Business to business markets:
1.) Customers in the B2B market are relatively flow
2.) Business customers are relatively large
3.) B2B markets tend to be geographically concentrated
4.) Business buyers are generally more rational and less emotional than ultimate consumers
5.) B2B sales tend to be direct, but not always
6.) Whereas consumer promotions are based more on advertising, B2B sales are based on personal selling.
Business to business markets:
1.) Customers in the B2B market are relatively flow
2.) Business customers are relatively large
3.) B2B markets tend to be geographically concentrated
4.) Business buyers are generally more rational and less emotional than ultimate consumers
5.) B2B sales tend to be direct, but not always
6.) Whereas consumer promotions are based more on advertising, B2B sales are based on personal selling.
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Question 1
With respect to consumer behavior, one's attitudes, learning, and perceptions would be
impersonal influences | ||
interpersonal influences | ||
personal influences | ||
insitutional influences |
Question 2
In Maslow's hierarchy of needs,
a physiological need must be met directly before social needs. | ||
esteem needs are the highest order of needs. | ||
self-actualization needs are the highest order | ||
safety needs and esteem are of the same importance. |
Question 3
The most likely product to be purchased in an attempt to satisfy self-esteem needs would be
"super class" tickets for your next air flight. | ||
a really fast computer. | ||
a home security system. | ||
yogurt and health food. |
Question 4
Which of the following is not a characteristic that distinguishes organizational markets from consumer markets?
Organizational markets are more geographically concentrated. | ||
More people exert influence on the organizational buying decision. | ||
The organizational market tends to have a greater number of buyers. | ||
Organizations often engage in multiple sourcing and vendor analysis. |
Question 5
Consumers may attempt to reduce postpurchase anxiety in the consumer decision process by
avoiding favorable information about the selected brand | ||
seeking reassurance from dissatisfied customers | ||
seeking information that favors the rejected brands | ||
ignoring unfavorable reports about the chosen brand |
Question 6
The buying center concept explains how groups of people participate informally in business purchase decisions and
methods to break through group perceptions. | ||
the role the group members play in buying decisions. | ||
how family units operate as buying centers. | ||
the process of performing vendor analysis. |
Question 7
In the organizational buying process, a triggering event such as announcement of the availability of a new product whose use could improve the company's market performance is referred to as
need or opportunity recognition | ||
identification of suppliers | ||
information search | ||
word-of-mouth exploration |
Question 8
An undifferentiated marketing strategy
serves the consumer better because the products offered are designed to meet the needs of a specific group of people | ||
benefits from the control and efficiency of short production runs | ||
ignores differences among consumer groups and focuses on the broad market | ||
is the most common strategy today and is used more now than in the past |
Question 9
Goods purchased by the ultimate consumer for personal use are called
personal products | ||
purchased products | ||
consumer products | ||
commercial products |
Question 11
A particular purchasing agent might allow some salespeople to see the engineers responsible for developing product specifications but not allow others the same privilege. In the buying center, this purchasing agent is filling the role of
a "hard" nose | ||
a gatekeeper | ||
an influencer | ||
a decider |
Question 12
"Our prices are the lowest, we guarantee it" is an example of a positioning strategy based on the product's
competitors | ||
price | ||
class | ||
application |
Question 13
Segmenting the market based on exactly how an industrial purchaser will use products is referred to as
customer-based segmentation | ||
benefits segmentation | ||
end-use application segmentation | ||
geographic segmentation |
Question 14
The lumber your carpenter purchases to finish out your basement is classified as
a home improvement product | ||
a raw material | ||
a business product | ||
a consumer good |
Question 15
When consumer demand for personal computers affects computer manufacturers' demand for computer chips, this situation is known as
volatile demand | ||
conjoined demand | ||
derived demand | ||
joint demand |
Question 16
Which of the following is a personal factor in consumer bahavior?
a cultural influence | ||
group membership | ||
friends' opinions | ||
a person's attitudes |
Question 17
Cognitive dissonance would be most likely to occur after the purchase of
sneakers | ||
groceries | ||
an automobile | ||
cosmetics |
Question 18
Which of the following would be most likely to break through a person's perceptual screen?
a newspaper ad featuring white type on a black background | ||
a black- and -white classified ad | ||
reducing the size of the ad | ||
using fewer colors in the ad |
Question 19
The Fortune 500 list of America's largest firms based on sales revenues and number of employees provides a basis for
market segmentation based upon customer type | ||
demographic segmentation based upon geographic location | ||
end-user segmentation of this market | ||
demographic segmentation based upon customer size |
Question 20
Straight rebuy behavior by industrial purchasers will probably continue if the supplier provides
poor service | ||
poor quality | ||
shipping delays | ||
satisfactory performance |
Question 21
A controversial technique of subconscious communication, aimed at circumventing the perceptual screens, is called
shadowed perception | ||
leger-de-main | ||
subliminal perception | ||
perception incognito |
Question 22
Those products that are actually considered when making a consumer purchase decision are
customer options | ||
customer selections | ||
the evoked set | ||
the product set |
Question 23
The component of the business market that consists of individuals and firms that acquire goods and services to be used directly, or indirectly, in producing other goods and services is called:
wholesaling and retailing | ||
the commercial market | ||
government | ||
an institution |
Question 24
The institutional market does not include which of the following?
hospitals | ||
museums | ||
motion pictures theatres | ||
universities |
Question 25
Advertising for smoke alarms, air bags and life insurance typically uses which of Maslow's levels of needs to appeal to consumers?
self-esteem needs | ||
safety and security needs | ||
physiological needs | ||
protection needs |
Question 26
One type of buying center role is that of the
influencer who supplies information for evaluation. | ||
authority figure who decides who, what, where, when, and how. | ||
disseminator who function is to get advertisements to prospects. | ||
specifier who needs on the specifications of products |
Question 27
Manufacturing firms that convert to automated factory systems must purchase equipment that they have never bought before, such as robots and computers. This buying situation is called
a straight rebuy | ||
a modified rebuy | ||
a contract purchase | ||
new-task buying |
Question 29
A commonly used basis for segmenting consumer markets is
product-related characteristics | ||
health-related matters | ||
information-related concepts | ||
performance-related criteria |
1 points
Question 30
The business market is also known as the
wholesale market | ||
corporate market | ||
organizational market | ||
distribution market |
Question 31
Which of the following consumer problem-solving behaviors requires the least effort?
extended problem solving | ||
limited problem solving | ||
impulsive buying | ||
routine response behavior |
Question 32
The relationship between the demand for silk cloth and consumer demand for silk blouses and neckties is known as
joint demand | ||
demand volatility | ||
derived demand | ||
consumer demand |
Question 33
Examples of business market items that would usually be purchased as a straight rebuy are
high quality raw materials | ||
heavy-duty machinery | ||
paper clips and pencils | ||
high-tech components |
Question 34
The person who joins a local bowling league for the social interaction, even if he or she is a novice bowler, is probably trying to satisfy his or her
esteem needs | ||
self-actualization needs | ||
physiological needs | ||
belongingness/social needs |
Question 35
Campbell's "Soup for One" is an example of a product that is targeted to
large families with high product usage of certain things but different preferences | ||
dual-income couples with no kids | ||
well-off older families | ||
non-traditional households such as nonfamily, single-person or single-parent situations |
Question 36
Red Ryder Industries markets rodeo and horse riding supplies specifically to women. This is an example of
market stratification | ||
market segmentation | ||
non-traditional marketing | ||
multi-gender marketing |
Question 37
Purchases made by choosing a preferred brand or one of a limited group of acceptable brands are called
extended problem solving | ||
routinized response behavior | ||
limited problem solving | ||
selective problem solving |
Question 38
The slogan "the graying of America" describes the trend
toward people retiring later in life | ||
of the word force to contain a disproportionate number of older Americans | ||
for gray hair to develop from years of high-stress urban work | ||
upward in the elderly population as Americans tend to live longer |
Question 39
People or institutions must have sufficient purchasing power and the authority and willingness to buy to be considered a
market | ||
buyer | ||
player | ||
segment |
Question 40
Reference group influences would be most likely to be significant in the decision to buy
a loaf of bread | ||
a Mercedes Benz | ||
a clock radio | ||
cellophane tape |
Question 41
Internal search in the consumer decision process may include
subscribing to consumer magazines to evaluate alternatives | ||
talking to family members | ||
reviewing past purchases | ||
surveying coworkers for buying options |
Question 42
The process of dividing the total market into several smaller, homogeneous groups is called
market penetration | ||
market segmentation | ||
market mixing | ||
market division |
PLEASE ANSWER EACH QUESTION WITH A, B, C, and D. NOT ANSWERING ALL QUESTIONS OR INCORRECT ANSWERS WILL RESULT IN A THUMBS DOWN.
Question 1: Which of the following is not needed for price discrimination to be possible?
A. The firm must have market power. |
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B. The firm must be able to prevent resale and arbitrage. |
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C. The firm must eventually learn about its customers' demands. |
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D. The firm's customers must have different demand curves. |
Question 2: Relative to standard monopoly pricing, first-degree price discrimination results in:
A. |
higher consumer surplus, higher producer surplus, and higher total surplus. |
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B. |
lower consumer surplus, higher producer surplus, and higher total surplus. |
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C. |
lower consumer surplus, higher producer surplus, and lower total surplus. |
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D. |
lower consumer surplus, lower producer surplus, and lower total surplus. |
Question 3: Relative to perfect competition, first-degree price discrimination results in:
A. higher consumer surplus, higher producer surplus, and higher total surplus. |
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B. lower consumer surplus, higher producer surplus, and equal total surplus. |
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C. lower consumer surplus, higher producer surplus, and equal total surplus. |
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D. lower consumer surplus, lower producer surplus, and lower total surplus. |
Question 4: If market demand is P = 100 - Q and the firm has a constant marginal cost of 20, then with first-degree price discrimination, the firm's producer surplus will be:
A. |
$800. |
B. |
$1,600. |
C. |
$2,400. |
D. |
$3,200. |
Question 5: For third-degree discrimination to be possible, which of the following features is not required?
A. market power |
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B. prevention of resale |
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C. identification of each customer's demand before purchase |
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D. customers with different demand curves |
Question 6: A golf course has frequent players whose demand is Qf = 260 - 0.4P and infrequent players whose demand is Qi = 10 - 0.1P. The combined market demand is Q = 34 - 0.4P. The marginal cost and average total cost of providing a round of golf are $20. How much higher will the profit be if the golf course uses third-degree price discrimination instead of charging all golfers the same price?
A. |
$0 |
B. |
$7.50 |
C. |
$10 |
D. |
$110 |
Question 7: An airline sells seats on its flights to business travelers whose demand is QB = 300 - P and vacation travelers whose demand is QV = 150 - 0.5P. The combined market demand is Q = 450 - 1.5P. The marginal cost and average total cost of providing a seat on a flight are $200. How much higher will profit be if the airline uses third-degree price discrimination instead of charging all travelers the same price?
A. |
$0 |
B. |
$250 |
C. |
$400 |
D. |
$1,000 |
Question 8: If a firm practices third-degree price discrimination, the price charged should be higher in the market where demand is:
A. |
Higher. |
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B. |
Lower. |
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C. |
More price elastic. |
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D. |
Less price is elastic. |
Question 9: The key difference between markets where third-degree price discrimination is possible and markets where second-degree price discrimination is possible is whether:
A. resale is possible. |
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B. customers have the same demand curves. |
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C. firms have market power. |
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D. firms can identify customers' demand before the customers make a purchase. |
Question 10: For price discrimination via a quantity discount to work:
A. customers who purchase larger quantities must have relatively elastic demand. |
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B. customers who purchase larger quantities must have relatively inelastic demand. |
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C. customers who pay a relatively high price must have relatively elastic demand. |
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D. customers who pay a relatively low price must have relatively inelastic demand. |
Question 11: A firm wants to offer a quantity discount to price-discriminate between buyers who are relatively uninterested in the product and buyers who are obsessively interested in it. The uninterested customers have a demand of QU = 30 - 0.5P. The package offered to them contains 10 units of the good at a price of $40 each. Which of the following packages designed for obsessed customers is incentive compatible?
A. |
60 units at a price of $10 each |
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B. |
40 units at a price of $10 each |
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C. |
60 units at a price of $20 each |
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D. |
40 units at a price of $20 each |
Question 12: Which of the following conditions do not have to be met in order for indirect price discrimination by versioning to work?
A.The firm's customers must have different demand curves. |
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B. The marginal costs of producing each version of the product must be the same. |
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C. The firm must be able to prevent resale. |
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D. The firm must have market power. |
Willingness to pay (per month) |
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Weight machines |
Indoor pool |
|
Abe |
$60 |
$50 |
Betty |
50 |
125 |
Chris |
25 |
140 |
QUESTION 13
This table shows the willingness to pay off the only three potential customers of a firm that runs both a weight room and an indoor swimming pool. The weight room and pool each have a constant marginal cost of $20 per month. Which of the following pricing strategies yields the highest producer surplus?
A. $60 for the weight room, $140 for the pool, or $175 for both |
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B. $50 for the weight room, $125 for the pool, or $165 for both |
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C. $25 for the weight room, $50 for the pool, or $70 for both |
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D. $60 for the weight room, $130 for the pool, or $175 for both |
Question 14: Which of the following features is needed to make bundling a possible price discrimination strategy but is not required for any other price discrimination strategies?
A. Customers must have identical demand curves. |
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B. The firm does not learn about customer demand until after purchase. |
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C. Demand for two products must be negatively correlated. |
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D. The firm must not have market power. |
Question 15: Which of the following features is not needed for price discrimination using a two-part tariff to work?
A. The firm must have market power. |
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B. The firm must be able to prevent resale. |
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C. The firm must learn about its customers' demands before purchases are made. |
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D. The firm's customers must have different demand curves. |
Question 16: A firm faces a market demand curve P = 50 - 5Q. It has a constant marginal cost of $10. Relative to standard monopoly pricing, how would a block pricing strategy where the first four units can be purchased for a price of $30 each, but two more units can be purchased for an additional $20 each change consumer surplus and producer surplus?
A. Consumer surplus would decrease by $10, and producer surplus would increase by $20. |
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B. Consumer surplus would increase by $10, and producer surplus would increase by $20. |
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C. Consumer surplus would increase by $20, and producer surplus would increase by $10. |
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D. Consumer surplus would increase by $20, and producer surplus would increase by $20. |
Question 17: Relative to standard monopoly pricing, block pricing:
A. decreases consumer surplus, increases producer surplus, and increases total surplus. |
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B. increases consumer surplus, increases producer surplus, and increases total surplus. |
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C. decreases consumer surplus, increases producer surplus, and decreases total surplus. |
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D. decreases consumer surplus, decreases producer surplus, and decreases total surplus. |
Question 18: Which of the following results in the highest amount of producer surplus?
A. |
bundling |
|
B. |
third-degree price discrimination |
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C. |
block pricing |
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D. |
two-part tariffs |
Question 19: Which of the following results in the highest amount of consumer surplus?
A. |
first-degree price discrimination |
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B. |
third-degree price discrimination |
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C. |
block pricing |
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D. |
two-part tariffs |
Question 20: Which of the following results in the highest amount of total surplus?
A. |
third-degree price discrimination |
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B. |
block pricing |
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C. |
first-degree price discrimination |
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D. |
bundling |