Ch05 Consumer Markets and Consumer Buyer Behavior

Chapter 5 Consumer Markets and Consumer Buyer Behavior 1) ________ is never simple, yet understanding it is the essential task of marketing management. A) Brand personality B) Consumption pioneering C) Early adoption D) Consumer buying behavior E) Understanding the difference between primary and secondary data Answer: D 2) The consumer market is made up of which of the following? A) individuals who acquire goods or services for personal consumption B) households that purchase goods or services for personal consumption C) businesses that purchase goods and services D) A and B E) all of the above Answer: D 3) Economic, technological, and cultural forces are all ________ in the stimulus-response model of buyer behavior. A) buyer responses B) stimuli C) components of the buyer's decision process D) buyer characteristics E) buying attitudes Answer: B Page Ref: 137 4) Most large companies research ________ buying decisions to find out what they buy, where they buy, how and how much they buy, when they buy, and why they buy. A) market B) permanent C) consumer D) social E) group Answer: C Page Ref: 136 5) The starting point of understanding a consumer's response to various marketing efforts is the ________ of a buyer's behavior. A) belief B) subculture C) postpurchase feeling D) stimulus-response model E) postpurchase dissonance Answer: D Page Ref: 136 6) Marketing stimuli consist of the four Ps. Which is NOT one of these? A) product B) politics C) price D) promotion E) place Answer: B Page Ref: 136 7) The marketer wants to understand how the stimuli are changed into responses inside the consumer's ________, which has two parts. First, the buyer's characteristics influence how he or she perceives and reacts to the stimuli. Second, the buyer's decision process itself affects the buyer's behavior. A) culture B) black box C) belief D) lifestyle E) social class Answer: B Page Ref: 136 8) In the model of buyer behavior, which of the following is NOT a major type of force or event in the buyer's environment? A) economic B) technological C) political D) channel E) cultural Answer: D Page Ref: 136 9) ________ is(are) the most basic cause of a person's wants and behavior. A) Culture B) Brand personality C) Cognitive dissonance D) Societal factors E) Selective perception Answer: A Page Ref: 137 10) Marketers are always trying to spot ________ in order to discover new products that might be wanted. A) lifestyles B) cultural shifts C) groups D) dissonance E) attitudes Answer: B Page Ref: 137 11) Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations. A) alternative evaluations B) cognitive dissonances C) subcultures D) motives E) attitudes Answer: C Page Ref: 137 12) Which of the following is NOT considered an important American subculture by marketers? A) Hispanics B) African Americans C) mature consumers D) opinion leaders E) Asian Americans Answer: D Page Ref: 137 13) This group of consumers tends to buy more branded, higher-quality products. and to make shopping a family event, with children having a big say in the purchase decision. In general, they are very brand loyal, and they favor companies who show special interest in them. A) Hispanic B) African American C) Asian D) mature E) gay and lesbian Answer: A Page Ref: 137-138 14) ________, the fastest-growing U.S. demographic segment, now number more than 45 million. A) African Americans B) Hispanics C) Asian Americans D) Mature consumers E) Gays and lesbians Answer: B Page Ref: 137 15) Although more price-conscious than other segments, ________ consumers tend to be strongly motivated by quality and selection. Brands are important. They enjoy shopping and are more fashion conscious than other ethnic groups. A) Hispanic B) African American C) mature D) Asian E) baby boomer Answer: B Page Ref: 139 16) ________, the most affluent American demographic subculture, now have more than $450 billion in annual spending power. A) Hispanics B) African Americans C) Asian Americans D) Gays and lesbians E) Gen Xers Answer: C Page Ref: 139 17) ________ are becoming a very attractive market: they are the ideal market for travel, restaurants, high-tech home entertainment products, and convenient services A) Hispanics B) Asian Americans C) Mature consumers D) African Americans E) Teenagers Answer: C Page Ref: 140 18) Which of the following is NOT true of mature consumers? A) The best strategy is to appeal to their active, multidimensional lives. B) They are an ideal market for "do-it-for-me" services. C) High-tech home entertainment products appeal to them. D) They place more importance on brand names and are more brand loyal than members of other age groups. E) They are a good market for cosmetics and personal care products. Answer: D Page Ref: 140 19) ________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. A) Social classes B) Cultures C) Reference groups D) Attitudes E) Lifestyles Answer: A Page Ref: 140 20) What is one way that social class is NOT measured? A) occupation B) education C) income D) number of children in the family E) wealth Answer: D Page Ref: 140 21) Which of the following statements is true regarding social class in the United States? A) Social class is determined primarily by income level. B) Lines between social classes in the United States are fixed and rigid. C) Social classes show distinct product preferences in clothing and automobiles. D) Wealth is more critical than education level in measuring social class. E) People are relegated to a permanent class layer in the United States. Answer: C Page Ref: 140 22) ________ are groups to which an individual wishes to belong, as when a teenaged basketball player hopes to play someday for the Los Angeles Lakers. A) Membership groups B) Aspirational groups C) Leading adopter groups D) Leisure groups E) Social class groups Answer: B Page Ref: 140 23) ________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. A) Opinion leaders B) Habitual buyers C) Social networkers D) Stealth marketers E) Buzz marketers Answer: A Page Ref: 141 24) Opinion leaders are sometimes referred to as ________. A) the influentials B) the upper uppers C) the middle class D) buzz marketers E) networkers Answer: A Page Ref: 141 25) Many companies, such as JetBlue and Sony, enlist everyday consumers who are enthusiastic about their brands to become ________ , brand ambassadors who share their passion for a company's products with large circles of friends and acquaintances in return for insider knowledge and other rewards. A) leading adopters B) brand evangelists C) direct marketers D) direct sellers E) influencers Answer: B Page Ref: 141 26) Companies who use brand ambassadors are participating in ________. A) opinion leading B) traditional marketing C) buzz marketing D) direct marketing E) values marketing Answer: C Page Ref: 141 27) MySpace.com and YouTube are both examples of ________. A) buzz marketing B) opinion leaders C) social networks D) early adopters E) word-of-mouth marketing Answer: C Page Ref: 143 28) Which of the following best explains why a rush of marketers now participate in established online social networks? A) Social networking has been proven to be more effective than traditional marketing. B) Social networks allow companies to have greater control over brand-related content than other media do. C) Members of social networking sites are unlikely to tune out personalized advertising messages. D) Companies have found their own social networks to be unsuccessful. E) Consumers are more likely to view to peer-to-peer communication as credible. Answer: E Page Ref: 144 29) The ________ is the most important consumer buying organization in society; the roles and influences of different members have been researched extensively. A) family B) social class C) membership group D) subculture E) reference group Answer: A Page Ref: 145 30) A ________ consists of the activities people are expected to perform according to the persons around them. A) motive B) role C) lifestyle D) life cycle E) tradition Answer: B Page Ref: 146 31) A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept. A) personal characteristics B) reference groups C) perceptions D) attitudes E) psychographics Answer: A Page Ref: 146 32) People change the goods and services they buy over time because of the two changing factors of ________. A) belief and attitude B) perception and personality C) age and life-cycle stage D) groups and learning E) family and tradition Answer: C Page Ref: 146 33) ________ is a person's pattern of living as expressed in his or her psychographics, including his or her activities, interests, and opinions. A) Personality B) Culture C) Lifestyle D) Motive E) Social class Answer: C Page Ref: 147 34) All of the following make up a person's lifestyle EXCEPT ________. A) AIO dimensions B) interests C) dissonance-reducing buying behavior D) opinions E) work Answer: C Page Ref: 147 35) A customer's lifestyle can be measured by using the AIO dimensions. What does AIO stand for? A) Activities, Interests, Opinions B) Achievement, Involvement, Organizations C) Accommodation, Investment, Orientation D) Acknowledgements, Interests, Observations E) Adoptions, Interests, Occupations Answer: A Page Ref: 147 36) ________ refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment. It is usually described in traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. A) Alternative evaluation B) Belief C) Culture D) Personality E) Self-awareness Answer: D Page Ref: 148 37) Researchers found that a number of well-known brands tended to be strongly associated with one particular trait, such as Jeep with "ruggedness." Which of the following terms would a marketer use to describe a specific mix of human traits that may be attributed to a particular brand? A) brand perception B) product image C) brand personality D) brand concept E) brand equity Answer: C Page Ref: 148 38) Brand personality is a mix of human traits attributed to a brand. Which of the following is NOT a brand personality trait as discussed in your text? A) sincerity B) excitement C) competence D) sophistication E) emotion Answer: E Page Ref: 148 39) A person's buying choices are influenced by four major psychological factors. Which is NOT one of these factors? A) motivation B) perception C) alternative evaluation D) learning E) beliefs Answer: C Page Ref: 148 40) A ________ is a need that is sufficiently pressing to direct a person to seek satisfaction. A) stimulus B) perception C) culture D) motive E) tradition Answer: D Page Ref: 148 41) Many marketers use the self-concept premise that people's possessions contribute to and reflect their identities; that is, "we are what we have." Under this premise, consumers ________. A) buy products to support their self-images B) use brand personalities C) are affected by subconscious motivations D) are attracted to products that fit in with their existing attitudes E) conduct the information search Answer: A Page Ref: 148 42) According to Freud's theories, people are ________ many of the psychological forces shaping their behavior. A) unaware of B) unsure of C) aware of D) status-driven about E) socially conscious of Answer: A Page Ref: 149 43) The term ________ refers to qualitative research designed to probe consumers' hidden, subconscious motivations. A) perception analysis B) opinion leader C) motivation research D) need recognition investigation E) depth research technique Answer: C Page Ref: 149 44) Maslow's theory is that ________ can be arranged in a hierarchy. A) stimuli B) beliefs and attitudes C) perceptions D) human needs E) decisions Answer: D Page Ref: 149 45) Which of the following is NOT part of Maslow's Hierarchy of Needs? A) physiological needs B) safety needs C) stimulus needs D) self-actualization needs E) social needs Answer: C Page Ref: 149 46) What is the LEAST pressing in Maslow's Hierarchy of Needs? A) physiological needs B) social needs C) esteem needs D) self-actualization needs E) safety needs Answer: D Page Ref: 149 47) ________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world. A) Personality B) Perception C) Selective grouping D) Learning E) Self-actualization Answer: B 48) People cannot focus on all of the stimuli that surround them each day. A person's tendency to screen out most of the information to which he or she is exposed is called ________. A) selective retention B) selective distortion C) selective attitude D) selective attention E) selective perception Answer: D 49) People tend to interpret new information in a way that will support what they already believe. This is called ________. A) selective retention B) selective distortion C) selective attitude D) selective attention E) selective perception Answer: B 50) People forget much that they learn. They tend to retain information that supports their attitudes and beliefs. This is called ________. A) selective attention B) selective retention C) selective attitude D) selective distortion E) perceptual vigilance Answer: B 51) Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about ________ advertising. A) alternative evaluation B) subliminal C) perceptual D) innovative E) comparative Answer: B 52) ________ describes changes in an individual's behavior arising from experience. A) Lifestyle B) Learning C) Perception D) Cognitive dissonance E) Aggressiveness Answer: B 53) Learning occurs through the interplay of all of the following EXCEPT ________. A) drives B) stimuli C) cues D) dissonance behavior E) reinforcement Answer: D 54) ________ are subtle stimuli that determine where, when, and how a person responds to an idea. A) Cues B) Drives C) Messages D) Personalities E) Impulses Answer: A 55) If a consumer's experience is rewarding, that consumer will probably use the product more and more. The consumer's response to the product will be ________. A) an attitude B) a belief C) reinforced D) a dissonant experience E) motivated Answer: C 56) Applying ________, marketers can affect demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement. A) subliminal advertising B) social classes C) learning theory D) need recognition E) cognitive dissonance Answer: C 57) A(n) ________ is a descriptive thought that a person has about something. A) lifestyle B) motive C) belief D) attitude E) perception Answer: C 58) A(n) ________ is a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea. A) lifestyle B) motive C) belief D) attitude E) perception Answer: D 59) A person's attitudes fit into a pattern, and to change one attitude may require difficult adjustments in many others. Thus, a company should ________ try to fit its products into existing attitudes rather than attempt to change attitudes. A) usually B) not C) once in a while D) seldom E) never Answer: A 60) When consumers are highly involved with the purchase of an expensive product and they perceive significant differences among brands, they most likely will undertake ________. A) habitual buying behavior B) complex buying behavior C) reflective buying behavior D) habitual buying behavior E) variety-seeking buying behavior Answer: B Page Ref: 152 61) Which of the following typically occurs with habitual buying behavior? A) There is high consumer involvement. B) There is strong brand loyalty. C) Consumers search extensively for information. D) Ad repetition creates brand conviction. E) none of the above Answer: E Page Ref: 152 62) When customers have a low involvement in a purchase but perceive significant brand differences, they will most likely engage in ________. A) complex buying behavior B) dissonance-reducing buying behavior C) habitual buying behavior D) variety-seeking buying behavior E) brand conviction buying behavior Answer: D Page Ref: 153 63) The buyer decision process consists of five stages. Which of the following is NOT one of these stages? A) need recognition B) information search C) variety-seeking buying behavior D) purchase decision E) postpurchase behavior Answer: C Page Ref: 153 64) The buying process starts with ________, in which the buyer recognizes a problem. A) need recognition B) information search C) product awareness D) product interest E) alternative evaluation Answer: A Page Ref: 154 65) If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake a(n) ________. A) brand personality B) alternative evaluation C) postpurchase behavior D) information search E) product adoption Answer: D Page Ref: 154 66) The consumer can obtain information from any of several sources. Which of the following is NOT one of these types of sources? A) personal B) commercial C) attitude D) public E) experiential Answer: C Page Ref: 154 67) The most effective sources from which consumers obtain information are ________ because they legitimize or evaluate products for the buyer. A) commercial B) public C) experimental D) personal E) experiential Answer: D Page Ref: 154 68) Marketers describe the way the consumer processes information to arrive at brand choices as ________. A) alternative evaluation B) information search C) purchase decision D) situational factors E) post-purchase dissonance Answer: A Page Ref: 154 69) Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. Which of the following is one of these factors? A) postpurchase behavior B) attitude of others C) cognitive dissonance D) alternative evaluation E) new product adoption Answer: B Page Ref: 155 70) After the purchase of a product, consumers will be either satisfied or dissatisfied and engage in ________. A) need recognition B) alternative evaluation C) postpurchase behavior D) product expectations E) information searches Answer: C Page Ref: 155 71) The relationship between the consumer's expectations and the product's ________ determines whether the buyer is satisfied or dissatisfied with a purchase. A) perceived performance B) brand personality C) recognition D) consumer market E) service quality Answer: A Page Ref: 155 72) Almost all major purchases result in ________, or discomfort caused by postpurchase conflict. A) need recognition B) cognitive dissonance C) purchase decisions D) legitimization E) dissatisfaction Answer: B Page Ref: 155 73) Consumers learn about new products for the first time and make the decision to buy them during the ________. A) need recognition stage B) adoption process C) evaluation process D) trial process E) quality assessment Answer: B Page Ref: 158 74) Which of the following is NOT one of the stages that customers go through in the process of learning about and making decisions about a new product or service? A) awareness B) interest C) evaluation D) culture E) trial Answer: D Page Ref: 158 75) Relative advantage, compatibility, complexity, divisibility, and communicability are all examples of ________. A) alternative evaluations B) dissonance-reducing buying behaviors C) product characteristics that influence rate of adoption D) individual differences in innovation E) postpurchase behaviors Answer: C Page Ref: 159 76) Generation Xers, who were born between 1965 and 1976, share the childhood experiences of higher parental divorce rates, recession, and corporate downsizing. They tend to care about the environment and value experience over acquisition. Generation Xers make up a ________. A) subculture B) social class C) social network D) life-cycle stage E) lifestyle Answer: A Page Ref: 137 77) A shoe company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and want to wear the same shoes. The shoe company is hoping that fans of the band view the band as a ________. A) membership group B) reference group C) status symbol D) subculture E) lifestyle Answer: B Page Ref: 140 78) Rashmi Singh always knows about the trendiest fashions. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for cutting-edge fashion at great deals, and her advice is often followed. Rashmi is an example of a(n)________. A) innovator B) membership group C) opinion leader D) buzz marketer E) experiential source Answer: C Page Ref: 141 79) Shane Sudendorf is an active member of her sorority, two intramural teams, and a service organization at her college. She also actively participates on two online social networks, posting information about her day along with her thoughts on music, food, fashion, and culture. From this description, which of the following is the best way to describe Shane? A) an opinion leader B) a status symbol C) a member of the RBC Builder segment D) a member of the RBC Youth segment E) a brand ambassador Answer: A Page Ref: 141 80) There is a trend in the United States toward rediscovering the flavor of regional cooking and the use of locally grown ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to recreate local culinary traditions. This change in ________ is one of the reasons the number of farmers markets in the United States has increased by 70 percent in the last eight years. A) variety-seeking behavior B) subculture C) lifestyle D) personality E) life cycle Answer: C Page Ref: 147 81) The RBC Royal Bank has identified five life-stage segments. Members of which segment are most likely to be interested in debt-load management services? A) Youth B) Getting Started C) Builders D) Accumulators E) Preservers Answer: C Page Ref: 146 82) According to one analyst, a Harley-Davidson motorcycle can make you feel like "the toughest, baddest guy on the block." Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a ________. A) lifestyle B) life-cycle stage C) brand motivation D) brand personality E) brand self-image Answer: D Page Ref: 148 83) A marketing research company asked members of a focus group to describe several motorcycle brands as animals. This is an example of ________. A) hierarchical needs analysis B) interpretive consumer research C) status influence D) buzz marketing E) information search Answer: B Page Ref: 149 84) Mark has long supported the actions and decisions of his city's mayor. However, many recent news stories have raised questions about the ethics of the mayor's programs and initiatives. Mark doubts that the mayor, in whom he has such faith, could behave unethically, and Mark tends to distrust the information in the media. Mark continues to support the mayor. Mark has engaged in ________. A) selective distortion B) selective attitude C) selective retention D) selective attention E) perceptual defense Answer: A 85) Juana looked at her September issue of O magazine and did not see anything of interest. After her mother was diagnosed with bipolar disorder, she found the issue extremely interesting because it offered advice on how to help people who are suffering from this problem. The issue became quite interesting to Juana due to ________. A) subliminal messaging B) social factors C) selective attention D) the hierarchy of needs E) unconscious motivations Answer: C 86) Bob's job description had been changed. The rationale for the changes made no sense to Bob when they were explained. Bob continued to perform most of his job duties as usual. He has engaged in ________. A) selective distortion B) selective attitude C) selective interpretation D) selective attention E) perceptual defense Answer: D 87) Stephanie and Jamal attended a sales seminar. Both left the seminar with differing opinions about what was important to implement in their jobs. Both used the information in different ways, according to what each already believed was important. They have engaged in ________. A) selective distortion B) selective attitude C) selective retention D) selective attention E) perceptual defense Answer: A 88) George is buying his first house. He has found two houses that he thinks he likes. He is highly involved in the purchase and perceives significant differences between these two houses. George will likely undertake ________. A) variety-seeking buying behavior B) complex buying behavior C) opinion leadership D) dissonance-reducing buying behavior E) marketing myopia Answer: B Page Ref: 152 89) Pat thought he had received the best deal on his new car. Shortly after the purchase, Pat started to notice certain disadvantages of his new car as he learned more about other cars available. Pat is experiencing ________. A) postpurchase culture B) selective perception C) postpurchase dissonance D) purchase decision E) information evaluation Answer: C Page Ref: 152 90) For the past 10 years Bill and Margaret Kennedy have saved money to go to the Super Bowl should their team, the Chicago Bears, ever win the NFC championship. This is the year, and several tour companies offer attractive, but very similar, packages to the game. They want to be certain to choose the best one. Bill and Margaret are most likely to exhibit ________. A) complex buying behavior B) dissonance-reducing buying behavior C) habitual buying behavior D) variety-seeking buying behavior E) brand familiarity buying behavior Answer: B Page Ref: 152 91) Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand; instead, she does a lot of brand switching. Carrie exhibits ________. A) dissonance-reducing buying behavior B) complex buying behavior C) habitual buying behavior D) variety-seeking buying behavior E) brand familiarity buying behavior Answer: D Page Ref: 153 92) Which of the following would a marketer be LEAST likely to do to encourage habitual buying behavior? A) dominate shelf space B) run frequent reminder advertising C) keep shelves fully stocked D) stress several key points in ad copy E) focus on visual imagery and symbols in ad campaigns Answer: D Page Ref: 153 93) Lexus works to keep customers happy after each sale, aiming to delight the customer in order to gain a customer for life. In this pursuit, Lexus is focused on which step of the buyer decision process? A) need recognition B) information search C) evaluation of alternatives D) purchase decision E) postpurchase behavior Answer: E Page Ref: 155 94) Blake is in the process of buying a new car. He is highly involved in the purchase and perceives significant differences among his three favorite models. Blake's next step is most likely to be ________. A) postpurchase behavior B) alternative evaluation C) opinion leadership D) cognitive dissonance E) purchase decision Answer: B Page Ref: 154 95) Donna wants to buy a new coat. During the ________ stage of her purchase process she will ask her friends to recommend a store and/or a style of coat. She will search the newspaper for coat sales, and she will visit nearby stores to see what is available in her price range. A) product evaluation B) alternative evaluation C) need recognition D) information search E) purchase decision Answer: D Page Ref: 154 96) Leona purchased two bottles of wine from vineyards in Australia. When asked her opinion of the wine, she said the burgundy wine tasted like alcoholic grape juice, but the Chablis had a crisp taste that she really enjoyed. These statements were made during the ________ stage of the purchase decision. A) information search B) situational analysis C) alternative evaluation D) purchase decision E) postpurchase behavior Answer: E Page Ref: 155 97) Cameron loves to know about and purchase the most up-to-date technological gadgets. Among his friends, he is almost always the first to own the newest electronic product. Often the products that Cameron buys become adopted by large groups of consumers, but occasionally Cameron will purchase a product that is adopted by only a small portion of the population. To which of the following adopter groups does Cameron belong? A) innovator B) early adopter C) early majority D) late majority E) laggards Answer: A Page Ref: 158 Refer to the scenario below to answer the following questions. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behavior of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children, a mix of Asian and African Americans as well as Caucasians. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewelry. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor cafe, and a day spa to the main avenue in Forest Ridge. 98) Which of the following is the strongest reason that the owners of The Attic Trunk might NOT want to completely discount the mature consumers as a still-viable target market? A) Mature consumers wield considerable influence over purchases made by their children and grandchildren. B) Mature consumers are the largest and wealthiest demographic segment in the United States. C) Mature consumers are spending an increasing percentage of their income on specialty items such as those originally sold by The Attic Trunk. D) Mature consumers are interested in shopping where younger families shop in an effort to look as young as they feel. E) Mature consumers are less willing to shop around and change brands than younger consumers are, so they will likely remain loyal to The Attic Trunk. Answer: B Page Ref: 140 99) Many families with children are now attracted to the shopping district in Forest Ridge. What characteristics about families as consumer groups might the owners of The Attic Trunk want to keep in mind? A) Though more women hold jobs outside the home today than when The Attic Trunk first opened, husband-wife involvement n the buying process has remained relatively unchanged. B) Children have considerable amounts of disposable income and have a strong influence on family buying decisions. C) Women today account for 50 percent of all technology purchases. D) Men today account for about 40 percent of all food purchases. E) Women influence nine out of ten hew home and vacation purchases. Answer: B Page Ref: 146 100) It is most likely that each consumer segment attracted to The Attic Trunk would have which of the following in common with the other consumer segments? A) subculture B) personality C) AIO dimensions D) reference groups E) membership groups Answer: C Page Ref: 147 101) The starting point of understanding how consumers respond to various marketing efforts is called the marketing stimulus model of buyer behavior. Answer: FALSE Page Ref: 136 102) Subcultures are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Answer: FALSE Page Ref: 137 103) Younger consumers are better off financially than mature consumers. They are the ideal market for travel, restaurants, high-tech home entertainment products, and convenient services. Answer: FALSE Page Ref: 140 104) Social class is based on shared value systems and common life experiences and situations. Answer: FALSE Page Ref: 140 105) Because people are able to move between social classes, these classes are relatively impermanent and disordered divisions whose members share dissimilar values, interests, and behaviors. Answer: FALSE Page Ref: 140 106) Online social networks represent an important new form of buzz for marketers. Answer: TRUE Page Ref: 144 107) Children exert little influence on family buying decisions, particularly in areas such as entertainment and food. Answer: FALSE Page Ref: 146 108) Personality is a person's pattern of living as expressed in his or her psychographics. Answer: FALSE Page Ref: 148 109) A person's buying choices are influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes. Answer: TRUE Page Ref: 148 110) Maslow's theory is that human needs?including physiological, safety, social needs, esteem, and self-actualization needs?are arranged in a hierarchy and that an unsatisfied need motivates an individual to take action to satisfy it. Answer: TRUE Page Ref: 149 111) Alternative evaluation is the process by which people select, organize, and interpret information to form a meaningful picture of the world. Answer: FALSE Page Ref: 154 112) A belief is the specific mix of human traits that may be attributed to a particular brand. Answer: FALSE 113) Dissonance-reducing buying behavior typically occurs when a buyer sees little difference among brands but is highly involved with the purchase. Answer: TRUE Page Ref: 152 114) A person buying a car would be unlikely to exhibit complex buying behavior. Answer: FALSE Page Ref: 152 115) A marketer seeking to create brand familiarity should be more concerned about creative ad copy content than ad repetition. Answer: FALSE Page Ref: 153 116) Commercial sources of information typically legitimize and evaluate products for buyers. Answer: FALSE Page Ref: 154 117) After purchasing a product, the consumer will be satisfied or dissatisfied and will engage in post-purchase behavior. Answer: TRUE Page Ref: 155 118) Most unhappy customers explain their reasons for dissatisfaction to the company who sold the product. Answer: FALSE 119) When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the alternative evaluation process. Answer: FALSE Page Ref: 154 120) People differ greatly in their readiness to try new products. In each product area, there are "consumption pioneers." They are also called laggards. Answer: FALSE Page Ref: 158 121) Early adopters are opinion leaders in their communities and adopt new ideas early but carefully. Answer: TRUE Page Ref: 158 122) Ed purchases new technological devices such as PDAs, DVRs, and MP3 players after many people he knows already own the devices. However, Ed is rarely among the last people he knows to purchase a new technology. Ed is part of the laggard adopter group. Answer: FALSE Page Ref: 158 123) Members of the early majority are deliberate; although they rarely are leaders, they adopt new ideas before the average person. Answer: TRUE Page Ref: 158 124) In general, innovators tend to be relatively older, be more mature, and have a lower income than late adopters. Answer: FALSE Page Ref: 159 125) Two of the characteristics that are especially important in influencing an innovation's rate of adoption are relative advantage and compatibility. Answer: TRUE Page Ref: 159 126) Cultural factors exert a broad and deep influence on consumer behavior. The marketer needs to understand the role played by the buyer's culture, subculture, and social class. Compare the roles of culture, subculture, and social class. Answer: Culture is the most basic cause of a person's wants and behavior. Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important markets. Social classes are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Unlike nationality or ethnic subculture, social class is determined by a combination of many variables, such as occupation, income, education, and wealth. Social scientists have identified seven social classes within the American culture, ranging from upper class to lower class. Page Ref: 137 and 140 127) Many subcultures make up important market segments. Examples of four such important subculture groups include Hispanics, African Americans, Asian Americans, and mature consumers. Describe the general characteristics of each of these groups. Answer: Hispanic consumers tend to buy more branded, higher-quality products?generics do not sell well to Hispanics. Perhaps more important, Hispanics are very brand loyal, and they favor companies who show special interest in them. African American consumers are more price-conscious than other segments; they are also strongly motivated by quality and selection. African Americans seem to enjoy shopping more than other ethnic groups and are also more fashion conscious. Asian American consumers are the most affluent U.S. demographic segment and are the second-fastest-growing population subculture, after Hispanics. Asian American consumers are very tech-savvy and are the most brand conscious of all the ethnic groups. Mature consumers are better off financially than are younger consumer groups. They are an ideal market for travel, restaurants, high-tech home entertainment products, convenient services, financial services, and healthcare services. Page Ref: 137-140 128) A consumer's behavior is influenced by social factors, such as the consumer's small groups, family, and social roles and status. Explain the differences among these social factors. Answer: Small groups to which a person belongs have a direct influence on what a person buys. Reference groups serve as direct or indirect points of comparison or reference in forming a person's attitudes or behaviors. An aspirational group is one to which the individual wishes to belong. Reference groups expose a person to new behaviors and lifestyles, influence a person's attitudes and self-concept, and create pressures to conform that may affect the person's product and brand choices. Opinion leaders are also included in reference groups. The group closest to consumers is the family, the most important consumer buying organization in society. Marketers are interested in the changing roles and influence of each family member, particularly as male and female purchasing roles evolve and children wield more purchasing influence. Within groups, including families, the position of an individual is defined by role and status. A role consists of the activities people are expected to perform according to the persons around them, while status is the general esteem given to that role. People tend to choose products that fit with their roles and status. Page Ref: 140-146 129) Each person's distinct personality influences his or her buying behavior. Personality is usually described in terms of traits. What are these traits, and how do they affect the way people purchase items? Give at least one example. Answer: Personality is described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Personality can be useful in analyzing behavior for certain products. Consumers are likely to choose brands with personalities that match their own. For example, someone with a sophisticated personality might be attracted to a more sophisticated product, such as a BMW, while someone with a more rugged personality might be attracted to a more rugged product, such as a Jeep. Page Ref: 148 130) Explain Maslow's Hierarchy of Needs. Answer: Maslow suggested that our unfulfilled needs motivate us and that our needs are arranged in a hierarchy. The hierarchy of needs includes physiological, safety, social, self-esteem, and self-actualization needs. Maslow suggested that we fill the bottom-level, basic needs first before moving up the hierarchy. Until more basic needs such as safety are fulfilled, an individual has little interest in higher-level needs such as esteem and self-actualization. Page Ref: 149 131) Compare and contrast the four types of buying decision behavior exhibited by consumers. Answer: A consumer exhibits complex buying behavior when he or she is highly involved in a purchase decision and perceives significant differences among the choices. Consumers will engage in a learning process as they gather and analyze information about their choices before making a purchase. When a consumer is highly involved with a purchase but does not perceive significant differences among his or her choices, he or she will most likely engage in dissonance-reducing behavior. This behavior involves less time learning about each product's attributes, and a consumer is more likely to make a choice based on a good price or convenience. Habitual buying behavior and variety-seeking behavior are exhibited when a consumer has a low involvement with the product. When the consumer sees little difference between brands, he or she will most likely engage in habitual buying behavior, buying the most familiar brands out of habit. When the consumer perceives some significant brand differences, he or she is more likely to engage in variety-seeking buying behavior, doing a lot of brand switching without a great deal of evaluation before purchase. Page Ref: 152-153 132) Describe some important strategies for a marketer of a high-involvement product. Answer: Marketers must understand the information-gathering and evaluation behavior of their high-involvement customers. This involves helping customers learn about the product attributes and their relative importance, as well as clearly differentiating the brand's features. Marketers might use long copy in print media to satisfy the customer's need for information. Marketers must also motivate salespeople to influence the customer's choice. To discourage customers' postpurchase dissonance, after-sale communications from the marketer should help customers feel good about their purchase decision. Page Ref: 152 133) Listing them in the proper order, what are the stages in the buyer decision process? Describe each. Answer: In the need recognition stage, consumers become aware of a new problem or need. Then, consumers seek information products to meet that need in the information search stage. In the alternative evaluation stage, consumers use the gathered information to compare and contrast the choices. Consumers do not use the same evaluation process in all buying situations; sometimes they may make careful, logical calculations and other times they may rely on intuition and buy on impulse. Consumers then make the purchase decision, buying the product. The last component of the process is postpurchase behavior, which is determined by any difference between the consumer's expectations for the product and the perceived performance of the product. Page Ref: 153-155 134) Identify and describe the stages in the adoption process. Answer: In the awareness stage, consumers become aware of the new product but lack information about it. Then, consumers seek information about the new product in the interest stage. In the evaluation stage, consumers consider whether trying the new product makes sense. Consumers try the product on a limited basis in the trial stage. Finally, consumers decide to make full use of the product in the adoption stage. Page Ref: 158 135) Identify the product characteristics that influence the rate of adoption. Explain how each characteristic affects the rate of adoption. Answer: The five most important product characteristics that influence the rate of a product's adoption are relative advantage, compatibility, complexity, divisibility, and communicability. Relative advantage is the degree to which an innovation appears superior to existing products; the greater the perceived relative advantage, the sooner the product will be adopted. Compatibility is the degree to which the innovation fits the values and experiences of potential consumers; high compatibility leads to quick adoption. Complexity is the degree to which the innovation is difficult to understand or use; the greater the complexity, the slower the adoption rate. Divisibility is the degree to which the innovation may be tried on a limited basis; the higher the divisibility, the slower the rate of adoption. Finally, communicability is the degree to which the results of using the innovation can be observed or described to others; high communicability lends itself to a higher rate of adoption. Page Ref: 159 136) What role do the four Ps play in consumer behavior? Answer: The four Ps are the marketing stimuli that affect buyer behavior: marketers use product, price, place, and promotion to attract the targeted consumers. Page Ref: 136 137) Give an example of a cultural shift that may impact the marketing of products or services. Answer: Answers will vary. Currently, the shift toward greater concern about health and fitness has generated increased marketing of exercise equipment and gear. Page Ref: 137 138) Why might the Hispanic market be a viable targeted group for a new marketer of products? Answer: Hispanics are the fastest growing U.S. subculture and they tend favor companies who show special interest in them, attributes a new marketer of a product could capitalize on. Page Ref: 138 139) In what way might a marketer rely on opinion leaders? Answer: Opinion leaders can influence other larger groups of consumers to be attracted to a marketer's products. Page Ref: 141 140) How does marketing through online social networks differ from more traditional marketing? Answer: Marketers hope to use social networks to interact with consumers and become a part of their everyday lives instead of relying on the one-way commercial messages of more traditional media. Page Ref: 144 141) Explain why typical husband-dominant or wife-dominant products of the 1970s may no longer be regarded as typical. Answer: Changes in the traditional family structure, such as more women holding jobs outside the home and more single-parent households, have changed the traditional buying roles over time. Page Ref: 145 142) Explain the concept of brand personality. Answer: A brand personality is the specific mix of human traits that may be attributed to a particular brand. Page Ref: 148 143) Explain why selective attention is not controllable by a marketer. Answer: A marketer cannot guarantee that a consumer will pay attention to or remember a specific ad; people use selective attention because it is impossible for them to pay attention to the thousands of marketing stimuli they experience each day. 144) Explain how selective distortion is somewhat controllable by a marketer. Answer: Marketers can attempt to understand consumers' mindsets and how these will affect perceptions of advertisements. 145) Knowing that selective retention prevents consumers from remembering everything about an ad, what might a marketer do to enhance retention? Answer: Use of drama, fear, or extreme humor in an ad can often promote retention among consumers; ad repetition may also work. 146) Explain the role of marketers in the information search step of the consumer decision-making process. Give an example of how the marketer might execute this role. Answer: The role of marketers in the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible by the consumer. Page Ref: 154 147) Explain how marketers may be able to reduce postpurchase cognitive dissonance. Answer: Marketers must make every effort to enhance after-sale communications, providing evidence and support to help consumers feel good about their purchases. 148) Why should marketers set up systems that encourage customers to complain about products? Answer: Most customers never share their complaints with marketers; without this information, it is difficult for a company to identify how it can improve. 149) What strategy should a marketer use upon learning that consumers are not buying a product because they do not perceive a need for it? Answer: Marketing might launch an advertising campaign that shows customers how the product can solve their existing problems and meet their existing needs. 150) What are the differences between innovators and early adopters? Answer: Innovators are more willing to take on risk; early adopters try new ideas early on but are much more deliberate. Page Ref: 158