Deck 10: Organizational and Household Decision Making

Question 1

A group of friends who are not related to each other meet regularly for dinner and celebrate holidays together. This group of friends is best described as a(n) ________.

A) extended family
B) intentional family
C) household
D) buyclass group

Answer 1

B

Question 2

In many organizations, more complex organizational decisions tend to be made by a(n) ________ in which different individuals play different roles in the decision-making process.

A) value chain
B) purchasing network
C) information network
D) buying center

Answer 2

D

Question 3

Like end consumers, organizational buyers are influenced by both internal and external stimuli. Which of the following is an example of an organizational buyer's internal stimuli?

A) the nature of the organization
B) the buyer's willingness to take risks
C) the technological environment's impact on the organization
D) the economic environment's impact on the organization

Answer 3

B

Question 4

Which of the following countries has a birth rate closest to 2.0?

A) Spain
B) the United States
C) Greece
D) Germany

Question 5

When a B2B buyer purchases the same product over and over without modification, the buying strategy is known as a ________.

A) habitual decision
B) straight rebuy
C) modified rebuy
D) new task

Question 6

An adult child who moves out of the family house and then returns to live with parents once again is called a ________.

A) javelin child
B) rebounder kid
C) boomerang kid
D) DINK

Question 7

When a buying center composed of assorted specialists is organized to gather a lot of information and evaluate possible purchases in a high-risk situation, the strategy in use is most likely ________.

A) new task
B) straight rebuy
C) modified rebuy
D) innovative rebuy

Question 8

Research has shown that the percentage of American women of childbearing age who define themselves as voluntarily childless is ________.

A) about the same as it was ten years ago
B) about the same as it was five years ago
C) rising
D) declining rapidly

Question 9

If at least one person lives at an address, this person and any other occupants of the address are considered to be a(n) ________.

A) extended family
B) nuclear family
C) household
D) intentional family

Question 10

Which of the following refers to couples who both have incomes and do not have children?

A) boom-babies
B) boomerangers
C) DINKS
D) MUPPIES

Question 11

Which of the following has led an increasing number of men and women ages 18 to 24 to return home to live with their parents?

A) increasingly difficult college entrance requirements
B) the shrinking job market
C) shifting cultural attitudes toward nontraditional families
D) the growing number of extended family living situations

Question 12

________ buyers are people who purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale.

A) Individual
B) Consumer
C) Global
D) Organizational

Question 13

Business-to-business marketing often involves more of an emphasis on personal selling than on advertising or other forms of promotion. Which of the following is the chief reason for this emphasis?

A) Personal selling is more cost-efficient than advertising.
B) Personal selling is more time-efficient than advertising.
C) Organizational buyers do not respond to advertising or promotions.
D) Organizational buyers typically require more face-to-face contact with sellers than end consumers do.

Question 14

Many companies are finding that it's both cost efficient and productive to call on outsiders from around the world to solve problems their own researchers can't handle. The Internet provides a great mechanism for assembling the solutions. A new term to describe this strategy is ________.

A) market predicting
B) B2B e-commerce
C) problem sourcing
D) crowdsourcing

Question 15

If a couple is responsible for raising two children and must also care in some way for their aging parents, the couple is a member of the ________ generation.

A) sandwich
B) laggard
C) boomerang
D) backward boomer

Question 16

A nuclear family is defined as ________.

A) one parent and at least one child
B) two parents and at least one child
C) at least two generations of a family
D) three generations of a family

Question 17

________ marketers specialize in meeting the needs of organizations such as corporations, government agencies, hospitals, and retailers.

A) Consumer
B) Business-to-business
C) Filter-down
D) Horizontal

Question 18

A good definition of an extended family unit is ________ living together.

A) one parent and at least one child
B) two parents and at least one child
C) at least two generations of a family
D) three generations of a family

Question 19

Many factors have been identified that distinguish organizational and industrial purchase decisions from individual consumer decisions. Which of the following is NOT one of those distinctions?

A) Purchase decisions made by companies frequently involve many people.
B) Organizational and industrial products are often bought according to precise, technical specifications.
C) Impulse buying commonly occurs in organizational purchasing because of sales stimulation from direct salespeople.
D) Organizational purchase decisions tend to be riskier than individual consumer purchase decisions.

Question 20

A number of specific decision roles are played when a collective decision must be made. The person who brings up the idea or need is the ________.

A) initiator
B) gatekeeper
C) influencer
D) buyer

Question 21

________ parents are likely to censor the types of media their children consume and also tend to have negative views about advertising.

A) Neglecting
B) Synoptic
C) Indulgent
D) Authoritarian

Question 22

Studies show that mothers are working more and doing less housework. Fathers are working less and doing more housework. What is the best way to explain this trend?

A) age gentrification
B) income reversal
C) gender convergence
D) decision blurring

Question 23

FLC models relate to how________.

A) the needs and expenditures of a family change over time
B) the federal government monitors the growth of B2B commerce
C) the federal government regulates rental living conditions
D) the size of family units has changed over the last 100 years

Question 24

Carlos and Mirabelle have three children and live in Spain. Which of the following best expresses how they will be treated in Spanish society?

A) Spain feels that its population is too large. Carlos and Mirabelle will be asked to voluntarily limit the size of their family.
B) Spanish families are traditionally very large; Carlos and Mirabelle will be shunned by older relatives for not having a large family.
C) The Spanish government is encouraging people to have more children. Carlos and Mirabelle might receive subsidized utilities and other benefits from the Spanish government.
D) They will fit into the society without notice because they are right at the Spanish norm for family size.

Question 25

Which of the following is NOT one of the three distinct children markets?

A) gatekeeper market
B) influence market
C) primary market
D) future market

Question 26

________ socialization is the process by which young people acquire skills, knowledge, and attitudes relevant to their functioning in the marketplace.

A) Sex-role
B) Consumer
C) Role
D) Cognitive

Question 27

Every time Sue Samuels comes in from a long selling trip, she makes sure to give reports to all her colleagues on knowledge she has gained and experiences she had while on the road. She has found that her "information tips" are a great way to set the stage for decision-making that she would like to go her way. Based on her actions, what role is Sue playing in her organization?

A) initiator
B) gatekeeper
C) influencer
D) user

Question 28

Pam Henry is a purchasing agent for MicroTel. Each Tuesday she places an order for ten boxes of photocopier paper with her supplier, but each week the size and quality of the paper is different due to shifting consumer demands. In this example, Pam is participating in which of the following buying situations?

A) new task
B) straight rebuy
C) modified rebuy
D) innovative rebuy

Question 29

Families have alternatives in purchasing. In a(n) ________ purchase decision, the group agrees on the desired purchase, differing only in terms of how it will be achieved.

A) accommodative
B) consensual
C) contemplative
D) authoritarian

Question 30

Michelle Roberts has a tough job at PJK Tile. She has to examine information from vendors and decide which of these vendors (and their proposals) should be presented to her company's purchasing group. No one at PJK Tile sees more information on vendors than Michelle. Which of the following roles does Michelle fulfill for PJK Tile?

A) initiator
B) influencer
C) gatekeeper
D) buyer

Question 31

A child's stage of ________ reflects his ability to comprehend concepts of increasing complexity.

A) sex-role socialization
B) consumer socialization
C) role differentiation
D) cognitive development

Question 32

Athletic prowess, musical ability, and spatial skills are all examples of ________.

A) cognitive development
B) multiple intelligence
C) cognitive socialization
D) strategic convergence

Question 33

A child in the ________ developmental stage will use storage and retrieval strategies but only when prompted to do so.

A) limited
B) preoperational
C) cued
D) strategic

Question 34

Wang Lin lives with his parents and siblings, as well as his grandparents and one uncle. Wang Lin lives with what is called a(n) ________ family.

A) nontraditional
B) universal
C) nuclear
D) extended

Question 35

Psychologist Jean Piaget believed that children pass through distinct stages of ________.

A) consumer socialization
B) multiple-intelligence
C) role differentiation
D) cognitive development

Question 36

________ spend less than average on most products and services because their households are small and their incomes are low.

A) DINKS
B) Twenty-somethings
C) Thirty-somethings
D) Seniors

Question 37

With respect to socioeconomic status, ________ families make more joint decisions than other types of family units.

A) lower-class
B) middle-class
C) higher-class
D) ultra-high class

Question 38

Glenn found a stray cat and "adopted" it. If Glenn is typical of the majority of Americans, how will he come to view himself in relationship to the cat?

A) Glenn will see himself as a father figure and may refer to himself as "Daddy" when talking to the cat.
B) Glenn will keep the cat fed, but will otherwise generally ignore the animal.
C) Glenn will find himself increasingly resentful of the cat because of the extra expense and time that is required to care for a pet.
D) According to statistics, Glenn will probably neglect the animal because it did not cost him anything.

Question 39

Rick and his decision team purchase office equipment that will be used by the entire organization in the next month. This is an example of which of the following forms of decision making?

A) individual decision making
B) syncretic decision making
C) collective decision making
D) synoptic decision making

Question 40

If a couple follows the synoptic ideal in decision-making, the couple ________.

A) acts as independent purchasing agents serving each person's individual needs
B) acts independently but with a common goal in place
C) argues about decisions, but eventually reaches some form of majority view
D) makes joint decisions with a common purpose

Question 41

The Smith family is trying to decide on a vacation destination. Mom wants to go to the big city to shop, Dad wants to go to the beach to relax, and the two teenage kids want to go to Orlando, Florida, where the action is. Because no one can agree on where to go, Dad makes the decision (because he is paying for it), and the Smiths go to the beach. This is an illustration of which of the following types of purchase decisions?

A) consensual purchase decision
B) accommodative purchase decision
C) contemplative purchase decision
D) assumptive purchase decision

Question 42

Because of increased immigration, the United States has a fertility rate approaching 4.0.

Question 43

About $2 trillion dollars worth of products and services change hands among organizations, which is actually more than end consumers purchase.

Question 44

A straight rebuy decision is generally a habitual decision on the part of the purchasing agent.

Question 45

The median age of first marriages for women in the United States has remained relatively steady for the past 60 years.

Question 46

Ellen was asked to fill out a questionnaire. She described herself as more likely to engage in exercise, more likely to go out to bars and restaurants, and more likely to consume more alcohol than people in other age groups. Which of the family life cycle categories would Ellen best fit?

A) young bachelors and newlyweds
B) families with young children
C) families with older children
D) older couples without children

Question 47

Kelly and Paul are authoritarian parents. Of the following types of purchase decisions, which are they LEAST likely to use with their children?

A) accommodative
B) consensual
C) autonomic
D) task specialization

Question 48

A prediction market is one of the hottest new trends in retail buying, through which store owners can reliably predict advance demand.

Question 49

The modified rebuy situation has high risk because of the extent of the buying effort and the buyer's involvement.

Question 50

Tyler returned home after college to live with his parents. This was to be a temporary arrangement; however, days became months and months became three years. Tyler's dad wonders if he will ever move out and get his own apartment. Tyler is part of an increasing trend called ________.

A) drop-out kids
B) DINKS
C) failure "Xers"
D) boomerang kids

Question 51

In an organization, the initiator fills the role of trying to sway the outcome of the decision.

Question 52

Collective decision-making occurs when more than one person is involved in the purchasing process for products or services that may be used by multiple consumers.

Question 53

One of the differences between organizational buying and consumer buying is that in organizational buying the decisions are often more risky, as an individual's career may be on the line.

Question 54

Julie wants to go back to school. It will cost a lot of money and affect Jeff, her husband. They sit down together and work out a plan that will allow Julie to finish her degree. This is an example of a(n) ________ decision.

A) autonomic
B) convergent
C) syncretic
D) family-flow

Question 55

Which of the following findings would most strongly support the theory that gender convergence is increasing in American married couples?

A) Partners in married couples are increasingly making autonomic decisions about transportation.
B) Partners in married couples are making fewer consensual purchase decisions about clothing.
C) Partners in married couples are making fewer accommodative purchase decisions about vacations.
D) Partners in married couples are increasingly making syncretic decisions about furnishings for the home.

Question 56

Jennifer and Ted have been married about six months. One of Jennifer's complaints about Ted's behavior during their brief marriage is that he seems to make all the decisions when the couple has to purchase high-risk or expensive durables (such as furniture or a new car). Ted is making ________ decisions.

A) autonomic
B) syncretic
C) synoptic
D) consensual

Question 57

Of the following, parental yielding is most likely to happen in a family with ________ parents.

A) authoritarian
B) neglecting
C) indulgent
D) autonomic

Question 58

Meredith works hard to keep her family together in this fast-paced world. She coordinates visits with relatives, calls and writes often to her parents and grandparents, and makes sure her husband remembers all significant birthdays and anniversaries. In this example, Meredith is primarily responsible for the continuation of the family's ________.

A) customer networks
B) cognitive development
C) kin-network system
D) life cycle

Question 59

Dale and Patty Johnson have been married for fifteen years. Dale works in a meat packing plant and Patty works part time as a clerk in a fast-food restaurant. Who is most likely to be the family financial officer?

A) Dale
B) Patty
C) They are both equally likely.
D) If Patty is working, then she is, but when she is not, then Dale is.

Question 60

Married couples represent the majority of American households.

Question 61

Charles lived in Maine, went to college in New Hampshire, and then moved to Boston to work. When Charles was 30 years old, he lost his job and moved back to live with his parents in Maine until he found another job. Charles would be called a boomerang kid by marketers.

Question 62

"We just got our steps done and that was a big project. The contractor would talk to my husband and not talk to me. And I said, 'Excuse me, I'm here, too!'" This is an illustration of this woman's gender convergence and need for syncretic decision-making.

Question 63

What are the differences between the extended and nuclear family?

Question 64

In accommodative decision making, family members are more likely to engage in problem solving and consider alternatives until the means for satisfying the group's goal is found.

Question 65

According to research on the stages of consumer development, most children make purchases on their own by the age of eight.

Question 66

What specific roles are played within the buying center of an organization or a household when a collective purchase decision must be made? Identify and describe each of these five roles.

Question 67

The 1990 Children's Television Act restored all of the restrictions on television advertising to children that were originally put in place by the Federal Trade Commission in the 1970s.

Question 68

Older consumers spend more per capita on luxury items such as gourmet foods and upscale home furnishings.

Question 69

Nearly half of married women buy pants for their husbands.

Question 70

Jill is approaching 40 years of age. She has two children and both of her parents are still alive but not in good health. Jill could be labeled as a member of the Sandwich Generation.

Question 71

What are some of the key differences between organizational purchase decisions and individual consumer decisions?

Question 72

The organizational buyer's perception of the purchase situation is influenced by a number of factors. According to the text, what are three of these factors?

Question 73

At work, Sally opens the mail, sorts it for content and need, throws away materials that she does not think are necessary, and puts the mail in three executives' mailboxes. In this instance, Sally functions as an influencer.

Question 74

Nearly half of Americans aged 25 to 40 have at some point lived with a person of the opposite sex. These changes are part of a broader shift toward innovative family creation and having more than two children during procreation years.

Question 75

Identify and explain the three decision-making dimensions that describe the purchasing strategies of an organizational buyer. These dimensions form the basis of a buyclass theory of purchasing.

Question 76

Children in the limited stage of cognitive development are more likely to distinguish between television commercials and programming than children in the cued stage of cognitive development are.

Question 77

Kix Cereal is promoted as being "kid-tested and mother-approved." The front of the cereal box promotes the cereal's nutritional value, and the back has games for kids to play. Kix likely considers children its primary market.

Question 78

Purchase decisions made by companies frequently involve only one person because of the nature of organizational buying.

Question 79

Because Americans separate their feelings for their pets from their own self-concepts, it would be a risky marketing strategy for well-known brand names to market products for pets with the same brand name as the one used for consumer products.

Question 80

Women who live what has been termed the juggling lifestyle struggle with compromises between conflicting cultural ideals of motherhood and professionalism.