, psychographics, and media and distribution preferences.
a. sales network
b. holistic union
c. marketing network
d. supply-chain network
e. integrated network
Answer: c Page: 18 Level of difficulty: Hard
13. The ability of a company to deal with customers one at a time has become practical as a result
of advances in ________, computers, the Internet, and database marketing software.
a. improved communication flow
b. information technology
c. just-in-time manufacturing
d. factory customization
e. customer-centered strategies
Answer: d Page: 18 Level of difficulty: Hard
14. One traditional depiction of marketing activities is in terms of the marketing mix or four Ps. The
four Ps are characterized as being ________.
a. product, positioning, place, and price
b. product, production, price, and place
c. promotion, place, positioning, and price
d. place, promotion, production, and positioning
e. product, price, promotion, and place
Answer: e Page: 19 Level of difficulty: Easy
15. The four Ps represent the sellers’ view of the marketing tools available for influencing buyers.
From a buyer’s point of view, each marketing tool is designed to deliver a customer benefit. Robert
Lauterborn suggested that the sellers’ four Ps correspond to the customers’ four Cs. The four Cs are
________.
a. customer focus, cost, convenience, and communication
b. customer solution, customer cost, convenience, and communication
c. convenience, control, competition, and cost
d. competition, cost, convenience, and communication
e. category control, cost, concept development, and competition
Answer: b Pages: 19–20 Level of difficulty: Medium
16. Holistic marketing incorporates ________, ensuring that everyone in the organization embraces
appropriate marketing principles, especially senior management.
a. profit objectives
b. share of customer
c. internal marketing
d. the marketing mix
e. strategic planning
Answer: c Page: 20 Level of difficulty: Hard
17. Marketing is not a department so much as a ________.
a. company orientation
b. philosophy
c. function
d. branch of management
e. branch of economics
Answer: a Page: 20 Level of difficulty: Medium
18. Holistic marketing incorporates ________ and understanding broader concerns and the ethical,
environmental, legal, and social context of marketing activities and programs.
a. safe product design
b. cultural marketing
c. social responsibility marketing
d. cross-functional teams
e. direct sales policies
Answer: c Page: 20 Level of difficulty: Medium
19. The ________ holds that the organization’s task is to determine the needs, wants, and interests
of target markets and to deliver the desired satisfactions more effectively and efficiently than
competitors in a way that preserves or enhances the consumer’s and the society’s well-being.
a. customer-centered business
b. focused business model
c. societal marketing concept
d. ethically responsible marketing manager
e. production-centered business
Answer: c Page: 22 Level of difficulty: Medium
20. Companies see ________ as an opportunity to enhance their corporate reputation, raise brand
awareness, increase customer loyalty, build sales, and increase press coverage.
a. cause-related marketing
b. brand marketing
c. equity marketing
d. direct marketing
e. recognition marketing
Answer: a Page: 23 Level of difficulty: Medium
21. When a customer has a(n) ________ need he/she wants a car whose operating cost, not its
initial price, is low.
a. stated
b. real
c. unstated
d. delight
e. secret
Answer: b Page: 24 Level of difficulty: Hard
22. When a customer has a(n) ________ need the customer wants to be seen by friends as a savvy
consumer.
a. real
b. unstated
c. delight
d. secret
e. stated
Answer: d Page: 24 Level of difficulty: Hard
23. During market segmentation analysis, the marketer identifies which segments present the
greatest opportunity. These segments are called ________.
a. target markets
b. primary markets
c. tertiary markets
d. demographic markets
e. focused markets
Answer: a Page: 24 Level of difficulty: Medium
24. If a marketer decides to use warehouses, transportation companies, banks, and insurance
companies to facilitate transactions with potential buyers, the marketer is using what is called a
________.
a. service channel
b. distribution channel
c. brand channel
d. relationship channel
e. intermediary channel
Answer: a Page: 26 Level of difficulty: Medium
25. ________ includes all the actual and potential rival offerings and substitutes that a buyer might
consider.
a. Competition
b. The product offering
c. A value proposition
d. The supply chain
e. The marketing environment
Answer: a Page: 26 Level of difficulty: Easy
Chapter 3:
Gathering Information and Scanning the Environment
GENERAL CONCEPT QUESTIONS
Multiple Choice
1. The major responsibility for identifying significant marketplace changes falls to the ________.
a. U.S. Department of Labor
b. company’s marketers
c. American Marketing Association
d. industry lobby groups found in Washington, D.C.
e. marketing research industry
Answer: b Page: 72 Level of difficulty: Easy
2. Marketers have extensive information about how consumption patterns vary across countries.
On a per capita basis within Western Europe, the ________ smoke the most cigarettes.
a. Swiss
b. Greeks
c. Irish
d. Austrians
e. French
Answer: d Page: 72 Level of difficulty: Hard
3. All of the following questions EXCEPT ________, would be considered to be forms of
information needs probes.
a. What decisions do you regularly make?
b. What information do you need to make decisions?
c. What data analysis programs would you want?
d. What magazines and trade reports would you like to see on a regular basis?
e. What products would be most closely matched to consumer needs?
Answer: e Page: 73 Level of difficulty: Medium
4. ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and
distribute needed, timely, and accurate information to marketing decision makers.
a. A marketing information system
b. A marketing research system
c. A marketing intelligence system
d. A promotional campaign
e. A marketing database
Answer: a Page: 73 Level of difficulty: Medium
5. The company’s marketing information system should be a cross between what managers think
they need, what managers really need, and ________.
a. what the marketing research department is able to do
b. what consumers are willing to share
c. what the competition is doing
d. what is acceptable industry practice
e. what is economically feasible
Answer: e Page: 73 Level of difficulty: Medium
6. Marketing managers rely on internal reports. By analyzing this information, they can spot
________.
a. micro-markets
b. opportunities and problems
c. macro-markets
d. competitive strategies
e. consumer demographic units
Answer: b Page: 73 Level of difficulty: Easy
7. The heart of the internal records system is the ________.
a. database
b. asset acquisition process
c. order-to-payment cycle
d. service consideration
e. information liquidity ratio
Answer: c Page: 73 Level of difficulty: Hard
8. When a marketer “mines” his or her company’s database, fresh insights can be gained into neglected
customer segments, ________, and other useful information.
a. recent customer trends
b. long-term competitive trends
c. possible new inventions
d. possible new technologies
e. new primary data possibilities
Answer: a Page: 74 Level of difficulty: Medium
9. The internal records system supplies results data, but the marketing intelligence system supplies
________ data.
a. concurrent
b. secondary
c. research
d. happenings
e. premium
Answer: d Page: 74 Level of difficulty: Medium
10. A ________ is a set of procedures and sources managers use to obtain everyday information
about developments in the marketing environment.
a. marketing research system
b. marketing information system
c. product management system
d. marketing intelligence system
e. vertical system
Answer: d Page: 74 Level of difficulty: Medium
11. A company can take several steps to improve the quality of its marketing intelligence. If the company
purchases competitive products for study, attends open houses and trade shows, and reads
competitors’ published reports and stockholder information, the company is using ________ to improve
the quality of its marketing intelligence.
a. sales force surrogates
b. intermediaries
c. external networks
d. advisory panels
e. customer feedback systems
Answer: c Pages: 74–75 Level of difficulty: Hard
12. All of the following would be considered to be steps to improve the quality of marketing intelligence
in a company EXCEPT ________.
a. a company can train and motivate the sales force to spot and report new developments
b. a company can use guerrilla tactics such as going through a competitor’s trash
c. a company can motivate intermediaries to pass along important information
d. a company can network externally
e. a company can purchase information from outside suppliers
Answer: b Pages: 74–76 Level of difficulty: Easy
13. The 2000 U.S. census provides an in-depth look at the population swings, demographic groups,
regional migrations, and changing family structure of 281+ million people. Which of the following steps
to improve the quality of company marketing intelligence system would be most closely associated the
above illustration?
a. A company can purchase information from outside suppliers.
b. A company can take advantage of government data sources.
c. A company can use online customer feedback systems to collect data.
d. A company can network externally.
e. A company can use its sales force to collect and report data.
Answer: b Page: 76 Level of difficulty: Easy
14. There are four main ways that marketers can find relevant online information on competitors’
products and weaknesses, and summary comments and overall performance rating of a product,
service, or supplier. ________ is(are) a type of site that is concentrated in financial services and high-
tech products that require professional knowledge.
a. Independent customer goods and service reviews
b. Distributor or sales agent feedback sites
c. Combo-sites offering customer reviews and expert opinions
d. Customer complaint sites
e. Shopping bot service sites
Answer: c Page: 77 Level of difficulty: Hard
15. A ________ is “unpredictable, short-lived, and without social, economic, and political
significance.”
a. fad
b. fashion
c. trend
d. megatrend
e. style
Answer: a Page: 77 Level of difficulty: Medium
16. A ________ is a direction or sequence of events that has some momentum and durability; the
shape of the future is revealed and many opportunities are provided.
a. fad
b. fashion
c. trend
d. megatrend
e. style
Answer: c Page: 77 Level of difficulty: Hard
17. ________ have been described as “large social, economic, political and technological changes
[that] are slow to form, and once in place, they influence us for some time—between seven and ten
years, or longer.
a. Fads
b. Fashions
c. Trends
d. Megatrends
e. Styles
Answer: d Page: 77 Level of difficulty: Medium
18. Which of the following minority groups in the United States has been associated with one of the
ten megatrends shaping the consumer landscape?
a. African Americans
b. Asian Americans
c. European Americans
d. Hispanic Americans
e. Middle Eastern Americans
Answer: d Page: 78 Level of difficulty: Medium
19. The beginning of the new century brought a series of new challenges. All of the following would
be considered to be among those challenges EXCEPT ________.
a. a deterioration of innovative ideas
b. steep decline of the stock market
c. increasing unemployment
d. corporate scandals
e. the rise of terrorism
Answer: a Page: 78 Level of difficulty: Medium
20. With the rapidly changing global picture, the firm must monitor six major forces. All of the
following would be among those forces EXCEPT ________.
a. demographic
b. economic
c. social-cultural
d. natural
e. promotional
Answer: e Page: 78 Level of difficulty: Easy
21. The main demographic force that marketers monitor is(are) ________.
a. suppliers
b. competitors
c. communication (such as advertising)
d. government reports dealing with birth rates
e. population
Answer: e Page: 79 Level of difficulty: Easy
22. The population explosion has been a source of major concern. Unchecked population growth
and consumption could eventually result in all of the following EXCEPT ________.
a. insufficient food supply
b. depletion of key minerals
c. overcrowding
d. restrictions on competition
e. pollution
Answer: d Page: 79 Level of difficulty: Easy
23. One impact of explosive population growth is illustrated by the case of China. The Chinese
government passed regulations limiting families to one child. One consequence of these regulations is
that ________.
a. the children are so fussed over and spoiled that they become “little emperors”
b. school enrollments are dropping
c. the fledgling automotive business in China will not have customers in a few years
d. open rebellion is being preached
e. “child-oriented businesses” have few customers
Answer: a Page: 80 Level of difficulty: Medium
49. All of the following EXCEPT ________ have been found to influence young people today and cause a
shift of secondary cores values for this group.
a. U2’s Bono.
b. Elvis Presley.
c. The NBA’s LeBron James.
d. Golf’s Tiger Woods.
e. Skateboarder Tony Hawk.
Answer: b Page: 89 Level of difficulty: Easy
50. Although core values are fairly persistent, cultural swings do take place. ________ caused such a
swing in the 1960s.
a. Ford Motor Company
b. George McGovern
c. G.I. Joe action characters
d. The infomercial
e. The Beatles
Answer: e Page: 89 Level of difficulty: Medium
51. Marketers need to be aware of threats and opportunities associated with four trends in the natural
environment. All of the following are among those trends EXCEPT ________.
a. the shortage of raw materials
b. the increased cost of energy
c. near 90 percent corporate support for “green causes”
d. increased pollution levels
e. the changing role of governments
Answer: c Page: 90 Level of difficulty: Easy
Chapter 6: Analyzing Consumer Markets
GENERAL CONCEPT QUESTIONS
Multiple Choice
26. Marketers are always looking for emerging trends that suggest new marketing opportunities.
One such trend is the “metrosexual.” Which of the following items would the metrosexual most likely
have some interest for?
a. An IBM computer.
b. Tickets to WWF wrestling.
c. Saxophone lessons.
d. An all-over body spray by Axe.
e. Cowboy boots made from elephant hide.
Answer: d Page: 173 Level of difficulty: Medium
2. ________ is the study of how individuals, groups, and organizations select, buy, use, and dispose
of goods, services, ideas, or experiences to satisfy their needs and wants.
a. Target marketing
b. Psychographic segmentation
c. Psychology
d. Consumer behavior
f. Product differentiation
Answer: d Page: 173 Level of difficulty: Easy
3. The fundamental determinant of a person’s wants and behavior is the person’s ________.
a. psyche
b. national origin
c. culture
d. peer group
e. family tree
Answer: c Page: 174 Level of difficulty: Medium
4. A child growing up in the United States is exposed to all of the following values EXCEPT
________.
a. achievement and success
b. activity
c. efficiency and practicality
d. the importance of the group in daily life
e. freedom
Answer: d Page: 174 Level of difficulty: Medium
5. Which of the following would be the best illustration of a subculture?
a. A religion.
b. A group of close friends.
c. Your university.
d. A fraternity or sorority.
e. Your occupation.
Answer: a Page: 174 Level of difficulty: Hard
6. With respect to facts about the American consumer, which of the following consumer
electronics is owned by the vast majority of consuming households with a 93 percent reporting
ownership?
a. A personal computer.
b. TiVo DVR.
c. A cellular phone.
d. A microwave oven.
e. A VCR.
Answer: e Page: 175 Level of difficulty: Hard
7. ________ is defined as being relatively homogeneous and enduring divisions in a society, which
are hierarchically ordered and whose members share similar values, interests, and behavior.
a. Culture
b. Subculture
c. Social class
d. The family
e. A group
Answer: c Page: 175 Level of difficulty: Medium
8. Social classes show distinct product and brand preferences in all the following
areas EXCEPT ________.
a. clothing
b. home furnishings
c. leisure activities
d. automobiles
e. fast food
Answer: e Page: 176 Level of difficulty: Medium
9. A person’s ________ consist(s) of all the groups that have a direct (face-to-face) or indirect
influence on his/her attitudes or behavior.
a. culture
b. subculture
c. psychographics
d. reference groups
e. demographics
Answer: d Page: 177 Level of difficulty: Medium
10. A(n) ________ group is one whose values or behavior an individual rejects.
a. aspirational
b. disassociative
c. membership
d. primary
e. procreational
Answer: b Page: 177 Level of difficulty: Easy
11. If a direct mail marketer wished to direct promotional efforts toward the family of ________, efforts
need to be directed toward parents and siblings of the family members.
a. orientation
b. procreation
c. immediacy
d. intimacy
e. reference
Answer: a Page: 177 Level of difficulty: Medium
12. Expected to account for a quarter of the U.S. population by 2050, ________ are the fastest
growing minority.
a. African Americans
b. Asian Americans
c. Hispanic Americans
d. European Americans
e. Arabic Americans
Answer: c Page: 178 Level of difficulty: Easy
13. The dominant cohort, with respect to families, for the next fifty years may very well be the
________ cohort.
a. married-couple household
b. single adults
c. single seniors
d. married seniors
e. married-couples with parents living with them
Answer: b Page: 179 Level of difficulty: Hard
14. Husbands and wives display different decision-making roles in most families. The trend for
dominant decision making in families is for ________ to be responsible for most of the decisions.
a. the husband
b. the wife
c. joint decision making (both husband and wife)
d. holistic decision making
e. child-oriented decision making
Answer: c Page: 179 Level of difficulty: Medium
15. The Disney Channel has become the company’s cash cow for its ability to reach the underserved
________ market—8- to 14-year-olds.
a. teen
b. twixt
c. mid-
d. tween
e. young adult
Answer: d Page: 179 Level of difficulty: Medium
16. People choose products that reflect and communicate their role and actual or desired ________
in society.
a. group
b. status
c. attitudes
d. beliefs
e. feelings
Answer: b Page: 180 Level of difficulty: Medium
17. Consumption may be shaped by ________ (such as marriage, childbirth, or divorce).
a. the psychological life cycle
b. the product life cycle
c. the life/death life cycle
d. post-puberty cycles
e. critical life events or transitions
Answer: e Page: 181 Level of difficulty: Medium
18. Product choice is greatly affected by economic circumstances. All of the following would be
among those circumstances EXCEPT ________.
a. spendable income
b. savings and assets
c. debts
d. occupation
e. borrowing power
Answer: d Page: 182 Level of difficulty: Easy
19. ________ is a set of distinguishing human psychological traits that lead to relatively consistent
and enduring responses to environmental stimuli.
a. Image
b. Personality
c. Beliefs
d. Heredity
e. Culture
Answer: b Page: 182 Level of difficulty: Medium
20. When the Marlboro Man was depicted in advertising as a rugged outdoor, tough cowboy type,
this was done to establish what is called a ________.
a. trademark
b. brand name
c. brand personality
d. psychological approach to advertising
e. brand reference
Answer: c Page: 182 Level of difficulty: Medium
21. ________ portrays the “whole person” interacting with his or her environment.
a. Attitude
b. Reference group
c. Lifestyle
d. Culture
e. Subculture
Answer: c Page: 183 Level of difficulty: Medium
22. Consumers today are experiencing a time famine because of their busy lifestyles. One way to avoid
the difficulties of time famine, which is of particular interest to marketers, is ________.
a. to set fewer goals
b. to multitask
c. to give in to personal burdens
d. to report frustration to management
e. to develop a callous attitude toward marketers
Answer: b Page: 183 Level of difficulty: Hard
23. With respect to understanding consumer behavior, there are four key psychological processes.
All of the following would be among those processes EXCEPT ________.
a. motivation
b. perception
c. learning
d. self-reliance
e. memory
Answer: d Page: 184 Level of difficulty: Easy
24. A ________ when it is aroused to a sufficient level of intensity.
a. need becomes a motive
b. motive becomes a need
c. desire becomes a reality
d. unfulfilled demand becomes a crisis
e. personal demand exceeds the ability to rationally reject
Answer: a Page: 184 Level of difficulty: Hard
25. ________ assumed that the psychological forces shaping people’s behavior are largely
unconscious, and that a person cannot fully understand his or her own motivations.
a. Abraham Maslow
b. Frederick Herzberg
c. Sigmund Freud
d. John Cacioppo
e. Karl Marx
Answer: c Page: 184 Level of difficulty: Medium
Chapter 7: Analyzing Business Markets
GENERAL CONCEPT QUESTIONS
Multiple Choice
1. To create and capture value, sellers need to understand business organizations’ needs,
resources, policies, and ________.
g. demands
h. protocols
i. strategies
j. buying procedures
k. personnel policies
Answer: d Page: 209 Level of difficulty: Easy
27. Webster and Wind define ________ as the decision-making process by which formal
organizations establish the need for purchased products and services and identify, evaluate, and choose
among alternative brands and suppliers.
a. marketing channels
b. organizational buying
c. demand-oriented buying
d. purchasing
e. inventory control
Answer: b Page: 210 Level of difficulty: Medium
28. The ________ consists of all the organizations that acquire goods and services used in the
production of other products or services that are sold, rented, or supplied to others.
a. business market
b. consumer market
c. e-commerce market
d. global market
e. supplier market
Answer: a Page: 210 Level of difficulty: Medium
29. Business markets have several characteristics that contrast sharply with those of consumer
markets. All of the following would be among those characteristics EXCEPT ________.
a. fewer, larger buyers
b. close supplier-customer relationship
c. professional purchasing
d. inverted demand
e. multiple sales calls
Answer: d Pages: 210–211 Level of difficulty: Hard
30. All of the following would be among the major industries that make up the business market
EXCEPT ________.
a. agriculture, forestry, and fisheries
b. manufacturing
c. construction
d. banking, finance, and insurance
e. the Internet
Answer: e Page: 210 Level of difficulty: hard
31. Trained purchasing agents, who must follow their organization’s ________, often purchase
business goods.
a. culture
b. past purchasing history
c. purchasing policies, constraints, and requirements
d. needs
e. financial budgets
Answer: c Page: 211 Level of difficulty: Medium
32. Ultimately, the amount of steel sold to General Motors depends on the consumer’s demand for
GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand
forms is most pertinent?
a. Derived demand
b. Inelastic demand
c. Geographic demand
d. Relational demand
e. Static demand
Answer: a Page: 211 Level of difficulty: Hard
33. The demand for business goods is ultimately derived from the demand for ________.
a. raw materials
b. consumer goods
c. electronics
d. business solutions
e. e-commerce
Answer: b Page: 211 Level of difficulty: Easy
34. The business buyer faces many decisions in making a purchase. The number of decisions
depends on the buying situation. All of the following examples are appropriate to the preceding EXCEPT
________.
a. complexity of the problem being solved
b. newness of the buying requirement
c. number of people involved
d. applicability of situation to mission statement
e. time required
Answer: d Page: 212 Level of difficulty: Hard
35. The purchasing department buys office supplies on a routine basis. This type of purchase is
classified as a ________.
a. straight rebuy
b. modified rebuy
c. new task
d. secondary purchase
e. preordained purchase
Answer: a Page: 212 Level of difficulty: Easy
36. There are a series of guidelines for selling to small businesses. Which of the following should not
be among those guidelines?
a. Don’t waste their time.
b. Do keep it simple.
c. Do use the Internet.
d. Don’t forget about direct contact.
e. Do lump small and midsize businesses together for efficiency sake.
Answer: e Page: 212 Level of difficulty: Medium
37. The business buyer makes the fewest decisions in the ________.
a. modified rebuy
b. regular buy
c. straight rebuy
d. new rebuy
e. new task buy
Answer: c Page: 213 Level of difficulty: Medium
38. Many business buyers prefer to buy a total solution to a problem from one seller. ________ is
the correct term for this process.
a. Channel consolidation
b. Systems buying
c. Vertical buying
d. Horizontal buying
e. Supply buying
Answer: b Page: 213 Level of difficulty: Medium
39. Xerox offers a ________ approach to prospective clients when it offers a complete turnkey
procedure, operation, and management of the client’s information and communication need.
a. supply buying
b. primary buying
c. systems buying
d. co-op buying system
e. direct buying
Answer: c Page: 213 Level of difficulty: Medium
40. If Ampex Support Systems is the single supplier for a local manufacturing company’s MRO
(maintenance, repair, operating) supplies and needs, Ampex Support Systems would then be considered
as providing ________ for the manufacturer.
a. systems buying
b. purchasing support
c. turnkey logistics
d. decision support
e. systems contracting
Answer: e Page: 214 Level of difficulty: Hard
41. ________ is a key industrial marketing strategy in bidding to build large-scale industrial products
(e.g., dams, pipelines, et cetera).
a. Systems contracting
b. Systems buying
c. Systems selling
d. Solutions buying
e. Turnkey logistics
Answer: c Page: 214 Level of difficulty: Hard
42. ________ is composed of all those individuals and groups who participate in the purchasing
decision-making process, who share some common goals and the risks arising from their decisions.
a. The buying center
b. The marketing sales team
c. Strategic management
d. Engineering support
e. The logistics center
Answer: a Page: 214 Level of difficulty: Medium
43. In the purchasing decision process, the ________ are those who request that something be
purchased. They may be users or others in the organization.
a. users
b. initiators
c. influencers
d. deciders
e. approvers
Answer: b Page: 214 Level of difficulty: Easy
44. In the purchasing decision process, the ________ are those who have the power to prevent
sellers or information from reaching members of the buying center.
a. gatekeepers
b. buyers
c. initiators
d. approvers
e. deciders
Answer: a Page: 215 Level of difficulty: Medium
45. The typical buying center has a minimum of ________ members.
a. 2–3
b. 3–4
c. 4–5
d. 5–6
e. 10
Answer: d Page: 215 Level of difficulty: Hard
46. Webster cautions that ultimately, ________ make purchasing decisions.
a. only senior managers
b. individuals, not organizations
c. organizations, not individuals
d. third parties
e. systems contractors
Answer: b Page: 215 Level of difficulty: Medium
47. Small sellers concentrate their marketing efforts on reaching ________.
a. approvers
b. initiators
c. key buying influencers
d. users
e. the purchasing staff
Answer: c Page: 216 Level of difficulty: Medium
48. To the ________ price is everything and transactional selling is used.
a. solution-oriented customers
b. income-oriented customers
c. gold-standard customers
d. strategic-value customers
e. price-oriented customers
Answer: e Page: 216 Level of difficulty: Easy
49. The strategic-value customers want a fairly permanent sole-supplier relationship with your
company. Which of the following would be the best selling format to use with the strategic-value
customer?
a. Transactional selling
b. Consultative selling
c. Quality selling
d. Enterprise selling
e. Indirect demand selling
Answer: d Page: 216 Level of difficulty: Hard
50. Some customers are willing to handle price-oriented buyers by setting a lower price, but
establishing restrictive conditions. All of the following would be among those conditions EXCEPT
________.
a. limiting the quantity that can be purchased
b. no refunds
c. no adjustments
d. no services
e. no customer advertising
Answer: e Page: 216 Level of difficulty: Medium