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Chapter 05
Final Consumers and Their Buying Behavior
True / False Questions
1. | The economic-buyer theory assumes that consumers know all the facts and logically compare choices.
True False |
2. | Most economists assume that consumers are economic buyers who logically evaluate choices to get the greatest satisfaction from spending their time and money.
True False |
3. | Economic needs include such things as self-respect, accomplishment, fun, freedom and relaxation.
True False |
4. | The economic buyer view of consumers says that individuals will only buy the cheapest goods and services availableregardless of quality.
True False |
5. | Economic needs are concerned only with getting the best quality at the lowest price.
True False |
6. | The median income of U.S. families in 2010 was about $49,445.
True False |
7. | In 2010, half of all American households earned more than $75,442.
True False |
8. | By 2010, after taking inflation into account, the median income in the U.S. declined by 7 percent in the previous decade.
True False |
9. | In 2010, 50 percent of U.S. families received less than $49,445 in income.
True False |
10. | Discretionary income is what is left after paying taxes.
True False |
11. | Discretionary income is the income from investments.
True False |
12. | Discretionary income is the income adjusted to take out the effects of inflation.
True False |
13. | Discretionary income is an elusive concept because the definition of necessities varies from family to family and over time.
True False |
14. | Most marketing managers think that the economic-buyer theory explains buyer behavior very well.
True False |
15. | According to the text, consumer buying decisions are influenced by economic needs, psychological variables, social influences, and the purchase situation.
True False |
16. | Motivation, perception, learning, attitudes, trust, and lifestyle are psychological variables which affect consumer buying.
True False |
17. | Family, social class, reference groups, and culture are the psychological variables that affect a consumers buying decisions.
True False |
18. | Wants are the basic forces that motivate a person to do something.
True False |
19. | Wants are needs which are learned during a persons life.
True False |
20. | A drive is a strong stimulus that encourages action to reduce a need.
True False |
21. | Food, liquid, sex, and rest are examples of physiological needs.
True False |
22. | Examples of personal needs include self-esteem, accomplishment, fun, freedom, and relaxation.
True False |
23. | The hierarchy of needs model suggests that most products must fill more than one need at the same time.
True False |
24. | According to the Hierarchy of Needs, consumers are motivated to first satisfy their higher-order needs, then they will focus on their lower-level needs.
True False |
25. | Motivation theory suggests that a consumer would not try to satisfy physiological and safety needs until social and personal needs have been completely satisfied.
True False |
26. | Motivation theory suggests that only one need can be satisfied at a time.
True False |
27. | Consumers do not usually see or hear all the stimuli that come their way.
True False |
28. | In selective exposure we screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
True False |
29. | Selective exposure refers to a persons ability to screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
True False |
30. | Learning is a change in a persons thought processes caused by prior experience.
True False |
31. | According to learning theory, a cue is likely to result in a consumer response only if there is a drive to satisfy.
True False |
32. | Reinforcement of a response decreases the likelihood of the same response the next time the drive occurs.
True False |
33. | Reinforcement strengthens the relationship between the cue and the response.
True False |
34. | Adding lemon scent to Pledge furniture polish is an example of using a positive cue.
True False |
35. | A perfume ad that suggests that people who use the product have more appeal to the opposite sex is an example of a positive cue.
True False |
36. | That new car smell that includes an aroma of leather and wood is an example of using a positive cue.
True False |
37. | Many needs are culturally (or socially) learned.
True False |
38. | Americans preoccupation with deodorants is an example of a culturally learned need.
True False |
39. | An attitude is a persons point of view about something, and usually involves liking or disliking.
True False |
40. | The main difference between attitudes and beliefs is that beliefs always involve liking or disliking, but attitudes dont necessarily involve liking or disliking.
True False |
41. | Beliefs are not as action-oriented as attitudes.
True False |
42. | Beliefs are more action-oriented than attitudes.
True False |
43. | Beliefs may help shape a consumers attitudes but dont necessarily involve any liking or disliking.
True False |
44. | A consumers belief about a product may have a positive or negative effect on his or her attitude about the product.
True False |
45. | Attitudes are very good predictors of intention to buy.
True False |
46. | It is easier for a marketer to work with existing attitudes than to try to change them.
True False |
47. | It is possible for marketing managers to change or create new attitudes about goods and servicesbut overcoming negative attitudes is a really tough job.
True False |
48. | An expectation is an outcome or event that a person anticipates or looks forward to.
True False |
49. | Consumers may evaluate a product not just on how well it performs but on how it performs relative to their expectations.
True False |
50. | In light of the relationships between consumer expectations and satisfaction, its usually best for promotion to slightly over promise what the firm can actually deliver.
True False |
51. | Trust is the confidence a person has in the promises or actions of another person, brand, or company.
True False |
52. | Highly trusted people, brands, and companies have many disadvantages in the marketplace.
True False |
53. | Activities, Interests and Opinions are the AIO variables used in lifestyle analysis.
True False |
54. | Attitudes, Income and Opinions are the AIO variables used in lifestyle analysis.
True False |
55. | Psychographics is the analysis of a persons day-to-day pattern of living as expressed in that persons Activities, Interests, and Opinions.
True False |
56. | The VALS approach to understanding consumer behavior considers values, attitudes, and lifestyles.
True False |
57. | Marital status, age, and the age of any children in a household are the three demographic dimensions that determine stage of family life cycle.
True False |
58. | In international marketing, its important to rely on intuition and to generalize the cultural influences on consumer behavior from one country to another.
True False |
59. | Its hazardous to rely on intuition in generalizing about cultural influences on consumer behavior from one country to another.
True False |
60. | Stage of family life cycle is usually determined by two demographic dimensionsincome and number of children.
True False |
61. | Singles and young couples seem less willing to try new products because they earn less.
True False |
62. | Younger families with no children are a good market for durable goods such as automobiles and furniture.
True False |
63. | Older people seem to be more open to new products and brands than younger people.
True False |
64. | Families with teenagers tend to spend more on durables than younger families.
True False |
65. | Teens play an increasingly minor role in shaping family purchases.
True False |
66. | Empty nesters are people whose children are grown and who are now able to spend their money in other ways.
True False |
67. | Empty nesters is a term that refers to young couples with no children.
True False |
68. | Consumer buying decisions are affected by social influences such as motivation, perception, learning, attitudes, and personality.
True False |
69. | Buying responsibility and purchase influence between husband and wife vary greatlydepending on the product and the specific family.
True False |
70. | Income by itself is usually a pretty good measure of social class.
True False |
71. | According to the text, the U.S. social class system is much more rigid than those in most countries.
True False |
72. | According to the text, the U.S. social class system is usually measured in terms of occupation, education, and housing arrangements.
True False |
73. | People who have the same amount of incomebut who are in different social classestend to spend their income in the same way.
True False |
74. | Given the same income, consumers in different social classes will handle themselves and their money very differently.
True False |
75. | The group of people to whom an individual looks when forming attitudes about a particular topic is his reference group for that topic.
True False |
76. | A person normally has several reference groups.
True False |
77. | Reference group influence is likely to be greater for products which will not be seen by other individuals.
True False |
78. | Reference groups are more important when others will be able to see which product or brand were using.
True False |
79. | An opinion leader is usually wealthier and better educated than the people he or she influences.
True False |
80. | Opinion leaders for one subject or product are also usually opinion leaders for many other subjects or products.
True False |
81. | Word-of-mouth publicity from opinion leaders can be favorable or unfavorable.
True False |
82. | Marketers who want to aim at people within several different cultures usually will be able to use the same marketing mix for all of them.
True False |
83. | In the U.S., ethnic submarkets are growing at a faster rate than the overall population.
True False |
84. | Both the birthrate and the buying power of ethnic groups in the U.S. are increasing.
True False |
85. | In ethnic markets within the U.S., the median age is higher and the birthrate is lower than the overall population.
True False |
86. | Hispanic Americans are now the largest and fastest-growing ethnic group in the U.S.
True False |
87. | Asian Americans are the largest and fastest-growing ethnic group in the United States.
True False |
88. | Of all the major ethnic groups in the U.S., Asian Americans have the highest median family income.
True False |
89. | African Americans have the highest median family income of the major ethnic groups.
True False |
90. | The buying power of Hispanics and African Americans exceeds $1 trillion a year.
True False |
91. | Planning for cultural differences in international markets is easier than in domestic markets.
True False |
92. | The reaction of Italian women to Swiffer is an example of cultural influence.
True False |
93. | Needs, benefits sought, attitudes, motivation, and even how a consumer selects certain products all vary depending on the purchasing situation.
True False |
94. | Different purchase situations may require different marketing mixes, even though the same target market is involved.
True False |
95. | The consumer decision process begins when a consumer becomes aware of an unmet need.
True False |
96. | As part of the basic problem-solving steps, a consumer searches for information, identifies alternatives and what factors are important, and then evaluates one or more products before deciding how best to meet a need.
True False |
97. | How much effort is put into a buying decision depends on the economic needs, psychological variables, social influences, purchase situation, and the amount of risk involved.
True False |
98. | Consumers use extensive problem solving when they put SOME effort into deciding how to satisfy a need.
True False |
99. | Consumers use limited problem solving when they put MUCH effort into deciding how to satisfy a need.
True False |
100. | Limited problem solving is used by consumers when some effort is required in deciding the best way to satisfy a need.
True False |
101. | A consumer interested in making a low involvement purchase is most likely to use limited problem solvingrather than one of the other levels of problem solving.
True False |
102. | Limited problem solving is used when the consumer has a lot of experience in meeting a need and has no need for additional information.
True False |
103. | Routinized response behavior is typical for low-involvement purchases.
True False |
104. | Finding her favorite brand of shampoo temporarily out of stock, a supermarket shopper is more likely to take part in routinized response behavior than limited problem solving.
True False |
105. | The idea of a decision process implies that consumers always apply rational processes in their buying decisions.
True False |
106. | Dissonance takes place when an individual is NOT confident about the rightness of a decision.
True False |
107. | After making a purchase, buyers often wonder if they made the right choice. The resulting tension is called dissonance.
True False |
108. | The power of negative purchase experiences is greater than that of positive experiences.
True False |
109. | The adoption process refers to the steps individuals go through on the way to accepting or rejecting a new idea.
True False |
110. | The steps in the adoption process are awareness, interest, evaluation, trial, decision, and confirmation.
True False |
111. | In the evaluation stage of the adoption process, a consumer begins to give the product a mental trial, applying it to his or her personal situation.
True False |
112. | In the confirmation stage of the adoption process, the adopter continues to rethink the decision and searches for support for the decision.
True False |
113. | In the adoption process, the confirmation step usually precedes the decision step.
True False |
Multiple Choice Questions
114. | Which of the following would be most helpful for predicting why a final consumer selects one of several similar brands?
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115. | Which of the following is not a need that affects the buying behavior of economic buyers?
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116. | Discretionary income is the portion of a persons income that pays for:
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117. | The appeal that has the most relevance to an economic buyer is:
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118. | An economic buyer is a person who
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119. | An economic buyer is a person who:
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120. | Economists economic-buyer theory assumes that:
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121. | _____ are concerned with making the best use of a consumers time and moneyas the consumer judges it.
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122. | Which of the following is an economic need?
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123. | Which of the following is NOT an economic need?
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124. | Which of the following is NOT an economic need of consumers?
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125. | At Home Depot, a customer can purchase a gallon of one-coat paint that contains the ingredients for both a primer and a color. What is the primary economic need being satisfied by this type of paint?
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126. | A magazine ad for GEICO car insurance shows the GEICO gecko lying down while the copy reads, Dont take high car insurance rates lying down. What primary economic need is being satisfied in this magazine ad?
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127. | An application for the iPhone that includes voice directions for a built-in GPS system can be helpful in finding a motel that is off the beaten track. What is the primary economic need being satisfied by this app?
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128. | In a television commercial for Maytag appliances, the spokesperson Old Lonely acts bored because no one is calling him to schedule a repair of their appliances. What is the primary economic need being illustrated in this TV ad?
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129. | A busy mom stops at a 7-Eleven store on the way home from work to purchase some bread, milk, and ice cream. What primary economic need is being satisfied by the 7-Eleven?
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130. | The economists view of buyers
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131. | The percentage of U.S. families with incomes above $49,445 in 2010 was:
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132. | The median family income in the U.S. in 2010 was about:
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133. | Discretionary income is defined as:
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134. | Discretionary income:
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135. | The amount of income a family has left after paying taxes and paying for its necessities is called its ______________ income.
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136. | What is left of income after paying for taxes and paying for necessities?
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137. | Misty Hancock is a sales rep for a computer producer. Her salary last year was $30,000, and she earned another $5,000 in sales commissions. She paid $6,000 in taxes, and spent $8,000 on food, housing, a car, and other necessities. What is Mistys discretionary income?
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138. | A young working couple earned $55,000 last year. They paid $16,000 in taxes and $20,000 in rent, food, insurance and other necessities. What was their discretionary income for the year?
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139. | A young working couple earned $35,000 last year, and paid $10,000 in taxes. They spent $13,000 on rent, food, insurance, and other necessities. What is their discretionary income?
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140. | Keith McPherson earned $20,000 last year as a carpenter. He paid $6,000 for food, rent, medical expenses and other necessities. There was little construction work in February, so he took a trip to the Caribbean and spent $4,000. What was Keiths discretionary income last year?
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141. | As the owner of a womens clothing store, Caroline Lipscomb has an income of $75,000. She pays $30,000 per year in taxes and another $17,000 per year in grocery bills, house mortgage, and car payment. Last year she went to Italy and spent an additional $4,000. What was Carolines discretionary income last year?
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142. | A young working couple earned $50,000 last year. Of that, they paid $16,000 in taxes and $15,000 in rent, food, insurance and other necessities. Their discretionary income for the year was:
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143. | Ginny Paulson was just promoted to marketing manager for her company. She also gets a big raise with the promotion. Because Ginnys discretionary income will increase, which of the following products is MOST likely to benefit?
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144. | As the owner of a Bluetooth specialties store, Alicia Fountainbleau has an income of $72,000. She pays $30,000 per year in taxes and another $22,000 per year in grocery bills, house mortgage, and car payment. Last year she spent an additional $4,000 on a two-week vacation at a Club Med in Rio de Janeiro. What was Alicias discretionary income last year?
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145. | Bart Thunderheart has an annual income of $75,000 a year. He pays $25,000 in taxes, and spends another $15,000 on his home, car, food, and other necessities. Last year, he decided to really enjoy his annual vacation, so he spent $5,000 to go skiing in Austria. What was Barts discretionary income last year?
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146. | Manuel Acala is a marketing analyst, but made only $28,000 last year because he was employed only part of the year. He paid $5,000 in taxes, and spent another $10,000 for food, housing, a car, and other necessities. Manuels discretionary income was:
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147. | Kira Johannsons salary as a sales rep was reduced to $32,000 last year, but she earned an additional $10,000 in sales commissions. Her tax bill was $14,000 and bills covering other necessities such as food, housing, and transportation amounted to $11,000. Kiras discretionary income last year was:
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148. | Alberto Romez earned $100,000 last year as a Mercedes sales rep. He paid $10,000 in taxes, and another $25,000 on food, housing and other necessities. Albertos discretionary income was _________________.
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149. | According to the text, the economic-buyer theory
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150. | The economic-buyer model:
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151. | ADT commercials that advertise the value of having a home burglar alarm system appeals to consumers:
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152. | Firms most likely to attract consumers by making an appeal to social needs are:
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153. | Many consumers mentally block out marketing messages that do not interest them. This phenomenon is part of a persons _____.
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154. | Marketers cannot assume that a product that meets consumer needs in one country will do so in another. This is because:
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155. | ____ is one of the psychological variables that affects a persons buying behavior.
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156. | Which of the following is NOT a psychological variable?
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157. | Which of the following is NOT a psychological variable?
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158. | Regarding consumer motivation, the text states that:
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159. | What are the basic forces that motivate a person to do something?
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160. | Wants
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