CPM Buyers & Markets 3 — Questions and Answers
Question 1: Which of the following is an example of a secondary reference group that influences consumer behavior?
- Immediate family members
- Close friends at school
- A professional trade association (Correct answer)
- Coworkers in the same department
Correct answer: A professional trade association
Secondary reference groups, like professional associations, have less frequent and less intimate contact with consumers but still shape attitudes and behaviors.
Question 2: The concept of 'cognitive dissonance' in consumer behavior refers to:
- Excitement before making a purchase
- Doubt or discomfort felt after a purchase decision (Correct answer)
- Confusion during information search
- Satisfaction from comparing alternatives
Correct answer: Doubt or discomfort felt after a purchase decision
Cognitive dissonance is the post-purchase anxiety consumers feel when they question whether they made the right decision.
Question 3: A 'derived demand' in B2B markets means that demand for industrial goods is:
- Based solely on industry trends
- Derived from the supply of raw materials
- Dependent on consumer demand for end products (Correct answer)
- Influenced only by competitor pricing
Correct answer: Dependent on consumer demand for end products
Derived demand means B2B demand originates from consumer demand; for example, demand for steel rises when demand for automobiles increases.
Question 4: Which market segmentation approach targets customers based on the benefits they seek from a product?
- Demographic segmentation
- Benefit segmentation (Correct answer)
- Geographic segmentation
- Usage-rate segmentation
Correct answer: Benefit segmentation
Benefit segmentation groups consumers by the specific advantages or benefits they desire from a product, such as whitening toothpaste buyers seeking cosmetic benefits.
Question 5: In Maslow's hierarchy of needs, which level must be satisfied before a consumer seeks esteem needs?
- Physiological needs
- Safety needs
- Social/love and belonging needs (Correct answer)
- Self-actualization needs
Correct answer: Social/love and belonging needs
According to Maslow, social needs (belonging, love, friendship) must be fulfilled before esteem needs such as status and recognition can be pursued.
Question 6: A market defined by strong price competition, many sellers offering similar products, and easy entry is best described as:
- Monopolistic competition
- Pure competition (Correct answer)
- Oligopoly
- Monopoly
Correct answer: Pure competition
Pure (or perfect) competition features many sellers with nearly identical products, no single firm controls price, and barriers to entry are minimal.
Question 7: Which buying role in an organizational buying center has the formal authority to select a supplier and arrange purchase terms?
- User
- Influencer
- Buyer (Correct answer)
- Gatekeeper
Correct answer: Buyer
The buyer in an organizational buying center holds formal authority to select suppliers, negotiate contracts, and finalize purchase arrangements.
CPM Buyers & Markets 3
Which of the following is an example of a secondary reference group that influences consumer behavior?