Principles of Marketing - Study Guide Ch.6 True/False
Indicate whether the statement is true or false. ____ 1. You cannot implement the marketing concept without understanding customers.
____ 2. Wants are considered at the root of all human behavior.
____ 3. A house is an example of a product that satisfies just one need: the physiological need for shelter.
____ 4. Research has shown that fear is never an effective emotional motive for customers.
____ 5. Patronage purchasing is usually limited to large, expensive purchases.
____ 6. The decision processes and actions of consumers as they buy services and products are known as buyingbehavior.
____ 7. The strength of the need and urgency to satisfy the need is an important part of the first step in the consumer decision-making process.
____ 8. After a consumer gathers information about how to satisfy her need, the next step is to make the purchase.
____ 9. When a purchase has been made, the consumer decision-making process has been completed.
____ 10. A person’s age has a major influence on consumer behavior.
____ 11. Self-concept refers to the way a person lives as reflected by material goods, activities, and relationships.
____ 12. Traditionally, culture has been defined by the activities, relationships, and institutions shared by a group of people over many generations.
____ 13. Limited decision making is not strictly for expensive items.
____ 14. Marketers have found that consumers who choose a product using routine decision making want and need just as much information as consumers involved in extensive decision making.
____ 15. Marketing that encourages customers to “join” their reference group by purchasing and using products and services preferred by group members is rarely effective.
Identify the choice that best completes the statement or answers the question. ____ 16. Which of the following is an example of a final consumer?
A professional photographer buys a new camera to use for taking wedding portraits.
You buy a soft drink at a local grocery and drink it on the way home.
A dental office purchases new couches and tables for the waiting room.
All of the above are final consumers.
____ 17. Which of the following is at the top of Abraham Maslow’s hierarchy of needs?
____ 18. When you buy a Father’s Day card for your dad to show him that you love him, which of the following is probably influencing you the most?
____ 19. Patronage buying motives are based on
____ 20. You just realized you need to buy a cake for your sister’s birthday party, so you begin looking through the phone book for a nearby bakery. Which stage of the consumer decision-making process are you in?
____ 21. Which step in the consumer decision-making process involves reaching an agreement with the business selling the product on what you will buy, the cost, the payment method, and how you will receive the product?
____ 22. The enduring pattern of emotions and behaviors that define an individual is known as
____ 23. The history, beliefs, customs, and traditions of a group is called
____ 24. What kind of decision making are you probably using when you buy a gallon of milk?
does not usually involve all five steps of the decision-making process.
is normally made for expensive purchases.
is common in business purchases but rarely used in consumer purchases.
usually takes less time than limited decision making.
Numeric Response 26. In a recent year, U.S. advertisers spent $60 billion on television advertising. This number made up 40 percent of total advertising. What was the dollar amount spent by U.S. advertisers on all other forms of advertising?
A computer store sells to both business and final consumers. Last month the average sale to business consumers was $900, and the average sale to final consumers was $600. There were 250 business customers averaging 3 purchases during the month, and 1,000 final customers that averaged 2.5 purchases per month.
27. Calculate overall total monthly sales.
28. Calculate the percentage of total monthly sales to final consumers.
29. Calculate the dollar amount of total monthly sales to business consumers.
30. The breakeven point is the total fixed cost divided by the difference between the selling price and the variable cost per unit. If a business has a fixed cost of $7,000 for an item, variable cost of $30, and selling price of $100, find the breakeven point.
Complete each statement. 31. ____________________ consumers buy goods and services to produce and market other goods and services or for resale.
32. An unfulfilled desire is called a(n) ____________________.
33. A(n) ____________________ is anything you require to live.
34. The set of positive or negative factors that direct individual behavior is called ____________________.
35. Reasons to buy based on facts or logic are called ____________________ motives.
36. The characteristics and character that make a person unique are called personal ____________________.
37. A set of characteristics uniting a group based on ancestry, country of origin, language, and traditions is known as ____________________.
38. ____________________ is a frame of mind developed from a person’s values, beliefs, and feelings.
39. A(n) ____________________ environment is made up of the groups and organizations that people live and interact with on a regular basis.
40. A(n) ____________________ group is a group of people or an organization that an individual admires, identifies with, and wants to be a part of.
Short Answer 41. Define the term consumer behavior.
42. List Abraham Maslow’s hierarchy of needs in order from bottom to top and give an example of each.
43. Define the term buyingmotives and name the three categories of buying motives.
44. Define and name the steps of the consumer decision-making process.
45. More and more companies provide follow-up telephone calls to customers after a sale, or arrange for a free service visit or other after-sale service. Briefly explain why companies are doing this.
46. Define the term lifestyle.
Essay 47. Briefly explain how the work of Abraham Maslow has helped marketers.
48. Briefly explain how customers become loyal to a product or business.
49. The postpurchase evaluation usually involves two parts. Briefly describe them.
50. Identify some factors that have caused culture to become less important than social environment to many people in the United States. Give some examples of a social environment.
Principles of Marketing - Study Guide Ch.6
Answer Section TRUE/FALSE 1. ANS: T PTS: 1
2. ANS: F PTS: 1
3. ANS: F PTS: 1
4. ANS: F PTS: 1
5. ANS: F PTS: 1
6. ANS: T PTS: 1
7. ANS: T PTS: 1
8. ANS: F PTS: 1
9. ANS: F PTS: 1
10. ANS: T PTS: 1
11. ANS: F PTS: 1
12. ANS: T PTS: 1
13. ANS: T PTS: 1
14. ANS: F PTS: 1
15. ANS: F PTS: 1
MULTIPLE CHOICE 16. ANS: B PTS: 1
17. ANS: A PTS: 1
18. ANS: B PTS: 1
19. ANS: D PTS: 1
20. ANS: D PTS: 1
21. ANS: A PTS: 1
22. ANS: C PTS: 1
23. ANS: A PTS: 1
24. ANS: C PTS: 1
25. ANS: B PTS: 1
NUMERIC RESPONSE 26. ANS: $90 billion
The study of consumers and how they make decisions is called consumerbehavior.
Maslow’s hierarchy of needs is: physiological (food, water, sleep); security (physical safety, economic security); social (friends, love, belonging); esteem (respect, recognition); and self-actualization (realizing your potential).
Buying motives are the reasons that people buy things. The three categories of buying motives are emotional motives, rational motives, and patronage motives.
The consumer decision-making process is the process by which consumers collect and analyze information to make choices among alternatives. Decision making as it applies to a specific purchase moves through problem recognition, information search, alternative evaluation, purchase, and postpurchase evaluation.
Such companies hope to reassure customers that they made the right choice, resolve any customer problems and concerns immediately, and increase customer satisfaction with their decision.
Lifestyle is the way a person lives as reflected by material goods, activities, and relationships.
ESSAY 47. ANS:
Abraham Maslow’s work on motivation theory has helped marketers immensely in their study of needs. Maslow, a psychologist, identified five areas of needs that people have: physiological, security, social, esteem, and self-actualization needs. Maslow believed that these groups of needs are satisfied in a hierarchy and that other needs become important as people satisfy the needs at each level.
Maslow’s work has helped marketers recognize that people are at different levels on the hierarchy of needs. Some people are focusing on security needs while others are satisfying esteem needs. This knowledge allows them to identify and satisfy customer needs more effectively.
Loyalty is influenced by positive previous experiences or a close identification with the product or business. Consumers develop loyalty for various reasons. For instance, they might like the low prices, high quality, friendly staff, great customer service or convenient location. They may be loyal because their family has used the business or brand name for years and years. People are often loyal to a local or neighborhood business. Some identify with the people who work in the business, who are featured in advertising for the product, or who appear to have the same beliefs and values as the customer.
The postpurchase decision involves two parts. First you will determine whether the need or want was as important as you originally believed. You may decide the need was not important enough to warrant the effort and expense, so it will not receive as much attention the next time it arises. If, however, you decide that the need was important to you, but the choice you made did not provide the satisfaction you believed it would, you will usually not make the same decision again. Instead, you will learn from your experience. The next time you recognize the same need or encounter a similar problem, you will choose a different alternative and evaluate the information more carefully.
In the United States, culture has become less important than the social environment to many people because of such factors as the mobility of people and increasing diversity. Examples of social environments include a community, a neighborhood, a school, or a social or business organization.