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CONSUMER BEHAVIOR MIDTERM STUDY SET
Consumer behavior is a process. As part of this process, we study _______, which are descriptive characteristics of a population. - demographics Consumer behavior is a process. In the study of this important topic, we learn that the _______ is a transaction in which two or more organizations or people give and receive something of value. - exchange Jessie shared her opinion about the new Moto Android phone in an online group. Luis, who is looking for a new phone, read the review and used Jessie's opinion to help select his new phone. This scenario demonstrates participation in a ______________. - consumption community Marketers use the term ___________ to identify a bond between a product and a consumer that is nearly impossible for a competitor to break. - brand loyalty Evolving from a mass culture in which many consumers share the same preferences to a diverse one in which we each have almost an infinite number of choices makes it more important than ever to _____________. - identify distinct market segments and develop specialized messages for those groups Identifying your most faithful customer, or heavy user, and then focusing your marketing efforts on them is a clever marketing strategy. In many cases, marketers use the _______ rule, where _______ percent of the users account for _______ percent of the sales. - 80/20; 20; 80 TJ is a savvy marketer and knows that the Atlantic hurricane season begins on June 1st. To prepare his annual strategic marketing plan for the Florida division, he studies his consumer segments for wants and needs, and then pre-designs several brand loyalty-building campaigns for the third quarter (July-September). Which of the following is most likely to fail? - Text HurricaneHorror246 for a discount on T-shirts. Ron's Hardware store tracks consumer buying habits and then uses that data to design marketing messages. For instance, data analysis indicated that consumers who purchased flower plants such as geraniums, rhododendrons, and azaleas usually returned within 30 days to purchase fertilizer designed for outdoor flowing plants. Therefore, Ron tailored a two-week follow-up marketing message for this segment that highlighted sales on flowering plant fertilizers. Marketers refer to this process as_____________. - database marketing The use of _______ allows an organization to target its product, service, or idea only to specific groups of consumers rather than to everybody-even if it means that other consumers who don't belong to this target market aren't exposed to it. - market segmentation strategies
Diapers come in pink versions for girls and blue for boys. Marketing images on packaging for dolls usually feature female children and pictures on packaging for toy trucks generally features young boys. This is an example of _____ distinction in product marketing. - gender When they monitor spikes in Google queries for words such as flu and fever, epidemiologists at the Centers for Disease Control can identify specific areas of the United States that have been hit by flu outbreaks even before the local authorities notice a rise in hospital admissions. This is an example of how _______. - Big Data influences what we know and do Many organizations focus on establishing relationships with customers. Which scenario best describes the nostalgic attachment relationship a consumer may feel with a product or service? - Each year Martha sends a Currier and Ives Christmas card to her grandchildren because she remembers how much the same brand of card meant to her when she received one annually from her own grandmother. Technologies such as Bluetooth connectivity enable consumers to interact with products more intimately, which in turn reinforces their relationships. Which of the following defines a relationship in which the product assists in establishing the user's identity? - Self-concept attachment A _______ is defined as something a person must have to live. - need A(n) _______ is a specific manifestation of a need that personal and cultural factors determine. - want The deeper meanings of a product may help it stand out from other comparable goods and services. The fascination with Peeps demonstrates one of the fundamental premises of the modern field of consumer behavior. This fundamental premise is: ______________. - People often buy products not for what they do, but for what they mean. Chris is a successful manufacturer that uses current popular athletes to help promote his brand of shoes. When a consumer is sufficiently influenced to make a purchase solely based on that promotion, this demonstrates Chris' successful execution of - brand imaging Some metropolitan areas include a total populace of more than 10 million individuals. The United Nations applies the term ____________ to describe these areas. - megacity Technology and culture have created a new "always-on" consumer. These consumers grew up "wired" in a highly networked world where digital technology has always existed. The term for these consumers is which of the following? - digital native
decision? - Consumers consider a brand's ethical practices before purchasing their products. Irritated customers have launched hundreds of gripe sites to share their dissatisfaction against companies. Based on this fact, which of the following statements is incorrect? - Less than 5,000 domain names end in "sucks.com" ________ endorse(s) research projects that include the goal of helping people or bringing about social change. - Transformative consumer research This is the term used to describe a website dedicated to giving dissatisfied customers a forum to complain about products, services, and companies. - Gripe site Many firms attempt to integrate (a) _____ into their processes as it encourages the organization to make a positive impact on consumers, employees, and the environment.
- corporate social responsibility A professor at a small private college in New Hampshire that studies buyer behavior has joined with a group of other professors from the area to promote research projects that include the goal of helping people or bringing about social change. In which type of research is the group involved? - Transformative consumer Between 1998 and 2013, Yoplait USA, Inc.'s commitment to breast cancer research raised approximately $35 million from all the organization's donation programs. Which marketing strategy does the company employ? - Cause marketing As demonstrated in several examples in this chapter, customers can get rather creative with ways to gripe about companies they don't like. Which of the following is the wrong reason for encouraging companies to allow consumers to complain? - If a company can identify the complaining consumer, they can retaliate. _______ hijack millions of computers without any trace. Recently we've witnessed numerous hacks of corporate and government databases including Equifax, Yahoo!, Target, and even NASA. - Wardrobers Antoine recently received an email from a fraudulent organization that sought his personal financial account information. Recognizing the scam, he deleted the email without providing any information. Which unethical strategy was the company using? - Phishing This group is characterized as the largest minority market in the United States. - Disabled people The financial bottom line, social bottom line, and environmental bottom line are all elements of __________________________. - Triple bottom-line orientation
The business strategy that attempts to maximize returns by providing benefits to the communities where the organization operates is the _____________. - social bottom line The U.S. EPA definition of _________ states that everything we need for our survival and well-being depends, either directly or indirectly, on our natural environment. - Sustainability _______ occurs when companies make false or exaggerated claims about how environmentally friendly their products are. - Greenwashing Shoplifting and employee theft lead to inventory and cash losses. The industry term for this type of crime is shrinkage. Based on information you have read in this chapter, which of the following statements is incorrect? - Shoplifting costs U.S. retailers approximately $30 million annually. Excessive and repeated shopping used as an antidote to tension, anxiety, depression, or boredom is called _____________. - Compulsive consumption A nefarious antibusiness organization plans to introduce poison at the production facility of a major food producer. What misguided strategy does this describe? - Bioterrorism ___________ has been compared to chemical dependency by some psychologists. - Social media addiction Which of the following statements is not true regarding cyberbullying? - The U.S. Department of CyberSpace ruled that text messages are not categorized as cyberbullying. Marianne watches a shopping channel for at least 10 hours each day. Buying items she mostly never uses, she has recently reached the credit limit on all seven of her credit cards. Marianne suffers from which disorder? - Compulsive shopping disorder Researchers believe our experience of touch is much like a primal language, learned before writing and speech. Some researchers have identified the important role that _______ sense plays in consumer behavior. - haptic Some Japanese companies use _______, a philosophy that translates customers' feelings into design elements. - Kansei engineering People everywhere are seeing more touchscreens on computers, ATM machines, and digital cameras due to an outgrowth of the _______ philosophy of computer design. - natural user interface
she needs to turn it up to 24 to notice the difference. What law or theory explains this phenomenon? - weber's law Weber's Law is an important concept to consider when dealing with markdowns or sales. For instance, if a retailer believes that a markdown should be at least 20 percent for the reduction to make an impact on shoppers, it should cut the price on a pair of socks that retails for $10 to $8 (a $2 discount). However, a sports coat that sells for $100 would not benefit from a $2 discount; the retailer would have to mark it down _______ to achieve the same impact. - $ Market researchers understand that the meaning we give a stimulus depends on the ________, or set of beliefs, to which we assign it. - schema The final step in the process of perception is _______. - interpretation In terms of the semiotic approach, the focus of the message is referred to as the _______. - object Which Gestalt principle states that people tend to perceive an incomplete picture as complete? - closure Which of the following would not be used by marketers as a positioning strategy? - attention A(n) _______ is a sign that connects to a product because it shares some property (for example, the lemon on some cleanser products conveys the shared property of fresh scent). - index Marketers use _____, a discipline that studies the correspondence between signs and symbols and the meanings we attach to them, to understand how consumers interpret the meanings of symbols. - semiotics According to semiotician Charles Sanders Peirce, signs relate to objects in several ways. One example is the _______, which is a sign that resembles the product in some way, such as the galloping horse on the hood of the Ford Mustang. - icon When marketers study the semiotic perspective, they see that every marketing message has three basic components: a(n)_______, a sign (or symbol), and an interpretant. - object Trevor plans to purchase his first smartphone. Having never actually sought out product information, he nevertheless thinks he knows quite a bit about smartphones because of commercials and discussions about them with friends. What type of learning did Trevor experience? - incidental learning
Jessie and Luis are both going to college to pursue a degree in management. When Luis, who has a busy social life, took the economics class with Mr. Jones, he blew off the weekly homework assignments as unimportant. Jessie observed Luke's behavior and saw that the ultimate effect was a failing grade. Based on this observation, Jessie managed her time better and completed all homework assignments when she took the same class in the following semester; she received an "A" for her efforts. Marketers would say that this scenario is a good example of __________, which is a relatively permanent change in behavior that is caused by observing the experience of another. - learning This form of learning occurs when a stimulus that elicits a known response is teamed up with a stimulus that initially does not elicit a response on its own. Over time, this second stimulus causes a comparable response because it is linked with the first stimulus. - classical conditioning In the 1970s, Kmart used blue light specials to encourage customers to flock to a particular department having a temporary sale. A spinning blue light activated for approximately 30 seconds, and then an in-store announcement informed shoppers of the special savings in the specific department. Over time, loyal Kmart shoppers learned to flock to the department with the spinning blue light before any announcement of special savings occurred. If Kmart was employing classical conditioning techniques, what role did the spinning blue light play? - conditioned stimulus People sometimes experience a form of stimulus generalization that causes them to purchase "me-too" store brand products packaged similarly to the national brand. We call this generalization (a/an) ____________. - halo effect Taylor and his young sons have a tradition of watching football together every Sunday. A commercial they used to think was funny now irritates them. What effect has taken place? - advertising wear-out Which term refers to an application of stimulus generalization when a product capitalizes on the reputation of its manufacturer's name? - family branding Prasana went to the supermarket to purchase a bag of coffee beans. She was in a hurry and quickly reached for the silver and brown package displaying a circular logo in green ink. When she got home to unpack the groceries, she realized that in her haste she hadn't seen the slight subtlety of packaging difference and had mistakenly picked up Starbucks brand coffee rather than Starbucks. This is a prime example of _______________. - consumer confusion Timmy wants to earn back his $10/week allowance, which he lost by failing to keep his room clean. His mother has given him a list of five tasks to complete. During the first week, Timmy made his bed every day. His mother gave him $2. As the weeks progressed, Timmy included more of the duties on his list and was awarded incrementally as he moved toward his goal. After six weeks, Timmy was completing all
Cracker Barrel offers a small country store in combination with a full restaurant. If you are looking for memories from the '50s, '60s, '70s, and '80s, their marketing team makes it easy to find beverages, foods, and toys with updated versions of brands from a prior historical period. Marketers would refer to these products as ____________. - retro brand Which term refers to consumers' powerful emotional reactions to songs or pictures they have not been exposed to in a long time? - spontaneous recovery The bittersweet emotion that arises when we view the past with both sadness and longing describes _______________. Marketers reference "the good old days" to help call up memories of youth and hope that these feelings will translate to what they're selling today. - nostalgia Marketing analysts have questioned whether existing measures accurately assess the various dimensions of an advertisement's memorability. For instance, a ______ can occur when a person forgets information or retains inaccurate memories. - memory lapse Marketers measure consumer memories about products and ads. For instance, some evidence indicates that we can more easily retrieve information about a _______ than we can for a follower brand because the first product's introduction is likely to be distinctive. - pioneer brand Which process occurs when a need arises that the consumer wants to satisfy? - Motivation ________ is a term used by marketers to describe a desire to achieve some functional or practical benefit, such as when a person chooses a green salad for lunch rather than a greasy hamburger for nutritional reasons. - Utilitarian Evidence suggests that _________ can lurk below the surface and cues in the environment can trigger a goal even when we don't recognize it. Marketers refer to this as incidental brand exposure. - motives Jessie invested extra time in completing her Consumer Behavior homework because Professor Green promised that those students that received an "A" on their homework would be exempt from the final exam. According to current studies of motivation discussed in this chapter, the above scenario would be an excellent example of ____________________. - expectancy theory Motives are goal-oriented and drive us to fulfill a particular need. For example, a basketball player who determines that they need a new pair of shoes to help reach the goal of being admired by other members of the team can pick among Nike LeBron Zoom Soldier 9, Vans Sk8-Hi Lite, Adidas Superstar, Converse high top, and numerous
other choices, each of which promises to deliver positive benefits. This is an example of ________. - motivational direction Luisa and Miguel have been working in the banking industry for more than 10 years. As their joint income has risen, they have begun to prefer spending their discretionary funds on additional experiences, as opposed to additional possessions. For instance, this year they chose to spend money on skydiving rather than replacing their outdated living room furniture. Psychological researchers are finding this approach to spending more and more prevalent among consumers and agree that this theory fits well with the study of _______ as an influence on consumers' choices. - hedonic consumption A goal has ________, which means that it can be positive or negative. If a consumer believes a goal is positive, then they will be motivated to seek products that will help them achieve that goal. - valence More than likely, you have faced a situation as a consumer where you liked two products equally but could only purchase one. For example, when Devon went shopping with her Mom, she was given $60 to buy a new outfit. She found two that she liked equally: a pair of jeans and shirt from Hollister and a dress from Macy's. However, each outfit cost nearly $60, so she had to pick just one. This scenario is a good example of __________. - approach-approach conflict Aisha, a recent college graduate with a degree in Business Administration, is preparing to move to North Carolina and open an Airbnb. Unfortunately, her current older model vehicle needs a lot of work before taking a long trip and she is faced with the choice of fixing the old car or buying a new one. Which of the following best describes this scenario? - Avoidance-avoidance conflict Some solutions to ________ conflicts include the proliferation of fake furs, which eliminate guilt about harming animals to make a fashion statement, and the success of diet programs like Weight Watchers, which promise good food with fewer calories. - approach-avoidance Henry Murray developed a basis for personality testing that assists modern psychologists in determining a person's true dominant needs, such as the need for achievement or affiliation. One such personality test, where subjects are shown pictures and asked questions about those pictures, is called _______. - Thematic Apperception Test (TAT) The model for L'Oreal cosmetics exclaims, "Because I'm worth it!" This is a marketer's attempt to try to help consumers overcome a(n) ________ conflict by convincing them that they deserve luxuries. - approach-avoidance This is the correct answer.
________ is a consumer's level of interest in a particular product. The more closely marketers can tie a brand to an individual, the higher their success will be in this marketing endeavor. - Product involvement As a rule, product decisions are likely to be highly involved if the consumer believes there is a great deal of ________. This means the person believes there might be negative consequences if he or she chooses the wrong option. - perceived risk Arlene needs a new vehicle and is planning to go to the Toyota dealership to buy a Camry or Avalon. Her last five vehicles have all been Toyotas and she has a strong positive attitude toward this make of car; she wants to continue purchasing the same brand. ________ describes repeat purchasing behavior that reflects a conscious decision to continue buying the same brand. - Brand loyalty Many factors affect a purchase. These include the consumer's ______________ (for example, his mood, time pressure, or disposition toward shopping). - antecedent state _______ is an important resource that often determines how much effort and search will go into a decision. - time In this chapter, the author created an excellent simile, comparing retailing and theatre: the "actors" are analogous to the "salespeople" and the "stage props" would represent the ___________. - store displays Due to the ease and competitive pricing of shopping in online or _________, marketers are becoming increasingly aware that brick and mortar shopping experiences (in a physical store) need to be more effective than ever before. - nonstore alternatives Many factors at the time of purchase dramatically influence the consumer's decision- making process. According to research discussed in this chapter, even the presence or absence of _______________________ can affect a consumer's decisions. - co- consumers According to current research revealed in this chapter, a number of factors, such as _______________, determine store image and can be likened to a brand personality. - perceived convenience, sophistication, and expertise of salespeople Research indicates that a store's layout provides strong influences on buyer behavior. In fact, we don't make many of our purchase decisions until we are actually in the store; therefore, ______________ are important sales tools. - POP stimuli According to market researchers, consumers worldwide make more than $2 trillion worth of purchases per year on e-commerce sites, and analysts are predicting that more and more of these transactions _____________. - will occur on a mobile device
Jessie is grocery shopping and while standing in the check-out line she sees a product display of a giant plastic M&M holding many colorful packages of M&Ms. She did not have this item on her grocery list, but she immediately has an urge for M&Ms, so she reaches in to add a few of the packages to her shopping cart. This is an example of ________________. - impulse buying Take a moment to think back on your last in-store purchase and what elements affected your buying decisions. Savvy marketers understand that the information provided by a store's layout, website, or salespeople will ______ influence a purchase decision. - strongly According to research, well-designed in-store displays can boost impulse purchases by as much as _______ percent. This explains why U.S. companies spend approximately $19 billion each year on point-of-purchase (POP) stimuli. - 10 The importance of POP in shopper decision making explains why product packages increasingly play a key role in the marketing mix as they evolve from the functional to the fantastic. Which of the following is not an example of POP? - Tatem Oats proudly displays tradition with the logo that Uncle Tate created 100 years ago. In the rapidly growing sharing economy, people ______ what they need rather than buy it. - rent A funny thing is happening when people buy products: they no longer want to buy them. Instead we're witnessing the rise of the ______________, or what is sometimes called ______________. - sharing economy; collaborative consumption All the following are examples of collaborative consumption except: - Chandler bought a new power saw at the local Stihl dealer. _________ is (are) what primarily fuels the collaborative consumption revolution. - Technology that lowers transactions costs Rather than buying a canoe for their upcoming camping trip, Jessie and Luke went online to KanukaCanoes.com to rent one. This is an example of the increasing move of millennials toward using (a) ________ rather than making a purchase. - sharing service Many people appreciate the intimacy of exchanging items with real people rather than getting them from big companies. That's one reason the notion of doing business with other consumers rather than with companies goes by the name ______________. - P2P commerce Our decisions about how to _______ a product are as important as how we decide to ______ it in the first place. - dispose of; obtain
how do they explain their brand? - Knowing who you are and acting like it Life is Good portrays a "triple bottom line". - true Bert's conversation with his partner was about creating optimism in the world is an example of - social marketing strategies What organization benefits from Life is Good's focus on social causes? - playmakers The fact that Plymouth Rock Assurance had to communicate a new message to customers who had already been ingrained with messages from their insurance companies represented what type of challenge? - proactive interference As Plymouth Rock Assurance merged three brands into one, what type of technique did it use to ensure that customers knew of the brand alteration? - repetition If Plymouth Rock Assurance had inundated customers with too many notices and advertisements of the new brand, what potential pitfall could it have fallen into? - extinction If Plymouth Rock Assurance had created its packaging, images and slogans to resemble the previous three brands it merged with to gain customer loyalty by association, what phenomenon would they be taking advantage of? - halo effect In the long run, what is Plymouth Rock Assurance looking to achieve? - brand equity What is essential to Progressive's success with independent agents as well as the direct channel? - Price competitiveness, strategic partners, and customer support Progressive strives to create a high level of _________ - customer experience What retail theme does Progressive utilize on their website? - Cyberspace theme One customer stated that the ability to rent a car while her car is getting repaired saves her time. This is an example of her time feeling like a __________? - pressure cooker Progressive was the first in the insurance industry to have __________. - an e- commerce website
