CPM Buyers & Markets 2 — Questions and Answers
Question 1: Which concept describes the total revenue a customer generates for a business over the entire relationship?
- Customer acquisition cost
- Customer lifetime value (Correct answer)
- Net promoter score
- Customer satisfaction index
Correct answer: Customer lifetime value
Customer lifetime value (CLV) measures the total net profit a company expects from a customer throughout the entire business relationship.
Question 2: A consumer who purchases a product on impulse without prior planning is exhibiting which type of buying behavior?
- Habitual buying
- Variety-seeking buying
- Complex buying
- Impulse buying (Correct answer)
Correct answer: Impulse buying
Impulse buying occurs when a consumer makes an unplanned purchase driven by sudden desire rather than deliberate decision-making.
Question 3: In B2B markets, which factor most commonly distinguishes buying decisions from consumer markets?
- Brand loyalty plays a larger role
- Decisions involve multiple stakeholders (Correct answer)
- Emotional factors dominate
- Price is rarely considered
Correct answer: Decisions involve multiple stakeholders
B2B purchasing typically involves a buying center with multiple participants including users, influencers, buyers, deciders, and gatekeepers.
Question 4: Market segmentation based on personality, lifestyle, and values is called:
- Demographic segmentation
- Geographic segmentation
- Psychographic segmentation (Correct answer)
- Behavioral segmentation
Correct answer: Psychographic segmentation
Psychographic segmentation divides consumers based on psychological characteristics such as personality traits, values, interests, and lifestyles.
Question 5: The 'early majority' in the diffusion of innovations model represents approximately what percentage of the market?
- 2.5%
- 13.5%
- 34% (Correct answer)
- 16%
Correct answer: 34%
According to Rogers' diffusion of innovations, the early majority makes up about 34% of adopters and deliberates carefully before adopting a new product.
Question 6: When a buyer evaluates all available alternatives before making a purchase decision, this stage of the consumer decision process is called:
- Need recognition
- Information search
- Evaluation of alternatives (Correct answer)
- Post-purchase behavior
Correct answer: Evaluation of alternatives
The evaluation of alternatives stage is when consumers compare competing products or brands based on key attributes to identify the best option.
Question 7: Which term describes a market where a small number of large firms dominate and each firm's actions directly affect competitors?
- Monopoly
- Perfect competition
- Oligopoly (Correct answer)
- Monopsony
Correct answer: Oligopoly
An oligopoly is a market structure dominated by a few large sellers, where each firm must consider competitors' reactions to its pricing and marketing decisions.
CPM Buyers & Markets 2
Which concept describes the total revenue a customer generates for a business over the entire relationship?