Moriarty 8e TIF 05

CHAPTER FIVEThe Consumer Audience

Part Two: Principle: Strategy is Creative, Too

Chapter Five: The Consumer Audience

SEQ CHAPTER \h \r 1CHAPTER FIVE

The Consumer Audience

GENERAL CONTENT: MULTIPLE-CHOICE QUESTIONS1. ________ describes how individuals or groups select, purchase, use, or dispose of products, as well as describing the needs that motivate these behaviors.

a. Marketing

b. Consumption

c. Consumer behavior

d. Psychology

e. Sociology

(c; easy; p. 131; LO1)

2. People who buy or use products to satisfy their needs and wants are known as ________.

a. consumers

b. buyers

c. users

d. customers

e. a market

(a; moderate; p. 131; LO1)

3. Which of the following is a social/cultural influence on consumer decision making?

a. state of mind

b. innovation

c. satisfaction

d. family

e. personality

(d; moderate; p. 132 [Figure 5.1]; LO2: AACSB Multicultural and Diversity)

4. Which of the following is NOT a social/cultural influence on consumer decision making?

a. culture

b. motivations

c. social class

d. family

e. demographic

(b; moderate; p. 132 [Figure 5.1]; LO2; AACSB Multicultural and Diversity)

5. Which of the following is a psychological influence on consumer decision making?

a. state of mind

b. innovation

c. family

d. culture

e. brand relationship

(a; moderate; p. 132 [Figure 5.1]; LO2)

6. Which of the following is NOT a psychological influence on consumer decision making?

a. state of mind

b. selective perception

c. satisfaction

d. personality

e. family

(e; moderate; p. 132 [Figure 5.1]; LO2)

7. Which of the following choices is a behavioral influence on consumer decision making?

a. culture

b. reference groups

c. personalityd. psychographics

e. innovation and adoption(e; moderate; p. 132 [Figure 5.1]; LO2)

8. A critical behavior predictor called _______refers to how much of a product category or brand a customer buys.a. usage

b. brand relationship

c. state of mind

d. innovation

e. adoption(c; moderate; p. 147 ; LO2)

9. ________ is(are) made up of tangible items, such as art, literature, buildings, and music, and intangible concepts, such as knowledge, laws, morals, and customs.

a. History

b. Culture

c. Reference groups

d. Consumer behavior

e. Values

(b; moderate; p. 132; LO2: AACSB Multicultural and Diversity)

10. Culture is learned and passed on from one generation to the next, and the boundaries each culture establishes for behavior are called ________.

a. references

b. values

c. norms

d. subculture

e. core values

(c; moderate; p. 132; LO2: AACSB Multicultural and Diversity)

11. ________ are simply rules that we learn through social interaction that specify or prohibit certain behaviors.

a. Norms

b. References

c. Values

d. Core values

e. Heuristics

(a; moderate; p. 132; LO2: AACSB Multicultural and Diversity)

12. The source of norms is our ________, which come from our immersion in a specific culture and represent our underlying belief systems.

a. values

b. legal system

c. social system

d. social class

e. education

(a; moderate; p. 132; LO2: AACSB Multicultural and Diversity)

13. A sense of belonging, excitement, fun and enjoyment, warm relationships, self-fulfillment, respect from others, accomplishment, security, and self-respect are all examples of ________.

a. norms

b. culture

c. core values

d. behaviors

e. driving forces


14. ________ can be defined by geographic regions or by shared human characteristics such as age, values, language, or ethnic background.

a. Norms

b. Cultures

c. Reference groups

d. Subcultures

e. Mini-cultures

(d; moderate; p. 133; LO2: AACSB Multicultural and Diversity)

15. Teenagers, college students, retirees, southerners, Texans, athletes, musicians, and working single mothers all have what in common?

a. They all come from the same social class.

b. They all share the same culture.

c. They all share the same behavioral characteristics.

d. They all share the same demographic characteristics.

e. They can all be considered subcultures.

(e; difficult; p. 133; LO2: AACSB Multicultural and Diversity)

16. ________ is a term that describes how various companies operate.

a. Corporate culture

b. Subculture

c. Management culture

d. Reference group

e. Working group

(a; easy; p. 134; LO2: AACSB Multicultural and Diversity)

17. The position you and your family occupy within our society is known as ________ .

a. subculture

b. culture

c. ethnic group

d. reference group

e. social class

(e; easy; p. 134; LO2: AACSB Multicultural and Diversity)

18. Which of the following does NOT determine an individuals social class?

a. income

b. wealth

c. education

d. occupation

e. country(e; easy; p. 134; LO2: AACSB Multicultural and Diversity)

19. Which of the following is NOT typically used to determine social class?

a. income

b. age

c. wealth

d. value of home

e. occupation


20. A ________ is a group of people we use as a guide for behavior in specific situations.

a. subgroup

b. social class

c. reference group

d. normal group

e. culture

(c; moderate; p. 134; LO2)

21. Which of the following is NOT a function reference groups perform for consumers?

a. they provide information

b. they determine which products to buy

c. they serve as a means of comparisons

d. they offer guidance

e. all of the above are functions reference groups perform for consumers

(b; difficult; p. 134; LO2)

22. Which of the following is the most important reference group because of its longevity and the intensity of its relationships?

a. peers

b. classmates

c. family

d. employer

e. fellow employees


23. A ________ consists of two or more people who are related by blood, marriage, or adoption, and live in the same household.

a. subculture

b. family

c. household

d. reference group

e. normative group

(b; easy; p. 135; LO2)

24. A ________ consists of all those who occupy a dwelling whether they are related or not.

a. subculture

b. family

c. household

d. reference group

e. normative group

(c; easy; p. 135; LO2)

25. ________ are the statistical, social, and economic characteristics used to describe a population, including age, gender, education, income, occupation, race, and family size.

a. Psychographics

b. Lifestyles

c. Geographics

d. Demographics

e. Censusgraphics

(d; moderate; p. 135; LO2: AACSB Multicultural and Diversity)

26. Age, gender, education, income, occupation, race, and family size are all examples of ________ variables.

a. psychographic

b. lifestyle

c. demographic

d. geographic

e. censusgraphic


27. ________ gender differences are physical traits that are inherent in males or females, such as a womans ability to bear children.

a. Driving

b. Primary

c. Secondary

d. Obvious

e. Fundamental


28. ________ gender traits tend to be associated with one sex more than the other; for instance, wearing perfume and shaving legs are association with women.

a. Driving

b. Primary

c. Secondary

d. Non-obvious

e. Nonfundamental


29. Which of the following statements is false?

a. In the last decade gay and lesbian consumers have become serious target markets.

b. Few cultures are more important to U.S. marketing than the Hispanic culture because it is growing proportionately faster than other ethnic groups.

c. There are media use differences based on ethnicity.

d. In the United States there has been a gradual movement from white-collar occupations to blue-collar occupations during the last three decades.

e. For advertisers, education tends to correlate with the type of medium consumers prefer.

(d; moderate; pp. 138-139; LO2: AACSB Multicultural and Diversity)

30. Consumers with lower education tend to be higher users of ________.

a. newspapers

b. radio

c. magazines

d. television

e. the Internet

(d; moderate; p. 138; LO2: AACSB Analytical Skills)

31. ________ is the amount of money available to a household after taxes and basic necessities such as food and shelter are paid for.

a. Income

b. Discretionary income

c. Available income

d. Incremental income

e. Spendable income

(b; moderate; p. 139; LO2)

32. The basic driving forces that motivate us to do something are called ________.

a. wants

b. desires

c. values

d. needs

e. attitudes

(d; moderate; p. 141; LO2; AACSB Reflective Reasoning)

33. ________ needs include the need for water, food, air, shelter, and sex, and because satisfying these needs is necessary to maintaining life, they are also called primary needs.

a. Required

b. Discretionary

c. Core

d. First

e. Innate

(e; moderate; p. 141; LO2; AACSB Analytical Skills)

34. ________ are what we feel for more essential items, particularly the primary needs, such as food and shelter, and ________ occur when we desire or wish for something.

a. Needs; wants

b. Wants; needs

c. Primary needs; secondary needs

d. Innate needs; acquired needs

e. Innate wants; acquired wants

(a; moderate; p. 141; LO2; AACSB Reflective Reasoning)

35. ________ needs are those we learn in response to our culture and environment and may include needs for esteem, prestige, affection, power, and learning.

a. Innate

b. Desired

c. Acquired

d. Selective

e. Higher-order

(c; moderate; p. 141; LO2; AACSB Multicultural and Diversity)

36. Because acquired needs are not necessary to your physical survival, they are considered ________ needs.

a. secondary

b. unmet

c. unnecessary

d. innate

e. discounted

(a; moderate; p. 141; LO2; AACSB Analytical Skills)

37. According to Maslows Hierarchy of Needs, which is the highest level of needs?

a. ego needs

b. belongingness needs

c. safety needs

d. self-actualization needs

e. physiological needs

(d; moderate; p. 138 [Figure 5.4])

38. Prestige, status, and accomplishments are all examples of which level of needs in the Maslows Hierarchy of Needs?

a. ego needs

b. belongingness needs

c. safety needs

d. self-actualization needs

e. physiological needs

(a; moderate; p. 141 [Figure 5.2]; LO2; AACSB Reflective Reasoning)

39. In Maslow's pyramid ________ needs include prestige, status, and accomplishment.

a. self-actualizationb. egoc. belongingnessd. safetye. physiological(b; moderate; p. 141 [Figure 5.2]; LO2)

40. In Maslow's pyramid ________ needs include love, friendship and acceptance by others.

a. self-actualization

b. ego

c. belongingness

d. safety

e. physiological(c; moderate; p. 141 [Figure 5.2]; LO2)

41. In Maslow's pyramid ________ needs include security, shelter, and protection.

a. self-actualization

b. ego

c. belongingness

d. safety

e. physiological(d; moderate; p. 141 [Figure 5.2]; LO2)

42. According to the theory of ________, we tend to compensate or justify the discrepancies between what we actually received and what we thought we would receive.

a. selective satisfaction

b. cognitive dissonance

c. adaptation

d. habituation

e. attribution

(b; moderate; pp. 141-142; LO2; AACSB Reflective Reasoning)

43. A ________ is an internal force that stimulates you to behave in a particular manner and is produced by the tension caused by an unfulfilled need.

a. drive

b. desire

c. want

d. motive

e. need

(d; moderate; p. 142; LO2; AACSB Analytical Skills)

44. Which of the following statements regarding attitudes is false?

a. Advertisers are interested in attitudes because of their impact on motivations.

b. Attitudes vary in direction and strength; that is, an attitude can be positive or negative, reflecting like or dislike, or it can be neutral.

c. Most attitudes are deeply set and cannot be changed.

d. Attitudes are important to advertisers because they influence how consumers evaluate products, institutions, retail stores, and advertising.

e. Attitudes are learned.

(c; difficult; p. 142; LO2; AACSB Analytical Skills)

45. ________ refers to consistency in behavior in terms of how we react to events and situations and behave in various roles.

a. Psychology

b. Psychographics

c. Attitude

d. Value

e. Personality


46. ________ refers to lifestyle and psychological characteristics, such as attitudes, interests, and opinions.

a. Psychology

b. Psychographics

c. Attitude

d. Value

e. Personality

(b; moderate; p. 142; LO2; AACSB Analytical Skills)

47. ________ looks at patterns of consumption, personal relationships, and leisure activities.

a. Lifestyle analysis

b. Psychographic profiling

c. Value analysis

d. Discretionary analysis

e. Cluster analysis


48. What two variables are used to organize the VALS classification of consumers?

a. resources and innovationb. age and self-orientation

c. age and social class

d. resources and psychographics

e. social class and education

(a; difficult pp. 145-146 [Figure 5.4]; LO2; AACSB Analytical Skills)

49. Which of the following is NOT a VALS classification of consumers?

a. Innovators

b. Strivers

c. Makers

d. Doers

e. Believers

(d; difficult; p. 145 [Figure 5.4]; LO2; AACSB Analytical Skills)

50. ________ are professional researchers hired by advertisers to identify trends that may affect consumer behavior.

a. Profilersb. Futurists

c. Trend spotters

d. Demographers

e. Trend hunters


51. ________ are trend spotters who specialize in identifying trendy fads that appeal to young people.

a. Cool hunters

b. Cutting-edge spotters

c. Trend hunters

d. Gen Y spotters

e. Trend setters(a; moderate; p. 148; LO2; AACSB Analytical Skills)

52. ________ refers to how much of a product category or brand a customer buys.

a. Adoption

b. Innovation

c. Pareto Rule

d. 80/20 Principle

e. Usage

(e; easy; p. 147; LO2; AACSB Analytical Skills)

53. Which of the following is NOT considered a consumer category of brand relationship?

a. innovators

b. ex-users

c. first-timers

d. switchers

e. regulars


54. Which of the following is a consumer category of brand relationship?

a. switchers

b. light users

c. early adopters

d. innovators

e. laggards


55. Which category of the adoption process represents the small group of people (i.e., 2.5 percent of the population) willing to try something new?

a. innovators

b. early adopters

c. early majority

d. late majority

e. laggards

(a; easy; p. 148; LO2; AACSB Analytical Skills)

56. ________ is your view of the relationship between what you gain by trying something new and what you have to lose if it doesnt work out.

a. Adoption

b. Adaptation

c. Perceived risk

d. Selective exposure

e. Selective distortion

(c; moderate; p. 148; LO2; AACSB Analytical Skills)

57. Which of the following is NOT a step in the consumer decision process?

a. need recognition

b. cognitive dissonance

c. information search

d. postpurchase evaluation

e. purchase decision


58. ________ occurs when the consumer recognizes a need for a product.

a. Need recognition

b. Information search

c. Evaluation of alternatives

d. Purchase decision

e. Postpurchase behavior

(a; easy; p. 150; LO3; AACSB Analytical Skills)

59. ________ is the stage where consumers compare various products and features and reduce the list of options to a manageable number.

a. Need recognition

b. Information search

c. Evaluation of alternatives

d. Purchase decision

e. Postpurchase behavior

(c; easy; p. 150; LO3; AACSB Analytical Skills)

60. In which stage of the consumer decision process is a consumer likely to feel cognitive dissonance?

a. need recognition

b. information search

c. evaluation of alternatives

d. purchase decision

e. postpurchase behavior


61. Which of the following statements regarding influences on business-to-business decision making is false?

a. In organizational buying, many individuals are involved in making the decision, often with a buying committee making the final decision.

b. Although the business buy may be motivated by both rational and emotional factors, the use of rational and quantitative criteria dominate most decisions.

c. Quality is NOT important in business-to-business buying.d. The decision is sometimes made based on a set of specifications to potential suppliers who then bid on the contract.e. The decision may span a considerable time, creating a lag between the initial contact and final decision.


62. ________ means dividing the market into groups of people who have similar characteristics in certain key product-related areas.

a. Targeting

b. Marketing

c. Positioning

d. Segmenting

e. Profiling

(d; moderate; p. 151; LO3; AACSB Multicultural and Diversity)

63. ________ means identifying the group that might be the most profitable audience, the one most likely to respond to marketing communication.

a. Targeting

b. Marketing

c. Zoning

d. Segmenting

e. Profiling

(a; moderate; p. 151; LO3; AACSB Multicultural and Diversity)

64. In which strategy do planners treat the market as homogeneous, purposely ignoring differences in the market and using one marketing strategy that will appeal to as many people as possible?

a. multi-segment strategy

b. undifferentiated strategy

c. homogeneous strategy

d. one-size-fits-all strategy

e. concentrated strategy

(b; moderate; p. 152; LO3; AACSB Multicultural and Diversity)

65. A group of people, identified and selected by the marketer, with similar needs and characteristics who are most likely to be receptive to the marketers product and messages is known as a ________.

a. market segment

b. viable segment

c. sustainable segment

d. viable market

e. target market

(e; moderate; p. 152; LO3; AACSB Multicultural and Diversity)

66. Which of the following is NOT an approach to segmenting consumer markets?

a. demographic segmentation

b. geographic segmentation

c. psychographic segmentation

d. benefit segmentation

e. brand(e; easy; p. 153; LO3; AACSB Multicultural and Diversity)

67. Which approach to segmentation divides people into groups based on product category and brand usage?





e. behavioral segmentation

(e; moderate; p. 153; LO3; AACSB Multicultural and Diversity)

68. Which approach to segmentation divides the market using such characteristics as gender, ethnicity, income, and so forth?





e. behavioral segmentation

(a; moderate; p. 153; LO3; AACSB Multicultural and Diversity)

69. International, national, state, city, climate, and urban/rural are all ways to segment a market by ________.

a. demographics

b. geographicsc. psychographics

d. behavioral characteristics

e. benefits sought

(b; easy; p. 153; LO3; AACSB Multicultural and Diversity)

70. Subsegments of a more general market are known as ________ markets and are defined by individuals with some distinctive trait, such as being ecologically minded consumers.

a. sub

b. niche

c. narrow

d. generational

e. social

(b; moderate; p. 154; LO3; AACSB Multicultural and Diversity)

GENERAL CONTENT: TRUE/FALSE QUESTIONS71. Consumers are people who buy or use products to satisfy their needs and wants.

(True; easy; p. 131; LO1)

72. Purchasers and users have the same needs.

(False; moderate; p. 131; LO1)

73. The social and cultural forces that impact consumer behavior include culture, social class, personality, family, and demographics.

(False; moderate; p. 132; LO2; AACSB Multicultural and Diversity)

74. Values are simply rules that we learn through social interaction that specify or prohibit certain behaviors.


75. Subculture is a term that describes how various companies operate.

(False; moderate; p. 133; LO2; Multicultural and Diversity)

76. A household differs from a family in that it consists of all those who occupy a dwelling whether they are related or not.

(True; moderate; p. 135; LO2; AACSB Multicultural and Diversity)

77. The Asian market is becoming a huge opportunity because it is growing proportionately faster than other ethnic groups.


78. Consumers with higher education prefer print media, the Internet, and selected radio and cable stations.


79. Ethnicity is becoming a major criterion for segmenting markets.

(True; difficult; p. 138; LO2; AACSB Multicultural and Diversity80. The area in which a target market lives correlates with several demographic characteristics and is important to advertisers.

(True; easy; p. 139; LO2; AACSB Multicultural and Diversity)

81. First-level needs include the need for water, food, air, shelter, and sex.

(False; difficult; p. 141 [Figure 5.2]; LO2; AACSB Analytical Skills)

82. Acquired needs are those we learn in response to our culture and environment and may include needs for esteem, prestige, affection, power, and learning.

(True; moderate; p. 141; LO2; AACSB Analytical Skills)

83. Consumers that try a product and find it does not meet their expectations may be dissatisfied.(True; easy p. 141; LO2)

84. According to the theory of cognitive dissonance, we tend to compensate or justify the discrepancies between what we actually received and what we thought we would receive.

(True; moderate; pp. 141-142; LO2; AACSB Analytical Skills)

85. A need is an internal force that stimulates you to behave in a particular manner.

(False; moderate; pp. 141-142; LO2)

86. Psychographics refers to lifestyle and psychological characteristics, such as activities, interests, and opinions.

(True; moderate; pp. 142-143; LO2; AACSB Multicultural and Diversity)

87. Psychographics are the statistical, personal, social, and economic characteristics used to describe a population including age, gender, education, income, occupation, race, and family size.


88. Activities, opinions, and interests are some of the major components used to construct psychographic profiles of consumers.


89. In the VALS system, psychographic groups are arranged vertically by self-orientation and horizontally by resources.

(False; difficult; p. 145 [Figure 5.4]; LO2; AACSB Multicultural and Diversity)

90. The Achievers and Strivers are motivated by achievement.


91. A critical behavior predictor called usage refers to how much of a product category or brand a customer buys.

(True; easy; p. 147; LO2; AACSB Analytical Skills)

92. According to the Pareto Rule, 20 percent of the users buy 80 percent of the products.

(True; moderate; p. 146; LO2)

93. First-timers are people with low levels of brand loyalty who are willing to leave a brand to try another one.

(False; difficult; p. 146; LO2)

94. The first step in the consumer decision process is information search.

(False; moderate; p. 149; LO3; AACSB Analytic Skills)

95. Seekers are people who are driven by a need to know everything they can about a product before making a purchase, particularly for major purchases.

(False; difficult; p. 150; LO3; AACSB Analytic Skills)

96. A difference between the low- and high-involvement decision processes is that in the low-involvement case, the information search stage may be skipped.

(True; moderate; p. 149 [Figure 5.6]; LO3; AACSB Analytic Skills)

97. The first brands that come to mind when you think of a product category and are considered permissible in the evaluation of alternatives is referred to as the evoked set.

(True; moderate; p. 150; LO3; AACSB Analytic Skills)

98. Purchase decision is the last step of the consumer decision process.


99. Business buyers are not influenced by social and emotional factors.

(False; difficult; p. 151; LO3; AACSB Analytic Skills)

100. Targeting means dividing the market into groups of people who have similar characteristics in certain key product-related areas.


101. Market aggregation strategy is one in which marketers treat the market as homogeneous, purposely ignoring differences in the market and using one marketing strategy that will appeal to as many people as possible.


102. After segmenting a market, the marketer identifies, evaluates, and selects a target market.


103. Psychographic segmentation is primarily based on studies of how people spend their money, their patterns of work and leisure, their interests and opinions, and their views of themselves.


104. The bling bling generation was coined by gay upwardly mobile professionals.

(False; difficult; p. 154; LO4; AACSB Multicultural and Diversity)

105. Profiles are descriptions of the target audience that read like a description of someone you know.

(True; moderate; p 155; LO4; AACSB Multicultural and Diversity)

GENERAL CONTENT: ESSAY QUESTIONS106. Name and describe the social and cultural influences on consumer decisions and why they are important for advertisers.

Answer:

The cultural and social forces that impact consumer behavior fall into five major areas:

(1)CultureMade up of tangible items and intangible concepts that together define a group of people or a way of life. It is learned and passed on from one generation to the next, and the boundaries each culture establishes for behavior are called norms, which are simply rules that we learn through social interaction that specify or prohibit certain behaviors. The source of norms is our values, which come from our immersion in a specific culture. Advertisers strive to understand the underlying core values that govern peoples attitudes and refer to them when selecting an ads primary appeals. Sometimes a culture can be further broken down into smaller groups called subcultures, which can be defined by geographic regions or by shared human characteristics such as age, values, language, or ethnic background.

(2)Social ClassThe position you and your family occupy within your society and is determined by such factors as income, wealth, education, occupation, family prestige, value of home, and neighborhood. Marketers assume that people in one class buy different goods from different outlets and for different reasons than people in other classes.

(3)Reference GroupsA group of people we use as a guide for behavior in specific situations. Reference groups provide information, they serve as a means of comparison, and they offer guidance for consumers. Ads that feature typical users in fun or pleasant surroundings as well as those that use celebrity endorsements are using a reference group strategy.

(4)FamilyThe most important reference group because of its longevity and the intensity of its relationships. A family consists of two or more people who are related by blood, marriage, or adoption, and live in the same household. Advertisers need to understand the structure, changes, and workings of the family in order to communicate.

(5)DemographicsThe statistical, personal, social, and economic characteristics used to describe a population including age, gender, education, income, occupations, race, and family size. These characteristics serve as the basis for most advertising strategies and knowing them assists advertisers in message design and media selection for the target market.

(moderate; pp. 132140; LO2; AACSB Multicultural and Diversity)

107. Name and describe the behavioral influences on consumer decisions..

Answer:

(1)Usage BehaviorRefers to how much of a product category or brand a customer buys. There are two ways to look at usage: usage rates and brand relationship. Usage rates refer to quantity of purchase: light, medium, or heavy. Because heavy users typically buy the most of a product category or a brands share of the market, they are important to marketers and planners make special efforts to understand this key customer group. Brand relationship refers to past, present, or future use of the product by nonusers, ex-users, regulars, first-timers, loyal users, and users of and switchers from, or to, competitive products.

(2)Innovation and AdoptionThe adoption process is identified in terms of the personal behavior of people and how their behavior reflects the speed with which they are willing to try something new. People are grouped based on these behaviors, such as innovators, early adopters, early majority, late majority, and laggards. Innovators and the early adopters categories are important groups for marketers launching new products.

(3)ExperiencesPeople are interested in the experience of doing something like shopping that sometimes may be more important than what is bought. Decisions are often based on what was the experience with the brandhow well it performed, how easy it was to use, and how well customer service responded to questions.

(easy; pp. 146-148; LO2; AACSB Reflective Thinking)

108. Name and describe the psychological influences that motivate consumers and why they are important to advertisers.

Answer:

(1)Perception and State of MindAffects the way you perceive information as well as determines your particular pattern of consumer behavior. Your past experiences with a brand, as well as what your friends say about it, can color your feelings and make you more or less receptive to a brand message. This influence includes needs and wants, selective perception, and satisfaction.(2)Needs and WantsAre two different responses that lead to different reactions to an advertising message. The basic driving forces that motivate us reflect basic survival are needs. Some needs are innate and others are acquired. A want occurs when we desire or wish for something and can provide strong motivation to try or buy something new. Desire is the driving force behind demand. Mass desire is the public spread of a private want; it can't be created by advertising, but advertising can address it and channel it to focus on a particular brand,

(3)MotivationsAn internal force that stimulates you to behave in a particular manner, usually produced by tension caused by an unfulfilled need. Understanding buying motives is crucial to advertisers because the advertising message and the timing of the ad should coincide with the consumers motivation priorities.

(4)AttitudesAttitudes impact motivations, and they are learned, so we can establish them, change them, reinforce them, or replace them with new ones. Attitudes are important to advertisers because they influence how consumers evaluate products, institutions, retail stores, and advertising.

(5)PersonalityRefers to consistency in behavior in terms of how we react to events and situations and behave in various roles. The idea of personality traits has also been adapted to brands with the idea that brand personalities can be created that will make them distinctive from their competitors.

(6)PsychographicsRefers to lifestyle and psychological characteristics, such as attitudes, interest, and opinions. Advertisers use psychographics in order to understand fairly complex consumer pattern groupings. Knowing the psychographic orientation of consumers is a valuable asset to an advertiser in deciding to whom the messages should be targeted.

(7)Lifestylesis a type of psychographic analysis that identifies patterns of consumption, personal relationships, and leisure activities. The wealth of information from this research makes it possible to paint a vivid, detailed, multidimensional portrait of nearly any consumer segment and aid in spotting changes in lifestyles over time. Marketing communication can be viewed as a personal conversation between the brand advertised and the consumer. The better the advertiser knows the consumer, the more Engaging and persuasive the message will be.(moderate; pp. 140-146; LO2; AACSB Reflective Thinking)

109. Name and describe the stages of the consumer decision process under a high-involvement purchase decision and the role advertising plays in each. How is this different under a low-involvement decision?

Answer:

The stages of the consumer decision process under a high-involvement purchase decision are:

(1)Need RecognitionOccurs when the consumer recognizes a need for a product. The goal of advertising at this stage is to activate or stimulate this need.

(2)Information SearchCan be casual or formal. Advertising helps the search process by providing information in making it easy to find and remember.

(3)Evaluation of AlternativesThe stage where consumers compare various products and features and reduce the list of options to a manageable number. Advertising is important in this process because it helps sort out products on the basis of tangible and intangible features.

(4)Purchase DecisionOften a two-part decision. Usually, we select the brand first and then select the outlet from which to buy it. Sometimes we select the outlet first, particularly with impulse purchases. In-store promotions such as packaging, point-of-purchase displays, price reductions, banners and signs, and coupon displays affect these choices.

(5)Postpurchase EvaluationThe point where we begin to reconsider and justify our purchases to ourselves. Many consumers continue to read information even after the purchase, to justify the decision to themselves. Advertising, such as copy on package inserts, helps reduce the dissonance by pointing out key features, how to best use the product, or how many product users are satisfied.

The low-involvement decision process is similar, except the information search may be skipped.

(moderate; pp. 149-150; LO3; AACSB Reflective Thinking)

110. Define segmenting and targeting, and name and describe typical approaches to segmentation.

Answer:

Segmenting means dividing the market into groups of people who have similar characteristics in certain key product-related areas. Targeting means identifying the group that might be the most profitable audience, the one most likely to respond to marketing communication. There are six approaches to segmentation:

(1)Demographic SegmentationDivides the market using characteristics such as gender, age, ethnicity, income, and so forth.

(2)Life Stage Segmentation---Based on the stage in consumers' life cycle, which includes such categories as children, young people living at home, college students, singles living on their own, couples, families with children, empty nesters,and senior singles living alone. Age is a characteristic of life stage, as is living situation. Discretionary income tends to vary with life stage.

(3)Geographic SegmentationUses location as a defining variable because consumers needs sometimes vary depending upon where they live. The most important variables are world or global, region, nation, state, city, climate, population density, and urban/rural character.

(4)Psychographic SegmentationPrimarily based on studies of how people spend their money, their patterns of work and leisure, their interest and opinions, and their views of themselves.

(5)Behavioral SegmentationDivides people into groups based on product category and brand usage.

(6)Values and Benefits-based SegmentationBased on consumers needs or problems. The idea is that people buy products for different benefits they hope to derive.

(moderate; pp. 151-157; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS111. The Dove "Campaign for Beauty" punctured the obsession with stick-thin bodies and Barbie Doll images. What type of influence on consumer decision making is this obsession?a. psychologicalb. culturalc. familyd. target markete. demographic(b; difficult; pp. 130, 132; LO2)

112. According to the chapters opening and closing vignettes, Doves advertising campaign was very successful. How did Dove achieve this success?

a. Dove met the need of women to love their bodies and feel beautiful at any size or age.

b. Dove advertised extensively on TV.

c. Dove's radio campaign had a major impact on the audience.

d. Dove directed the campaign to the target market of men 15-22 years old.

e. Dove used typical models in the campaign.

(a; moderate; p. 130)

113. Juan was born in Mexico but moved to the United States when he was five years old. His family is still close to relatives back in Mexico, and he lives in a neighborhood where most people still speak Spanish, eat traditional Mexican dishes, wear traditional Mexican clothing, and listen to Mexican music. He remembers fondly his grandfather telling him stories of his home countrys customs and heroes. All of these factors form the ________ that will influence Juans consumer behavior.

a. social class

b. family

c. demographics

d. culture

e. reference group

(d; moderate; p. 132; LO2; AACSB Multicultural and Diversity)

114. Max is trying to get into a fraternity in college. Because he wants to be accepted by this group, he notices the brand of clothes they all seem to wear and the type of beer they drink at parties, and he does the same. Actually, he doesnt even like beer, but that seems to be what is expected of people in this fraternity. What influence does this fraternity represent with respect to Maxs consumption behavior?

a. culture

b. social class

c. reference group

d. family

e. demographics

(c; easy; p. 134; LO2; AACSB Multicultural and Diversity)

115. What race/ethnicity is growing faster proportionately than other ethnic groups?

a. white

b. black or African American

c. Asian

d. Hispanic or Latino

e. American Indian/Alaskan

(d; moderate; p. 138; LO2 AACSB Multicultural and Diversity)

116. Which of the following is NOT a psychological influence?

a. Perceptionb. Needs and Wantsc. Motivationsd. Usage Ratese. Attitudes(d; difficult; p. 138; LO2; AACSB Analytical Skills)

117. We all have the need for water, food, air, and shelterbasic needs that are necessary to maintaining life. What kind of needs are these known as?

a. basic

b. innate

c. life-giving

d. acquired

e. necessary

(b; moderate; p. 141; LO2; Analytical Skills)118. The Dove Real Beauty campaign tried to shatter the myth that the ________ for beauty can only be young, blond, and thin models who represent unattainable standards for most women.a. reference groupb. social classc. ethnic groupd. subculturee. family segment(a; moderate; p. 135; LO2)

119. Recently, an adventurous millionaire successfully made a dangerous climb in the Himalayas. This gentleman really has all of his basic needs satisfied, and he claimed to do the things he does for self-fulfillment and for the enriching experience. According to Maslows Hierarchy of Needs, which need is he satisfying?

a. physiological

b. safety

c. belongingness

d. ego

e. self-actualization

(e; easy; p. 141 [Figure 5.2]; LO2; AACSB Analytical Skills)

120. Jean is 60 years old and very upset with the current discussion in our country about the overhaul of the Social Security System. She thinks the system is working just fine, and she is concerned about her benefits being cut if the system is changed in some way. When she sees information on television or reads in the newspaper about the benefits of changing the system, Jean modifies the information to fit it into her own personal beliefs about the system. What psychological influence is influencing Jeans behavior?

a. exposure anxietyb. want distortion

c. selective needsd. perception

e. buyer's remorse(d; moderate; p. 140-141; LO2; AACSB Analytic Skills)

121. Barbara doesnt like to make major purchasing decisions, such as choosing which car to purchase. However, she had to replace the old car she owned because it was no longer reliable, so she purchased a new Honda Accord. Although her entire family assisted in the purchase transaction and the salesperson was a close family friend and practically sold the car to her at cost, she is still concerned whether she made the right decision. Barbara is suffering from ________.

a. postpurchase behavior

b. selective dissonance

c. selective distortion

d. cognitive dissonance

e. selective exposure

(d; moderate; p. 141-142; LO3; AACSB Reflective Thinking)

122. According to The Inside Story, early adopters ________.

a. have many strong social contacts

b. are people involved in unusual activities and whose level of activity will disproportionately affect the behaviors of others

c. are low media users

d. have a simple history of personal and sexual relationships

e. are heavily influenced by others in their social circles

(b; difficult; p. 147; LO3; AACSB Reflective Thinking)

123. In an advertisement for a local carpet retailer a well-know radio personality explained how the company solved his problem of replacing his old carpet. Toward what part of the consumer decision process was this ad aimed?

a. increase the chances consumers will pay attention to the commercial

b. presenting the information in such as manner so that consumers will not distort it

c. need recognition

d. meeting the social needs of the target market

e. appeal to the athletic segment

(c; moderate; p. 150)

124. Carol is conducting research and asking respondents to name the brands that first come to mind for certain product categories. When she asks Bob this question for computers, he mentions IBM, Dell, Gateway, and Hewlett-Packard. These brands represent Bobs ________.

a. evoked set

b. considerate set

c. purchase set

d. top-of-mind group

e. evaluation set


125. The Toyota case at the end of the chapter describes how Toyota goes after tuners. What are tuners?

a. consumers that are tuned in to current trends in their age demographic

b. older consumers who dance to their own tune, meaning they are not influenced by others when making consumption decisions

c. younger consumers who dance to their own tune, meaning they are not influenced by others when making consumption decisions

d. young car buyers who live to customize their cars

e. opinion leaders who have an unusual influence on young car buyers

(d; moderate; p. 161; LO4; AACSB Reflective Thinking)

APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICEMonique and Bob Smith are married with two young children at home and a third away at college. They are also considering adopting another child. Monique is the primary shopper for her family, and every week, she goes shopping to buy products that she and her family need and want.

126. Mini-Case Question. In marketing terms, Monique is a ________.

a. buyer

b. user

c. consumer

d. customer

e. purchaser

(c; difficult; p. 131; LO1; AACSB Analytical Skills)127. Mini-Case Question. Though Monique doesnt eat them herself, she purchases snack items for her children and is always looking for more nutritious snacks than mere junk food. In marketing terms, Monique is considered which type of consumer?

a. user

b. business

c. customer

d. buyer

e. consumer


128. Mini-Case Question. According to the U.S. Census, Monique, Bob, and the children are considered to be a ________.

a. census track

b. family

c. household

d. reference group

e. subculture


129. Mini-Case Question. Lex, Bob and Moniques oldest son who is away at college, lives with three other students in a house off-campus. According to the U.S. Census, they represent a ________.

a. census track

b. family

c. household

d. reference group

e. subculture


130. Mini-Case Question. After budgeting for the things that he has to pay for, such as his mortgage, car payments, insurance, food, and so forth, Bob figures they have $1,000 left each month to use for whatever way they want. This $1,000 represents the Smiths ________ income.

a. net

b. gross

c. spendable

d. discretionary

e. left-over


APPLICATION QUESTIONS: SHORT-ANSWER131. Explain how the Dove Real Beauty campaign used advertising to increase sales of Dove.

Answer:

The Dove Real Beauty campaign used magazine advertising because of its ability to stop the audience and make them really look at the models and contemplate the meaning of beauty. They ran one ad during the Super Bowl. The Dove website reinforces the message of the campaign urging women to boost their self-esteem by defying stereotypes. The Dove launch was concentrated in the top 10 cities where they could get the greatest impact. Outdoor and transit ads were plastered on billboards and buses to generate public debate. The campaign generated massive publicity in the mass media.(moderate; p. 130)

132. What were the two specific ideas from research that drove the Dove Real Beauty campaign?

Answer:

Two specific ideas from research that drove the campaign were:

(1)2% of the respondents believed themselves to be beautiful.(2)68% of the respondents indicated they strongly believed that the media and advertising set an unrealistic standard of beauty most women can't achieve.(difficult; p. 130)

133. You have been invited to speak at a small business workshop to explain how consumers make purchase decisions and the basic factors that influence these decisions. Briefly describe what you would discuss being careful not to overload them with too much information because your audience is not very marketing-savvy. Just explain the basic concepts you know about the consumer audience.

Answer:

Although students can recite basically the entire chapter to answer this question, the goal is really to assess students understanding of the basic concepts outlined in this chapter. Students should discuss the basic consumer decision process: (1) need recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior. Although this process is likely to be followed for high-involvement decisions, some of the steps, specifically information search, may be skipped under low-involvement decisions. Students should also discuss the broad factors that influence consumer decision making: (1) social/cultural influences, (2) psychological influences, and (3) behavioral influences.

(moderate; pp. 132-148 and 149)

134. Compare and contrast the terms family and household.Answer:

According to the U.S. Census, a family consists of two or more people who are related by blood, marriage, or adoption, and live in the same household. A household differs from a family in that it consists of all those who occupy a dwelling whether they are related or not. Therefore, a family is also a household, but a household is not necessarily a family.

(moderate; p. 135; LO2; Analytical Skills)

135.Explain why the Hispanic culture is of great interest to marketers in the United States.Answer:

Few cultures are more important to U.S. marketing than the Hispanic culture because it is growing proportionately faster than other ethnic groups. Research shows that Hispanics spend more per shopping trip than non-Hispanics and that store signage and product labels in Spanish promote stronger brand loyalty. Hispanics also believe in using cash rather than credit cards and are willing to spend proportionately more money on their kids and their clothing than their Anglo-Saxon counterparts. Many of them also tend to be loyal to brands they learned to prefer while they were living in Mexico. There are also media differences based on ethnicity, with Hispanic viewers tending to watch commercials in their entirety compared to non-Hispanic viewers. They are more likely to base purchase decisions on advertisements too.

(moderate; p. 138; LO2; AACSB Multicultural and Diversity)

136. Explain the perceptions of consumers that presented a marketing challenge to the Dove brand.

Answer:

The marketing challenge was:

(1)The brand lacked energy and was simple, white, and gentle.(2)The brand represented submissive femininity.

(difficult; p. 129; Analytical Skills)

137. For years, the U.S. Army has used an advertising campaign stressing that you can Be all you can be. What is the rationale behind this campaign?

Answer:

It would appear that the army is appealing to its target audiences secondary, or acquired, needs for self-fulfillment and enriching experiences, that is, self-actualization, which represents the highest level of needs on Maslows Hierarchy of Needs.

(moderate; p. 141 [Figure 5.2]; LO2; AACSB Reflective Thinking)

138. What is the difference between a consumer's need and a want?

Answer:

An item a consumer needs is something the consumer thinks is essential or necessary for his life. An item that is a want is something the consumer desires, but is not seen as being essential.(moderate; p. 141; LO2; Reflective Thinking)

139. Miriam purchased a new car last month, but she continues to look at advertising for cars and notes how many other cars like hers are on the road. When a news article came out the other day indicating problems with the transmission being noted by owners of her make of car, she took that to mean that all types of cars in that class can have those problems, not just hers. She even sought out a Consumer Reports article that pointed out that the car she purchased was rated highly on reliability. What is Miriam experiencing?

Answer:

According to the theory of cognitive dissonance, we tend to compensate or justify the discrepancies between what we actually received and what we thought we would receive. People engage in a variety of activities to reduce cognitive dissonance. Most notable, we seek out information that supports our decisions and ignore and distort information that does not.

(moderate; pp. 141-142; LO3; Analytical Skills)

140. Explain the resource dimension of the VALS system and compare the Survivors and Innovators categories of the VALS system in regard to resources.

Answer:

The VALS system categorizes consumers along two major dimensions: (1) resources and (2) innovation. Resources include income, education, self-confidence, , and energy.The difference between Survivors and Innovators is that Survivors have much lower resources than the Innovators. In fact, both are at complete opposite extremes of the resource dimension.

(moderate; pp. 145-146; LO2; Analytical Skills)

141. Why do retailers put several items, such as candy, batteries, small packages of facial tissue, coolers with individual bottles of soft drinks, and so forth right at the checkout?

Answer:

These items are impulse items. Consumers seeing them while they are waiting to check out may realize they need, or at least want, that item, which is the first step of the consumer decision process. People who buy on impulse generally do so without much thought based on some immediate need such as thirst or hunger. Usually theres not much at stake, so the risk of making a bad decision is small.

(easy; p. 150; LO3; Analytical Skills)

142. Kim who is an avid cyclist decided to buy a new bicycle. She searched the web for information on bikes and visited some bike shops. What is involved in the next step in her decision process if she follows the sequence in the text?

Answer:

Kim is ready to evaluate alternatives, the stage where Kim compares various brands and products and reduces the list of options to a manageable number. She needs to choose the attributes that are most important then judge the alternatives accordingly. Advertising about bikes is important because it helps her sort out products on the basis of tangible and intangible features.


143. Microsoft is always looking to the future to decide what new products they should introduce, and theyre interested in general characteristics of the early adopter category of consumers. Based on the research in "the Inside Story" what would you tell Microsoft about this category of consumers?

Answer:

Based on primary research on the lifestyle and psychological characteristics of early adopters, SRI found that early adopters:

(1)Are people involved in unusual activities and whose level of activity will disproportionately affect the behavior of others.(2)Have many weak social contacts

(3)Are masters of their own universe

(4)Are high media users

(5)Have a more complex history of personal and sexual relationships


144. Ron is single and not a very good cook, so he eats a lot of pizza. So much so that he orders it sometimes five nights per week from his favorite pizza place, Pizza Hut. Why is Ron an important customer for Pizza Hut?

Answer:

A critical behavior predictor called usage refers to how much of a product category or brand a customer buys. There are two ways to look at usage: usage rates and brand relationship. According to Rons usage rate, he would most likely be classified as a heavy user. Heavy users typically buy the most of a product category or a brands share of the market. Theres a rule of thumb called the Pareto Rule that says 20 percent of the market typically buys 80 percent of the products. That explains why the heavy user category is so important to marketers and why planners will make special efforts to understand this key customer group. Brand relationship refers to past, present, and future use of the product by nonusers, ex-users, regulars, first-timers, loyal users, and users and switchers from, or to, competitive products. People who buy the same brand repeatedly, like Ron, are the ones who display the most brand loyalty. Heavy users and brand loyal buyers are usually a brands most important customers and the ones who are most difficult for competitors to switch away from a brand. Ron seems to fit this classification for Pizza Hut, thus making him a very important customer.

(moderate; p. 147; LO2; AACSB Analytical Skills)

145. Roger has decided to purchase a personal computer for his households use, but he doesnt know much about computers and he really doesnt want to spend more than $1,000. Describe the process Roger is likely to go through in making the decision regarding which computer to purchase.

Answer:

Roger will probably go through all of the stages of the high-involvement decision process. He has already recognized a need for a computer, which is the first step in the process. Next he will likely gather as much information as he can by reading articles, advertising, and talking to friends and colleagues. He will then narrow his search down to a few alternatives that he will evaluate seriously, referred to as the evoked set. From that evaluation, he will make a purchase decision, typically deciding first on the brand and then which outlet from which to buy it. Finally, he will most likely experience postpurchase behavior where he reconsiders and justifies his purchase to himself. He may even experience doubts about his purchase, known as cognitive dissonance.

(moderate; pp, 149-150; LO3; AACSB Analytical Skills)

146. Jan is leaving her present job in consumer marketing at a major consumer packaged goods manufacturer and will be starting a new job with an industrial marketer. What are just a few of the things Jan should know about the differences between consumer decision making and business decision making?

Answer:

Many of the influences that affect consumer buying also are reflected in business-to-business marketing. Although some of the consumer factors are relevant in business purchases, there are some differences as well. Some of the things students can discuss include:

(1)In organizational buying, many individuals are involved in making the decision, often with a buying committee making the final decision.

(2)Although the business buyer may be motivated by both rational and emotional factors, the use of rational and quantitative criteria dominates most decisions.(3)The decision is sometimes made based on a set of specifications to potential suppliers who then bid on the contract; typically the lowest bid wins.

(4)The decision may span a considerable time, creating a lag between the initial contact and final decision. On the other hand, once a decision is made, it may be in place for a long time and sometimes supported by a contract.

(5)Quality is hugely important and repeat purchases are based on how well the product performs.(6)Personal selling is also important in B2B marketing, so advertising is used to open the door and generate leads for the sales force.

(moderate; pp. 151; LO3; AACSB Analytical Skills)

147. The case at the end of the chapter, Toyota Goes After Tuners, describes who tuners are and what marketers are doing to attract this group of consumers. Explain what tuners are and why you think tuners are so attractive to marketers, even after accounting for their spending power.Answer:

Tuners are young car buyers who live to customize their cars. The trend really began among young Asian Americans, who typically bought inexpensive Asian-import cars and then spent thousands of dollars customizing them. The hobby has spread to other young people, but Japanese brands remain the cars-of-choice among those dedicated to creating a work of art on wheels. Marketers may be interested in these consumers for various reasons. First, brand preferences formed while consumers are young may hold throughout their purchasing lifetime. Second, these tuners may be seen as early adopters and can influence other consumers. Finally, these tuners may be considered a reference group to which other young car purchasers aspire and can influence their choice regarding car brands. Thus, the social influence that they may play on others purchases may make them a desirable market segment.


APPLICATION QUESTIONS: MINI-CASE SHORT ANSWERA recent article in the Wall Street Journal described how the next Pepsi Generation likely will be drinking diet cola. Pepsi learned that one-third of teens were diet soda drinkers last year and that teens start drinking diet soft drinks at a very early age. However, they also acknowledged that a substantial portion of young people dont consider diet sodas cool, particularly men. The chief marketing officer for Pepsi-Cola North America was quoted as saying, We are treating Diet Pepsi as the flagship brand. . . . Its a big step for us. Indeed, this is a major break with the traditional soft-drink marketing in which the sugar-sweetened brand still dominates in market share. However, with concerns of rising obesity and schools cutting back on sugar-sweetened drinks in vending machines, soft-drink manufacturers, like Pepsi, are responding with an increase in marketing of their diet soft drinks. As part of this new change in focus, Diet Pepsi will be marketed as a hip, cool brand for everyone, including teenagers and Baby Boomers. Meanwhile, the article stated that Pepsi is narrowing its sales pitch for regular Pepsi-Cola to soda drinkers younger than 25, Latinos, African-Americans, and sports fans.

148. Mini-Case Question. By treating the diet soda market as relatively homogenous, what marketing strategy is this known as?

Answer:

The strategy is the undifferentiated strategy or market aggregation strategy.(moderate; p. 152; LO4; AACSB Analytical Skills)

149. Mini-Case Question. What segmentation variables is Pepsi using when it decided to narrow its marketing efforts for regular Pepsi-Cola to soda drinkers younger than 25, Latinos, African- Americans, and sports fans?

Answer:

Age and ethnicity fall under demographic segmentation, and sports fans represent an interest, which would be psychographic segmentation.

(moderate; pp. 152-153; LO4; AACSB Analytical Skills)

150. Mini-Case Question. It was also noted in the article that a substantial portion of young people dont consider diet sodas cool, particularly men. What is Pepsi trying to accomplish with their increased effort to reach these consumers?

Answer:

Pepsi is trying to change their attitude toward diet sodas. Currently, a substantial portion of young peoples attitudes toward this product are negative, and Pepsi would like to change that attitude. Attitudes are important to advertisers because they influence how consumers evaluate products.


144Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall146Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall145

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