Deck 3: Understanding Customer Behaviour

Question 1

The "buyer" refers to which of the following?

A)The person who conducts the transaction
B)The consumer of the product/ service
C)The person who makes the final decision
D)The person who pays and consumes the product/ service

Answer 1

A

Question 2

The "government market" consists of which of the following?

A)National Government
B)Local Government & Government Agencies
C)National Government, Local Authorities & Government agencies
D)Local Authorities

Answer 2

C

Question 3

In organizational or business-to-business (B2B) purchasing, there are three major types of buyer: the industrial market, the reseller market and the _______ market.

A)government
B)consumer
C)international
D)global

Answer 3

A

Question 4

"DMU" stands for which of the following?

A)Design Manufactured Unit
B)Decision Making Unit
C)Defined Marketing Utility
D)Detailed Marketing Understanding

Question 5

In order to understand customers, five key questions need to be answered: how do they buy; what are their _______ criteria; where do they buy; when do they buy and who is important?

A)social
B)economic
C)choice
D)limited

Question 6

The roles played by different household members in decision making vary with the type of product under consideration and the _______ of the buying process.

A)extent
B)stage
C)value
D)role

Question 7

The individual with the power and/ or financial authority to make the ultimate choice regarding which product to buy is known as which of the following?

A)Decider
B)Manager
C)User
D)Buyer

Question 8

Which of the following is not one of the five roles in the decision making process?

A)Arranger
B)Agent
C)Adjudicator
D)All of the above

Question 9

People who may allow or prevent access to a key DMU member are referred to as which of the following?

A)Power Holders
B)Influencers
C)Gatekeepers
D)Controllers

Question 10

The person who begins the process of considering a purchase is known as which of the following?

A)User
B)Identifier
C)Buyer
D)Initiator

Question 11

Which of the following is a prerequisite of successful marketing?

A)Excellent product design
B)In depth knowledge of customers
C)In depth knowledge of legislation
D)Brilliant salespeople

Question 12

Which of the following describes the five roles in the decision making process?

A)Initiator, User, Buyer, Individual and Adjudicator
B)Initiator, Adjudicator, User, Buyer and Decider
C)Buyer, Decider, User, Influencer and Initiator
D)Buyer, User, Identifier, Decider and Initiator

Question 13

Organizational buying is typically:

A)Less complex because it is more structured
B)More complex and may involve more stages
C)Less complex and rational than the consumer decision making process
D)None of the above

Question 14

Which of the following is one of the five roles in the decision making process?

A)Influencer
B)Identifier
C)Individual
D)All of the above

Question 15

Which of the following is more common when a household consists of two income earners?

A)Slower decision making
B)Faster decision making
C)Individual decision making
D)Joint decision making

Question 16

"DMU" refers to which of the following?

A)Where most organizational buying tends to involve more than one individual and is often in the hands of a buying centre
B)Where most consumer decisions involve one individual, or unit
C)Where consumers buy according to a decision tree, weighing up the pros and cons of every product under consideration
D)Where purchasing departments of organizations are sometimes referred to as DMU departments

Question 17

Which of the following are "Industrial Goods"?

A)Raw Materials, Financial Products and Plant & Machinery Goods
B)Fast Moving Consumer Goods and Raw Materials
C)Raw Materials and Components
D)Capital Goods, Raw Materials and Components

Question 18

The person who attempts to persuade others in the group concerning the outcome of the decision is known as which of the following?

A)User
B)Influencer
C)Adjudicator
D)Initiator

Question 19

Which of the following is not an example of a reseller?

A)Online retailers
B)Supermarkets
C)Suppliers
D)Department stores

Question 20

An identification of the roles played within the buying centre is a prerequisite for:

A)Setting prices
B)Creating product packages
C)Targeting persuasive communications
D)Beating competitors' product offerings

Question 21

The existence of a need may not activate the decision-making process in all cases because of which of the following;

A)Apathy factors
B)Need inhibitors
C)Laziness
D)Affordability issues

Question 22

Which of the following is not a purchase that will affect one's self image?

A)Cosmetic surgery
B)Clothing
C)Perfumes
D)Diet soft drinks

Question 23

Which is more important in a low involvement situation?

A)Providing highly detailed information about the consequences of buying the brand to encourage trial
B)Providing positive reinforcement to gain trial may be more important than providing masses of information about the consequences of buying the brand
C)Providing information that this is a low cost item and represents value for money
D)None of the above

Question 24

A hedonic influence refers to which of the following?

A)When there are risks of potential negative consequences occurring
B)When the purchase of the product will affect the status or image of purchaser
C)When social acceptance is dependent upon making a correct choice
D)When the purchase is capable of providing a high degree of pleasure

Question 25

When is dissonance likely to increase?

A)When the expense is quite large, the decision is irrevocable and difficult
B)When it is a low involvement purchase
C)When there are too many sources of information on a product/service
D)When past purchase experiences of the product/service have been positive

Question 26

Why may consumers often engage in exploratory consumer behaviour such as being early adopters of new products?

A)Offer a change of pace
B)Offer relief from boredom
C)Satisfy a thirst for knowledge and the urge of curiosity
D)All of the above

Question 27

What is "cognitive dissonance"?

A)When customers experience some post-purchase concerns
B)When customers experience information overload prior to purchase
C)When customers feel that the risk of purchase is too great
D)When customers receive conflicting information about a product/service from a variety of sources

Question 28

The degree of perceived relevance and personal importance accompanying the brand choice is called which of the following?

A)Involvement
B)Risk factor
C)Selection
D)Choice criteria

Question 29

The term lifestyle refers to a person's _______ interests and opinions.

A)activities
B)attitudes
C)age
D)actions

Question 30

Which of the following is part of the consumer decision-making process?

A)Analysis of proposals
B)Evaluation of alternatives
C)Information evaluation
D)Determination of specification

Question 31

In a consumer situation, the search may be internal or external. Internal search involves which of the following?

A)Asking friends, and peers about a product/service
B)Involves a review of relevant information from memory
C)Finding out about a product/service through salespeople
D)Asking immediate family about a product

Question 32

Marketing managers should be aware that needs may arise because of _______. This means that their activities, such as developing advertising campaigns and training salespeople to sell product benefits may act as cues to need arousal.

A)simulation
B)stimulation
C)reputation
D)speculation

Question 33

Need recognition may occur as a result of which of the following?

A)Emotional or psychological need
B)Routine depletion
C)Unexpected event
D)All of the above

Question 34

What is meant by the term the "evoked set"?

A)The evoked set is the list of options that have been disregarded in the consumer decision process
B)The evoked set is the complete list of options before the screening process
C)The evoked set is a short list of options for careful evaluation
D)The evoked set is the list of options compiled by a retail salesperson, during the personal sales presentation

Question 35

Which of the following is a factor that affects the level of involvement?

A)Cultural factors
B)Perceived risk
C)Family influences
D)Subcultural influences

Question 36

The objective of information search is which of the following?

A)To select the most appropriate retailer or distributor who stocks the desired item
B)To compare prices, in order to help select products/ services that are good value for money given the performance characteristics of the product
C)To build up the awareness set, a selection of brands that may provide a solution to the problem
D)To clarify which features are needed in the product/ service required

Question 37

Why is the distinction between high involvement and low involvement situations important?

A)Because similar marketing strategies can be employed for both types of situations
B)Because it provides an useful insight into how consumers purchase
C)Because it determines the pricing strategies for different market segments and different types of products
D)Because the variations in how consumers evaluate products and brands lead to contrasting marketing implications

Question 38

Which of the following is an example of an external search a consumer may conduct?

A)Considering personal preferences
B)Relying on memory
C)Reviewing past personal experiences
D)Advertisements

Question 39

Which of the following is part of the organizational decision-making process?

A)Selection of order routine
B)Choosing the mode of transportation
C)Post-purchase evaluation
D)None of the above

Question 40

Which of the following is a typical high involvement purchase?

A)Purchasing a newspaper
B)Purchasing a ready- to- go meal
C)Purchasing a holiday
D)Purchasing a soft drink

Question 41

Information processing refers to which of the following?

A)Information processing refers to the process by which product alternatives are compared by an individual's choice criteria
B)Information processing refers to the process by which a stimulus is received, interpreted, stored in the memory and later retrieved
C)Information processing refers to the process by which people interpret a company's marketing communications activities during a purchase decision
D)All of the above

Question 42

Operant conditioning occurs as a result of which of the following?

A)Offering free samples of a product
B)Large advertising campaigns
C)Reducing prices
D)Offering extra warranties

Question 43

Four types of choice criteria are used when evaluating alternatives: technical, economic, social and _______.

A)cultural
B)personal
C)group
D)market

Question 44

Extended problem solving is usually associated with:

A)The alternatives being differentiated and numerous
B)Having an adequate amount of time available for deliberation
C)The purchase having a high degree of involvement
D)All of the above

Question 45

Which of the following is not a process that may be used to sort out the masses of stimuli which could be perceived, into a manageable amount?

A)Selective interpretation
B)Selective attention
C)Selective distortion
D)Selective retention

Question 46

The various attributes (and benefits) a customer uses when evaluating products and services are called?

A)Price points
B)Unmet needs
C)Choice criteria
D)Purchase criteria

Question 47

Extended problem solving is usually associated with which of the following:

A)Alternatives are not differentiated
B)Less time for deliberation
C)Low degree of involvement
D)None of the above

Question 48

During an extended problem solving buying situation, marketers can help by providing which of the following?

A)Discounts
B)Greater choice and options
C)Price reductions
D)Information rich communications

Question 49

Which of the following is not an example of personal choice criteria?

A)Emotions
B)Status
C)Morals
D)Self-Image

Question 50

When a consumer repeat buys the same product with little or no evaluation of alternatives it is called which of the following?

A)Limited problem solving
B)Habitual problem solving
C)Extended problem solving
D)Regular problem solving

Question 51

The complex process by which people select, organize and interpret sensory stimulation into a meaningful picture of the world is called which of the following?

A)Behaviour
B)Attitudes and beliefs
C)Learning
D)Perception

Question 52

Which of the following is one of the five categories of motives as proposed by Maslow?

A)Physiological
B)Psychological
C)Professional
D)Self promotion

Question 53

Selective retention refers to which of the following?

A)Refers to the fact that only a selection of messages may be retained in the memory
B)Refers to the fact that people change the information they receive according to their existing beliefs and attitudes
C)Refers to the fact that people screen out those stimuli that are not meaningful to us nor consistent with our experiences and beliefs
D)Refers to the fact that people only remember products that they had positive experiences and had positive attitudes towards its marketing communications efforts

Question 54

_______ criteria provide the grounds for deciding to purchase one brand or another.

A)Choice
B)Unmet
C)Latent
D)Loaded

Question 55

During an extended problem solving buying situation, which of the following is true?

A)The potential for cognitive dissonance is weakest in this buying situation
B)The potential for cognitive dissonance is greatest in this buying situation
C)The potential for cognitive choice is greatest in this buying situation
D)The potential for cognitive choice is weakest in this buying situation

Question 56

Economic criteria are concerned with which of the following?

A)Running Costs
B)Residual Values
C)Prices
D)All of the above

Question 57

Criteria that are related to the performance of the product or service and include reliability, durability, comfort and convenience are called which of the following?

A)Technical criteria
B)Personal criteria
C)Quality criteria
D)Product criteria

Question 58

Learning that involves the learning of knowledge and development of beliefs and attitudes without direct reinforcement, is called which of the following?

A)Classic Conditioning
B)Cognitive Learning
C)Operant Conditioning
D)Attitudinal Learning

Question 59

Which of the following is not an example of social choice criteria?

A)Convention
B)Social Belonging
C)Risk Reduction
D)Fashion

Question 60

An understanding of motivation lies in the relationship between which of the following?

A)Needs, drives and goals
B)Attitudes, beliefs and motives
C)Learning, experience and desires
D)Personality, attitudes and age

Question 61

Culture refers to which of the following?

A)Culture refers to the beliefs a country's society may hold, due to their religion and past history
B)Culture refers to inherent differences that occur naturally between countries based on their historical context
C)Culture refers to the traditions, taboos, values and basic attitudes of the whole society within which an individual lives
D)All of the above

Question 62

An attitude is which of the following?

A)A personality type, which influences consumer behaviour
B)A pattern of living
C)An overall favourable or unfavourable evaluation of a product or service
D)All of the above

Question 63

Under which of the following circumstances may a reference group affect a consumer's decision-making process?

A)A conspicuous purchase
B)An inconspicuous purchase
C)An expensive purchase
D)An inexpensive purchase

Question 64

What is meant by the term "derived demand"?

A)All demand in organizational markets is ultimately derived by the demand for consumer goods
B)Demand is derived by the level of consumer interest, a consumer's intention to purchase and their available capital
C)Where demand in consumer markets is ultimately derived by the level of demand in organizational markets
D)Demand is derived by the level of organizational interest, organizations intention to purchase and their available capital

Question 65

The occupational grade "1" category identified by NSSEC refers to which of the following?

A)Semi-routine occupations
B)Intermediate occupations
C)Lower supervisory and technical occupations
D)Higher managerial and professional occupations

Question 66

Why has the use of social class to explain differences in consumer behaviour been criticised?

A)Because it is difficult to categorize individuals into succinct social class categories
B)Social class categories are seen as an antiquated measure and are not an accurate measure of the differences that exist in consumer spending patterns
C)Social class categories do not reflect changes in modern society
D)Social class categories may not relate to differences in disposable income

Question 67

A "reference group" refers to which of the following?

A)A "reference group" refers to an individual's friends, family, relatives and peers
B)A "reference group" refers to a group that is used to indicate a group of people that influences an individual's attitude or behaviour
C)A "reference group" refers to a group that an individual uses to compare his or her own social standing in society
D)All of the above

Question 68

Which of the following is a noticeable trend that is affecting cultures?

A)Segmentation
B)Internalization
C)Internationalization
D)Segregation

Question 69

The acronym "MRO" in organizational buying refers to which of the following?

A)Marketing, Rival, Organizations
B)Management, Retainer, Ordinance
C)Maintenance, Repairs & Operations
D)Materials, Resources & Output

Question 70

The process whereby the buyer attempts to persuade the supplier to provide exactly what the organization wants is called which of the following?

A)Reverse Marketing
B)Horizontal Marketing
C)Proactive Marketing
D)Involvement Marketing

Question 71

The process that groups consumers according to their beliefs, activities, values and demographic characteristics such as education and income is called which of the following?

A)Demographics
B)Psychographics
C)Profiling
D)Categorization

Question 72

Why is lifestyle analysis important for marketers?

A)Because a company can decide on effective pricing policies and achieve profit maximization
B)Because a company can offer extra features which particular lifestyle groups value and are willing to pay for
C)Because a company may choose to target a particular lifestyle group with a product offering, and use advertising which is in line with the values and beliefs of this group
D)Because a company needs to identify potential consumers which they can target in future with their marketing communications efforts

Question 73

Modified re-buys often involve engineers, production managers and purchasing officers but not senior management, except when which of the following occurs?

A)Except when there is a decision making unit (DMU) in operation
B)Except when there is management autocracy present
C)Except when the product is critical to the company
D)All of the above

Question 74

Which of the following factors influence organizational buying and a firm's choice criteria?

A)The importance of purchase
B)The buy class
C)The product type
D)All of the above

Question 75

The desire for self-fulfilment in achieving what one is capable of for one's own sake is referred to as which of the following?

A)Satisfaction
B)Self Achievement
C)Self Actualization
D)Self Completion

Question 76

"Vertical Electronic Marketplaces" refers to which of the following?

A)Electronic marketplaces which cross industry boundaries (e.g. supply stationary needs)
B)Electronic marketplaces which are industry specific (e.g. car industry)
C)Electronic marketplaces which include existing suppliers and potential suppliers
D)Electronic marketplaces which include only existing suppliers

Question 77

The concept that aims to minimise stocks by organizing a supply system which provides materials and components as they are required, is called which of the following?

A)Six Sigma Manufacturing
B)WCM (World Class Manufacturing)
C)TQM (Total Quality Management)
D)JIT ( Just in Time)

Question 78

The occupational grade "3" category identified by NSSEC refers to which of the following?

A)Routine occupations
B)Intermediate occupations
C)Lower supervisory and technical occupations
D)None of the above

Question 79

Two main categories of marketplaces or exchanges have been created due to the growth in the use of the Internet: vertical electronic marketplaces which are industry specific and _______ electronic marketplaces which cross industry boundaries and cater for supplies such as maintenance, repair and operation (MRO) or services.

A)cross
B)horizontal
C)inter
D)intra

Question 80

A person's life cycle stage is of particular relevance to marketers:

A)Since disposable income and purchase requirements may vary according to life cycle stage
B)Since people's needs vary considerably according to life cycle stage
C)Since people's life cycle stage affects their attitudes and beliefs
D)Since behaviours, motivations and personalities may vary according to life cycle stage