Chapter 6 1. ________ is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. A) Target marketing B) Mind mapping C) Consumer activism D) Consumer behavior E) Product differentiation Answer: D Rationale: Consumer behavior refers to the process individuals go through when purchasing and using products or services. It encompasses various aspects such as decision-making, purchasing patterns, and post-purchase behavior, all of which are crucial for marketers to understand in order to effectively target and satisfy consumer needs. 2. Which of the following would be the best illustration of a subculture? A) a religion B) a group of close friends C) your university D) a fraternity or sorority E) your occupation Answer: A Rationale: A subculture refers to a smaller cultural group within a larger culture that shares common beliefs, values, and practices distinct from those of the mainstream culture. Religion, such as Christianity, Islam, or Judaism, represents a distinct subculture with its own set of beliefs, rituals, and norms. 3. The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior constitute ________. A) a culture B) a subculture C) a social class D) a family E) a group Answer: C Rationale: Social class refers to the hierarchical divisions in society based on factors such as income, occupation, education, and wealth. Members of the same social class typically share similar lifestyles, values, and consumption patterns. 4. A person's ________ consist(s) of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior. A) subculture B) family C) social class D) reference groups E) social networks Answer: D Rationale: Reference groups are social groups that individuals use as a standard for evaluating their own attitudes, behaviors, and beliefs. These groups can have either a direct (face-to-face) or indirect influence on an individual's actions and decisions. 5. A(n) ________ group is one whose values or behavior an individual rejects. A) aspirational B) disassociative C) membership D) primary E) procreational Answer: B Rationale: A disassociative group is one whose values or behaviors are rejected or avoided by an individual. This could be due to conflicting beliefs, social norms, or negative perceptions associated with the group. 6. Joe is a computer service technician. People in his neighborhood usually depend on his suggestions for purchasing any computer accessory or hardware, as they believe that he has access to far more information on computer technology than the average consumer. The neighbors are also aware that Joe has the required knowledge and background for understanding the technical properties of the products. Within this context, Joe can be called a(n) ________. A) transactional leader B) opinion leader C) role model D) gatekeeper E) international marketer Answer: B Rationale: An opinion leader is an individual who is perceived as knowledgeable and credible in a particular domain and whose opinions and recommendations influence others' purchasing decisions or attitudes. Joe's expertise in computer technology positions him as an opinion leader within his neighborhood. 7. For a high-school student, Tim is highly concerned about environmental issues. He is a strong supporter of the garbage recycling and afforestation campaigns taken up by the environmental activists in his neighborhood. He wants to become a full-time volunteer for their upcoming wildlife protection program and has even saved money to contribute to the cause. This group of environmental activists can be categorized under which of the following reference groups? A) primary group B) secondary group C) aspirational group D) dissociative group E) cognitive group Answer: C Rationale: An aspirational group is one that an individual aspires to belong to or emulate. In this case, Tim is highly supportive of the environmental activists and aims to actively participate in their initiatives, indicating that he considers them as an aspirational group. 8. Jason writes a weekly column in his school's newspaper about movies he has seen, books he has read, and concerts he has attended. His column provides information and opinions. Feedback from his fellow students is positive, and they are appreciative of the advice that is given. Which of the following would be the most apt description of the role played by Jason? A) silent majority B) protester C) protector D) adapter E) opinion leader Answer: E Rationale: Jason, through his weekly column, provides opinions and advice on various topics to his fellow students, which influences their perceptions and decisions. As such, he fits the description of an opinion leader, someone whose views are respected and have an impact on others within his social circle. 9. Social classes differ in media preferences, with upper-class consumers often preferring ________ and lower-class consumers often preferring television. A) movies B) radio C) video or computer games D) magazines and books E) music downloads Answer: D Rationale: Upper-class consumers typically prefer media formats such as magazines and books, which are associated with higher levels of education, sophistication, and cultural capital. In contrast, lower-class consumers often prefer television due to its accessibility, affordability, and entertainment value. 10. If a direct-mail marketer wished to direct promotional efforts toward the family of ________, efforts need to be directed toward parents and siblings of the family members. A) orientation B) procreation C) immediacy D) intimacy E) reference Answer: A Rationale: Direct-mail marketing targeting the family of orientation would focus on parents and siblings of the family members, as this term refers to the family in which an individual grows up and learns basic values, attitudes, and behaviors. Therefore, efforts should be directed towards influencing this primary socialization unit. 11. The family in a buyer's life consisting of parents and siblings is the ________. A) family of procreation B) family of influence C) family of efficiency D) family of orientation E) purchasing family Answer: D Rationale: The family of orientation refers to the family into which an individual is born and raised, consisting of parents and siblings. This family plays a significant role in shaping an individual's values, attitudes, and consumption patterns during their formative years. 12. When Gary was a high school student, he enjoyed rock music and regularly purchased hip clothing sported by his favorite rock band. However, five years later, when Gary became an accountant, his preference shifted toward formal clothing. Which of the following personal characteristics is likely to have had the most influence on Gary's preferences during his high school days? A) education B) age C) income D) gender E) physiological needs Answer: B Rationale: Age is likely to have the most influence on Gary's preferences during his high school days because individuals often associate with specific subcultures and consumption patterns that are prevalent among people of their age group. As Gary transitioned from adolescence to adulthood, his lifestyle and preferences changed accordingly. 13. Marriage, childbirth, and divorce constitute the ________ that shape the consumption pattern of individuals. A) psychological life cycle B) product life cycle C) social status D) postpuberty cycles E) critical life events Answer: E Rationale: Critical life events such as marriage, childbirth, and divorce have a significant impact on individuals' consumption patterns as they mark significant transitions in their lives, influencing their needs, priorities, and spending habits. 14. Identify an economic circumstance that can greatly affect any product or brand choice. A) retirement B) values C) lifestyle D) borrowing power E) relocation Answer: D Rationale: Borrowing power, which is determined by factors such as income, creditworthiness, and debt, can greatly affect consumers' product or brand choices. Consumers with higher borrowing power may be more inclined to purchase premium products or brands, while those with limited borrowing power may opt for more budget-friendly options. 15. ________ refers to a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. A) Image B) Personality C) Psychological transformation D) Lifestyle E) Acculturation Answer: B Rationale: Personality refers to the unique set of psychological traits and characteristics that influence individuals' behavior, thoughts, and emotions, leading to relatively consistent patterns of response across different situations and contexts. 16. Brand personality analysts identified the popular music channel MTV as daring, spirited, and highly imaginative. As per Jennifer Aaker's research, which of the following brand personality traits best suits MTV? A) excitement B) sincerity C) competence D) ruggedness E) sophistication Answer: A Rationale: According to Jennifer Aaker's brand personality framework, MTV would be best described by the trait of excitement, which conveys qualities such as energy, innovation, and daringness, aligning with the channel's dynamic and creative image. 17. The Marlboro Man was depicted in the advertisements of Marlboro cigarettes as a rugged outdoor, tough cowboy type. This was done to establish what is called ________. A) trademarking B) a brand name C) a brand personality D) co-branding E) a brand reference Answer: C Rationale: Depicting the Marlboro Man as a rugged cowboy type in advertisements aimed to establish a brand personality for Marlboro cigarettes, conveying attributes such as toughness, masculinity, and independence. 18. Consumers often choose and use brands that have a brand personality consistent with how they see themselves, also known as the ________. A) actual self-concept B) ideal self-concept C) others' self-concept D) prohibitive self-concept E) suggestive self-concept Answer: A Rationale: Consumers are likely to choose and use brands that reflect their actual self-concept, which is their perception of themselves as they currently are. Brands that align with consumers' selfimage are perceived as congruent and can enhance their self-esteem and identity. 19. Consumers often choose and use brands that have a brand personality consistent with how they think others view them, also known as the ________. A) actual self-concept B) others' self-concept C) ideal self-concept D) dual self-concept E) perceptual self-concept Answer: B Rationale: Consumers may choose brands that reflect how they believe others perceive them, known as others' self-concept. This reflects consumers' desire to manage their social identity and conform to societal norms and expectations. 20. Consumers who are highly sensitive to how others see them and who choose brands whose personalities fit the consumption situation are called ________. A) change agents B) self motivators C) self monitors D) self adapters E) opinion leaders Answer: C Rationale: Consumers who are highly sensitive to social cues and choose brands whose personalities fit the consumption situation are referred to as self-monitors. They carefully manage their public image by selecting brands that align with their desired identity and the expectations of others. 21. Within the context of Jennifer Aaker's analysis, identify the brand personality that can be associated with a new product whose promotional messages consistently portray it as being reliable, intelligent, and successful. A) sincerity B) excitement C) competence D) sophistication E) ruggedness Answer: C Rationale: Competence is the most suitable brand personality trait for a product portrayed as reliable, intelligent, and successful. This trait reflects attributes such as reliability, capability, and effectiveness, which would resonate with consumers seeking a dependable and highperforming product. 22. Ford motors, uses the ad caption "Magnify the Adventure" to promote its latest SUV, the Ford Endeavour. The ad features the car traveling through an uneven, rocky terrain. Within the context of Jennifer Aaker's brand personality analysis, Ford Endeavour is most likely to be strong on which of the following traits? A) sincerity B) intelligence C) imagination D) sophistication E) ruggedness Answer: E Rationale: Ruggedness is the most appropriate brand personality trait for Ford Endeavour as depicted in the ad, which emphasizes adventure and capability in challenging terrains. Ruggedness conveys toughness, durability, and outdoor appeal, aligning with the image of an SUV designed for rugged adventures. 23. ________ portrays the "whole person" interacting with his or her environment. A) Attitude B) Personality C) Lifestyle D) Self-concept E) Subculture Answer: C Rationale: Lifestyle portrays the "whole person" in terms of their behaviors, activities, interests, opinions, and interactions with their environment. It reflects how individuals live their lives, make choices, and allocate resources based on their values, preferences, and circumstances. 24. Consumers who worry about the environment and want products to be produced in a sustainable way have been named ________. A) "Green" B) "Tree Huggers" C) "LOHAS" D) "Socialists" E) "Mamas" Answer: C Rationale: Consumers who prioritize environmental sustainability and seek products produced in an environmentally friendly manner are often referred to as "LOHAS" (Lifestyles of Health and Sustainability). They are concerned with health, sustainability, social justice, and personal development, influencing their consumption choices. 25. IKEA has achieved global recognition by offering consumers leading-edge Scandinavian furniture at affordable prices. IKEA is delivering value to consumers who are ________. A) money constrained B) time constrained C) brand constrained D) value constrained E) self-concept constrained Answer: A Rationale: IKEA delivers value to consumers who are money constrained by offering stylish and functional furniture at affordable prices, making quality home furnishings accessible to a wide range of consumers with varying budgets. 26. Marketers who target consumers on the basis of their ________ believe that they can influence purchase behavior by appealing to people's inner selves. A) time famine B) sophistication C) money constrain D) social class E) core values Answer: E Rationale: Marketers who target consumers based on their core values believe that by aligning their marketing messages with consumers' deeply held beliefs and principles, they can influence purchase behavior by appealing to individuals' inner selves and motivations. 27. The starting point for understanding consumer behavior is the ________ model in which marketing and environmental stimuli enter the consumer's consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. A) self-reliance B) self-perception C) psychogenic D) stimulus-response E) projective Answer: D Rationale: The stimulus-response model is the starting point for understanding consumer behavior, where marketing and environmental stimuli trigger a set of psychological processes within consumers, leading to decision-making and purchase behavior. 28. ________ assumed that the psychological forces shaping people's behavior are largely unconscious, and that a person cannot fully understand his or her own motivations. A) Abraham Maslow B) Frederick Herzberg C) Sigmund Freud D) John Cacioppo E) Karl Marx Answer: C Rationale: Sigmund Freud assumed that psychological forces shaping people's behavior are largely unconscious, and individuals may not fully understand their own motivations. His psychoanalytic theory emphasized the role of unconscious desires and conflicts in influencing human behavior. 29. Which of the following techniques was suggested by Freud to trace a person's motivations from the stated instrumental ones to the more terminal ones? A) laddering B) word association C) role playing D) casting E) selective attention Answer: A Rationale: Laddering is the technique suggested by Freud to trace a person's motivations from the stated instrumental ones to the more terminal ones. It involves asking individuals a series of "why" questions to uncover deeper motivations and underlying needs. 30. Which of the following theories developed by Frederick Herzberg distinguishes dissatisfiers from satisfiers? A) trait-role theory B) psychological constraint theory C) probability theory D) leadership model E) two-factor theory Answer: E Rationale: The two-factor theory developed by Frederick Herzberg distinguishes dissatisfiers (hygiene factors) from satisfiers (motivators) in the workplace. Hygiene factors are essential to prevent dissatisfaction, while motivators contribute to job satisfaction and motivation. 31. At the top of Maslow's hierarchy of needs (shown as a pyramid in the text) are ________ needs. A) esteem B) self-actualization C) social D) safety E) physiological Answer: B Rationale: At the top of Maslow's hierarchy of needs is the need for self-actualization, which represents the fulfillment of one's highest potential, self-fulfillment, and personal growth. 32. ________ is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world. A) Consumption B) Perception C) Acculturation D) Assimilation E) Cognitive dissonance Answer: B Rationale: Perception is the process through which individuals select, organize, and interpret sensory inputs to form a coherent and meaningful understanding of the world around them. 33. ________ can work to the advantage of marketers with strong brands when consumers make neutral or ambiguous brand information more positive. A) Selective attention B) Selective distortion C) Selective retention D) Selective choice E) Selective embellishment Answer: B Rationale: Selective distortion occurs when consumers interpret information in a way that is consistent with their existing beliefs or attitudes, which can work to the advantage of marketers with strong brands by making neutral or ambiguous brand information more positive. 34. ________ is the tendency to interpret information in a way that will fit our preconceptions. A) Selective retention B) Cognitive dissonance C) Selective distortion D) Subliminal perception E) Selective embellishment Answer: C Rationale: Selective distortion is the tendency to interpret information in a way that aligns with our existing beliefs or expectations, even if it means distorting or misinterpreting the information presented. 35. Marketers embed covert messages in ads or packaging of which the consumers are not consciously aware, yet it affects their behavior. This technique employed by the marketers targets the ________ of a consumer. A) selective attention B) selective distortion C) subliminal perception D) voluntary attention E) selective retention Answer: C Rationale: Subliminal perception involves presenting stimuli below the threshold of conscious awareness, influencing consumers' behavior without their explicit knowledge. Marketers use this technique to target consumers' subconscious minds and shape their perceptions and behaviors. 36. ________ teaches marketers that they can build demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement. A) Demand theory B) Learning theory C) Economic theory D) Psychological theory E) Demographic theory Answer: B Rationale: Learning theory teaches marketers that they can build demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement, thereby shaping consumers' attitudes and behaviors through repeated exposure and conditioning. 37. Anne is a frequent purchaser of Yoplait strawberry yogurt. For once, she decides to try a different flavored yogurt. Instead of trying out the flavors offered by competing brands, Anne selects a different flavor offered by Yoplait. Here, her past experience with the brand prompts her to make the choice. Anne's behavior can be best described as ________. A) fallacy of proposition B) associative networking C) generalization D) heuristic thinking E) self-actualization Answer: C Rationale: Anne's behavior of selecting a different flavor offered by Yoplait instead of trying out the flavors of competing brands is an example of generalization, where her past positive experience with the Yoplait brand influences her decision-making process and choice behavior. 38. The ________ says people have a general tendency to attribute success to themselves and failure to external causes. A) availability heuristic B) trait-role theory C) awareness set D) generalization theory E) hedonic bias Answer: E Rationale: The hedonic bias suggests that people have a general tendency to attribute success to themselves (internal factors) and failure to external causes (external factors), enhancing their self-esteem and maintaining a positive self-image. 39. As Rita scans the yellow pages section of her phone book looking for a florist, she sees several other products and services advertised. Though interesting on first glance, she quickly returns to her primary task of finding a florist. The items that distracted her from her initial search were most likely stored in which of the following types of memory? A) Short-term memory B) Long-term memory C) Middle memory D) Subconscious memory E) Subliminal memory Answer: A Rationale: The items that distracted Rita from her initial search were likely stored in her short-term memory, as short-term memory has limited capacity and duration, and information is quickly forgotten or displaced by new stimuli. 40. Betsy, a teenager, uses most of her post-school hours in either playing tennis or watching movies. She barely manages to concentrate in her lessons for a couple of hours before term exams. Being questioned about her substandard performance in the school, she points out the teacher's inability to complete the entire course during the school hours as the possible reason. Betsy's behavior is most likely to be associated with ________. A) generalization B) hedonic bias C) discrimination D) selective attention E) psychological repositioning Answer: B Rationale: Betsy's behavior of attributing her substandard performance to external factors, such as the teacher's inability to complete the course during school hours, rather than her own lack of focus or effort, is consistent with hedonic bias. Hedonic bias involves attributing success to internal factors and failure to external factors to maintain a positive self-image and selfesteem. 41. The associative network memory model views long-term memory as ________. A) a subliminal perception B) the interplay of drives C) a strong internal stimulus impelling action D) a temporary and limited repository of information E) a set of nodes and links Answer: E Rationale: According to the associative network memory model, long-term memory is conceptualized as a set of nodes (concepts or pieces of information) interconnected by links (associations), forming a network of interconnected knowledge structures. 42. ________ refers to the process in which information gets out of memory. A) Memory encoding B) Memory decoding C) Memory classification D) Memory retrieval E) Memorization Answer: D Rationale: Memory retrieval refers to the process of accessing and bringing information stored in memory back into conscious awareness for use in cognitive tasks or behaviors. 43. Amtex electronics, a consumer products brand, advertises its products inside supermarkets and retail stores frequently to promote the process of ________ and stimulate purchase. A) memory verification B) memory retrieval C) memory decoding D) memory formation E) memory augmentation Answer: B Rationale: Advertising Amtex electronics products inside supermarkets and retail stores frequently aims to promote the process of memory retrieval, triggering consumers to recall information about the brand and its products, ultimately stimulating purchase behavior. 44. Cognitive psychologists believe that memory is ________, so that once information becomes stored in memory, its strength of association decays very slowly. A) highly perceptual B) somewhat collective C) highly communicative D) often reflective E) extremely durable Answer: E Rationale: Cognitive psychologists believe that memory is extremely durable, meaning that once information becomes stored in long-term memory, its strength of association decays very slowly over time, allowing for relatively permanent retention. 45. The milder information search state where a person simply becomes more receptive to information about a product is called ________. A) active information search B) information search C) heightened attention D) purchase decision E) dynamic information search Answer: C Rationale: Heightened attention refers to the milder information search state where a person becomes more receptive to information about a product or service, without actively seeking out information or engaging in extensive search behaviors. 46. The buying process starts when the buyer recognizes a(n) ________. A) product B) advertisement for the product C) salesperson from a previous visit D) problem or need E) internal cue Answer: D Rationale: The buying process starts when the buyer recognizes a problem or need, which initiates the decision-making process and triggers the search for solutions or products that can satisfy the identified need or problem. 47. Which of the following is considered to be a more advanced form of information search wherein the person might phone friends or go online to secure information about a product or service? A) heightened attention B) short-term memory processing C) subliminal processing of information D) long-term memory processing E) active information search Answer: E Rationale: Active information search is considered a more advanced form of information search, involving deliberate efforts by the individual to seek out information from various sources such as friends, family, or online platforms to gather information about a product or service. 48. Of key interest to marketers are the major informational sources to which the consumer will turn and the relative importance of each. Which of the following can be considered an experiential information source? A) consumer-rating organizations B) mass media C) acquaintances D) Web sites E) personal handing and examination Answer: E Rationale: Personal handling and examination can be considered an experiential information source, as it involves consumers directly interacting with a product, experiencing its features, and forming judgments based on firsthand experience. 49. Brands that meet consumers' initial buying criteria are called the ________. A) total set B) awareness set C) consideration set D) choice set E) decision set Answer: C Rationale: Brands that meet consumers' initial buying criteria and are considered for further evaluation are called the consideration set. From the consideration set, consumers make their final purchase decision. 50. Maria considers buying a car for herself, after she notices the advantages derived by her best friend from his new car. Which of the following forms of stimulus has activated Maria's problem recognition process? A) external stimuli B) internal stimuli C) peer stimuli D) secondary stimuli E) marketing-induced stimuli Answer: A Rationale: Maria's problem recognition process is activated by external stimuli, such as observing the advantages her best friend experiences from his new car, which triggers her realization of a need or problem (in this case, the need for a new car). 51. A consumer who uses Google to find comparative reports on new automobiles is most likely using which of the following information sources for assistance? A) personal B) public C) experiential D) commercial E) under-the-radar Answer: D Rationale: When a consumer uses Google to find comparative reports on new automobiles, they are likely accessing commercial information sources, such as websites, reviews, or advertisements provided by businesses or commercial entities. 52. With respect to consumer decision making, the ________ is the set of strong contenders from which one will be chosen as a supplier of a good or service. A) total set B) awareness set C) consideration set D) choice set E) decision set Answer: D Rationale: The choice set represents the set of strong contenders from which a consumer will choose one as a supplier of a good or service during the decision-making process. 53. A(n) ________ is a descriptive thought that a person holds about something. A) attitude B) belief C) desire D) feeling E) emotion Answer: B Rationale: A belief is a descriptive thought that a person holds about something, representing an individual's understanding or perception of reality. 54. A(n) ________ puts people into a frame of mind, such as liking or disliking an object, moving toward or away from it. A) attitude B) belief C) feeling D) position E) stance Answer: A Rationale: An attitude is a person's enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea, influencing their behavior and decisionmaking process. 55. Marketers need to identify the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed. This process of identifying the hierarchy is called ________. A) market partitioning B) brand association C) market valuation D) market estimation E) market identification Answer: A Rationale: Market partitioning involves identifying the hierarchy of attributes that guide consumer decision-making processes, helping marketers understand the different competitive forces and how various sets are formed to meet consumer needs and preferences. 56. ________ are a person's enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea. A) Discriminations B) Values C) Beliefs D) Feelings E) Attitudes Answer: E Rationale: Attitudes are a person's enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea, shaping their behavior and decisionmaking processes. 57. The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their ________. A) needs B) wants C) desires D) brand beliefs E) consuming attitudes Answer: D Rationale: The expectancy-value model of attitude formation suggests that consumers evaluate products and services by combining their beliefs about the brand's attributes with their evaluations of the importance of those attributes, forming overall attitudes toward the brand. 58. Gordon Jones is considering purchasing a computer from Best Buy. He has created a scale for rating eight different computers on three different characteristics. He plans to shortlist only those computers that score at least a seven on his scale on all three characteristics. Which of the following choice heuristics has he chosen? A) elimination-by-aspects heuristic B) lexicographic heuristic C) conjunctive heuristic D) anchoring and adjustment heuristic E) representativeness heuristic Answer: C Rationale: Gordon Jones is using the conjunctive heuristic, where he sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard for all attributes. 59. With the ________ heuristic, the consumer sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard for all attributes. A) conjunctive B) lexicographic C) elimination-by-aspects D) primary E) secondary Answer: A Rationale: The conjunctive heuristic involves the consumer setting a minimum acceptable cutoff level for each attribute and choosing the first alternative that meets the minimum standard for all attributes. 60. ________ are rules of thumb or mental shortcuts in the decision process. A) Attitudes B) Beliefs C) Heuristics D) Discriminations E) Biases Answer: C Rationale: Heuristics are rules of thumb or mental shortcuts that consumers use in the decision-making process to simplify complex tasks and make judgments or decisions more efficiently. 61. Even if consumers form brand evaluations, two general factors can intervene between the purchase intention and the purchase decision. One of these is unanticipated situational factors. What is the other factor? A) Amount of purchasing power B) Attitudes of others C) Short-term memory capabilities D) Ability to return merchandise E) The self-concept Answer: B Rationale: The other factor that can intervene between the purchase intention and the purchase decision is the attitudes of others, which refers to the influence of social factors, such as opinions, recommendations, or societal norms, on the consumer's decision-making process. 62. A mobile phone manufacturing company observes that the main reason for an abrupt fall in their sales volume is the unconventional design of their phones that consumers found inconvenient and unattractive. The findings prompt the company to adopt a new strategy. They redesigned the product models keeping the requirements of the end-user in mind. According to the expectancy value-model, the company's strategy can be termed as ________. A) psychological repositioning B) real repositioning C) competitive depositioning D) physiological depositioning E) prescriptive method Answer: B Rationale: The company's strategy of redesigning its product models to better meet the requirements of end-users aligns with real repositioning, which involves making actual changes to the product or its attributes based on consumer preferences or market feedback. 63. Ford believes its cars to be of higher quality than General Motor's but thinks that consumers wrongly believe the opposite. Ford might employ a(n) ________ strategy to change buyers' perceptions of its competition. A) real repositioning B) competitive depositioning C) psychological repositioning D) biased repositioning E) attribute repositioning Answer: B Rationale: Ford might employ a competitive depositioning strategy to change buyers' perceptions of its competition by highlighting or exaggerating the weaknesses of General Motor's cars compared to its own, aiming to shift consumer perceptions in favor of Ford. 64. When a marketer tries to alter a consumer's beliefs about a company's brand to get the consumer to rethink a purchase decision, the marketer is using ________. A) psychological repositioning B) competitive depositioning C) positioning D) repositioning E) biased positioning Answer: A Rationale: Psychological repositioning involves attempting to alter a consumer's beliefs about a company's brand to influence their perceptions and attitudes toward the brand, ultimately influencing their purchase decisions. 65. With the ________, the consumer chooses the best brand on the basis of its perceived most important attribute. A) lexicographic heuristic B) conjunctive heuristic C) elimination-by-aspects heuristic D) availability heuristic E) representativeness heuristic Answer: A Rationale: The lexicographic heuristic involves the consumer choosing the best brand based on its perceived most important attribute, prioritizing one attribute over others and selecting the brand that performs best on that attribute. 66. ________ risk occurs if the product fails to perform up to expectations. A) Physical B) Financial C) Social D) Psychological E) Functional Answer: E Rationale: Functional risk occurs if the product fails to perform up to the consumer's expectations or needs, leading to dissatisfaction or disappointment with its functionality or performance. 67. Steve has only 20 minutes to have lunch. Although he really likes McDonald's, the line is very long and he is concerned that he will not have a chance to get through the line and eat his lunch before he is due back at work. Steve perceives ________ in going to McDonald's today. A) time risk B) functional risk C) physical risk D) psychological risk E) social risk Answer: A Rationale: Steve perceives time risk in going to McDonald's today, as he is concerned about the possibility of not being able to get through the line and eat his lunch before he is due back at work, given his limited time. 68. A key driver of sales frequency is the product ________ rate. A) consumption B) disposal C) refusal D) utility E) option Answer: A Rationale: The consumption rate of a product, which refers to the frequency at which consumers purchase and use the product, is a key driver of sales frequency and overall demand for the product. 69. The level of engagement and active processing undertaken by the consumer in responding to a marketing stimulus is called ________. A) elaboration likelihood B) consumer disengagement C) consumer involvement D) variety seeking E) low involvement Answer: C Rationale: Consumer involvement refers to the level of engagement and active processing undertaken by the consumer in responding to a marketing stimulus, such as a product, advertisement, or brand, influencing their decision-making process and behavior. 70. A consumer is persuaded to buy a product by a message that requires little thought and is based on an association with a brand's positive consumption experiences from the past. In this situation, the consumer used a ________ to arrive at this purchase decision. A) central route B) peripheral route C) behavioral route D) subjective route E) objective route Answer: B Rationale: In this situation, the consumer used the peripheral route to arrive at the purchase decision, as the message requires little thought and is based on peripheral cues, such as past positive consumption experiences associated with the brand. 71. Richard Petty and John Cacioppo's ________, an influential model of attitude formation and change, describes how consumers make evaluations in both low- and high-involvement circumstances. A) introspective model B) elaboration likelihood model C) stimulus-response model D) associative network memory model E) expectancy-value model Answer: B Rationale: The elaboration likelihood model (ELM), developed by Petty and Cacioppo, is indeed an influential model of attitude formation and change. It describes how consumers make evaluations in both low- and high-involvement circumstances. The model proposes two routes to persuasion: the central route and the peripheral route. In low-involvement situations, consumers are less motivated to deeply process information and are more likely to be influenced by peripheral cues such as attractiveness or credibility of the source. In highinvolvement situations, consumers are more likely to engage in elaborative processing and critically evaluate the message content itself. 72. Which of the following products is most likely to be characterized by low involvement but significant brand difference? A) toothpastes B) digital cameras C) packet of salt D) a milk carton E) furniture Answer: A Rationale: Toothpaste is a product that is often characterized by low involvement but significant brand differences. Low involvement implies that consumers do not invest much time or effort in the decision-making process for this product category. However, significant brand differences exist, as various toothpaste brands offer unique features, formulations, and benefits. Consumers may choose a particular brand based on factors like taste, whitening power, breath freshness, or sensitivity relief, despite the relatively low involvement in the decision-making process. 73. With the ________, predictions of usage are based on quickness and ease of use. A) availability heuristic B) representative heuristic C) anchoring heuristic D) adjustment heuristic E) semantic heuristic Answer: A Rationale: The availability heuristic is a mental shortcut where predictions of usage or likelihood are based on the quickness and ease with which instances or examples of an event come to mind. It relies on easily accessible information rather than comprehensive analysis or statistical data. 74. A consumer tells another consumer, "Every time I eat at Big Bill's Steakhouse, I get poor service." Whether this is true or not, it is the consumer's perception. This is an example of consumers basing future predictions on the quickness and ease with which a particular example of an outcome comes to mind. This scenario would be an illustration of the ________ heuristic. A) discrimination B) differentiation C) availability D) screening E) representativeness Answer: C Rationale: This scenario illustrates the availability heuristic, where the consumer bases future predictions or judgments on the quickness and ease with which a particular example or instance comes to mind. In this case, the consumer's perception of poor service at Big Bill's Steakhouse influences their future decisions regarding dining experiences, regardless of the accuracy or representativeness of this perception. 75. Ben always reaches for the bright blue and yellow box of Ritz crackers when he visits the snack food aisle in the grocery store. He rarely even reads the box or checks the price. Which of the following heuristics is most likely being used by Ben? A) Availability B) Representative C) Anchoring D) Adjustment E) Semantic Answer: B Rationale: Ben's behavior of consistently reaching for the same brand of crackers without considering other options suggests he is using the representative heuristic. The representative heuristic involves making decisions based on how well an option matches a stereotype or prototype, rather than considering all available information or alternatives. 76. ________ refers to the manner in which consumers code, categorize, and evaluate financial outcomes of choices. A) Cost accounting B) Financial accounting C) Behavioral accounting D) Mental accounting E) Factual accounting Answer: D Rationale: Mental accounting refers to the manner in which consumers code, categorize, and evaluate financial outcomes of choices. It involves the psychological processes individuals use to organize and evaluate their financial transactions, such as categorizing expenses into different mental accounts based on factors like source, timing, or purpose. 77. Social class is the fundamental determinant of a person's wants and behavior. Answer: False Rationale: While social class can influence wants and behavior to some extent, it is not the sole determinant. Other factors such as culture, personal values, individual experiences, and peer influences also play significant roles in shaping a person's wants and behavior. 78. An example of a subculture would be a person's geographic region. Answer: True Rationale: Subcultures refer to groups within a larger culture that share distinctive values, norms, and behaviors. Geographic region can indeed be a basis for forming a subculture, as different regions often have unique cultural characteristics and identities. 79. Groups that have an indirect influence on a person's attitude or behavior can be a part of his/her reference groups. Answer: True Rationale: Reference groups are those groups that individuals use as a standard for evaluating their own attitudes, behaviors, and values. These groups can include those with direct or indirect influence on an individual's choices and behaviors. 80. Members within a social class tend to behave more alike compared to members from two different social classes. Answer: True Rationale: Social class often shapes individuals' lifestyles, preferences, and consumption patterns. People within the same social class may share similar values, interests, and behaviors due to common socio-economic backgrounds and experiences. 81. Secondary groups require continuous interaction to be effective and meaningful. Answer: False Rationale: Secondary groups are characterized by less frequent and more formal interactions compared to primary groups. While continuous interaction can enhance the effectiveness and meaning of relationships within secondary groups, it is not a requirement for them to be effective or meaningful. 82. When Mark went to college he had a burning desire to join a social fraternity; for Mark, the fraternity would be a dissociative group. Answer: False Rationale: A dissociative group is one that an individual does not want to belong to, or whose values, norms, or beliefs are in conflict with those of the individual. In this case, Mark's desire to join the social fraternity indicates that it would be an associative group for him, as he desires membership in it. 83. A person's position in a group is defined in terms of role and status. Answer: True Rationale: Role refers to the behavior expected of an individual in a particular position within a group, while status refers to the level of social standing or prestige associated with that position. Together, role and status define a person's position within a group. 84. Marketers need to be aware of the status-symbol potential of brands because people usually choose products which reflect their role and their actual or desired status in a society. Answer: True Rationale: Many consumers use brands and products as a means of expressing their social status or desired identity. Marketers often leverage this phenomenon by associating their brands with symbols of prestige or status, understanding that consumers may choose products based on their perceived status implications. 85. The behavior people exhibit as they pass through certain life-cycle stages, such as becoming a parent, is largely fixed and does not change over time. Answer: False Rationale: While life-cycle stages can influence behavior, they are not entirely fixed. People's behaviors can evolve over time due to changing circumstances, experiences, and personal growth. Lifecycle stages may provide a framework for understanding certain behaviors, but they do not dictate behavior in a rigid or unchanging manner. 86. For an employee at an organization, annual appraisal can be considered as a critical life event that impacts his/her consumption behavior. Answer: False Rationale: While an annual appraisal may have some influence on an employee's financial situation and thus their consumption behavior to some extent, it is typically not considered a critical life event that profoundly impacts consumption behavior. Critical life events often involve significant personal or social changes, such as marriage, birth of a child, or job loss. 87. Whereas economic circumstances can have a profound effect on consumption, occupation does not impact how people spend their money and what they buy. Answer: False Rationale: Occupation can significantly influence individuals' income levels, lifestyles, and social status, all of which can affect their spending habits and purchasing decisions. Different occupations may have different consumption patterns and preferences associated with them, making occupation an important factor in understanding consumer behavior. 88. According to the research conducted by Jennifer Aaker, one of the five traits of a product's brand personality is its physical structure. Answer: False Rationale: Jennifer Aaker's research identified five dimensions of brand personality: sincerity, excitement, competence, sophistication, and ruggedness. Physical structure is not considered one of these dimensions. 89. Brand personality is the specific mix of human traits that may be attributed to a particular brand. Answer: True Rationale: Brand personality refers to the set of human characteristics associated with a brand. These traits can include sincerity, excitement, competence, sophistication, ruggedness, and others, which consumers may attribute to a brand based on its marketing, messaging, and overall image. 90. The five brand personality traits identified by Jennifer Aaker are consistently observed regardless of nationality or culture. Answer: False Rationale: While Aaker's five brand personality traits have been widely accepted and utilized in marketing, cultural differences can influence how these traits are perceived and interpreted. What may be perceived as exciting or sophisticated in one culture may not be viewed the same way in another culture. 91. A person's personality portrays the "whole person" interacting with his or her environment. Answer: False Rationale: A person's personality represents enduring patterns of thoughts, feelings, and behaviors, but it does not encompass the entirety of the individual's interactions with the environment. Personality traits are just one aspect of an individual's identity and do not fully capture the complexity of human behavior. 92. Consumers who experience money constraints are prone to multitasking. Answer: False Rationale: Research suggests that individuals facing financial constraints may actually focus more narrowly on immediate needs and tasks rather than engaging in multitasking. Financial constraints can lead to cognitive depletion, making it harder for individuals to effectively multitask. 93. Psychogenic needs arise from the physiological states of tension such as hunger or discomfort. Answer: False Rationale: Psychogenic needs are psychological or social in nature, arising from internal motives rather than physiological states. Examples include the need for achievement, affiliation, or selfesteem, which are not directly tied to physiological states of tension. 94. Sigmund Freud assumed that the psychological forces shaping people's behavior are largely unconscious, and that people cannot fully understand their motivations. Answer: True Rationale: Freud's psychoanalytic theory posited that much of human behavior is driven by unconscious motives and desires, which individuals may not be fully aware of or understand. According to Freud, unconscious conflicts and drives influence behavior, often in ways that are not immediately apparent to the individual. 95. According to Maslow's hierarchy of needs model, recognition, self-esteem, and status would constitute a person's social needs. Answer: False Rationale: Recognition, self-esteem, and status are part of Maslow's hierarchy of needs, but they fall under the category of esteem needs, which are psychological needs related to self-worth, achievement, and respect from others. Social needs in Maslow's hierarchy refer to the need for belongingness, love, and interpersonal relationships. 96. According to Herzberg's two-factor theory, satisfiers will make the major difference as to which brand the customer buys. Answer: True Rationale: Herzberg's two-factor theory distinguishes between hygiene factors (which prevent dissatisfaction) and motivators (which lead to satisfaction and motivation). In the context of brands, satisfiers (motivators) are more likely to influence brand choice and preference as they address higher-level needs and aspirations of consumers. 97. Perception depends only on the physical stimuli experienced by the person. Answer: False Rationale: Perception is not solely determined by physical stimuli; it also involves the interpretation and processing of sensory information by the brain. Factors such as past experiences, expectations, cultural background, and context can all influence how stimuli are perceived and interpreted by an individual. 98. People are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli. Answer: True Rationale: This statement aligns with the principle of Weber's Law, which suggests that the noticeable difference between stimuli is proportional to the magnitude of the stimuli. In other words, people are more likely to notice differences that are relatively large compared to the norm. 99. Selective attention is the tendency to interpret information in a way that will fit our preconceptions. Answer: False Rationale: Selective attention refers to the process by which individuals focus their attention on certain stimuli while ignoring others. It does not necessarily involve interpreting information to fit preconceptions, but rather filtering information based on relevance or interest. 100. Selective retention works to the advantage of strong brands. Answer: True Rationale: Selective retention refers to the tendency of individuals to remember information that is consistent with their attitudes, beliefs, or preferences while forgetting information that contradicts them. Strong brands often benefit from this phenomenon because positive associations and experiences with the brand are more likely to be retained by consumers. 101. Because of selective retention, we are likely to forget about the good points of competing products. Answer: True Rationale: Selective retention can lead individuals to remember positive information about favored brands while forgetting positive information about competing brands. This bias can influence perceptions and choices, as consumers may focus more on the strengths of preferred brands while overlooking the strengths of competitors. 102. Consistent with the elaboration memory model, consumer brand knowledge in memory can be conceptualized as consisting of a brand node in memory with a variety of linked associations. Answer: False Rationale: The elaboration likelihood model (ELM) focuses on the different ways consumers process persuasive messages. Brand knowledge in memory is more consistent with the associative network model, which posits that brand-related thoughts, feelings, perceptions, and associations form a network of interconnected nodes rather than a single brand node with linked associations. 103. Brand associations consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand node. Answer: True Rationale: Brand associations encompass a wide range of cognitions, emotions, and experiences that consumers connect with a brand. These associations contribute to consumers' overall perceptions and attitudes toward the brand and influence their behavior. 104. Memory is a very constructive process. This means people do not remember information and events completely and accurately and often remember only bits and pieces that they fill in based on whatever else they know. Answer: True Rationale: Memory is reconstructive, meaning that individuals may not remember events or information completely and accurately. Instead, they often rely on schemas, previous experiences, and other contextual information to fill in gaps and reconstruct memories, leading to potential inaccuracies or distortions. 105. Every consumer has to pass through all five stages of the buying process when in a buying situation. Answer: False Rationale: The consumer buying process, also known as the decision-making process, consists of five stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. However, not every consumer goes through all five stages in every buying situation. Some purchases may involve only a subset of these stages or may skip certain stages altogether. 106. The buying process starts when the buyer decides to or actually enters a store or service provider's facility. Answer: False Rationale: The buying process typically begins with problem recognition, where the consumer identifies a need or desire that initiates the decision-making process. Entering a store or service provider's facility usually occurs later in the process, during the evaluation of alternatives or the purchase decision stage. 107. A belief is a person's enduring favorable or unfavorable evaluation, emotional feeling, and action tendency toward some object or idea. Answer: False Rationale: A belief refers to an individual's conviction or acceptance of the truth or existence of something, such as a statement, proposition, or concept. It is distinct from an evaluation, emotional feeling, or action tendency, which are components of attitudes. 108. The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs according to importance. Answer: True Rationale: The expectancy-value model suggests that consumers form attitudes toward products or brands based on their beliefs about the product's attributes or features, weighted by the importance or value assigned to each attribute. This model implies that attitudes are determined by the perceived likelihood of outcomes (expectancy) and the evaluation of those outcomes (value). 109. If a company finds that a consumer has chosen a competitive product over their company's offering, one way to get the consumer back could be by developing a strategy wherein the company "shifts the buyer's ideals" on one or more levels. Answer: True Rationale: This statement aligns with the concept of repositioning in marketing. By shifting the buyer's ideals, a company can alter the consumer's perceptions or preferences regarding certain attributes or benefits associated with their product or brand, potentially enticing them to switch back from a competitive product. 110. With noncompensatory models of consumer choice, positive and negative attribute considerations usually net out. Answer: False Rationale: Noncompensatory models of consumer choice, such as the lexicographic and conjunctive models, do not involve the balancing of positive and negative attribute considerations. Instead, consumers make choices based on specific criteria or cutoffs, without considering the overall balance of attributes. 111. Volvo has the reputation for being one of the most "safe" cars on the road. For those that value safety, Volvo would be the logical choice. This is an example of the lexicographic heuristic of consumer choice. Answer: True Rationale: The lexicographic heuristic involves selecting the option that is superior on the most important attribute, regardless of other attributes. In this case, consumers prioritize safety, and Volvo's reputation for safety makes it the logical choice, illustrating the application of the lexicographic heuristic. 112. When consumers evaluate the risks associated with a purchase, only real risks with a high likelihood of occurrence should be considered. Answer: False Rationale: Consumers consider various types of risks when making purchasing decisions, including perceived risks that may not necessarily have a high likelihood of occurrence but are still important to them. These risks can include financial risk, performance risk, social risk, psychological risk, and time risk, among others. 113. Psychological risk refers to the threat posed by a product to the physical well-being of a consumer. Answer: False Rationale: Psychological risk refers to the potential threats to an individual's self-esteem, self-image, or social standing that may arise from using a particular product or service. It is distinct from physical risk, which pertains to potential harm to the consumer's physical well-being. 114. With respect to a consumer buying situation that involves variety-seeking behavior, the market leader generally encourages variety seeking by offering lower prices or deals. Answer: False Rationale: In a market where variety-seeking behavior is prevalent, the market leader often seeks to maintain its position by emphasizing product consistency and loyalty rather than encouraging variety seeking. Lowering prices or offering deals may undermine the perceived value of the brand and could lead to reduced profitability. 115. Anchoring heuristic comes in to play when consumers base their predictions on the quickness and ease with which a particular example of an outcome comes to mind. Answer: False Rationale: Anchoring heuristic refers to the tendency for individuals to rely too heavily on the initial piece of information (the "anchor") when making decisions, even if the anchor is arbitrary or irrelevant. It does not involve basing predictions on the quickness or ease of recalling a particular outcome. 116. The prospect theory maintains that consumers frame decision alternatives in terms of gains and losses according to a value function. Answer: True Rationale: The prospect theory, proposed by Daniel Kahneman and Amos Tversky, suggests that individuals evaluate potential outcomes of decisions based on perceived gains and losses relative to a reference point, rather than in absolute terms. This evaluation is influenced by a value function that assigns greater weight to losses than to equivalent gains, leading to riskaverse behavior in the domain of gains and risk-seeking behavior in the domain of losses. 117. Explain the differences between culture, subculture, and social class. Answer: Culture is the fundamental determinant of a person's wants and behavior. Subcultures provide more specific identification and socialization of their members. Subcultures include nationalities, religions, racial groups, and geographic regions. Social class is a relatively homogeneous and enduring division in a society, that are hierarchically ordered and whose members share similar values, interests, and behaviors. 118. What is a reference group? Describe three different types of reference groups that can have an impact on a consumer's purchasing behavior. Answer: Reference groups consist of all the groups that have a direct (face-to-face) or indirect influence on attitudes or behavior. Types of reference groups that can impact a consumer's purchasing behavior include membership groups, primary groups, secondary groups, aspirational groups, and disassociative groups. Membership groups are the groups which have a direct influence on the person. Primary groups are the groups with whom the person interacts fairly continuously and informally, such as family, friends, neighbors, and coworkers. Secondary groups tend to be more formal and require less continuous interaction. Aspirational groups are those a person hopes to join; and dissociative groups are those whose values or behavior an individual rejects. 119. The family is the most important consumer buying organization in society, and family members constitute the most influential primary reference group. We can distinguish between two family categorization in the buyer's life. Name the two families and their impact on buying behavior. Answer: The family of orientation consists of parents and siblings. From parents a person acquires an orientation toward religion, politics, and economics and a sense of personal ambition, self-worth, and love. Even if the buyer no longer interacts very much with his or her parents, their influence on behavior can be significant. A more direct influence on everyday buying behavior is the family of procreation—namely, one's spouse and children. 120. Each person has personality characteristics that influence his or her buying behavior. What does personality mean in terms of buying traits? Answer: Personality is often described in terms of such buying traits as self-confidence, dominance, autonomy, deference, sociability, defensiveness, and adaptability. Personality can be a useful variable in analyzing consumer brand choices. The idea is that brands also have personalities, and consumers are likely to choose brands whose personalities match their own. 121. People from the same subculture, social class, and occupation may lead quite different lifestyles. A lifestyle is a person's pattern of living in the world as expressed in activities, interests, and opinions. Lifestyle portrays the "whole person" interacting with his or her environment. Given this information, describe the LOHAS (an acronym) lifestyle described in the text and its usefulness in marketing. Answer: Consumers who worry about the environment, want products to be produced in a sustainable way, and spend money to advance their personal development and potential have been named "LOHAS." The name is an acronym standing for lifestyles of health and sustainability. The market for LOHAS products encompasses things such as organic foods, energy-efficient appliances, and solar panels as well as alternative medicine, yoga tapes, and ecotourism. 122. Frederick Herzberg developed a two-factor theory that distinguishes dissatisfiers and satisfiers. How does Herzberg's theory affect sellers' marketing strategy? Answer: Herzberg's theory has two implications. First, sellers should do their best to avoid dissatisfiers (for example, a poor training manual or a poor service policy. Although these things will not sell a product, they might easily unsell it. Second, the seller should identify the major satisfiers or motivators of purchase in the market and then supply them. These satisfiers will make the major difference as to which brand the customer buys. 123. People can emerge with different perceptions of the same object because of three perceptual processes. List and briefly characterize these processes. Answer: The three processes are selective attention, selective distortion, and selective retention. Selective attention occurs because a person cannot possibly attend to all the stimuli that he or she is exposed to during an average day. Some will be screened out. Selective distortion is the tendency to interpret information in a way that will fit our perceptions. Selective retention occurs because people will fail to register much information to which they are exposed in memory, but will tend to retain information that supports their attitudes and beliefs. 124. Explain the concept of selective retention and its association with marketing. Answer: Selective retention says that consumers are likely to remember good points about a product we like and forget good points about competing products. Selective retention works to the advantage of strong brands. It also means that marketers need to use repetition in sending messages to their target markets to make sure their message is not overlooked. 125. Identify three types of risk consumers might perceive in the context of purchasing a car. Answer: Consumers might perceive physical risk an unsafe car poses a safety risk to the physical well-being of the driver and passengers, a financial risk the car might be overpriced or may decline in value so rapidly that it will have minimal resale value when the consumer tries to resell it, and a functional risk the car may not perform to the expectations of the consumer. Students may identify other risks, including social, psychological, and time risks. 126. What is mental accounting? What, according to Thaler, are the core principles on which mental accounting is based? Explain with examples. Answer: Mental accounting refers to the way consumers code, categorize, and evaluate financial outcomes of choices. Formally, it is "the tendency to categorize funds or items of value even though there is no logical basis for the categorization, e.g., individuals often segregate their savings into separate accounts to meet different goals even though funds from any of the accounts can be applied to any of the goals." According to Chicago's Thaler, mental accounting is based on a set of core principles: 1. Consumers tend to segregate gains. When a seller has a product with more than one positive dimension, it's desirable to have the consumer evaluate each dimension separately. Listing multiple benefits of a large industrial product, for example, can make the sum of the parts seem greater than the whole. 2. Consumers tend to integrate losses. Marketers have a distinct advantage in selling something if its cost can be added to another large purchase. House buyers are more inclined to view additional expenditures favorably given the high price of buying a house. 3. Consumers tend to integrate smaller losses with larger gains. The "cancellation" principle might explain why withholding taxes from monthly paychecks is less aversive than large, lump-sum tax payments—the smaller withholdings are more likely to be absorbed by the larger pay amount. 4. Consumers tend to segregate small gains from large losses. The "silver lining" principle might explain the popularity of rebates on big-ticket purchases such as cars. 127. Culture is the fundamental determinant of a person's wants and behavior. The growing child acquires a set of values, perceptions, preferences, and behaviors through his or her family and other key institutions. What values are typical American young children exposed to? Answer: According to the text, a child growing up in the United States is exposed to values such as achievement and success, activity, efficiency and practicality, progress, material comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness. 128. An opinion leader is the person in informal, product-related communications who offers advice or information about a specific product or product category, such as which of several brands is best or how a particular product may be used. According to the text, how do marketers try to reach opinion leaders? Answer: Marketers try to reach opinion leaders by identifying demographic and psychographic characteristics associated with opinion leadership, identifying the media read by opinion leaders, and directing messages at opinion leaders. 129. Explain the differences between a role and status. Answer: A role consists of the activities a person is expected to perform. Each role carries a status. For example, a senior vice-president has more status than a sales manager. 130. Mention the personal factors that can influence the decision of a buyer. Answer: Personal characteristics that influence a buyer's decision include age and stage in the life cycle, occupation and economic circumstances, personality and self-concept, and lifestyle and values. Because many of these have a direct impact on consumer behavior, it is important for marketers to follow them closely. 131. What is brand personality and what are the five traits that has been linked to it? Answer: Brand personality is the specific mix of human traits that may be attributed to a particular brand. Traits that have been associated with brand personality are sincerity, excitement, competence, sophistication, and ruggedness. 132. Briefly explain Freud's theory on human motivation and explain how this might be related to marketing. Answer: Sigmund Freud assumed that the psychological forces shaping people's behavior are largely unconscious, and that a person cannot fully understand his or her own stated capabilities. When a person examines specific brands, he or she will react not only to their stated capabilities, but also to other, less conscious cues. 133. Within the context of the Freudian theory, explain how the laddering technique can be used. Answer: Shape, size, weight, material, color, and brand name can all trigger certain associations and emotions. A technique called laddering can be used to trace a person's motivations from the stated instrumental ones to the more terminal ones. Then the marketer can decide at what level to develop the message and appeal. 134. Abraham Maslow sought to explain why people are driven by particular needs at particular times. Describe Maslow's hierarchy of needs. How does Maslow's theory help marketers? Answer: Maslow's hierarchy of needs in order of importance are, physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. Maslow's theory helps marketers understand how various products fit into the plans, goals, and lives of consumers. 135. List and briefly characterize Maslow's Hierarchy of Needs. Answer: Beginning with the most basic needs to the most advanced, the need structure is as follows: (1) physiological needs—food, water, shelter; (2) safety needs—security, protection; (3) social needs—sense of belonging, love; (4) esteem needs—self-esteem, recognition, status; and (5) self-actualization needs—self-development and realization. 136. Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. For a marketer, what is the key point of perception? Answer: The key point is that perceptions can vary widely among individuals exposed to the same reality. In marketing, perceptions are more important than the reality, as it is perceptions that will affect consumers' actual behavior. 137. What does the learning theory teach marketers about demand for products? Answer: The learning theory teaches marketers that they can build demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement. 138. What are the five stages of the consumer buying process? Answer: The five stages are problem recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior. 139. Describe how the problem recognition process works in the five-stage model of the consumer buying process. Answer: The buying process starts when the buyer recognizes a problem or need. With an internal stimulus, one of the person's normal needs—hunger, thirst, sex—rises to a threshold level and becomes a drive; or a need can be aroused by an external stimuli such as an advertisement. 140. Through market research a consumer gathers information about the competing brands of a product and their features. The consumer then advances through four sets with respect to brands before a decision is reached. What are those four sets? Answer: The four sets are: (1) the total set, (2) the awareness set, (3) the consideration set, and (4) the choice set. 141. Explain the differences between a belief and an attitude. Answer: A belief is a descriptive thought that a person holds about something. An attitude is a person's enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward some object or idea. 142. What do you understand by the term market partitioning? Answer: Marketers need to identify the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed. This process of identifying the hierarchy is called market partitioning. 143. How is the expectancy-value model used in the evaluation of alternatives as a consumer engages in a buying process? Answer: The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs—the positives and negatives— according to importance. The model assists consumers in making choices. 144. Describe the lexicographic heuristic used to make consumer choices. Answer: The lexicographic heuristic is in use when the consumer chooses the best brand on the basis of its perceived most important attribute. 145. What four strategies can marketers of low-involvement products employ in an effort to convert their products into ones of higher involvement? Answer: The four strategies are: (1) linking the product to some involving issue; (2) linking the product to some involving personal situation; (3) designing advertising to trigger strong emotions related to personal values or ego defense; and (4) adding important features to the product. 146. Heuristics can come into play when consumers forecast the likelihood of future outcomes or events. When would a consumer use an anchoring and adjustment heuristic? Answer: Consumers will use this heuristic when the consumer arrives at an initial judgment and then makes adjustments of that first impression based on additional information. Test Bank for Marketing Management Philip T Kotler, Kevin Lane Keller 9780132102926, 9780273753360, 9781292092621, 9780133856460, 9789332587403, 9780136009986
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