Download Chapter 1 TRUE/FALSE 1. An understanding of consumer behavior

Chapter 1
TRUE/FALSE
1. An understanding of consumer behavior can mean better business for companies, better public policy
for governments, and a better life for individuals.
ANS: T
PTS: 1
DIF: Easy
REF: p. 4
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
2. While consumer behavior refers to human thought and action, it is not considered a field of study.
ANS: F
Consumer behavior can be defined from two different perspectives: (1) human thought and action and
(2) a field of study that is developing an accumulated body of knowledge.
PTS: 1
DIF: Moderate
REF: p. 4
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
3. Consumer behavior can be thought of as the actions, reactions and consequences that take place as the
consumer goes through a decision making process, reaches a decision and then uses the product.
ANS: T
PTS: 1
DIF: Easy
REF: p. 4
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
4. Consumer behavior is the set of value-seeking activities that take place as people go about addressing
realized needs.
ANS: T
PTS: 1
DIF: Easy
REF: p. 4
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
5. The basic consumption process begins with the consumer recognizing that he or she wants something
new.
ANS: F
Recognition of a need begins the consumption process. A want is simply a specific desire that spells
out a way a consumer can go about addressing a recognized need.
PTS: 1
DIF: Hard
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
6. The basic consumption process involves a consumer assessing the costs and benefits associated with a
choice.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
7. The final step in the consumption process is satisfaction.
ANS: F
The final step in the consumption process is value.
PTS: 1
DIF: Moderate
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
8. An exchange is the acting out of a decision to give something up in return for something of equal
value.
ANS: F
Something is given up in return for something of greater value.
PTS: 1
DIF: Hard
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
9. Consumer behavior represents the process by which goods, services, or ideas are used and transformed
into value.
ANS: F
This is the definition of consumption, not consumer behavior.
PTS: 1
DIF: Hard
REF: p. 4-5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
10. Costs involve more that just the price of the product.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
11. Benefits are the only result of consumption.
ANS: F
Costs are also the result of consumption.
PTS: 1
DIF: Hard
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
12. Consumer behavior, as a field of study, is a very young field.
ANS: T
OBJ: 01-1
PTS: 1
DIF: Hard
REF: p. 6
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
13. Consumer behavior has family roots in other disciplines such as economics, anthropology, and
psychology.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 6
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
14. Marketing’s roots in economics are evident in the production and distribution of goods.
ANS: T
PTS: 1
DIF: Hard
REF: p. 6
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
15. Psychology is the study of human reactions to their environment.
ANS: T
PTS: 1
DIF: Easy
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
16. The subdisciplines of psychology that are highly relevant to consumer behavior are social psychology
and experimental psychology.
ANS: F
The subdisciplines of psychology that are highly relevant to consumer behavior are social psychology
and cognitive psychology.
PTS: 1
DIF: Moderate
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
17. Anthropology focuses on the thoughts, feelings and behaviors that people have as they interact with
other people.
ANS: F
Social psychology focuses on the thoughts, feelings and behaviors that people have as they interact
with other people.
PTS: 1
DIF: Moderate
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
18. Cognitive psychology is helpful in understanding how consumers process information from marketing
communications such as advertisements.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
19. Marketing activities include the production, promotion, pricing, and distribution of goods, services,
ideas, and experiences that provide value for consumers and other stakeholders.
ANS: T
PTS: 1
DIF: Easy
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
20. Consumer behavior focuses primarily on the study of groups of people within a society.
ANS: F
Sociology focuses on the study of groups of people within a society. Consumer behavior studies
consumers as they go about the consumption process and encompasses knowledge from sociology as
well as several other disciplines.
PTS: 1
DIF: Hard
REF: p. 8
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
21. Anthropology has contributed to consumer behavior research by allowing researchers to interpret the
relationships between consumers and the things they purchase, the products they own, and the
activities in which they participate.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 8
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
22. A highly competitive marketplace in which consumers have many alternatives is more likely to result
in better customer service than a marketplace with little competition.
ANS: T
PTS: 1
DIF: Easy
REF: p. 9
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
23. A market-oriented firm stresses the importance of creating value for customers among all employees.
ANS: T
PTS: 1
DIF: Easy
REF: p. 9
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
24. Relationship marketing is based on the belief that firm performance is enhanced through repeat
business.
ANS: T
PTS: 1
DIF: Easy
REF: p. 10
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
25. Interaction points refer to direct contacts between the firm and a customer.
ANS: F
Touchpoints refer to direct contacts between the firm and a customer.
PTS: 1
DIF: Moderate
REF: p. 10
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
26. One theory explaining why companies succeed or fail is attribution theory.
ANS: F
Resource-advantage theory is a theory explaining why companies succeed or fail and describes how
the firm goes about obtaining resources from consumers in return for the value the resources create.
PTS: 1
DIF: Hard
REF: p. 11
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
27. Benefits are the physical parts of a product.
ANS: F
Attributes are the physical parts of a product.
PTS: 1
DIF: Moderate
REF: p. 11
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of human behavior &
society
28. A product is a potentially valuable bundle of benefits.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 11
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of human behavior &
society
29. Undifferentiated marketing means that the same basic product is offered to all customers.
ANS: T
PTS: 1
DIF: Easy
REF: p. 12
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
30. Undifferentiated marketers generally adopt a market orientation.
ANS: F
Undifferentiated marketers generally adopt a product orientation.
PTS: 1
DIF: Moderate
REF: p. 12
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
31. A market orientation means innovation is geared primarily toward making the production process as
efficient and economic as possible.
ANS: F
This is a product orientation.
PTS: 1
DIF: Moderate
REF: p. 12
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
32. Differentiated marketing can be taken to the extreme with a practice known as one-to-one marketing.
ANS: T
PTS: 1
DIF: Easy
REF: p. 13
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
33. Niche marketers specialize in serving one market segment.
ANS: T
PTS: 1
DIF: Easy
REF: p. 13
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
34. There are several approaches to studying consumer behavior, but most researchers agree that the
interpretive approach is the best.
ANS: F
Consumer researchers have many tools and approaches with which to study consumer behavior, and
researchers don’t always agree on which approach is the best.
PTS: 1
DIF: Hard
REF: p. 15
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
35. Interpretive research seeks to explain the inner meanings and motivations associated with specific
consumption experiences.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| CB&C Model Research| R&D
Knowledge of human behavior & society
36. Quantitative research tools include things such as cases analyses, clinical interviews, focus group
interviews and other tools in which data are gathered in a relatively unstructured way.
ANS: F
These are qualitative research tools.
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
37. Data generated from qualitative research are considered “researcher-dependent.”
ANS: T
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
38. The roots of interpretive consumer research go back over 150 years to the earliest days of consumer
research.
ANS: F
The roots of interpretive research go back over 50 years.
PTS: 1
DIF: Hard
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
39. The motivational research era in consumer research proved to be very useful in providing satisfying
explanations for consumer behavior on a large scale.
ANS: F
The motivational research era proved disappointing in providing satisfying explanations of consumer
behavior on a large scale.
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
40. Two common interpretative orientations are psychology and sociology.
ANS: F
Two common interpretative orientations are phenomenology and ethnography.
PTS: 1
DIF: Hard
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
41. The phenomenological researcher relies on highly-structured, formal interviews with consumers.
ANS: F
The phenomenological research relies on casual interviews.
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
42. An ethnographic approach to studying consumers often involves analyzing the artifacts associated with
consumption.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
43. A researcher measuring consumers’ attitudes toward different brands on a scale ranging from 1 (very
negative) to 5 (very positive) is using qualitative research.
ANS: F
Quantitative research uses numerical measurement and analysis tools.
PTS: 1
DIF: Hard
REF: p. 17
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
44. Interpretation of quantitative research data is a function of the researcher’s opinion.
ANS: F
Unlike qualitative data, quantitative data re not researcher dependent, that is, the interpretation of the
data is not a matter of opinion.
PTS: 1
DIF: Moderate
REF: p. 17
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
45. Qualitative research better enables researchers to test hypotheses as compared to quantitative research.
ANS: F
Quantitative research better enables researchers to test hypotheses as compared to qualitative research.
PTS: 1
DIF: Moderate
REF: p. 17
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
46. Trends shaping the value received by consumers include internationalization, technological changes,
changing communications, changing demographics, and the changing economy.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 18-20
OBJ: 01-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
47. Companies must deal only with geographical distances when operating in different countries.
ANS: F
Companies must deal with cultural distances as well.
PTS: 1
DIF: Moderate
REF: p. 18
OBJ: 01-5
TOP: AACSB Reflective Thinking| CB&C International perspective| R&D Knowledge of human
behavior & society
48. The Internet has made geographical distance almost a non-issue.
ANS: T
PTS: 1
DIF: Easy
REF: p. 19
OBJ: 01-5
TOP: AACSB Technology| CB&C Model Online/Computer| R&D Knowledge of technology, design,
& production
49. One demographic trend impacting marketers is that households increasingly include two primary
income providers.
ANS: T
PTS: 1
DIF: Easy
REF: p. 19
OBJ: 01-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
50. One demographic trend shaping consumer behavior is the decreasing birth rates in the U.S. and
Europe.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 20
OBJ: 01-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
MULTIPLE CHOICE
1. From which two perspectives can consumer behavior be defined?
a. primary and secondary
b. human thought and behavior and as a field of study
c. social and psychological
d. as an input and as an outcome
e. based on needs or based on wants
ANS: B
PTS: 1
DIF: Hard
REF: p. 4
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
2. A market researcher focuses on the psychological process, including thoughts, feelings, and behavior
that people experience once they realize they have an unmet need. The human behavior that makes up
the set of value-seeking activities that the researcher is examining is best described as _____.
a. marketing
b. consumer behavior
c. cognitive psychology
d. social interaction
e. consumption
ANS: B
PTS: 1
DIF: Hard
REF: p. 4
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
3. The first step in the basic consumption process is _____.
a. cost and benefit analysis
b. reaction
c. value assessment
d. want specification
e. need realization
ANS: E
PTS: 1
DIF: Moderate
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
4. What is the last step in the basic consumption process?
a. exchange
b. value
c. reaction
d. want
e. costs and benefits
ANS: B
PTS: 1
DIF: Easy
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
5. Renee is going to a formal dance next month and goes shopping for a full-length gown. The gown is
an example of a(n) _____ in the basic consumption process.
a. need
b. want
c. reaction
d. outcome
e. satisfier
ANS: B
PTS: 1
DIF: Moderate
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
6. The acting out of a decision to give something up in return for something of greater value is known as
_____.
a. exchange
b. marketing
c. consumption
d. consumer behavior
e. benefitizing
ANS: A
PTS: 1
DIF: Moderate
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
7. Customers pay money for products they believe will satisfy their needs and wants. This transfer of
money for goods or services is best described as _____.
a. benefit gratification
b. consumption
c. transformational marketing
d. exchange
e. consumer behavior
ANS: D
PTS: 1
DIF: Hard
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
8. _____ can be thought of as negative results of consumption.
a. Wants
b. Reactions
c. Costs
d. Benefits
e. Consequences
ANS: C
OBJ: 01-1
PTS: 1
DIF: Easy
REF: p. 5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
9. Dana and John are expecting their first child and are purchasing furniture for the nursery. They are
searching the Internet, reading parents’ magazines and paying attention to the advertisements, and
visiting many stores because they want to purchase the best quality furniture that fits their budget. The
effort they are expending to ensure they make the right decision can be described as a _____
associated with the consumption process.
a. cost
b. reaction
c. value outcome
d. benefit
e. satisfier
ANS: A
PTS: 1
DIF: Hard
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
10. Positive outcomes of consumption are referred to as _____.
a. costs
b. consequences
c. benefits
d. enhancers
e. satisfiers
ANS: C
PTS: 1
DIF: Easy
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
11. Apple sold more than 7 million iPads within months of launching the product. Prices for this product
ranged from $499 to more than $800, and Apple had difficulty keeping up with the demand.
Obviously, the _____ outweighed the _____ for this product.
a. satisfaction; demand
b. need; want
c. consumption; need
d. benefits; costs
e. want; demand
ANS: D
PTS: 1
DIF: Hard
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
12. _____ represents the process by which goods, services or ideas are used and transformed into value.
a. Value transfer
b. Cost conversion
c. Benefits conversion
d. Consumption
e. Marketing
ANS: D
PTS: 1
DIF: Moderate
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
13. When consumers recognize they have an unmet need, they usually seek out specific products or
services that they believe will satisfy that need and provide value to them. They are willing to give up
something, such as money and effort, to find the products or services that will provide the benefits they
seek. This process that consumers go through to satisfy their needs is best described as the _____
process.
a. marketing
b. consumption
c. exchange
d. internal
e. purchase
ANS: B
PTS: 1
DIF: Hard
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
14. A description for a marketing course in a college course catalog states, “This course represents the
study of consumers as they go about the consumption process.” What course is this best describing?
a. Consumer Marketing
b. Value-based Marketing
c. Promotion
d. Consumption Marketing
e. Consumer Behavior
ANS: E
PTS: 1
DIF: Moderate
REF: p. 5
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
15. Which of the following is NOT a discipline in which consumer behavior has roots?
a. economics
b. accounting
c. anthropology
d. social psychology
e. sociology
ANS: B
PTS: 1
DIF: Hard
REF: p. 6
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
16. Which discipline is often defined as the study of production and consumption?
a. marketing
b. psychology
c. economics
d. distribution
e. anthropology
ANS: C
PTS: 1
DIF: Moderate
REF: p. 6
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of general business
functions
17. Juan is majoring in a discipline that examines the production and consumption of goods and services.
Which of the following best describes Juan’s major?
a. economics
b. accounting
c. anthropology
d. psychology
e. production management
ANS: A
PTS: 1
DIF: Hard
REF: p. 6
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of general business
functions
18. Which discipline studies human reactions to their environment?
a. marketing
b. economics
c. psychology
d. anthropology
e. sociology
ANS: C
PTS: 1
DIF: Hard
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
19. Marian is trying to decide on a college major, so she took an aptitude test offered by the career
services office at her school. The results indicated that she is interested in understanding how people
react to their environment and is concerned with their thoughts, feelings, and behaviors. Which of the
following disciplines should Marian pursue?
a. accounting
b. economics
c. anthropology
d. psychology
e. biology
ANS: D
PTS: 1
DIF: Hard
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
20. Social psychologists focus on the _____.
a. intricacies of mental reactions involved in information processing
b. production and consumption of goods and services
c. value-producing activities that facilitate exchanges between buyers and sellers
d. relationships between people and their possessions
e. thoughts, feelings. and behaviors that people have as they interact with other people
ANS: E
PTS: 1
DIF: Hard
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
21. John is a psychologist and analyzes the thoughts, feeling and behaviors that people have as they
interact with other people in groups. John is a _____.
a. qualitative psychologist
b.
c.
d.
e.
group psychologist
quantitative psychologist
cognitive psychologist
social psychologist
ANS: E
PTS: 1
DIF: Moderate
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
22. Melanie is a psychologist who studies consumer behavior. She specializes in the mental reactions
involved in consumer information processing, such as how advertisements persuade consumers to buy
a product. Which field of psychology is Melanie practicing?
a. qualitative psychology
b. personal psychology
c. quantitative psychology
d. cognitive psychology
e. social psychology
ANS: D
PTS: 1
DIF: Hard
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
23. _____ involves the multitude of value-producing activities that facilitate exchanges between buyers
and sellers.
a. Consumption
b. Consumer behavior
c. Marketing
d. Psychology
e. Economics
ANS: C
PTS: 1
DIF: Moderate
REF: p. 7
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
24. Marketing as a recognized discipline grew out of which two other disciplines?
a. economics and psychology
b. economics and accounting
c. psychology and anthropology
d. psychology and sociology
e. sociology and economics
ANS: A
PTS: 1
DIF: Hard
REF: p. 8
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
25. If you wanted to learn how groups of people interact within society, which discipline should you
study?
a. economics
b. sociology
c. anthropology
d. cognitive psychology
e. astrology
ANS: B
PTS: 1
DIF: Moderate
REF: p. 8
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
26. Which discipline has contributed to consumer behavior research by allowing researchers to interpret
the relationships between consumers and the things they purchase, the products they own, and the
activities in which they participate?
a. economics
b. sociology
c. anthropology
d. cognitive psychology
e. astrology
ANS: C
PTS: 1
DIF: Hard
REF: p. 8
OBJ: 01-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
27. Two factors should be considered when trying to understand how important serving customers well
should be to any given organization. The first factor is the competitiveness of the marketing
environment, and the second is the _____.
a. price charged for the product or service
b. income level of customers
c. social impact
d. dependency of the marketer on repeat business
e. objectives of the marketer
ANS: D
PTS: 1
DIF: Moderate
REF: p. 8
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
28. Kim moved from one house in a neighborhood to another house in a nearby neighborhood. She called
her trash collection company to inform them of her address change and was dismayed to learn that her
trash collection bill will be $10 a month higher than it was at her previous residence even though it is
the same company. She commented on this and was told by the lady from the company that was the
price and she can deal with removing her own trash if she didn’t like the price hike. Kim just had to
pay the higher price because there was no other company allowed to service this neighborhood. What
is the best reason why Kim was treated so poorly by this company?
a. the trash company was dependent on her repeat business
b. there are no other competitors providing this service
c. it is a regulated service
d. Kim preferred this company over any others
e. the company really doesn’t need her business
ANS: B
PTS: 1
DIF: Hard
REF: p. 8
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
29. Which orientation refers to a way of doing business in which the actions and decision making of the
institution prioritize consumer value and satisfaction above all other concerns?
a.
b.
c.
d.
e.
product orientation
production orientation
consumer orientation
sales orientation
benefit orientation
ANS: C
PTS: 1
DIF: Easy
REF: p. 9
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of human behavior &
society
30. The Ritz-Carlton Hotel has a culture that embodies the importance of creating value for guests among
all employees. One way this is implemented is giving the front desk employees the authority to
correct a problem presented by a guest without having to have approval from a manager. Which type
of orientation does his company embrace?
a. market orientation
b. product orientation
c. production orientation
d. sales orientation
e. outward orientation
ANS: A
PTS: 1
DIF: Hard
REF: p. 9
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of human behavior &
society
31. Which of the following is based on the belief that firm performance is enhanced through repeat
business?
a. acquisition marketing
b. outward marketing
c. inward marketing
d. repetition marketing
e. relationship marketing
ANS: E
PTS: 1
DIF: Easy
REF: p. 10
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of human behavior &
society
32. _____ refer to direct contacts between the firm and a customer.
a. Touchpoints
b. Intersections
c. Interaction points
d. Moments of truth
e. Counterpoints
ANS: A
PTS: 1
DIF: Moderate
REF: p. 10
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
33. All of the following are examples of touchpoints EXCEPT _____.
a. a consumer placing an order over the telephone
b. a customer asking an attendant for directions at an amusement park
c. a consumer replying to a request sent in an email by a company
d. a consumer watching a television commercial
e. a guest checking into a hotel
ANS: D
PTS: 1
DIF: Hard
REF: p. 10
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
34. The ultimate hallmark of success for a business is _____.
a. maximum profits
b. maximum sales
c. long-term survival
d. short-term sales
e. monopoly
ANS: C
PTS: 1
DIF: Hard
REF: p. 10
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of human behavior &
society
35. Obtaining resources from consumers in return for the value they create is a basic tenet of _____, which
is a theory explaining why companies succeed or fail.
a. attribution theory
b. resource-advantage theory
c. the marketing concept
d. the theory of reasoned action
e. resource-elaboration theory
ANS: B
PTS: 1
DIF: Moderate
REF: p. 11
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
36. The physical parts of a product are known as _____.
a. benefits
b. elements
c. attributes
d. resources
e. components
ANS: C
PTS: 1
DIF: Moderate
REF: p. 11
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of human behavior &
society
37. All of the following are examples of product attributes EXCEPT _____.
a. quality
b. satisfaction
c. styling
d. weight
e. safety
ANS: B
PTS: 1
DIF: Hard
REF: p. 11
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of human behavior &
society
38. A product is defined as _____.
a. a potentially valuable bundle of benefits
b. physical good offered to satisfy a need
c. an item offering perceived value to a target market
d. a resource allocated toward satisfying a felt need
e. benefit offered for exchange
ANS: A
PTS: 1
DIF: Hard
REF: p. 11
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of human behavior &
society
39. Offering the same basic product to all customers is which type of business orientation?
a. undifferentiated marketing
b. differentiated marketing
c. niche marketing
d. product marketing
e. production marketing
ANS: A
PTS: 1
DIF: Easy
REF: p. 12
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
40. Walmart’s supply chain is as efficient and as economic as possible, which allows it to offer lower
prices than competing retailers. With only a few exceptions, Walmart offers the same basic products
in all of its stores, even worldwide. What orientation does this illustrate?
a. market orientation
b. customer orientation
c. production orientation
d. linear orientation
e. undifferentiated orientation
ANS: C
PTS: 1
DIF: Hard
REF: p. 12
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of human behavior &
society
41. A company embracing differentiated marketing will _____.
a. offer the same basic product to all market segments
b. adopt innovative production processes to gain efficiency and economies of scale
c. specialize in serving one market segment with particularly unique demand characteristics
d. focus marketing efforts on the largest market segment
e. serve multiple market segments each with a unique product offering
ANS: E
PTS: 1
DIF: Hard
REF: p. 13
OBJ: 01-3
TOP: AACSB Reflective Thinking|CB&C Model Strategy| R&D Knowledge of human behavior &
society
42. Procter & Gamble sells six different brands of laundry detergent, each with a unique offering for
different market segments. Which business orientation does this illustrate?
a. undifferentiated marketing
b.
c.
d.
e.
differentiated marketing
niche marketing
product marketing
multiple marketing
ANS: B
PTS: 1
DIF: Moderate
REF: p. 13
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
43. Some marketers offer each individual customer a different product, so each customer is essentially
treated as a segment of one. Which way of doing business does this represent?
a. undifferentiated marketing
b. personalized marketing
c. customer-based marketing
d. one-to-one marketing
e. niche marketing
ANS: D
PTS: 1
DIF: Moderate
REF: p. 13
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
44. Lane Bryant is a women’s clothing store specializing in stylish clothing and flattering fits for plussized women. Which business orientation best describes Lane Bryant’s approach?
a. niche marketing
b. one-to-one marketing
c. mass marketing
d. product marketing
e. undifferentiated marketing
ANS: A
PTS: 1
DIF: Moderate
REF: p. 13
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
45. When consumers study consumer behavior, they should come to make better decisions. Which of the
following can be helpful in enlightening consumers?
a. Consequences associated with poor budget allocation.
b. The role of emotions in consumer decision making.
c. Avenues for seeking redress for unsatisfactory purchases.
d. The effect of the environment on consumer behavior.
e. All of the above.
ANS: E
PTS: 1
DIF: Easy
REF: p. 15
OBJ: 01-3
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
46. In which research approach to understanding consumers do researchers derive meaning from talking to
people and observing behavior rather than analyzing data?
a. interpretive research
b. quantitative research
c. concentric research
d. depth research
e. dynamic research
ANS: A
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
47. Kayla is engaged in research that seeks to explain the inner meanings and motivations associated with
purchasing clothing. She records and analyzes the words that consumers use to describe events and
observes shoppers in stores. From that, she develops an understanding of what motivates shoppers.
What type of research is Kayla performing?
a. quantitative research
b. interpretive research
c. soft research
d. sociological research
e. independent research
ANS: B
PTS: 1
DIF: Hard
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
48. What does it mean when research results are “researcher dependent”?
a. it means the design of the research is a function of the researcher’s skills and training
b. it means the research results are generalizable to other research situations
c. it means an unstructured research design was used and the results cannot be replicated by
other researchers
d. it means that the results are only significant if the researcher validates them
e. it means the interpretation of the results is a matter of the researcher’s opinion until
corroborate by other findings
ANS: E
PTS: 1
DIF: Hard
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
49. Which type of research includes tools such as case analyses, clinical interviews, focus group
interviews, and other tools in which data are gathered in a relatively unstructured way?
a. quantitative research
b. qualitative research
c. soft research
d. preliminary research
e. secondary research
ANS: B
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
50. Two common interpretive research orientations are _____.
a. regression and cluster analysis
b. psychology and sociology
c. phenomenology and ethnography
d. primary and secondary
e. qualitative and quantitative
ANS: C
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
51. _____ represents the study of consumption as a “lived experience” and relies on casual interviews with
consumers from whom the researcher has won confidence and trust?
a. Touchpoint analysis
b. Psychology
c. Sociology
d. Phenomenology
e. Conjoint analysis
ANS: D
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
52. _____ has roots in anthropology and often involves analyzing the artifacts associated with
consumption.
a. Sociology
b. Phenomenology
c. Ethnography
d. Conjoint analysis
e. Grounded theory
ANS: C
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
53. Clark is a college student and has been hired by a consumer research firm to help a pizza restaurant
learn more about the college market. Part of his job entails hanging out with other students and
observing how they decide when to order pizza, which pizza restaurants they order from, how they eat
it, and what they do with the leftovers, if any. Clark learned from his observations that some students
like to put French dressing on their pizza, which led the pizza restaurant to advertise and offer the
dressing with orders. Which interpretive orientation does this best illustrate?
a. ethnography
b. quantitative research
c. sociology
d. grounded theory
e. demography
ANS: A
PTS: 1
DIF: Hard
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
54. _____ research addresses questions about consumer behavior using numerical measurement and
analysis tools.
a. Quantitative
b. Qualitative
c. Interpretive
d. Initial
e. Final
ANS: A
PTS: 1
DIF: Easy
REF: p. 17
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
55. A consumer research study analyzes the factors, such as age, income, and stage of family life cycle,
predicting a consumer’s likelihood to purchase a 3-D television. Data were collected from 3,000
consumers using a structured questionnaire. Which type of research does this represent?
a. qualitative
b. interpretive
c. quantitative
d. structured
e. focused
ANS: C
PTS: 1
DIF: Hard
REF: p. 17
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
56. What is the difference between qualitative and quantitative research?
a. Qualitative research is used for hypothesis testing, and quantitative research is only used
for descriptive analyses.
b. Quantitative research is longitudinal, and qualitative research is cross-sectional.
c. Qualitative research is researcher dependent, and quantitative research is not.
d. Quantitative research is researcher dependent, and qualitative research is not.
e. Quantitative research results in primary data, and qualitative research results in secondary
data.
ANS: C
PTS: 1
DIF: Hard
REF: p. 17
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
57. All of the following are true regarding quantitative research EXCEPT _____.
a. common purpose is to test hypotheses or specific research questions
b. structured response categories provided
c. samples are typically large to produce generalizable results
d. descriptive and causal research designs most often used
e. results are subjective
ANS: E
PTS: 1
DIF: Hard
REF: p. 17
OBJ: 01-4
TOP: AACSB Reflective Thinking|CB&C Model Research| R&D Knowledge of human behavior &
society
58. Which of the following is NOT a trend shaping the value received by consumers today?
a. internationalization
b. technological changes
c. market compression
d. changing demographics
e. changing communications
ANS: C
PTS: 1
DIF: Hard
REF: p. 18
OBJ: 01-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
59. Which of the following is a demographic trend shaping consumer behavior patterns?
a. family size is increasing
b. households increasingly include two primary income providers
c. birthrates are increasing in the U.S. and Europe
d. lower levels of consumer affluence in the U.S.
e. decreasing life expectancy in the U.S.
ANS: B
PTS: 1
DIF: Hard
REF: p. 19
OBJ: 01-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
60. Which aspect of the changing economy likely has the most impact on consumer spending?
a. high interest rates
b. high tax rates
c. high inflation rate
d. high prices
e. high unemployment rate
ANS: E
PTS: 1
DIF: Hard
REF: p. 20
OBJ: 01-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
RESTAURANT RESEARCH SCENARIO
Insight Research, a marketing research company, has been hired by a national chain of family
restaurants to help them better understand their customers and how to serve them better. The
restaurant chain has several competitors competing for the same type of customers and has
experienced sales declines in the past few years. Researchers go “under cover” and pretend to be
customers so that they will fit in while they observe the interactions between customers and the wait
staff. Then they write a report of their interpretations of what they experienced personally while
pretending to be a customer as well as what they saw regarding interactions of other customers with
each other and with the employees of the restaurant. Some example conclusions drawn were that the
employees were not especially attentive to the customers and that customers were overheard as saying
they didn’t intend to come back. Some researchers also noted that the food was not very good, and
they saw several customers send orders back.
61. Refer to Restaurant Research Scenario. Which of the following is the best reason why this restaurant
chain should be concerned about customer satisfaction?
a. because all restaurants should be concerned about customer satisfaction
b. because treating customers well is the concern of all businesses
c. because the marketplace is competitive and the restaurant is dependent on repeat business
d. because serving customers well is just the right thing to do
e. because other restaurants in the marketplace are offering price discounts and delivering
superior customer satisfaction
ANS: C
PTS: 1
DIF: Hard
REF: p. 8
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of human behavior &
society
62. Refer to Restaurant Research Scenario. When customers interact with the wait staff, what are these
interactions called?
a. moments of truth
b. interactions
c. process nodes
d. touchpoints
e. performance evaluations
ANS: D
PTS: 1
DIF: Moderate
REF: p. 10
OBJ: 01-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
63. Refer to Restaurant Research Scenario. Which of the following can be a criticism of the research
approach used by Insight Research?
a. not providing useful information to the restaurant
b. results are objective
c. data are researcher dependent
d. presence of the researcher could have influenced the actions of consumers
e. interpretive research is not an acceptable approach for understanding consumer behavior
ANS: C
PTS: 1
DIF: Hard
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
64. Refer to Restaurant Research Scenario. Which research approach is Insight Research using to better
understand this restaurant’s customers?
a. quantitative
b. selective
c. secondary
d. focused
e. qualitative
ANS: E
PTS: 1
DIF: Moderate
REF: p. 16
OBJ: 01-4
TOP: AACSB Reflective Thinking| CB&C Model Research|R&D Knowledge of human behavior &
society
65. Refer to Restaurant Research Scenario. Which demographic trend discussed in Chapter 1 should result
in the restaurant experiencing an increase, not a decrease, in sales?
a. rise in households with a stay-at-home mom
b. rise in households with two primary income providers
c. decreasing birth rates
d. increasing unemployment rate
e. advances in technology
ANS: B
PTS: 1
DIF: Hard
REF: p. 19
OBJ: 01-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
ESSAY
1. Compare and contrast the concepts consumption and consumer behavior.
ANS:
Consumer behavior can be defined from two different perspectives. This is because the term refers to
both:
1.
Human thought and action, and
2.
A field of study (human inquiry) that is developing an accumulated body of knowledge.
First, consumer behavior is the set of value seeking activities that take place as people go about
addressing realized needs. Consumption represents the process by which goods, services, or ideas are
used and transformed into value.
Consumer behavior as a field of study represents the study of consumers as they go about the
consumption process.
PTS: 1
DIF: Moderate
REF: p. 4-5
OBJ: 01-1
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society
2. Discuss the relevant contributions of one other discipline to the study of consumer behavior.
ANS:
Consumer behavior has roots in several other disciplines, such as economics, psychology (social
psychology and cognitive psychology), marketing, sociology, and anthropology. Students can discuss
any one of these.
Economics - the study of production and consumption. Marketing has its origins in economics,
particularly with respect to the production and distribution of goods. By definition, economics also
involves consumption. However, the economist’s focus on consumer behavior is generally a broad, or
macro, perspective, not individual consumers. Consumer behavior researchers generally study
consumer behavior at a more micro level, often focusing on individual consumer behavior.
Psychology - the study of human reactions to their environment including behavior and mental
processes. Social psychology (group behavior) and cognitive psychology (mental reactions), in
particular, are highly relevant to consumer behavior. Consumer behavior most often takes place in
some type of social settings; thus, social psychology and consumer behavior overlap significantly.
Every time a consumer evaluates a product, sees an advertisement, or reacts to product consumption,
information is processed. Thus, cognitive psychology is also very relevant to consumer behavior.
Marketing - involves the multitude of value-producing seller activities that facilitate exchanges
between buyers and sellers. Consumer behavior and marketing are very closely related. Exchange is
ultimately involved in marketing and is central to consumer behavior too. Marketing actions are
targeted at and affect consumers while consumer actions affect marketers.
Sociology - focuses on the study of groups of people within a society. This has relevance for
consumer behavior because consumption often takes place within group settings or is in one way or
another affected by group behavior.
Anthropology - has contributed to consumer behavior research by allowing researchers to interpret the
relationships between consumers and the things they purchase, the products they own, and the
activities in which they participate.
PTS: 1
DIF: Moderate
REF: p. 6-8
OBJ: 01-1
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society
3. Explain why consumers get treated differently in different types of exchange environments. Give an
example of a situation where you were treated poorly by a business and explain why you might have
been treated that way.
ANS:
Two questions help explain how important serving customers well should be to any given
organization:
1.
2.
How competitive is the marketing environment?
How dependent is the marketer on repeat business?
A business operating in a market with little or no competition and a captive audience can still survive
no matter how poor the service because they know consumers will return to do more business if that is
the only option available (e.g., driver’s license bureau). On the other hand, a business operating in a
highly competitive marketplace in which consumers have many alternatives practically insures good
customer service.
Students examples will vary, but they should include a discussion of one or both questions above in
their explanation.
PTS: 1
DIF: Moderate
REF: p. 8-9
OBJ: 01-2
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society
4. Explain the role of consumer behavior in business and society.
ANS:
Consumer behavior (CB) is important in at least three ways:
1.
CB as an input to business/marketing strategy.
2.
CB as a force that shapes society.
3.
CB as an input to making responsible decisions as a consumer.
Consumer behavior influences the way a company will do business. Undifferentiated marketing
means that the same basic product is offered to all customers. Differentiated marketers serve multiple
market segments each with a unique product offering. Niche marketing is practiced by firms that
specialize in serving one market segment with particularly unique demand characteristics.
Understanding customers and potential customers guides marketers to the appropriate way of doing
business for a given situation.
The things that people buy and consume end up determining the type of society in which we live.
Things like customs, manners, and rituals all involve consumption-value producing activities.
Therefore, our collective choices as consumers shape the societies in which we live.
Finally, when consumers study consumer behavior, they should come to make better decisions.
Several topics can be particularly helpful in enlightening consumers including:
1.
Consequences associated with poor budget allocation.
2.
The role of emotions in consumer decision making.
3.
Avenues for seeking redress for unsatisfactory purchases.
4.
Social influences on decision making, including peer pressure.
5.
The effect of the environment on consumer behavior.
PTS: 1
DIF: Hard
REF: p. 10-15
OBJ: 01-3
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| CB&C Model
Strategy| R&D Knowledge of human behavior & society| R&D Knowledge of general business
functions
5. Apple wants to learn how consumers use its blockbuster product, the iPad. Suggest an appropriate
research approach and describe how it can be implemented.
ANS:
Students’s responses will vary. Either a qualitative or a quantitative approach is appropriate.
Qualitative research tools include things such as case analyses, clinical interviews, focus group
interviews and other tools in which data are gathered in a relatively unstructured way. Data of this
type requires that the researcher interprets its meaning. Therefore, the data are considered “researcherdependent.” Interpretive research, which seeks to explain the inner meanings and motivations
associated with specific consumption experiences, falls into the category of qualitative research. Two
common interpretive orientations are phenomenology and ethnography. Students examples will vary,
but if they describe this research approach, they should describe one that is unstructured and does not
rely on numerical answers.
Quantitative research addresses questions about consumer behavior using numerical measurement and
analysis tools. The measurement is usually structured, meaning that the consumer will simply choose
a response from among alternatives supplied by the researcher. Unlike qualitative research, the data
are not researcher dependent. This type of research better enables researchers to test hypotheses as
compared to interpretive research. Quantitative research is more likely to stand on its own and not
require deep interpretation. Students examples will vary, but if they suggest this research approach,
they should describe activities such as using questionnaires to gather numerical answers and statistical
analyses.
PTS: 1
DIF: Hard
REF: p. 16-17
OBJ: 01-4
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Research| R&D
Knowledge of human behavior & society
6. Briefly discuss three recent trends shaping consumer behavior.
ANS:
Five trends shaping the value received by consumers today are discuss in the chapter: (1)
internationalization, (2) technological changes, (3) changing communications, (4) changing
demographics, (5) changing economy. Students can discuss any three.
Internationalization - While businesses are expanding worldwide, companies must deal not only with
geographical distances, but with cultural distances as well. Although chains, such as Starbucks, can be
found worldwide, consumers are not alike everywhere these firms operate.
Technology - The Internet has made geographical distance almost a non-issue, consumers can shop on
his or her own schedule, and communication technology has also advanced tremendously.
Communications - Technology is changing how consumers communicate with each other. Electronic
communications are replacing face-to-face communications, with older consumers embracing email
and younger ones relying on social media.
Demographics - In most of the western world, notable demographic trends have shaped consumer
behavior patterns greatly. First, households increasingly include two primary income providers.
Second, family size is decreasing throughout the U.S. and Europe. China and India offer opportunities
due to their large populations.
Economy - High unemployment rate and financial market turmoil have led consumers to be more
cautious and react favorably to price-cutting policies. Consumers perceive lower discretionary
income.
PTS: 1
DIF: Moderate
REF: p. 17-20
OBJ: 01-5
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| CB&C Model
International perspective| R&D Knowledge of human behavior & society
7. In addition to the demographic trends discussed in Chapter 1, discuss one other demographic trend in
the United States and how that trend will influence consumer behavior.
ANS:
The chapter discusses two U.S. demographic trends: households with two primary income providers
and declining birth rates. Other trends students might discuss are:
(1) aging population - large percentage of U.S. population - “baby boomers” - retiring will increase
demand for financial services, leisure products, and health care.
(2) geographic shifts - the latest census shows population shifts to the south and west, resulting in
increased demand for all products and services in those regions and a decrease in other regions.
(3) increasing immigration - increasing Hispanic and Asian immigration, legal or otherwise, is
changing the landscape of America and will require marketers to better understand these cultures.
These are just suggestions of what students might discuss. Specific answers to this question are not
found in this chapter.
PTS: 1
DIF: Hard
REF: p. 19
OBJ: 01-5
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society
Chapter 2
TRUE/FALSE
1. The Consumer Behavior Framework (CBF) represents consumer behavior theory illustrating factors
that shape consumption-related behaviors and ultimately determine the value associated with
consumption.
ANS: F
This describes the Consumer Value Framework (CVF), not the Consumer Behavior Framework
(CBF).
PTS: 1
DIF: Moderate
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
2. Atmospherics, time and timing, and conditions are situational influences on consumer behavior.
ANS: T
PTS: 1
DIF: Hard
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
3. Learning, perception, memory, and attitudes are examples of elements comprising the personality of a
consumer.
ANS: F
Learning, perception, memory, and attitudes are examples of elements comprising consumer
psychology. Personality consists of motivation, personal value, traits, lifestyles, and emotional
expressiveness.
PTS: 1
DIF: Moderate
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
4. A basic CRM premise is that customers form relationships with companies as opposed to companies
conducting individual transactions with customers.
ANS: T
PTS: 1
DIF: Easy
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
5. A CRM system allows a firm to be more customer-focused.
ANS: T
PTS: 1
DIF: Easy
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
6. Relationship quality reflects the connectedness between a consumer and a retailer, brand, or service
provider.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 25
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
7. Relationship quality is function of a consumer’s perceived value of the relationship.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 25
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
8. Internal influences on the consumption process include factors such as service quality.
ANS: F
Internal influences are things that go on inside of the mind and heart of the consumer.
PTS: 1
DIF: Moderate
REF: p. 25
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
9. Cognition refers to the thinking or mental processes that go on as we process and store things that can
become knowledge.
ANS: T
PTS: 1
DIF: Easy
REF: p. 26
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
10. Individual differences are characteristic traits of individuals, including personality and lifestyle.
ANS: T
PTS: 1
DIF: Easy
REF: p. 26
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
11. Individual differences have little effect on the value experienced by consumers and the reaction
consumers have to consumption.
ANS: F
Individual differences shape the value experienced by consumers and the reaction consumers have to
consumption.
PTS: 1
DIF: Easy
REF: p. 27
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
12. Internal influences include the social and cultural aspects of life as a consumer.
ANS: F
These are external influences.
PTS: 1
DIF: Moderate
REF: p. 27
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
13. People and groups who help shape a consumer’s everyday experiences are part of the social
environment.
ANS: T
PTS: 1
DIF: Easy
REF: p. 27
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
14. The presence of music in an environment is a social influence that may shape consumer behavior.
ANS: F
This is an example of an external, situational influence on consumer behavior. External social
influences include culture, reference groups, social class, and family influences.
PTS: 1
DIF: Hard
REF: p. 27
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
15. The core concept of consumer behavior is value.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 27
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
16. Value is a personal assessment of the net worth obtained from an activity.
ANS: T
PTS: 1
DIF: Easy
REF: p. 27
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
17. Price is the best indicator of value.
ANS: F
Price is in many ways a very poor proxy for value. A price cannot be easily put on many valued
things.
PTS: 1
DIF: Moderate
REF: p. 28
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
18. Value equals what you get minus what you give.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 28
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
19. In the value equation, sacrifice includes things such as quality, prestige, opportunity, and image.
ANS: F
Sacrifices include time, money, effort, opportunity, emotions, and image. Quality and prestige are
benefits.
PTS: 1
DIF: Hard
REF: p. 28
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
20. Two types of value are primary value and secondary value.
ANS: F
The two types of value described are utilitarian and hedonic.
PTS: 1
DIF: Moderate
REF: p. 28
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
21. Utilitarian value is derived from a product that helps the consumer solve problems and accomplish
tasks that are a part of being a consumer.
ANS: T
PTS: 1
DIF: Easy
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
22. Hedonic value is the immediate gratification that comes from experiencing some activity.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
23. One conceptual difference between utilitarian value and hedonic value is that utilitarian value is an end
in and of itself rather than a means to an end.
ANS: F
Hedonic value, not utilitarian value, is an end in and of itself rather than a means to an end.
PTS: 1
DIF: Hard
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
24. An act of consumption cannot provide both utilitarian and hedonic value.
ANS: F
Utilitarian and hedonic value are not mutually exclusive. For example, dining in a fine restaurant
provides both utilitarian value (nourishment) and hedonic value (pleasure).
PTS: 1
DIF: Moderate
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
25. A strategy is a planned way of doing something.
ANS: T
PTS: 1
DIF: Easy
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
26. The best strategic focus should be centered on the products offered.
ANS: F
A better strategic orientation would focus on providing value or else a company runs the risk of
developing marketing myopia, which is defined as a company that views itself in a product business,
rather than in a value, or benefits producing, business.
PTS: 1
DIF: Moderate
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of human behavior &
society
27. Strategies exist at more than one level in an organization.
ANS: T
PTS: 1
DIF: Easy
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
28. Marketing strategy deals with how the firm will be defined and sets general goals.
ANS: F
This is corporate strategy.
PTS: 1
DIF: Moderate
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
29. To deliver superior customer value, different business units within the firm must have the same
marketing strategy.
ANS: F
Different business units within the firm may have different marketing strategies.
PTS: 1
DIF: Hard
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
30. Marketing tactics are ways marketing management is implemented.
ANS: T
PTS: 1
DIF: Easy
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
31. Marketing tactics include price, promotion, product, and distribution decisions.
ANS: T
PTS: 1
DIF: Easy
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
32. Products are multifaceted and can provide value in many ways.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 31
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of general business
functions
33. Purchasing a satellite radio for your car and the satellite radio service necessary to use the radio is an
example of an augmented product.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 31
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of general business
functions
34. Companies embracing the total value concept demonstrate an understanding that products provide
value in multiple ways.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 32
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of human behavior &
society
35. The marketing mix is the combination of product, pricing, promotion, and distribution strategies used
to position some product offering or brand in the marketplace.
ANS: T
PTS: 1
DIF: Easy
REF: p. 33
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
36. Consumers play a role in the creation of the value offered by marketers.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 33
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
37. The segment or segments of a market that a company services is called the focal market.
ANS: F
These are called target markets.
PTS: 1
DIF: Moderate
REF: p. 33
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of human behavior &
society
38. Target marketing is the separation of a market into groups based on the different demand curves
associated with each group.
ANS: F
This is market segmentation.
PTS: 1
DIF: Moderate
REF: p. 33
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
39. Sensitivity represents the degree to which a consumer is sensitive to changes in some product
characteristic.
ANS: F
This is elasticity.
PTS: 1
DIF: Hard
REF: p. 34
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
40. The market for any product is the sum of the demand existing in individual groups or segments of
consumers.
ANS: T
PTS: 1
DIF: Easy
REF: p. 34
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
41. The most basic truth of economics is that as price increases, quantity demanded will decrease.
ANS: F
Not always true - backward sloping demand describes a positive price-quantity demanded relationship.
PTS: 1
DIF: Hard
REF: p. 34-35
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
42. Consumer segments exist because different consumers do not value different alternatives the same
way.
ANS: T
PTS: 1
DIF: Easy
REF: p. 35
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
43. Product differentiation is a marketplace condition in which consumers do not view all competing
products as identical to one anther.
ANS: T
PTS: 1
DIF: Easy
REF: p. 35
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
44. Positioning refers to the way a product is perceived by a consumer.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 35
OBJ: 02-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
45. A positioning map is used to depict graphically the positioning of competing products.
ANS: T
PTS: 1
DIF: Hard
REF: p. 35
OBJ: 02-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
46. Ideal points on a perceptual map represent each marketer’s product offering.
ANS: F
Ideal points on a perceptual map represent the combination of product characteristics that provide the
most value to an individual consumer or market segment.
PTS: 1
DIF: Moderate
REF: p. 36
OBJ: 02-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
47. Both consumers and marketers enter exchanges seeking value.
ANS: T
PTS: 1
DIF: Moderate
REF: p. 37
OBJ: 02-6
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
48. A company would be foolish to turn away a customer.
ANS: F
Not every customer is equally valuable to a firm, that is why the concept of customer lifetime value
(CLV) is important.
PTS: 1
DIF: Hard
REF: p. 37
OBJ: 02-6
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
49. Customer lifetime value (CLV) represents the approximate worth of a customer to a company in
economic terms.
ANS: T
PTS: 1
DIF: Easy
REF: p. 37
OBJ: 02-6
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
50. Customer lifetime value is equal to sales attributed to particular customer minus the costs associated
with satisfying that customer over the lifetime of that customer.
ANS: F
Customer lifetime value is equal to the net present value of the stream of profits over a customer’s
lifetime plus the worth attributed to the equity a good customer can bring in the form of positive
referrals and word-of-mouth.
PTS: 1
DIF: Hard
REF: p. 37
OBJ: 02-6
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
MULTIPLE CHOICE
1. The _____ represents consumer behavior theory illustrating factors that shape consumption-related
behaviors that ultimately determine the value associated with consumption.
a. Consumer Behavior Framework (CBF)
b. Consumer Value Framework (CVF)
c. Consumption Process Framework (CPF)
d. Customer Relationship Framework (CRF)
e. Marketing-Consumer Framework (MCF)
ANS: B
PTS: 1
DIF: Moderate
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
2. Which concept is at the heart of the Consumer Value Framework and the focus of marketing efforts?
a. value
b. consumption
c. personality
d. culture
e. quality
ANS: A
PTS: 1
DIF: Moderate
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
3. Which of the following is an internal influence on consumer value?
a. costs
b. learning
c. social class
d. time/timing
e. family
ANS: B
PTS: 1
DIF: Moderate
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
4. Which of the following is an external influence on consumer value?
a. personal values
b. lifestyles
c. needs
d. perception
e. reference groups
ANS: E
PTS: 1
DIF: Moderate
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
5. All of the following are elements of consumer psychology EXCEPT _____.
a. learning
b. attitude
c. culture
d. information processing
e. memory
ANS: C
PTS: 1
DIF: Hard
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
6. A automobile marketer is interested in the psychological influences on potential buyers of luxury
automobiles. Which of the following would this researcher be interested in studying?
a. lifestyles of luxury car buyers
b. whether buyers are liberal or conservative
c. stage in family lifecycle of luxury car buyers
d. buyers’ attitudes toward different brands
e. all of the above
ANS: D
PTS: 1
DIF: Hard
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
7. All of the following are considered part of a consumer’s personality EXCEPT _____.
a. traits
b. values
c. lifestyles
d. motivation
e. perception
ANS: E
PTS: 1
DIF: Hard
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
8. Over which factor depicted in the Consumer Value Framework does the marketer have the most
control?
a. motivation
b. atmospherics
c. social class
d. lifestyles
e. perception
ANS: B
PTS: 1
DIF: Hard
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
9. USAA is an insurance company that believes customers form relationships with companies as opposed
to companies merely conducting individual transactions with customers. For this reason, USAA
rewards loyal customers in the form of dividends at the end of each year. The longer a customer has
been with the company, the greater the dividend received. USAA is implementing _____.
a. consumer value management (CVM)
b. hedonic value
c. marketing relationship management (MRM)
d. customer relationship management (CRM)
e. relationship quality management (RQM)
ANS: D
PTS: 1
DIF: Hard
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
10. Samantha tracks detailed information about customers so more customer-oriented decisions can be
made, hopefully leading to longer-lasting relationships with customers. Samantha is involved in
_____.
a. customer relationship management
b. marketing management
c. consumer value management
d. quality management
e. internal marketing management
ANS: A
PTS: 1
DIF: Moderate
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
11. Which orientation means each customer represents a potential stream of resources rather than just a
single sale?
a. product orientation
b. CVF orientation
c. hedonic orientation
d. CRM orientation
e. utilitarian orientation
ANS: D
PTS: 1
DIF: Moderate
REF: p. 25
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of human behavior &
society
12. _____ reflects the connectedness between a consumer and a retailer, a brand, or service provider.
a. Hedonic value
b. Interconnectivity
c. Synergy
d. Consumption
e. Relationship quality
ANS: E
PTS: 1
DIF: Moderate
REF: p. 25
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
13. When a consumer realizes high value from an exchange with a company, _____ improves.
a. relationship quality
b. internalization
c. emotional attachment
d. augmented quality
e. elasticity
ANS: A
PTS: 1
DIF: Moderate
REF: p. 25
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
14. _____ are things that go on inside of the mind and heart of the consumer and influence value.
a. External influences
b. Innate influences
c. Internal influences
d. Social influences
e. Personal influences
ANS: C
PTS: 1
DIF: Moderate
REF: p. 26
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
15. Which of the following refers to the thinking or mental processes that go on as we process and store
things that can become knowledge?
a. cognition
b. schema
c. affect
d. synergy
e. internalization
ANS: A
PTS: 1
DIF: Moderate
REF: p. 26
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
16. Hannah believes that Mac computers are better than Windows-based computers because they are not
as vulnerable to computer viruses. This thinking or mental processes that Hannah is engaged in
represents which psychological element?
a. personality
b. affect
c. lifestyle
d. individual differences
e. cognition
ANS: E
PTS: 1
DIF: Hard
REF: p. 26
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
17. _____ refers to the feelings that are experienced during consumption activities or associated with
specific objects.
a. Cognition
b. Internalization
c. Affect
d. Value
e. Utilitarian value
ANS: C
PTS: 1
DIF: Moderate
REF: p. 26
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
18. Every Disney employee is thought of and trained to be a host or hostess with the express goal of
making sure all guests feel good when they are there. Which of the follow refers to the feelings
visitors experience while they are there and long after they’ve left?
a. affect
b. cognition
c. internalization
d. environment
e. satisfaction
ANS: A
PTS: 1
DIF: Hard
REF: p. 26
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
19. Characteristic traits of individuals, including personality and lifestyles, are known as _____.
a. individual differences
b. individual identifiers
c. discriminators
d. value enhancers
e. exemplars
ANS: A
PTS: 1
DIF: Easy
REF: p. 26
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
20. Which environment includes the people and groups who help shape a consumer’s everyday
experiences?
a. emotional environment
b. internal environment
c. social environment
d. macro environment
e. micro environment
ANS: C
PTS: 1
DIF: Easy
REF: p. 27
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
21. Haley is a member of a sorority. She uses certain brands because they are popular with the others in
her sorority. Her sorority sisters are part of the _____ that influences Haley’s everyday experiences.
a. internal environment
b. value network
c. relationship network
d. emotional environment
e. social environment
ANS: E
PTS: 1
DIF: Hard
REF: p. 27
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
22. Things unique to a time or place that can affect consumer decision making and the value received from
consumption are known as _____.
a. situational influences
b. temporal factors
c. social influences
d. internal factors
e. socio-environmental factors
ANS: A
OBJ: 02-1
PTS: 1
DIF: Moderate
REF: p. 27
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
23. It’s the day before Christmas and Mark has not even started shopping for gifts for his family. He
rushes to the mall and buys the first things he sees. Which of the following is most likely having the
greatest impact on Mark’s behavior?
a. social influences
b. situational influences
c. socio-environmental factors
d. hedonic factors
e. perceptional influences
ANS: B
PTS: 1
DIF: Hard
REF: p. 27
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
24. _____ is a personal assessment of the net worth obtained from an activity.
a. Value
b. Customer lifetime value
c. Prestige
d. Quality
e. Effort
ANS: A
PTS: 1
DIF: Moderate
REF: p. 27
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
25. Which of the following represents the value equation?
a. Value = What you get/What you give
b. Value = What you give/What you get
c. Value = What you get - What you give
d. Value = What you give - What you get
e. Value = What you give + What you get
ANS: C
PTS: 1
DIF: Hard
REF: p. 28
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
26. All of the following are examples of benefits received from consumption EXCEPT _____.
a. quality
b. convenience
c. prestige
d. experience
e. effort
ANS: E
PTS: 1
DIF: Hard
REF: p. 28
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
27. All of the following are examples of “What you give,” or sacrifices, in the value equation EXCEPT
_____.
a.
b.
c.
d.
e.
time
opportunity
emotions
image
experience
ANS: E
PTS: 1
DIF: Hard
REF: p. 28
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
28. Two main types of value are _____.
a. internal and external
b. utilitarian and hedonic
c. personal and social
d. primary and secondary
e. temporal and stable
ANS: B
PTS: 1
DIF: Moderate
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
29. _____ value is derived from a product that helps a consumer solve problems and accomplish tasks.
a. Utilitarian
b. Functional
c. Terminal
d. Purchase
e. End-state
ANS: A
PTS: 1
DIF: Moderate
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
30. Josh needed new soccer cleats, so he visited several stores to find the right ones. He purchased a pair
from Soccer Locker and was satisfied that his needs were met. Which of the following best describes
the type of value Josh received?
a. end-state value
b. hedonic value
c. terminal value
d. utilitarian value
e. purchase value
ANS: D
PTS: 1
DIF: Hard
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
31. _____ value is the immediate gratification that comes from experiencing some activity.
a. Hedonic
b. Utilitarian
c. End-state
d. Process
e. Experiential
ANS: A
PTS: 1
DIF: Moderate
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
32. Melanie and her daughter enjoy shopping together even if they do not purchase anything. For them,
shopping is an end in and of itself, not just a means to an end. Which type of value are they
experiencing?
a. utilitarian value
b. pleasure-seeking value
c. hedonic value
d. experiential value
e. augmented value
ANS: C
PTS: 1
DIF: Moderate
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
33. How do hedonic and utilitarian value differ?
a. Utilitarian value is an end in and of itself rather than a means to an end.
b. Hedonic value is very emotional and subjective in nature.
c. When a consumer does something to obtain hedonic value, the action is usually very easy
to explain objectively.
d. Utilitarian value is immediate and hedonic value is delayed.
e. Hedonic value is more positive and longer-lasting than utilitarian value.
ANS: B
PTS: 1
DIF: Hard
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
34. A planned way of doing something is known as a(n) _____.
a. objective
b. mission
c. goal
d. utilization
e. strategy
ANS: E
PTS: 1
DIF: Moderate
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
35. A company has formed a team to decide the direction the organization should take over the next five
years. The focus of this team is to come up with a plan that will better position the company to take
advantage of opportunities and avoid threats in the changing environment. This team is involved in
developing the _____ for the organization.
a. mission
b. focus
c. tactics
d. blueprint
e. strategy
ANS: E
PTS: 1
DIF: Hard
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
36. A company that views itself in a product business, rather than in a value, or benefits producing
business runs the risk of developing _____, which could cause the company to go out of business if
technology makes the product obsolete.
a. marketing myopia
b. cognitive dissonance
c. negative affect
d. marketing dissonance
e. marketing disconnect
ANS: A
PTS: 1
DIF: Moderate
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
37. Black & Decker is well known for power tools. However, if the company thinks of itself merely as a
power tool company instead of a company that delivers the benefits users want, such as cut materials
or holes in materials, it could be taking a short-sighted focus of its business. If a technologicallyadvanced device is developed that could replace the need for power tools to deliver those benefits, this
company could go out of business. That is, Black & Decker could suffer from _____.
a. brain drain
b. cognitive dissonance
c. marketing disconnect
d. marketing myopia
e. product devaluation
ANS: D
PTS: 1
DIF: Hard
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
38. Which strategy deals with how the firm will be defined and sets general goals?
a. corporate strategy
b. marketing strategy
c. tactical strategy
d. top-level strategy
e. meta-strategy
ANS: A
PTS: 1
DIF: Easy
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
39. All of the following are examples of marketing tactics EXCEPT _____.
a. determining the quality level of the product
b. setting the price of a product or service
c. creating advertising for a service
d. distributing through discount stores
e. setting the company sales goal
ANS: E
PTS: 1
DIF: Hard
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
40. A university realizes it needs to increase revenue in the face of severe budget cuts due to the weak
economy. The school decides to pursue students who have some college but have not completed their
degrees. To do this, the university is offering online degree programs, charges extra fees for these
students, offers a wide selection of online courses each semester, and advertises on billboards, on
radio, on television, and in newspapers throughout the state. The school also sends direct mail letters
to students who were previously enrolled at the school but did not complete their degree. The courses,
the tuition, online delivery, and promotion are examples of _____.
a. corporate strategy
b. value enhancement
c. marketing tactics
d. marketing augmentation
e. task implementation
ANS: C
PTS: 1
DIF: Hard
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Strategy| R&D Knowledge of general business
functions
41. The actual physical product purchased plus any services such as installation and warranties necessary
to use the product and obtain its benefits is called the _____.
a. augmented product
b. secondary product
c. complete product
d. enhanced product
e. value proposition
ANS: A
PTS: 1
DIF: Moderate
REF: p. 31
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of general business
functions
42. Kyle purchased a Macbook Pro and an extended warranty. He also purchased one-on-one training to
learn how to use the computer. This is an example of a(n) _____.
a. augmented product
b. complete product
c. extended product
d. total product
e. segmented product
ANS: A
PTS: 1
DIF: Moderate
REF: p. 31
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of general business
functions
43. The business practice wherein companies operate with the understanding that products provide value
in multiple ways is called the _____.
a. augmented product concept
b. total value concept
c. marketing concept
d. product concept
e. multifaceted product concept
ANS: B
PTS: 1
DIF: Moderate
REF: p. 32
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of human behavior &
society
44. The realization that a consumer is necessary and must play a part in order to produce value is the major
premise underlying the concept of _____.
a. synergy
b. value integration
c. value internalization
d. value co-creation
e. dyadic valuation
ANS: D
PTS: 1
DIF: Moderate
REF: p. 33
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
45. All of the following are elements of the marketing mix EXCEPT _____.
a. price
b. planning
c. promotion
d. distribution
e. product
ANS: B
PTS: 1
DIF: Moderate
REF: p. 33
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
46. The market segment a company will serve with a specific marketing mix is referred to as the _____.
a. target market
b. primary market
c. segmented market
d. selected market
e. potential market
ANS: A
PTS: 1
DIF: Moderate
REF: p. 33
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
47. Vann’s is a company that manufactures and markets shoes for serious skateboarders. These consumers
are predominantly males, 10-25 years old. This market segment that Vann’s serves with a specific
marketing mix is called its _____.
a. preferred market
b. optimum market
c. target market
d. selected market
e. segmented market
ANS: C
PTS: 1
DIF: Moderate
REF: p. 33
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
48. _____ is the separation of a market into groups based on the different demand curves associated with
each group.
a. Market zoning
b. Market augmentation
c. Market positioning
d. Market segmentation
e. Market selection
ANS: D
PTS: 1
DIF: Easy
REF: p. 33
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
49. Community Trust Bank is analyzing its customer data to determine if groups other than simply
consumer and business customers can be identified. It is looking at the frequency of branch visits, use
of ATMs, online banking activity, loan activity, and account balances for each customer. The bank
has identified three groups of customers based on these factors and is considering offering different
products to better meet the needs of each group. What marketing concept do these different groups of
customers represent?
a. target marketing
b. market segmentation
c. positioning
d. marketing audit
e. environmental scanning
ANS: B
PTS: 1
DIF: Hard
REF: p. 33
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of different
business functions
50. The degree to which a consumer is sensitive to changes in some product characteristic is known as
_____.
a. elasticity
b. differentiation
c. sensitivity
d. segmentation
e. positioning
ANS: A
PTS: 1
DIF: Moderate
REF: p. 34
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
51. A product with backward sloping demand _____
a. displays a negative price-quantity demanded relationship
b. means consumers are more sensitive to price than to other product factors
c. displays a neutral price-quantity demanded relationship
d. displays a positive price-quantity demanded relationship
e. displays a positive price-quality relationship
ANS: D
PTS: 1
DIF: Hard
REF: p. 34
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
52. _____ refers to a marketplace condition in which consumers do not view all competing products as
identical to one another.
a. Product positioning
b. Product differentiation
c. Marketing positioning
d. Competitive advantage
e. Market differentiation
ANS: B
PTS: 1
DIF: Moderate
REF: p. 35
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Product| R&D Knowledge of general business
functions
53. Consumers do not view all soft drinks as identical to one another. Some prefer Coca-Cola, while
others will only drink Pepsi-Cola. Still others will not drink either cola and drink only non-caffeinated
soft drinks. This marketplace condition in which consumers do not view all competing products as
identical to one another is called _____.
a. product differentiation
b. product variation
c. market segmentation
d. perceptual differentiation
e. selective perception
ANS: A
PTS: 1
DIF: Moderate
REF: p. 35
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
54. _____ refers to the way a product is perceived by a consumer.
a. Product differentiation
b. Product augmentation
c. Product positioning
d. Product segmentation
e. Product perception
ANS: C
PTS: 1
DIF: Moderate
REF: p. 35
OBJ: 02-5
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
55. Which of the following is used to depict graphically the positioning of competing products?
a. product map
b. schema
c. demand curve
d. product map
e. perceptual map
ANS: E
PTS: 1
DIF: Moderate
REF: p. 35
OBJ: 02-5
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
56. A cosmetic manufacturer was looking at a graphical display of how women perceived different brands
of cosmetics and was dismayed to learn that its brand was clustered with brands that are targeted
toward older women, not the younger women the marketer was trying to reach. The graphical
depiction of the positioning of competing brands the marketer was using is called a(n) _____.
a. perceptual map
b. BCG matrix
c. competitive matrix
d. competitive array
e. positioning plot
ANS: A
PTS: 1
DIF: Hard
REF: p. 35
OBJ: 02-5
TOP: AACSB Reflective Thinking| CB&C Model Research Plan| R&D Knowledge of human
behavior & society
57. Which of the following on a perceptual map represents the combination of product characteristics that
provide the most value to an individual consumer or market segment?
a. touch point
b. maximum point
c. optimum point
d. ideal point
e. slope intercept
ANS: D
PTS: 1
DIF: Moderate
REF: p. 36
OBJ: 02-5
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
58. What do the x- and y-axes on a perceptual map represent?
a. how competitors perform on the two most important attributes to consumers - price and
quality
b. the ideal combination of attributes and the actual combination of attributes of all
competitors in the market
c. dimensions used to separate competitors on a specific characteristic
d. growth rate of the market and market shares of each competitor
e. factors used to identify market segments
ANS: C
PTS: 1
DIF: Hard
REF: p. 36
OBJ: 02-5
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of general business
functions
59. The approximate worth of a customer to a company in economic terms is known as _____.
a. net present value (NPV)
b. customer lifetime value (CLV)
c. customer present value (CPV)
d. customer future value (CFV)
e. customer value (CV)
ANS: B
PTS: 1
DIF: Moderate
REF: p. 37
OBJ: 02-6
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
60. Customer lifetime value is equal to the net present value of the stream of profits over a customer’s
lifetime plus _____.
a. the costs associated with satisfying that customer
b. the costs associated with keeping that customer for more than 10 years
c. the retention rate for all customers
d. opportunity cost saved from having loyal customers
e. the worth attributed to the equity a good customer can bring
ANS: E
PTS: 1
DIF: Hard
REF: p. 37
OBJ: 02-6
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
SUPERFOCUS SCENARIO
Superfocus is a revolutionary concept in eye glasses--it even received a 2010 The Wall Street Journal
innovation award. It is a type of eyeglass that allows the wearer to change correction without
changing glasses, or having to look through a certain part of the lens like bifocal and progressive lens
wearers must do. The round lenses are actually two lenses with a clear fluid in-between. The outer
lens is hard, while the inner lens is flexible. There’s a little slider on the bridge that, when moved,
pushes the fluid and changes the shape of the inner, flexible, lens. That, in turn, changes the correction,
so a user can see near, far, and everything in-between just by changing the position of the slider. The
only catch is that the lens have to be perfectly round and the frames are made out of stainless steel or
titanium aluminum, limiting the frame style and color choices for consumers. Actually, they look
pretty goofy.
Superfocus can be purchased through eye care professionals or directly from the manufacturer online.
The company has recently started using direct-response television advertising to drive traffic to the
website so consumers can learn more about this product and sign up for a free trial offer. With prices
starting at $700 a pair, the free trial might help overcome some resistance due to the relatively high
price.
61. Refer to Superfocus Scenario. Superfocus glasses were developed for people who have multiple
prescriptions but do not like multi-focal lenses like bifocals or who have to continually change glasses
for different tasks like reading, computer work, or driving. By solving this problem for consumers,
which type of value is Superfocus delivering?
a. hedonic
b. rational
c. complete
d. utilitarian
e. relative
ANS: D
PTS: 1
DIF: Moderate
REF: p. 29
OBJ: 02-2
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
62. Refer to Superfocus Scenario. People who need multifocal lenses are Superfocus’ _____.
a. market position
b. target market
c. product differentiation
d. focal market
e. augmented market
ANS: B
PTS: 1
DIF: Easy
REF: p. 33
OBJ: 02-4
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
63. Refer to Superfocus Scenario. The advertising, distribution through the website and eye care
providers, the price, and the free trail offer are examples of Superfocus’ _____.
a. marketing tactics
b. corporate strategy
c. company mission
d. value proposition
e. product differentiation
ANS: A
PTS: 1
DIF: Moderate
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| CB&C Model Marketing Plan| R&D Knowledge of general
business functions
64. Refer to Superfocus Scenario. While consumers need and want this type of eyeglass, they also want
something that looks fashionable. Most consumers would not consider the round silver stainless steel
or titanium aluminum charcoal gray frame fashionable. Thus, on a perceptual map, Superfocus would
_____.
a. not be positioned as a very useful product
b. be positioned close to competitors
c. be in a quadrant all by itself
d. not even appear
e. not be very close to the ideal point
ANS: E
PTS: 1
DIF: Hard
REF: p. 36
OBJ: 02-5
TOP: AACSB Reflective Thinking| CB&C Model Research| R&D Knowledge of human behavior &
society
65. Refer to Superfocus Scenario. Which external influence in the Consumer Value Framework is likely
to discourage consumers from purchasing these glasses?
a. attitudes
b. personality traits
c. perception
d. atmospherics
e. social environment
ANS: E
PTS: 1
DIF: Hard
REF: p. 24
OBJ: 02-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
ESSAY
1. Describe the Consumer Value Framework (CVF), including its basic components.
ANS:
The Consumer Value Framework (CVF) (see Exhibit 2.1) represents consumer behavior theory
illustrating factors that shape consumption-related behaviors and ultimately determine the value
associated with consumption. Value is at the heart of experiencing and understanding consumer
behavior. Value then influences relationship quality, which reflects the connectedness between a
consumer and a retailer, brand, or service provider. The consumption process can involve a great deal
of decision making and thus represents a consumer decision making process. Many internal and
external factors influence this process. Internal influences include consumer psychology (i.e.,
learning, perception, implicit memory, information processing, memory, categorization, and attitude)
and the personality of the consumer (i.e., motivation, personal values, personality, lifestyles, emotional
expressiveness). External influences include elements in the social environment (i.e.,
acculturation/enculturation, culture and cultural values, reference groups, social class, and family
influence) and situational influences (i.e., atmospherics, time/timing, and conditions).
PTS: 1
DIF: Hard
REF: p. 24-27
OBJ: 02-1
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society
2. Define consumer value, and compare and contrast utilitarian value and hedonic value. Describe two
situations--one in which you received utilitarian value and the other in which you experienced hedonic
value. Which made you more satisfied? Explain why.
ANS:
Value is a personal assessment of the net worth obtained from an activity. Value is what consumers
ultimately pursue because valuable actions address motivations that manifest themselves in needs and
desires. In this sense, value captures how much gratification a consumer receives from consumption.
Two key types of value are utilitarian value and hedonic value. Utilitarian value is derived from a
product that helps the consumer solve problems and accomplish tasks that are a part of being a
consumer. A rational explanation can usually be given when somebody explains why something was
purchased when utilitarian value is involved. Hedonic value is the immediate gratification that comes
from experiencing some activity. Conceptually, hedonic value differs from utilitarian value in several
ways: (1) hedonic value is an end in and of itself, rather than a means to an end, (2) hedonic value is
very emotional and subjective in nature, and (3) when a consumer does something to obtain hedonic
value, the action can sometimes be very difficult to explain objectively.
Students’ examples will vary.
PTS: 1
DIF: Moderate
REF: p. 27-28
OBJ: 02-2
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society
3. Explain why marketing plays an important strategic role in an organization and describe where
marketing strategy fits in the bigger organization.
ANS:
One way that a company can enhance the chance of long-term survival is to have an effective
marketing strategy. That is because, in a business environment, a marketing strategy is the way a
company goes about creating value for customers. Strategies exist at several different levels.
Corporate strategy deals with how the firm will be defined and sets general goals. Marketing strategy
then follows.
PTS: 1
DIF: Moderate
REF: p. 30
OBJ: 02-3
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Strategy| R&D
Knowledge of general business functions
4. Define market segmentation and explain how it is a marketplace condition. Describe different market
segments of McDonald’s customers.
ANS:
Market segmentation is the separation of a market into groups based on the different demand curves
associated with each group. Market segmentation is a marketplace condition; numerous segments
exist in some markets, but very few segments may exist in others. Ultimately, consumer segments
exist because different consumers do not value different alternatives the same way.
Different market segments of McDonald’s customers include families with young children, teenagers
and young adults, and senior citizens. Students might also discuss segments based on time of day,
such as breakfast eaters, lunch, or dinner. The market could also be segmented by usage - heavy users
vs. light users. Finally, consumers could be segmented geographically, especially internationally.
McDonald’s in other countries or region of this country might carry different product offerings based
on local tastes.
PTS: 1
DIF: Hard
REF: p. 33-35
OBJ: 02-4
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society
5. Explain how perceptual maps are useful in understanding consumers and delivering superior value.
ANS:
A perceptual map is used to depict graphically the positioning of competing products. Positioning
refers to the way a product is perceived by a consumer and can be represented by the number and types
of characteristics that consumers perceive. When marketing analysts examine perceptual maps, they
can (1) identify competitors, (2) identify opportunities for doing more business, and (3) diagnose
potential problems in the marketing mix. Ideal points represent the combination of product
characteristics that provide the most value to an individual consumer or market segment.
PTS: 1
DIF: Moderate
REF: p. 35-36
OBJ: 02-5
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society
6. Explain the concept of Customer Lifetime Value (CLV). Think of a product you have purchased (e.g.,
toothpaste, soft drink, computer) and estimate your lifetime value to the manufacturer of a specific
brand. What can the marketer of that brand do to ensure you remain loyal to that brand?
ANS:
Customer Lifetime Value (CLV) represents the approximate worth of a customer to a company in
economic terms. In equation form, CLV = npv(sales - costs) + npv(equity). Students’ examples will
vary, but they should estimate how long they could possibly purchase the product and specific brand,
how much the product costs, and some discussion regarding what it costs the company to keep them
loyal. They should also factor in the value they provide the company if they influence others to
become loyal customers as well. Finally, while not specifically covered in the chapter, students should
discuss ways the marketer can keep them loyal, such as offering rewards for continued purchase,
provide opportunities to purchase other products, offer incentives to recommend the product to others,
or offering special privileges for loyal behavior.
PTS: 1
DIF: Hard
REF: p. 37-38
OBJ: 02-6
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society