Principles of marketing/PMKT102/Assessing customer behaviour/Quiz

The questions which follow provide a basic knowledge test of selected concepts covered in this learning pathway: Assessing customer behaviour and motivation.

The questions published at the end of each learning pathway are re-used for the knowledge test for learners interested in earning a digital badge or certificate of participation for the Market research and customer insights (PKMT102) micro-course. Please consult the Certify participation page for more information.

True - false questions

Indicate whether the following statements are true or false:

• Abraham Maslow's hierarchy of needs includes food, water, sleep and conscious consumption.
  • True
    • Incorrect. Typically represented as a pyramid of needs, the primary needs are physiological, followed by safety, love and belonging, with self-esteem at the top of the pyramid. Buying products and services meet certain needs but is not the need itself.
  • False
    • Correct. Abraham Maslow's hierarchy of needs includes the most fundamental levels of needs (air, food and water) at the bottom of a pyramid, and the need for self-actualization (i.e., self-esteem, self-respect) at the top. Consumption is not a need.
• Customers' buying behaviour is influenced by personal and psychological factors, family, and culture.
  • True
    • Correct. Consumer behaviour is influenced by the environment, and different personal and situational contexts.
  • False
    • Incorrect. A person's gender, income or individual characteristics can have an impact on "how", "when" and "why" they purchase different products. For example, an eyeglasses company might sell bifocals to 50+ older adults (not young children), or feminine hygiene products to women.
• Business-to-Consumer (B2C) markets have a greater reliance on personal selling than on mass-marketing.
  • True
    • Incorrect. B2C markets are most cost-effectively reached through advertising (traditional, internet), websites and retail channels. Personal selling tends to be more time-consuming and expensive: this cost is usually offset by higher cost items (as one would find in B2B markets).
  • False
    • Correct. B2C markets are most easily reached through mass-market media, including advertising, websites and retailing. As internet marketing tools and techniques have become more sophisticated, B2C marketers can target smaller groups of consumers and receive real-time data (feedback) for their efforts.
• Successful marketers use cultural awareness as an important part of their marketing toolkit.
  • True
    • Correct. Culture (and sub-cultures) are about shared beliefs, customs, behaviours, and attitudes that characterize a society (i.e. a group of people). For example, having specific knowledge about the culture pertaining to style of dress (e.g. Afghan women's burkas) can help clothing marketers to be more successful in their marketing efforts.
  • False
    • Incorrect. It is essential for marketers to ensure their campaigns include culture. Tailoring a product's advertising to account for cultural differences can make a huge difference in overall success. For example, movies are marketed differently to Japanese vs. US audiences.

Multiple choice questions

• Which ONE of the following lists best describes the main types of business customers in Business-to-Business (B2B) markets?
  • Producers and manufacturers
    • No – there are other main types of business customers in addition to these.
  • Governments, non-profit organizations and institutions
    • No - there are other main types of business customers in addition to these.
  • Producers, resellers, governments and institutions
    • Correct - each of the above provide considerable markets to businesses that sell their products and services.
• Which ONE of the following statements best describes Business-to-Business (B2B) markets?
  • B2B markets often have fewer customers that account for most of their sales, and are geographically concentrated
    • Correct - in B2B marketing, there are often a small number of businesses that account for a company's sales, and they tend to be located in one region, or clustered in several geographic areas.
  • B2B markets often have fewer customers that account for most of their sales, and are geographically dispersed
    • Incorrect - geographically-dispersed customers are expensive to service and maintain, for all but the largest companies. Many B2B marketers find it more cost-effective to devote resources to just one or two specific markets.
  • B2B markets often have many customers that are geographically dispersed
    • Not really – large number of geographically-dispersed customers are too expensive to service and maintain, for all but the largest companies.
• According to Michael Porter, in addition to direct competitors, which of the following must organizations consider? (Select ONE answer.)
  • Current competitive products on the market; potential new competitors in the marketplace; the bargaining power of partners and suppliers; and the bargaining power of buyers
    • Incorrect – it is important to consider substitute products, rather than current products, that may be available at a lower price, offer considerable competition for products and services and meet the same need.
  • Substitute products; potential new competitors in the marketplace; the bargaining power of partners and suppliers; and the bargaining power of buyers
    • Correct - Substitute products that may be available at a lower price offer considerable competition for products and services. Consider for example, a summer promotion at McDonalds, on the purchase of soft-drinks for $1. This 'bargain' creates competition for sellers of other beverages (e.g. coffee, tea and soft-drinks).
  • Substitute products; current competitors in the marketplace; the bargaining power of partners and suppliers; and the bargaining power of buyers
    • Incorrect – it is also important to consider potential new competitors entering the market that can change the current market state.
• Which ONE of the following statements best describes a value proposition?
  • A value proposition focuses on the benefits of a product or service to a particular target market
    • Correct - firms may emphasize different benefits to different customers.
  • A value proposition focuses on the value that a new product or service may bring to the company producing it
    • Incorrect – the value proposition shows why a product or service is superior (focusing on benefits) to competing offers and what benefits it would bring to the target customer.
  • A value proposition focuses on the quality and price of the product indicating its value
    • No - that is not a value proposition. A value proposition focuses on the benefits to the customer.