1. Which of the following statements regarding the concept of “derived demand” is true?

a. Large industrial firms derive their demand from the smaller firms in the market.

b. Individual consumers and families derive their demand based on the industrial market.

c. Industrial (business to business) firms ultimately derive their demand from the consumer market.  

d. All of the above are true.

2. Which of the following statements regarding “heavy vs. light” users is (are) true?

a. In some markets, 80% of the product is consumed by only 20% of the users.

b. Heavy users of a product typically are less “price sensitive”.  

c. Light users of a product typically are not willing to pay more for higher quality brands.

d. All of the above are true

3. In order to be considered as part of a particular target market consumers must have:

a. A willingness to buy the product or service

b. The authority to make the purchase

c. Sufficient buying power

d. All of the above

4. The concept of “culture” is a recognition that:

a. People from different parts of the world belong to different social classes.

b. People from different parts of the world are guided by different values, wants, perceptions, and attitudes

c. Different people are motivated by different needs (i.e., physiological, safety, social, and personal).

d. All of the above.

5. It can be important to take into consideration the different stages of the “family life cycle” because:

a. Discretionary income levels can vary across the different stages.

b. Different individuals might be more (or less) involved in certain purchases as a family moves through different stages of the life cycle.  

c. Demand for certain items can vary across the different stages.

d. All of the above.