Mark 463 Chapter 7

CHAPTER 7IDENTIFYING AND UNDERSTANDING CONSUMERS

88

6 Categories of Factors Impacting Shoppers Figure 7-2 .174 89

Lifestyle: Social and Psychological Factors p. 177

Impact of Perceived Risk Figure 7-3 p. 178

6 Stages in the Consumer Decision Process Figure 7-6 p. 185

3 Types of Decision-Making p. 188

3 Types of Impulse-Buying p. 189

3 Types of Target Market Strategies pp. 191-193

6 Steps in devising a Target Market Strategy Figure 7-10 p. 192

Multiple Choice - Terminology/Concept

90

1. An objective, easily identifiable, and measurable population characteristic is called a(n) _____.a. AIO inventoryb. demographic statisticc. lifestyle measured. reference group measure

2. The manner in which an individual lives and spends his/her time and money is his/her _____.a. lifestyleb. consumer decision processc. reference group behaviord. social class structure

3. The average annual U.S. household after-tax income is about _____.a. $20,000b. $35,000c. $50,000d. $65,000

4. Money left after paying taxes and buying necessities is referred to as _____.a. GDP per capitab. taxable incomec. discretionary incomed. disposable income

5. A group of people sharing a distinctive heritage is a(n) _____.a. cultureb. reference groupc. social class systemd. AIO group

6. An informal ranking of people in a culture is a(n) _____.a. AIO groupb. social classc. reference groupd. family life cycle

91


7. Income, occupation, and education are important components of _____.a. cultureb. a family life cyclec. social classd. reference group affiliation

8. Aspirational, membership, and dissociative are forms of _____.a. social classesb. family life cyclesc. reference groupsd. household life cycles

9. The family life cycle shows _____.a. families which share a distinctive heritageb. how a typical family evolves from bachelorhood to children to solitary retirementc. the extent to which groups influence a person’s thoughts and actionsd. the ranking of people within a culture

10. Which group is not reflected in the traditional family life cycle?a. solitary retiredb. single-parent familiesc. young marriedsd. old aged

11. Which of the following is an element of perceived risk?a. physical riskb. reference group riskc. purchase riskd. lifestyle risk

12. The element of perceived risk that relates to product safety is _____ risk.a. performanceb. socialc. economicd. physical

13. The element of perceived risk that relates to how friends and relatives view the purchase of a good or service is _____ risk.a. socialb. physicalc. performanced. psychological

92


14. The element of perceived risk that relates to the effect of a purchase on one’s self-esteem is _____ risk.a. psychologicalb. socialc. physicald. performance

15. The increased number of working women and the desire for personal fulfillment contribute to _____.a. component lifestylesb. consumer confidencec. poverty of timed. performance risk

16. Outshopping refers to _____.a. in-home shopping by catalog, mail, and phoneb. consumers who travel long distances to storesc. consumers with very small or large-sized clothingd. consumers who spend longer than average times in shopping centers/districts

17. The process whereby individuals decide whether, what, when, where, how, and from whom to purchase goods and services is _____.a. commercial searchb. consumer behaviorc. marketing researchd. outshopping

18. A cue or drive meant to motivate or arouse a person to act is a _____.a. commercial cueb. social cuec. wantd. stimulus

19. Which of the following is not considered as a stimulus?a. a physical driveb. a motivec. a commercial cued. a social cue

20. A characteristic of a commercial cue is _____.a. high marketer controlb. high levels of believabilityc. high levels of word-of-mouth communicationd. high levels of customer involvement

93


21. A point-of-purchase display placed in a supermarket by a major food processor is an example of a(n) _____.a. noncommercial cueb. commercial cuec. advertisementd. social cue

22. In which stage of the decision process does a consumer recognize that the good or service under consideration may solve a situation of shortage or unfulfilled desire?a. evaluation of alternativesb. information searchc. stimulusd. problem awareness

23. Two components of problem awareness are _____.a. information search and purchase behaviorb. commercial and noncommercial cuesc. recognition of shortage and recognition of unfulfilled desired. physical risk and social risk

24. Information search involves generating a list of alternative goods and services and _____.a. determining perceived risk levelsb. judging impulse goodsc. determining the characteristics of each alternatived. evaluating stimuli

25. In the evaluation of alternatives stage of the consumer decision process, criteria for a decision can include _____.a. price, fit, and durabilityb. attitudes, interests, and opinionsc. demographics and psychographicsd. commercial and social cues

26. Further purchase and re-evaluation are components of which stage in the consumer decision process?a. information searchb. evaluation of alternativesc. purchase actd. post-purchase behavior

94


27. In which stage of the consumer decision process does cognitive dissonance occur?a. purchase actb. post-purchase behaviorc. information searchd. evaluation of alternatives

28. Doubt that the correct product has been purchased is known as _____.a. psychological riskb. perceived riskc. cognitive dissonanced. information re-evaluation

29. Cognitive dissonance shows retailers the importance of _____.a. social responsibilityb. scrambled merchandisingc. reference groupingd. after-sale service

30. Expensive, complex goods or services with which consumers have had little or no experience generally involve _____.a. impulse purchasesb. extended decision makingc. limited decision makingd. routine decision making

31. High-risk products generally require _____.a. impulse purchasingb. extended decision makingc. limited decision makingd. routine decision making

32. In limited decision making, consumers _____.a. use each purchase process step, but do not spend much time on each stepb. spend much time on information searchc. are unwilling to spend time on shoppingd. view products to have high perceived risk

33. Moderate-risk items that have been purchased before but not on a regular basis involve which decision process?a. impulse purchasingb. extended decision makingc. limited decision makingd. routine decision making

95


34. The use of habit in consumer decision making is associated with _____ decision making.a. routineb. extendedc. limitedd. generalized

35. Which retail institution is most likely to appeal to a concentrated market segment?a. department storeb. specialty storec. conventional supermarketd. superstore

Multiple Choice - Applied/Comprehensive/Integrative

36. In comparison to lifestyles, demographics are _____.a. easier to measureb. more likely to be profilesc. more difficult to measured. growing at a faster rate

37. Clothing buyers have been categorized as clothes horses, bargain hunters, image seekers, and shopping-averse consumers. This divides shoppers by _____.a. demographicsb. reference groupsc. lifestylesd. perceived risk

38. The best way to describe ethnic and racial groups in terms of consumer lifestyles is by _____.a. cultural influencesb. subcultural influencesc. social performanced. family life cycle

39. A subculture can be based upon all of the following except _____.a. religionb. geographic regionc. nationalityd. geographic mobility

96


40. The social class corresponding to the mass market is _____ Americans.a. upperb. lowerc. middled. family

41. A retailer is looking for a means of describing consumer behavior that is preferable to shoppers’ ages. One such technique is _____.a. the social class structureb. outshoppingc. perceived riskd. the traditional family life cycle

42. Which consumer lifestyle grouping includes family and nonfamily household members?a. component lifestyleb. family life cyclec. reference group influenced. household life cycle

43. Which psychological factor is particularly important to consumers seeking social status?a. personalityb. class consciousnessc. perceived riskd. culture

44. Goods which are highly visible and which consumers feel they are judged by have high _____ perceived risk.a. timeb. financialc. physicald. social

45. Which form of perceived risk most closely resembles class consciousness?a. social riskb. performance riskc. time riskd. financial risk

46. A retailer has begun to pre-wrap gift items and to re-deploy checkout personnel to reduce waiting times. The retailer is responding to which demographic and lifestyle factor?a. gender rolesb. poverty of timec. component lifestylesd. consumer sophistication and confidence

97


47. The difficulty in classifying consumers by a given demographic and lifestyle profile is recognized in which of these categories?a. consumer sophistication and confidenceb. gender rolesc. component lifestylesd. poverty of time

48. Consumer researchers that argue that a consumer’s shopping behavior is difficult to categorize due to situational factors (such as immediacy of need) or degree of involvement favor use of which lifestyle factor?a. gender rolesb. poverty of timec. component lifestylesd. consumer sophistication and confidence

49. A shopper profile should ideally contain _____.a. data developed from observational-based studiesb. only demographic datac. only lifestyle datad. both demographic and lifestyle data

50. A difficulty in the study of motives is that _____.a. motives can be observedb. a researcher needs to distinguish between rational and irrational motivesc. it is based on self-reports of consumersd. a consumer’s motives may be related to his/her demographic characteristics

51. A retailer, through its extensive selection and high service levels, is able to attract shoppers from long distances. This phenomenon is known as _____.a. cognitive dissonanceb. outshoppingc. store loyaltyd. extended decision making

52. Local advertising is ineffective in reaching _____.a. baby boomersb. Generation X consumersc. outshoppersd. bachelors

98


53. A mapping analysis for a furniture store shows that 20 percent of its customers drive over 1 hour to visit the retailer. This high proportion of shoppers from a relatively far distance indicates _____.a. outshoppingb. limited decision makingc. cognitive dissonanced. active shoppers

54. The opposite of in-home shopping, on a convenience dimension, is _____.a. routine decision makingb. outshoppingc. store loyaltyd. mapping

55. Word-of-mouth influences in consumer behavior relate to _____.a. social cuesb. physical drivesc. commercial cuesd. social class structure

56. A major advantage of the use of social versus commercial cues to consumers is based upon _____.a. the use of lifestyle demographic factorsb. degree of cognitive dissonancec. believabilityd. post-purchase behavior

57. The major difference between social and commercial cues is based on the _____.a. duration of the consumer decision processb. degree of information searchc. objectivity of the sourced. degree of problem awareness

58. Which stimulus provides retailers with the greatest degree of control?a. problem awarenessb. social cuec. physical drived. commercial cue

59. An example of recognition of shortage is when a consumer _____.a. sees an ad for a suit at a 50 percent price reductionb. becomes aware of a product that he/she has not purchased beforec. gathers a list of products that will solve the problem at handd. runs out of a product

99


60. Recognition of unfulfilled desire occurs when a consumer _____.a. discovers that a product needs to be repurchasedb. becomes aware of a product he/she has not previously purchasedc. notices that products have worn outd. needs to replenish products

61. A high degree of information search generally occurs when _____.a. perceived risk is highb. a purchase is viewed as unimportantc. cognitive dissonance is lowd. a consumer is brand loyal

62. To overcome potential cognitive dissonance, a retailer should _____.a. overstate a product’s attributes in the sales presentationb. reduce the price of a product to new customersc. offer trade-in allowances for durable goodsd. realize the importance of customer after-care

63. Money-back guarantees and honest sales and advertising presentations aid in _____.a. minimizing cognitive dissonanceb. AIO measurementc. the problem awareness stage of consumer behaviord. studying psychographics

64. A salesperson’s being honest in assessing a product’s use, features, and benefits can reduce consumers’ _____.a. social cuesb. commercial cuesc. cognitive dissonanced. physical drives

65. The purchase of a good with high perceived risk is likely to involve what type of consumer decision making?a. extended decision makingb. routine decision makingc. limited decision makingd. brand loyalty

66. What type of consumer decision making is most likely to be used when the importance of a purchase to a customer is very high?a. routine decision makingb. limited decision making c. extended decision makingd. brand loyalty

100


67. Low perceived risk, high experience with a retailer, and high satisfaction with past purchases generally are characteristics of _____.a. extended decision makingb. cognitive dissonancec. routine decision makingd. limited decision making

68. Impulse purchases and store loyalty are examples of _____.a. extended decision makingb. routine decision makingc. problem awarenessd. limited decision making

69. The purest form of an impulse purchase is _____.a. partially unplannedb. unplanned substitutionc. completely unplannedd. reminder impulse

70. A retailer appealing to two distinct demographic groups is utilizing a _____ marketing strategy.a. differentiatedb. massc. concentratedd. focused

101

True-False - Terminology/Concept

71. Lifestyles are easily identifiable and measurable population statistics.

72. There are more families than households.

73. The ranking of people within a culture is a reference-group affiliation status report.

74. The social-class classification system is based on factors such as income, occupation, education, and dwelling type.

75. The traditional family life-cycle concept needs to be updated to reflect alternative lifestyles such as childless couples and single-parent families.

76. Class-conscious shoppers are concerned with both brand and store image.

77. Outshoppers generally patronize neighborhood retailers due to the desire to maintain long-term social relationships with them.

78. The only stimulus that can be totally controlled by a retailer is a commercial cue.

79. The information search process can involve the use of commercial, noncommercial, and social sources.

80. In the evaluation of alternatives stage of the decision process, a consumer develops criteria, evaluates the importance of each criterion, and ranks the alternatives.

81. The last stage of the consumer decision process is the purchase.

82. Post-purchase behavior falls into either of two categories: further purchases or re-evaluation.

83. Cognitive dissonance can occur both before and after a purchase.

84. Consumers always utilize all the steps in the decision process.

85. Retailers can control the extent of impulse purchases through effective use of displays.

86. In general, consumer lifestyles are more difficult to categorize than consumer demographics.

87. Aspirational or membership reference groups have an important influence on the purchase of goods viewed as conspicuous.

88. Perceived risk levels vary only slightly among consumers.

89. The purchase of a highly visible product, such as a costly high-fidelity system, can involve financial, functional, and social risks.

90. Shopper profiles should ideally be comprised of both demographic and lifestyle factors.

91. The study of problem awareness is difficult since consumers may buy the same product for different reasons, may have subconscious motivations, and may not tell the retailer their real reasons for product/service purchases.

102

92. Recognition of shortage and recognition of unfulfilled desire are two components of the information search stage of the consumer decision process.

93. The use of opinion leaders as sources of information comprises a social source of information.

94. A consumer’s degree of information search is largely dependent upon his/her perceived risk.

95. Cognitive dissonance relates to pre-purchase anxiety.

96. Retailers desiring to minimize consumer cognitive dissonance should focus on consumer after-purchase service and on realistic selling presentations and advertising campaigns.

97. Lower-income consumer groups utilize the decision process more thoroughly than any other income group.

98. The decision process is always used consciously by consumers.

99. Consumers with high perceived risk are most prone to utilize routine decision making.

100. The type of impulse shopping which is least planned by consumers is unplanned substitution.

103

Essay

101. a. Outline five major U.S. demographic trends.b. Identify their implications for a department store chain with stores located in all major U.S.

markets.(pp. 174-176)

102. Illustrate how a supermarket food retailer can relate demographics to its selection of a target market.(pp. 174-176)

103. What are the advantages of studying consumer behavior from the perspective of the traditional family life cycle versus age?(p. 177)

104. a. Outline the components of perceived risk as they relate to a consumer’s purchase of a used car.

b. How can a used car dealer reduce consumers’ perceived risk levels?(p. 177)

105. What is the relationship among perceived risk, information search, and type of consumer decision process? Explain your answer.(pp. 177, 186, 188-189)

106. Contrast the study of consumer behavior from the perspective of consumer demographics and consumer lifestyles.(pp. 178-180)

107. a. What are the difficulties of studying consumer motives?b. How can these difficulties be overcome?(p. 181)

108. A retailer studying its sales data has found that 25 percent of its customers are outshoppers. What are the implications of this finding?(p. 182)

109. a. Differentiate among social cues, commercial cues, and physical cues as stimuli.b. Evaluate the level of retailer control for each type of stimulus.(p. 185)

110. Distinguish between the recognition of shortage and recognition of unfulfilled desire components in the problem awareness stage in the consumer decision process.(pp. 185-186)

111. a. Why have retailers placed such great importance on post-purchase behavior?b. How can a retailer minimize a consumer’s cognitive dissonance?(pp. 187-188)

112. a. Discuss impulse purchasing and store loyalty from the perspective of routine decision making.

b. Evaluate impulse purchasing and store loyalty as special opportunities for retailers.(pp. 189-190)

104

105

106

107

108

109

110

111

112

113

114

115

116

117

Documents

Mark 463 Chapter 7