Business Essentials 9th Edition By Ebert – Test Bank

Chapter 11 Marketing Processes and Consumer Behavior

1) Product differentiation is selecting the best price at which to sell a product.
Answer: FALSE
Explanation: Product differentiation is the creation of a feature or image that makes a product differ enough from existing products to attract consumers.
Page Ref: 275
Difficulty: Easy
Objective: 11.2
Learning Outcome: Explain the role of marketing in organizations
Skill: Concept

2) Geographic variables describe populations by identifying traits, such as age, income, gender, ethnic background, marital status, race, religion, and social class.
Answer: FALSE
Explanation: Geographic variables are the geographical units, from countries to neighborhoods, that may be considered in a segmentation strategy.
Page Ref: 278
Difficulty: Easy
Objective: 11.3
Learning Outcome: Explain the role of marketing in organizations
Skill: Concept

3) Rational motives involve nonobjective factors and include sociability, imitation of others, and aesthetics.
Answer: FALSE
Explanation: Rational motives involve the logical evaluation of product attributes: costs, quality, and usefulness.
Page Ref: 280
Difficulty: Easy
Objective: 11.4
Learning Outcome: Discuss the factors that affect motivation and behavior in the workplace
Skill: Concept

4) The institutional market is made up of businesses that buy goods to be converted into other products or that are used up during production.
Answer: FALSE
Explanation: The institutional market consists of nongovernmental organizations, such as hospitals, churches, museums, and charities, that also use supplies and equipment as well as legal, accounting, and transportation services.
Page Ref: 281
Difficulty: Easy
Objective: 11.5
Learning Outcome: Explain the role of marketing in organizations
Skill: Concept

5) Buzz marketing relies on television advertising to increase brand awareness.
Answer: FALSE
Explanation: Buzz marketing relies on word of mouth to spread “buzz” about a particular product or idea.
Page Ref: 288
Difficulty: Easy
Objective: 11.7
Learning Outcome: Describe the major components of effective promotion
Skill: Concept

6) A private brand is a brand name developed by a wholesaler or retailer for their product.
Answer: TRUE
Explanation: A private brand is created when a wholesaler or retailer develops a brand name and has a manufacturer put it on a product. An example is Sears, which carries the brand of Kenmore appliances.
Page Ref: 289
Difficulty: Easy
Objective: 11.7
Learning Outcome: Describe the major components of effective promotion
Skill: Concept

7) Marketing consists primarily of advertising a product or service.
Answer: FALSE
Explanation: Marketing is a process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Page Ref: 270
Difficulty: Moderate
Objective: 11.1
Learning Outcome: Explain the role of marketing in organizations
Skill: Concept

8) The formula for value is benefits divided by costs.
Answer: TRUE
Explanation: Further, benefits include not only the functions of the product but also the emotional satisfaction associated with owning, experiencing, or possessing it.
Page Ref: 270
Difficulty: Moderate
Objective: 11.1
Learning Outcome: Explain the role of marketing in organizations
Skill: Concept

9) Marketing concepts can be extended to the promotion of ideas.
Answer: TRUE
Explanation: Examples include ads in theaters that remind us to respect copyrighted materials and ads that stress the advantages of avoiding fast food.
Page Ref: 271
Difficulty: Moderate
Objective: 11.1
Learning Outcome: Explain the role of marketing in organizations
Skill: Concept
10) Economic conditions greatly influence marketing plans for product offerings.
Answer: TRUE
Explanation: Economic conditions determine spending patterns by consumers, businesses, and governments. Conditions thus influence marketing plans for product offerings, as well as pricing and promotional strategies.
Page Ref: 273
Difficulty: Moderate
Objective: 11.1
Learning Outcome: Explain the role of marketing in organizations
Skill: Concept