Question 1

At Red Inc., a retail store, Mark, the manager, maps the consumption chain to understand the buying patterns of the consumers. He has identified how consumers become aware of their needs for products or services. Which of the following is he likely to do next?
A)He identifies how consumers find the store's offerings.
B)He identifies why dissatisfied consumers return products.
C)He identifies the kind of help that consumers need in order to use their products.
D)He identifies the mode used to pay for the products.

Accepted Answer

After identifying how consumers become aware of their needs for products or services, the next step for Mark would be to identify how consumers find the store's offerings, as this will help him understand the factors that influence purchasing decisions and how to better market the store's products or services. Option B, identifying why dissatisfied consumers return products, is related to post-purchase behavior and not relevant at this stage of the consumption chain. Option C, identifying the kind of help that consumers need in order to use their products, and Option D, identifying the mode used to pay for the products, are also post-purchase behaviors and not relevant at this stage.

Question 2

Kim, a consumer, is in the final stage of selecting a product. Which of the following is true if her actions follow the typical consumption chain?
A)Kim is unlikely to have become aware of her need for a product yet.
B)Kim is likely to be persuaded by the product attributes at this stage.
C)Service providers are likely to assist Kim in helping her use the product.
D)Service providers are likely to detect faults with the performance of the product.

Accepted Answer

In the final stage of selecting a product, Kim is likely to be influenced by the product attributes such as its features, quality, and brand reputation. This is because she has already gone through the previous stages of the consumption chain, including recognizing her need, searching for information, evaluating alternatives, and making a decision. The role of service providers in the final stage is usually limited to assisting customers with the use of the product or addressing any issues with its performance, but they are not likely to detect faults during this stage.

Question 3

Frieda, the manager of a retail store, believes that a customer, Jake, is in the selection making stage. Nina, the sales person, believes that Jake is at the stage where he requires help in using the product. Which of the following statements strengthens Frieda's argument?
A)Jake is unaware of his need for a product.
B)Jake had placed an order for the product earlier and was in the store to pick it up.
C)Jake is comparing the product features offered by two brands.
D)Jake had purchased the product and is looking for a manual.

Accepted Answer

Comparing the features of two brands indicates that Jake is in the selection making stage, which aligns with Frieda's argument. Options A, B, and D don't provide evidence to support either Frieda's or Nina's argument.

Question 4

The research and development department of Chi Inc. studies the buying patterns of its customers. If it starts with the customers in the first step of the consumption chain, which of the following does it most likely study?
A)How do its customers find its products?
B)How do its customers order its products?
C)How do its customers become aware of their needs?
D)How do its customers pay for the products?

Accepted Answer

If the research and development department is starting with the customers in the first step of the consumption chain, they are most likely studying how customers become aware of their needs. This is because the first step in the consumption chain is the recognition of a problem or need, and studying how customers become aware of their needs can help Chi Inc. better understand how to market their products to potential customers. Options A, B, and D may be studied in later steps of the consumption chain.

Question 5

Whenever customers of Black Inc., a mobile manufacturer, have a complaint to make about a product not being up to the mark, the company makes it a point to contact the customer or even go to their homes to understand the issue. The company believes that this will help retain customers and create better products. Which step of the consumption chain is this scenario depicting?
A)The third step: how do consumers make their final selections?
B)The fifth step: how is your product/service delivered?
C)The sixth step: how is your product/service paid for?
D)The ninth step: what if customers aren't satisfied and need a return or exchange?

Accepted Answer

The scenario is depicting the ninth step of the consumption chain, which is addressing customer complaints and providing return or exchange options. By contacting customers and resolving their issues, the company aims to retain customers and improve its products.

Question 6

Rita lives in a dorm with other students of her college. She hesitates to buy furniture owing to lack of space. She wants to buy a new study desk, one that can easily fold away and be dismantled so that it doesn't occupy much space when not in use. What is Rita's main concern?
A)How to use the product
B)How to store the product
C)How to assemble the product
D)How to locate the product

Accepted Answer

Rita's main concern is how to store the product in a dorm with limited space when it is not in use. She wants a desk that can easily fold away and be dismantled to save space.

Question 7

Tina prefers buying products for the emotional dimension of the job they perform rather than its functional attributes. Jay prefers to buy products for the social dimension of the job they do rather than its functional or emotional attributes. In this case, which of the following is most likely to be true?
A)Tina buys a bike because of its low rate of fuel consumption.
B)Tina buys an original painting by her favorite artist even though it is not in good condition.
C)Jay buys a car he loves even though his friends think it does not look classy.
D)Jay buys a piece of furniture that allows more storage space despite it looking odd.

Accepted Answer

Tina values the emotional connection to products, so she would buy an original painting by her favorite artist for its emotional significance, even if it's not in good condition.

Question 8

When firms rely on brand image to differentiate products, some of them associate their products with positive qualities in the minds of customers. These are known as __________.
A)prestige brands
B)convenient brands
C)utility brands
D)functional brands

Accepted Answer

Prestige brands are the ones that rely on a reputation of quality, elegance, luxury, and exclusivity. These brands are priced high to establish a premium image for the product and appeal to a select segment of customers who aspire to own it for its status symbol. Examples of prestige brands include Rolex, Louis Vuitton, and Rolls Royce.

Question 9

Suede Inc., a company that manufactures bags, makes extensive use of advertising to compete in the market. The features of its product are similar to existing products in the market. It uses other promotional tools such as discounts, coupons, and rebates to increase its customer base. In this scenario, which of the following elements does Suede rely on to differentiate its products?
A)Product reliability
B)Convenience
C)Brand image
D)Quality

Accepted Answer

Suede relies on its brand image to differentiate its products since its features are similar to existing products in the market.

Question 10

Which of the following questions denotes the last step in a consumption chain?
A)How do consumers find your offering?
B)How is your product stored/moved around?
C)How is your product repaired, serviced, or disposed of?
D)How is your product/service delivered?

Accepted Answer

The question "How is your product repaired, serviced, or disposed of?" denotes the final step in the consumption chain, as it pertains to the post-consumption phase of the product's life cycle. Once a consumer has finished using a product, they may need to repair or service it, or dispose of it in an environmentally responsible manner. This is the final touchpoint in the consumption chain, as it represents the end of the product's usefulness to the consumer.

Question 11

Floyd Inc., a manufacturer of washing machines, encourages customers to choose their brand through extensive marketing. Features of Floyd's products are compared with those of other brands, and customers are made to see the benefits they get from purchasing Floyd's products. Which step of the consumption chain does this scenario depict?
A)The eighth step: what do customers need help with when they use your product?
B)The ninth step: what if customers aren't satisfied and need a return or exchange?
C)The third step: how do consumers make their final selections?
D)The fourth step: how do customers order and purchase your product?

Accepted Answer

This scenario depicts the third step of the consumption chain, which involves how consumers make their final selections. Floyd Inc. is using marketing strategies to influence customers to choose their brand over others by comparing the features of their products with those of other brands and emphasizing the benefits customers get from purchasing their products. This step occurs before customers order and purchase the product (fourth step) or use the product and potentially need help or return/exchange (eighth and ninth steps).

Question 12

Crimson Corp., designs its products based on demographics of its customers. Jaded Inc. designs its products based on product attributes. Which of the following is likely to be true in this case?
A)Crimson is likely to consider reliability of products as the primary factor for customer segmentation.
B)Crimson is unlikely to consider customizability of products as the primary factor for customer segmentation.
C)Jaded is likely to consider income level of customers as the primary factor for customer segmentation.
D)Jaded is unlikely to consider quality of products as the primary factor for customer segmentation.

Accepted Answer

Since Crimson Corp designs its products based on demographics, they are likely to segment their customers based on factors such as age, gender, income, and education level. Customizability may not be a primary factor for them. On the other hand, since Jaded Inc designs its products based on product attributes, they are likely to segment their customers based on factors such as quality, features, and price, and may not consider income level as a primary factor. Therefore, option B is the most likely choice.

Question 13

During the process of mapping the consumption chain of a product, Nina looks at the methods followed by companies which send their engineers to check laptops when they detect that a possible bug could be affecting a system. Which of the following questions does this example address?
A)What if customers aren't satisfied and need a return or exchange?
B)What help do customers need to become familiar with the product?
C)How is your product stored?
D)How is your product repaired, serviced, or disposed of?

Accepted Answer

The example given addresses the process of repairing or servicing a product, which falls under the category of "How is your product repaired, serviced, or disposed of?" Therefore, the correct option is D. The other options are not relevant to the example given.

Question 14

Sasha, the marketing head of a firm, believes that customers hire products to do jobs for them and that these jobs should be the basis for market segmentation. In this case, which of the following is Sasha likely to approve?
A)Segmentation based on age and gender of end consumers.
B)Segmentation based on features such as durability and quality.
C)Segmentation based on the functions provided by a product.
D)Segmentation based on socio-economic factors of customers.

Accepted Answer

The answer of Sasha, the marketing head of a firm,...

Question 15

Peter always buys shoes from Brown Boot's Inc., although other brands offering shoes of same quality are available closer to home and at lower prices. Brown Boots differentiates itself through a strong brand image. Their advertisements associate the brand with class, style, and elegance. Which of the following is a likely reason for Peter's preference toward Brown Boot's?
A)Quality
B)Reliability
C)Convenience
D)Prestige

Accepted Answer

Peter's preference towards Brown Boot's is due to their strong brand image that associates with class, style, and elegance. This promotes luxury and prestige as their main selling point rather than price or convenience. Therefore, the likely reason for Peter's preference towards Brown Boot's would be Prestige.

Question 16

Tracie, the CEO of Boney's Inc., wanted to analyze what customers think of their products. She began her survey by finding out how her customers become aware of their needs, how they find the products, how they purchase products, and how the products are serviced or repaired. These steps are part of ________.
A)mapping the consumption chain
B)studying the value chain
C)studying the production cycle
D)mapping the supply chain

Accepted Answer

Tracie is mapping the consumption chain, which involves understanding how customers become aware of their needs, find products, purchase them, and get them serviced or repaired. This is different from studying the value chain, which looks at the activities and processes within a company to create value for customers. It is also different from studying the production cycle, which focuses on the manufacturing or production process. And mapping the supply chain involves understanding the flow of goods and services from suppliers to customers.

Question 17

Home Shore Inc., an electronics store, provides value to its customers by setting up televisions at customers' homes for free. The company also provides instructional manuals on how to set them up without professional help. Which step of the consumption chain does this scenario depict?
A)The sixth step: how do consumers find your offering?
B)The seventh step: how is your product stored/moved around?
C)The tenth step: what if customers aren't satisfied and need to return or exchange?
D)The fifth step: how is your product/service delivered?

Accepted Answer

The scenario describes the delivery of the product/service to the customer's home, which is the fifth step of the consumption chain.

Question 18

Saturn Inc., a manufacturer of home appliances, familiarizes customers with its products through advertising. Apart from attracting new customers, it offers quick demos in mass media that assist existing customers. Which of the following stages in the consumption chain is depicted in this scenario?
A)The eighth step: what do customers need help with when they use a product?
B)The ninth step: what if customers aren't satisfied and need a return or exchange?
C)The third step: how do customers make their final selections?
D)The fourth step: how do customers order and purchase a product?

Accepted Answer

The scenario describes the eighth step in the consumption chain, focusing on assisting customers with product use through quick demos, which is about helping customers when they use a product.

Question 19

The marketing department of a cosmetics brand conducts a research. 40% of its customers said that they prefer the brand because they do not need to reapply the product often, while 30% said that they chose the brand because the products are organic. If the brand segments the customers by the features of the cosmetics they prefer, the segmentation is primarily based on __________.
A)brand image
B)demographics
C)product attributes
D)psychographics of wholesalers

Accepted Answer

The segmentation is primarily based on product attributes, as the customers are being segmented by the specific features they prefer in the cosmetics, such as long-lasting or organic. This is not based on brand image, demographics or psychographics of wholesalers.

Question 20

Leo Foods is an eatery that sells organic food. It opens a number of outlets across the state, creates a website that makes ordering and take-away easy, and also does not charge a delivery fee for its regular customers. Which step of the consumption chain does this scenario depict?
A)The sixth step: how is your product stored/moved around?
B)The fourth step: how do consumers become aware of their need?
C)The tenth step: how is your product/service paid for?
D)The second step: how do consumers find your offering?

Accepted Answer

The scenario depicts the second step of the consumption chain, which is how consumers find the offering, as Leo Foods has launched multiple outlets and created a website to make ordering and take-away easy for their customers.

Quiz 5: Differentiation Advantage

At Red Inc., a retail store, Mark, the manager, maps the consumption chain to understand the buying patterns of the consumers. He has identified how consumers become aware of their needs for products or services. Which of the following is he likely to do next?

Kim, a consumer, is in the final stage of selecting a product. Which of the following is true if her actions follow the typical consumption chain?

Frieda, the manager of a retail store, believes that a customer, Jake, is in the selection making stage. Nina, the sales person, believes that Jake is at the stage where he requires help in using the product. Which of the following statements strengthens Frieda's argument?

The research and development department of Chi Inc. studies the buying patterns of its customers. If it starts with the customers in the first step of the consumption chain, which of the following does it most likely study?

Rita lives in a dorm with other students of her college. She hesitates to buy furniture owing to lack of space. She wants to buy a new study desk, one that can easily fold away and be dismantled so that it doesn't occupy much space when not in use. What is Rita's main concern?

When firms rely on brand image to differentiate products, some of them associate their products with positive qualities in the minds of customers. These are known as __________.

Which of the following questions denotes the last step in a consumption chain?

Crimson Corp., designs its products based on demographics of its customers. Jaded Inc. designs its products based on product attributes. Which of the following is likely to be true in this case?

During the process of mapping the consumption chain of a product, Nina looks at the methods followed by companies which send their engineers to check laptops when they detect that a possible bug could be affecting a system. Which of the following questions does this example address?

Sasha, the marketing head of a firm, believes that customers hire products to do jobs for them and that these jobs should be the basis for market segmentation. In this case, which of the following is Sasha likely to approve?

Home Shore Inc., an electronics store, provides value to its customers by setting up televisions at customers' homes for free. The company also provides instructional manuals on how to set them up without professional help. Which step of the consumption chain does this scenario depict?

Saturn Inc., a manufacturer of home appliances, familiarizes customers with its products through advertising. Apart from attracting new customers, it offers quick demos in mass media that assist existing customers. Which of the following stages in the consumption chain is depicted in this scenario?

Leo Foods is an eatery that sells organic food. It opens a number of outlets across the state, creates a website that makes ordering and take-away easy, and also does not charge a delivery fee for its regular customers. Which step of the consumption chain does this scenario depict?