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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