C) interpersonal D) organizational E) cultural Answer: C Diff: 2 Page Ref: 176 Skill: Concept Objective: 6-2
13) Charlie Van Dusen, executive vice president of National Central Bank, is going through all of the stages of the buying process to purchase a computer system for the bank. Charlie is facing a(n) ________ situation. A) straight rebuy B) modified rebuy C) new-task buying D) limited budget
E) independent buying Answer: C Diff: 2 Page Ref: 176 Skill: Concept Objective: 6-3
14) Which of the following is an example of an internal stimulus that might lead to the business buying process stage of problem recognition? A) A buyer gets a new idea from an advertisement. B) A buyer gets a new idea at a trade show.
C) A buyer is unhappy with a current supplier's price.
D) A buyer receives a call from a salesperson offering better service terms. E) A buyer learns about a new product at an industry convention. Answer: C Diff: 2 Page Ref: 177 Skill: Concept Objective: 6-3
15) The first step of the business buying process is ________. A) general need description B) alternative evaluations C) problem recognition
D) order-routine specification E) performance review Answer: C Diff: 2 Page Ref: 177 Skill: Concept Objective: 6-3
16) Business marketers often alert customers to potential problems and then show
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how their products provide solutions. These marketers are hoping to influence which stage of the business buying process? A) general need description B) alternative evaluations C) problem recognition
D) order-routine specification E) performance review Answer: C Diff: 2 Page Ref: 177 Skill: Concept Objective: 6-3
17) Empire Products has begun a process to find the best suppliers. Empire Products is actively engaged in ________. A) value analysis
B) performances review C) supplier search D) supplier control E) supplier selection Answer: C Diff: 1 Page Ref: 177 Skill: Concept Objective: 6-3
18) A buyer would be most likely to review trade directories in which stage of the business buying process? A) problem recognition B) general need description C) product specification D) supplier search E) supplier selection Answer: D Diff: 2 Page Ref: 177 Skill: Concept Objective: 6-3
19) In the generally accepted stages of the business buying process, the step following product specification is ________. A) proposal solicitation B) supplier search
C) problem recognition D) general need description E) order-routine specification Answer: B Diff: 2 Page Ref: 177 Skill: Concept
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Objective: 6-3
20) In the generally accepted stages of the business buying process, the step following problem recognition is ________. A) proposal solicitation B) supplier search
C) product value analysis D) general need description E) performance review Answer: D Diff: 2 Page Ref: 177 Skill: Concept Objective: 6-3
21) Members of the buying center at ABC Kid's World are drawing up a list of desired toy supplier attributes and their relative importance. Next, they intend to compare several suppliers to these attributes. In which step of the business buying process is the buying center at ABC Kid's World engaged? A) supplier search
B) proposal solicitation C) supplier selection
D) order-routine specification E) performance review Answer: C Diff: 2 Page Ref: 178 Skill: Concept Objective: 6-3
22) A firm's mission statement should be the basis for both its business and marketing objectives.
Answer: FALSE Diff: 2 Page Ref: 40 AACSB: Communication Skill: Concept Objective: 2-1
23) The major activity in strategic planning is strategic business unit planning,
whereby management evaluates the products and businesses making up the company. Answer: FALSE Diff: 2 Page Ref: 41 Skill: Concept Objective: 2-2
24) When designing business portfolios, most companies are well advised to add a broad range of products and businesses to their organization.
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Answer: FALSE Diff: 2 Page Ref: 41 Skill: Concept Objective: 2-2
25) The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment. Answer: TRUE Diff: 2 Page Ref: 41 Skill: Concept Objective: 2-2
26) In the BCG matrix, \generate enough cash to maintain themselves. Answer: FALSE Diff: 3 Page Ref: 42 Skill: Concept Objective: 2-2
27) The growth strategy of diversification involves offering modified or new products to current markets. Answer: FALSE Diff: 2 Page Ref: 46 Skill: Concept Objective: 2-2
28) When an organization identifies and develops new markets for its current products and services, it is engaged in market development. Answer: TRUE Diff: 1 Page Ref: 45 Skill: Concept Objective: 2-2
29) When a firm finds products or businesses that no longer fit its overall strategy, it must carefully milk, harvest, or better develop them. Answer: FALSE Diff: 2 Page Ref: 46 Skill: Concept Objective: 2-2
30) In today's marketplace, competition increasingly takes place between entire value delivery networks rather than between individual competitors. Answer: TRUE Diff: 1 Page Ref: 48 Skill: Concept Objective: 2-3
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Chapter 7 Customer-Driven Marketing Strategy: Creating Value for Target
Customers
1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) concentrated marketing B) mass marketing C) market targeting D) segmenting E) differentiation Answer: C Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1
2) What are the four steps, in order, to designing a customer-driven marketing strategy?
A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence Answer: C Diff: 2 Page Ref: 191 Skill: Concept Objective: 7-1
3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs. A) efficiently B) effectively C) intensely D) indirectly E) both A and B Answer: E Diff: 2 Page Ref: 192 Skill: Concept Objective: 7-2
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