Marketing quốc tế 6 analyzing customer market

Marketing Management, 14e (Kotler/Keller) Chapter Analyzing Consumer Markets 1) is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants A) Target marketing B) Mind mapping C) Consumer activism D) Consumer behavior E) Product differentiation Answer: D Page Ref: 151 Objective: Difficulty: Easy 2) Which of the following would be the best illustration of a subculture? A) a religion B) a group of close friends C) your university D) a fraternity or sorority E) your occupation Answer: A Page Ref: 153 Objective: AACSB: Multicultural diversity Difficulty: Moderate 3) The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior constitute A) a culture B) a subculture C) a social class D) a family E) a group Answer: C Page Ref: 153 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 4) A person's consist(s) of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior A) subculture B) family C) social class D) reference groups E) social networks Answer: D Page Ref: 153 Objective: Difficulty: Easy 5) A(n) group is one whose values or behavior an individual rejects A) aspirational B) disassociative C) membership D) primary E) procreational Answer: B Page Ref: 153 Objective: Difficulty: Easy 6) Joe is a computer service technician People in his neighborhood usually depend on his suggestions for purchasing any computer accessory or hardware, as they believe that he has access to far more information on computer technology than the average consumer The neighbors are also aware that Joe has the required knowledge and background for understanding the technical properties of the products Within this context, Joe can be called a(n) A) transactional leader B) opinion leader C) role model D) gate-keeper E) international marketer Answer: B Page Ref: 153 Objective: AACSB: Analytic skills Difficulty: Moderate Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 7) For a high-school student, Tim is highly concerned about environmental issues He is a strong supporter of the garbage recycling and afforestation campaigns taken up by the environmental activists in his neighborhood He wants to become a full time volunteer for their upcoming wildlife protection program and has even saved money to contribute to the cause This group of environmental activists can be categorized under which of the following reference groups? A) primary group B) secondary group C) aspirational group D) dissociative group E) cognitive group Answer: C Page Ref: 153 Objective: AACSB: Analytic skills Difficulty: Moderate 8) Jason writes a weekly column in his school's newspaper about movies he has seen, books he has read, and concerts he has attended His column provides information and opinions Feedback from his fellow students is positive, and they are appreciative of the advice that is given Which of the following would be the most apt description of the role played by Jason? A) silent majority B) protestor C) protector D) adapter E) opinion leader Answer: E Page Ref: 153 Objective: AACSB: Analytic skills Difficulty: Moderate 9) Social classes differ in media preferences, with upper-class consumers often preferring and lower-class consumers often preferring television A) movies B) radio C) video or computer games D) magazines and books E) music downloads Answer: D Page Ref: 153 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 10) If a direct-mail marketer wished to direct promotional efforts toward the family of , efforts need to be directed toward parents and siblings of the family members A) orientation B) procreation C) immediacy D) intimacy E) reference Answer: A Page Ref: 154 Objective: Difficulty: Moderate 11) The family in a buyers life consisting of parents and siblings is the A) family of procreation B) family of influence C) family of efficiency D) family of orientation E) purchasing family Answer: D Page Ref: 154 Objective: Difficulty: Easy 12) When Gary was a high school student, he enjoyed rock music and regularly purchased hip clothing sported by his favorite rock band However, five years later, when Gary became an accountant, his preference shifted toward formal clothing Which of the following personal characteristics is likely to have had the most influence on Gary's preferences during his high school days? A) education B) age C) income D) gender E) physiological needs Answer: B Page Ref: 155 Objective: AACSB: Analytic skills Difficulty: Moderate Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 13) Marriage, childbirth, and divorce constitute the that shape the consumption pattern of individuals A) psychological life cycle B) product life cycle C) social status D) postpuberty cycles E) critical life events Answer: E Page Ref: 156 Objective: Difficulty: Moderate 14) Identify an economic circumstance that can greatly affect any product or brand choice A) retirement B) values C) lifestyle D) borrowing power E) relocation Answer: D Page Ref: 156 Objective: Difficulty: Easy 15) refers to a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli A) Image B) Personality C) Psychological transformation D) Lifestyle E) Acculturation Answer: B Page Ref: 156 Objective: Difficulty: Easy 16) Brand personality analysts identified the popular music channel MTV as daring, spirited, and highly imaginative As per Jennifer Aaker's research, which of the following brand personality traits best suits MTV? A) excitement B) sincerity C) competence D) ruggedness E) sophistication Answer: A Page Ref: 157 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 17) The Marlboro Man was depicted in the advertisements of Marlboro cigarettes as a rugged outdoor, tough cowboy type This was done to establish what is called A) trademarking B) a brand name C) a brand personality D) co-branding E) a brand reference Answer: C Page Ref: 157 Objective: AACSB: Analytic skills Difficulty: Moderate 18) Consumers often choose and use brands that have a brand personality consistent with how they see themselves, also known as the A) actual self-concept B) ideal self-concept C) others' self-concept D) prohibitive self-concept E) suggestive self-concept Answer: A Page Ref: 157 Objective: AACSB: Analytic skills Difficulty: Moderate 19) Consumers often choose and use brands that have a brand personality consistent with how they think others view them, also known as the A) actual self-concept B) others' self-concept C) ideal self-concept D) dual self-concept E) perceptual self-concept Answer: B Page Ref: 157 Objective: Difficulty: Moderate Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 20) Consumers who are highly sensitive to how others see them and who choose brands whose personalities fit the consumption situation are called A) change agents B) self motivators C) self monitors D) self adapters E) opinion leaders Answer: C Page Ref: 157 Objective: Difficulty: Moderate 21) Within the context of Jennifer Aaker's analysis, identify the brand personality that can be associated with a new product whose promotional messages consistently portray it as being reliable, intelligent, and successful A) sincerity B) excitement C) competence D) sophistication E) ruggedness Answer: C Page Ref: 157 Objective: Difficulty: Moderate 22) Ford motors, uses the ad caption "Magnify the Adventure" to promote its latest SUV, the Ford Endeavour The ad features the car traveling through an uneven, rocky terrain Within the context of Jennifer Aaker's brand personality analysis, Ford Endeavour is most likely to be strong on which of the following traits? A) sincerity B) intelligence C) imagination D) sophistication E) ruggedness Answer: E Page Ref: 157 Objective: AACSB: Analytic skills Difficulty: Moderate Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 23) portrays the "whole person" interacting with his or her environment A) Attitude B) Personality C) Lifestyle D) Self-concept E) Subculture Answer: C Page Ref: 157 Objective: Difficulty: Easy 24) Consumers who worry about the environment and want products to be produced in a sustainable way have been named A) "Green" B) "Tree Huggers" C) "LOHAS" D) "Socialists" E) "Mamas" Answer: C Page Ref: 158 Objective: Difficulty: Easy 25) IKEA has achieved global recognition by offering consumers leading-edge Scandinavian furniture at affordable prices IKEA is delivering value to consumers who are A) money constrained B) time constrained C) brand constrained D) value constrained E) self-concept constrained Answer: A Page Ref: 158 Objective: AACSB: Analytic skills Difficulty: Moderate 26) Marketers who target consumers on the basis of their believe that they can influence purchase behavior by appealing to people's inner selves A) time famine B) sophistication C) money constrain D) social class E) core values Answer: E Page Ref: 159 Objective: Difficulty: Moderate Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 27) The starting point for understanding consumer behavior is the model in which marketing and environmental stimuli enter the consumer's consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions A) self-reliance B) self-perception C) psychogenic D) stimulus-response E) projective Answer: D Page Ref: 160 Objective: Difficulty: Moderate 28) assumed that the psychological forces shaping people's behavior are largely unconscious, and that a person cannot fully understand his or her own motivations A) Abraham Maslow B) Frederick Herzberg C) Sigmund Freud D) John Cacioppo E) Karl Marx Answer: C Page Ref: 160 Objective: Difficulty: Easy 29) Which of the following techniques was suggested by Freud to trace a person's motivations from the stated instrumental ones to the more terminal ones? A) laddering B) word association C) role playing D) casting E) selective attention Answer: A Page Ref: 160 Objective: Difficulty: Easy Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 30) Which of the following theories developed by Frederick Herzberg distinguishes dissatisfiers from satisfiers? A) trait-role theory B) psychological constraint theory C) probability theory D) leadership model E) two-factor theory Answer: E Page Ref: 161 Objective: Difficulty: Moderate 31) At the top of Maslow's hierarchy of needs (shown as a pyramid in the text) are needs A) esteem B) self-actualization C) social D) safety E) physiological Answer: B Page Ref: 161 Objective: Difficulty: Easy 32) is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world A) Consumption B) Perception C) Acculturation D) Assimilation E) Cognitive dissonance Answer: B Page Ref: 161-162 Objective: Difficulty: Moderate 33) can work to the advantage of marketers with strong brands when consumers make neutral or ambiguous brand information more positive A) Selective attention B) Selective distortion C) Selective retention D) Selective choice E) Selective embellishment Answer: B Page Ref: 162 Objective: Difficulty: Moderate 10 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 73) With the , predictions of usage are based on quickness and ease of use A) availability heuristic B) representative heuristic C) anchoring heuristic D) adjustment heuristic E) semantic heuristic Answer: A Page Ref: 174-175 Objective: Difficulty: Moderate 74) A consumer tells another consumer, "Every time I eat at Big Bill's Steakhouse, I get poor service." Whether this is true or not, it is the consumer's perception This is an example of consumers basing future predictions on the quickness and ease with which a particular example of an outcome comes to mind This scenario would be an illustration of the heuristic A) discrimination B) differentiation C) availability D) screening E) representativeness Answer: C Page Ref: 174-175 Objective: AACSB: Analytic skills Difficulty: Difficult 75) Ben always reaches for the bright blue and yellow box of Ritz crackers when he visits the snack food aisle in the grocery store He rarely even reads the box or checks the price Which of the following heuristics is most likely being used by Ben? A) Availability B) Representative C) Anchoring D) Adjustment E) Semantic Answer: B Page Ref: 175 Objective: AACSB: Analytic skills Difficulty: Difficult 23 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 76) refers to the manner in which consumers code, categorize, and evaluate financial outcomes of choices A) Cost accounting B) Financial accounting C) Behavioral accounting D) Mental accounting E) Factual accounting Answer: D Page Ref: 176 Objective: Difficulty: Easy 77) Social class is the fundamental determinant of a person's wants and behavior Answer: FALSE Page Ref: 151 Objective: Difficulty: Easy 78) An example of a subculture would be a person's geographic region Answer: TRUE Page Ref: 153 Objective: Difficulty: Easy 79) Groups that have an indirect influence on a person's attitude or behavior can be a part of his/her reference groups Answer: TRUE Page Ref: 153 Objective: Difficulty: Moderate 80) Members within a social class tend to behave more alike compared to members from two different social classes Answer: TRUE Page Ref: 153 Objective: Difficulty: Easy 81) Secondary groups require continuous interaction to be effective and meaningful Answer: FALSE Page Ref: 153 Objective: Difficulty: Moderate 24 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 82) When Mark went to college he had a burning desire to join a social fraternity; for Mark, the fraternity would be a dissociative group Answer: FALSE Page Ref: 153 Objective: AACSB: Analytic skills Difficulty: Moderate 83) A person's position in a group is defined in terms of role and status Answer: TRUE Page Ref: 154 Objective: Difficulty: Moderate 84) Marketers need to be aware of the status-symbol potential of brands because people usually choose products which reflect their role and their actual or desired status in a society Answer: TRUE Page Ref: 155 Objective: Difficulty: Easy 85) The behavior people exhibit as they pass through certain life-cycle stages, such as becoming a parent, is largely fixed and does not change over time Answer: FALSE Page Ref: 155 Objective: Difficulty: Moderate 86) For an employee at an organization, annual appraisal can be considered as a critical life event that impacts his/her consumption behavior Answer: FALSE Page Ref: 156 Objective: AACSB: Analytic skills Difficulty: Easy 87) Whereas economic circumstances can have a profound effect on consumption, occupation does not impact how people spend their money and what they buy Answer: FALSE Page Ref: 156 Objective: Difficulty: Easy 25 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 88) According to the research conducted by Jennifer Aaker, one of the five traits of a product's brand personality is its physical structure Answer: FALSE Page Ref: 157 Objective: AACSB: Analytic skills Difficulty: Moderate 89) Brand personality is the specific mix of human traits that may be attributed to a particular brand Answer: TRUE Page Ref: 157 Objective: Difficulty: Easy 90) The five brand personality traits identified by Jennifer Aaker are consistently observed regardless of nationality or culture Answer: FALSE Page Ref: 157 Objective: AACSB: Multicultural diversity Difficulty: Moderate 91) A person's personality portrays the "whole person" interacting with his or her environment Answer: FALSE Page Ref: 157 Objective: Difficulty: Easy 92) Consumers who experience money constraints are prone to multitasking Answer: FALSE Page Ref: 158 Objective: Difficulty: Moderate 93) Psychogenic needs arise from the physiological states of tension such as hunger or discomfort Answer: FALSE Page Ref: 160 Objective: Difficulty: Moderate 26 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 94) Sigmund Freud assumed that the psychological forces shaping people's behavior are largely unconscious, and that people cannot fully understand their motivations Answer: TRUE Page Ref: 160 Objective: Difficulty: Easy 95) According to Maslow's hierarchy of needs model, recognition, self-esteem, and status would constitute a person's social needs Answer: FALSE Page Ref: 161 Objective: Difficulty: Moderate 96) According to Herzberg's two-factor theory, satisfiers will make the major difference as to which brand the customer buys Answer: TRUE Page Ref: 161 Objective: Difficulty: Moderate 97) Perception depends only on the physical stimuli experienced by the person Answer: FALSE Page Ref: 162 Objective: Difficulty: Moderate 98) People are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli Answer: TRUE Page Ref: 162 Objective: Difficulty: Moderate 99) Selective attention is the tendency to interpret information in a way that will fit our preconceptions Answer: FALSE Page Ref: 162 Objective: Difficulty: Moderate 100) Selective retention works to the advantage of strong brands Answer: TRUE Page Ref: 162 Objective: Difficulty: Easy 27 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 101) Because of selective retention, we are likely to forget about the good points of competing products Answer: TRUE Page Ref: 162 Objective: Difficulty: Moderate 102) Consistent with the elaboration memory model, consumer brand knowledge in memory can be conceptualized as consisting of a brand node in memory with a variety of linked associations Answer: FALSE Page Ref: 163 Objective: Difficulty: Moderate 103) Brand associations consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand node Answer: TRUE Page Ref: 164 Objective: Difficulty: Easy 104) Memory is a very constructive process This means people not remember information and events completely and accurately and often remember only bits and pieces that they fill in based on whatever else they know Answer: TRUE Page Ref: 165 Objective: Difficulty: Moderate 105) Every consumer has to pass through all five stages of the buying process when in a buying situation Answer: FALSE Page Ref: 166 Objective: Difficulty: Moderate 106) The buying process starts when the buyer decides to or actually enters a store or service provider's facility Answer: FALSE Page Ref: 167 Objective: Difficulty: Moderate 28 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 107) A belief is a person's enduring favorable or unfavorable evaluation, emotional feeling, and action tendency toward some object or idea Answer: FALSE Page Ref: 168 Objective: Difficulty: Moderate 108) The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs according to importance Answer: TRUE Page Ref: 169 Objective: Difficulty: Moderate 109) If a company finds that a consumer has chosen a competitive product over their company's offering, one way to get the consumer back could be by developing a strategy wherein the company "shifts the buyer's ideals" on one or more levels Answer: TRUE Page Ref: 170 Objective: AACSB: Analytic skills Difficulty: Difficult 110) With noncompensatory models of consumer choice, positive and negative attribute considerations usually net out Answer: FALSE Page Ref: 170 Objective: Difficulty: Moderate 111) Volvo has the reputation for being one of the most "safe" cars on the road For those that value safety, Volvo would be the logical choice This is an example of the lexicographic heuristic of consumer choice Answer: TRUE Page Ref: 170 Objective: AACSB: Analytic skills Difficulty: Moderate 112) When consumers evaluate the risks associated with a purchase, only real risks with a high likelihood of occurrence should be considered Answer: FALSE Page Ref: 171 Objective: Difficulty: Moderate 29 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 113) Psychological risk refers to the threat posed by a product to the physical well-being of a consumer Answer: FALSE Page Ref: 171 Objective: Difficulty: Moderate 114) With respect to a consumer buying situation that involves variety-seeking behavior, the market leader generally encourages variety seeking by offering lower prices or deals Answer: FALSE Page Ref: 174 Objective: Difficulty: Moderate 115) Anchoring heuristic comes in to play when consumers base their predictions on the quickness and ease with which a particular example of an outcome comes to mind Answer: FALSE Page Ref: 176 Objective: AACSB: Analytic skills Difficulty: Moderate 116) The prospect theory maintains that consumers frame decision alternatives in terms of gains and losses according to a value function Answer: TRUE Page Ref: 177 Objective: Difficulty: Moderate 117) Explain the differences between culture, subculture, and social class Answer: Culture is the fundamental determinant of a person's wants and behavior Subcultures provide more specific identification and socialization of their members Subcultures include nationalities, religions, racial groups, and geographic regions Social class is a relatively homogeneous and enduring division in a society, that are hierarchically ordered and whose members share similar values, interests, and behaviors Page Ref: 151-153 Objective: Difficulty: Easy 30 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 118) What is a reference group? Describe three different types of reference groups that can have an impact on a consumer's purchasing behavior Answer: Reference groups consist of all the groups that have a direct (face-to-face) or indirect influence on attitudes or behavior Types of reference groups that can impact a consumer's purchasing behavior include membership groups, primary groups, secondary groups, aspirational groups, and disassociative groups Membership groups are the groups which have a direct influence on the person Primary groups are the groups with whom the person interacts fairly continuously and informally, such as family, friends, neighbors, and coworkers Secondary groups tend to be more formal and require less continuous interaction Aspirational groups are those a person hopes to join; and dissociative groups are those whose values or behavior an individual rejects Page Ref: 154 Objective: Difficulty: Moderate 119) The family is the most important consumer buying organization in society, and family members constitute the most influential primary reference group We can distinguish between two family categorization in the buyer's life Name the two families and their impact on buying behavior Answer: The family of orientation consists of parents and siblings From parents a person acquires an orientation toward religion, politics, and economics and a sense of personal ambition, self-worth, and love Even if the buyer no longer interacts very much with his or her parents, their influence on behavior can be significant A more direct influence on everyday buying behavior is the family of procreation—namely, one's spouse and children Page Ref: 154 Objective: Difficulty: Moderate 120) Each person has personality characteristics that influence his or her buying behavior What does personality mean in terms of buying traits? Answer: Personality is often described in terms of such buying traits as self-confidence, dominance, autonomy, deference, sociability, defensiveness, and adaptability Personality can be a useful variable in analyzing consumer brand choices The idea is that brands also have personalities, and consumers are likely to choose brands whose personalities match their own Page Ref: 156-157 Objective: Difficulty: Moderate 31 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 121) People from the same subculture, social class, and occupation may lead quite different lifestyles A lifestyle is a person's pattern of living in the world as expressed in activities, interests, and opinions Lifestyle portrays the "whole person" interacting with his or her environment Given this information, describe the LOHAS (an acronym) lifestyle described in the text and its usefulness in marketing Answer: Consumers who worry about the environment, want products to be produced in a sustainable way, and spend money to advance their personal development and potential have been named "LOHAS." The name is an acronym standing for lifestyles of health and sustainability The market for LOHAS products encompasses things such as organic foods, energy-efficient appliances, and solar panels as well as alternative medicine, yoga tapes, and ecotourism Page Ref: 158 Objective: AACSB: Analytic skills Difficulty: Difficult 122) Frederick Herzberg developed a two-factor theory that distinguishes dissatisfiers and satisfiers How does Herzberg's theory affect sellers' marketing strategy? Answer: Herzberg's theory has two implications First, sellers should their best to avoid dissatisfiers (for example, a poor training manual or a poor service policy) Although these things will not sell a product, they might easily unsell it Second, the seller should identify the major satisfiers or motivators of purchase in the market and then supply them These satisfiers will make the major difference as to which brand the customer buys Page Ref: 161 Objective: Difficulty: Moderate 123) People can emerge with different perceptions of the same object because of three perceptual processes List and briefly characterize these processes Answer: The three processes are selective attention, selective distortion, and selective retention Selective attention occurs because a person cannot possibly attend to all the stimuli that he or she is exposed to during an average day Some will be screened out Selective distortion is the tendency to interpret information in a way that will fit our perceptions Selective retention occurs because people will fail to register much information to which they are exposed in memory, but will tend to retain information that supports their attitudes and beliefs Page Ref: 162 Objective: Difficulty: Difficult 124) Explain the concept of selective retention and its association with marketing Answer: Selective retention says that consumers are likely to remember good points about a product we like and forget good points about competing products Selective retention works to the advantage of strong brands It also means that marketers need to use repetition in sending messages to their target markets to make sure their message is not overlooked Page Ref: 162 Objective: Difficulty: Moderate 32 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 125) Identify three types of risk consumers might perceive in the context of purchasing a car Answer: Consumers might perceive physical risk (an unsafe car poses a safety risk to the physical well-being of the driver and passengers), a financial risk (the car might be overpriced or may decline in value so rapidly that it will have minimal resale value when the consumer tries to resell it), and a functional risk (the car may not perform to the expectations of the consumer) Students may identify other risks, including social, psychological, and time risks Page Ref: 171 Objective: AACSB: Analytic skills Difficulty: Moderate 126) What is mental accounting? What, according to Thaler, are the core principles on which mental accounting is based? Explain with examples Answer: Mental accounting refers to the way consumers code, categorize, and evaluate financial outcomes of choices Formally, it is "the tendency to categorize funds or items of value even though there is no logical basis for the categorization, e.g., individuals often segregate their savings into separate accounts to meet different goals even though funds from any of the accounts can be applied to any of the goals." According to Chicago's Thaler, mental accounting is based on a set of core principles: Consumers tend to segregate gains When a seller has a product with more than one positive dimension, it's desirable to have the consumer evaluate each dimension separately Listing multiple benefits of a large industrial product, for example, can make the sum of the parts seem greater than the whole Consumers tend to integrate losses Marketers have a distinct advantage in selling something if its cost can be added to another large purchase House buyers are more inclined to view additional expenditures favorably given the high price of buying a house Consumers tend to integrate smaller losses with larger gains The "cancellation" principle might explain why withholding taxes from monthly paychecks is less aversive than large, lumpsum tax payments—the smaller withholdings are more likely to be absorbed by the larger pay amount Consumers tend to segregate small gains from large losses The "silver lining" principle might explain the popularity of rebates on big-ticket purchases such as cars Page Ref: 176-177 Objective: Difficulty: Moderate 127) Culture is the fundamental determinant of a person's wants and behavior The growing child acquires a set of values, perceptions, preferences, and behaviors through his or her family and other key institutions What values are typical American young children exposed to? Answer: According to the text, a child growing up in the United States is exposed to values such as achievement and success, activity, efficiency and practicality, progress, material comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness Page Ref: 151-153 Objective: Difficulty: Easy 33 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 128) An opinion leader is the person in informal, product-related communications who offers advice or information about a specific product or product category, such as which of several brands is best or how a particular product may be used According to the text, how marketers try to reach opinion leaders? Answer: Marketers try to reach opinion leaders by identifying demographic and psychographic characteristics associated with opinion leadership, identifying the media read by opinion leaders, and directing messages at opinion leaders Page Ref: 153 Objective: Difficulty: Moderate 129) Explain the differences between a role and status Answer: A role consists of the activities a person is expected to perform Each role carries a status For example, a senior vice-president has more status than a sales manager Page Ref: 154-155 Objective: Difficulty: Easy 130) Mention the personal factors that can influence the decision of a buyer Answer: Personal characteristics that influence a buyer's decision include age and stage in the life cycle, occupation and economic circumstances, personality and self-concept, and lifestyle and values Because many of these have a direct impact on consumer behavior, it is important for marketers to follow them closely Page Ref: 155 Objective: Difficulty: Moderate 131) What is brand personality and what are the five traits that has been linked to it? Answer: Brand personality is the specific mix of human traits that may be attributed to a particular brand Traits that have been associated with brand personality are sincerity, excitement, competence, sophistication, and ruggedness Page Ref: 157 Objective: Difficulty: Easy 132) Briefly explain Freud's theory on human motivation and explain how this might be related to marketing Answer: Sigmund Freud assumed that the psychological forces shaping people's behavior are largely unconscious, and that a person cannot fully understand his or her own stated capabilities When a person examines specific brands, he or she will react not only to their stated capabilities, but also to other, less conscious cues Page Ref: 160 Objective: Difficulty: Moderate 34 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 133) Within the context of the Freudian theory, explain how the laddering technique can be used Answer: Shape, size, weight, material, color, and brand name can all trigger certain associations and emotions A technique called laddering can be used to trace a person's motivations from the stated instrumental ones to the more terminal ones Then the marketer can decide at what level to develop the message and appeal Page Ref: 160 Objective: Difficulty: Moderate 134) Abraham Maslow sought to explain why people are driven by particular needs at particular times Describe Maslow's hierarchy of needs How does Maslow's theory help marketers? Answer: Maslow's hierarchy of needs in order of importance are, physiological needs, safety needs, social needs, esteem needs, and self-actualization needs Maslow's theory helps marketers understand how various products fit into the plans, goals, and lives of consumers Page Ref: 160-161 Objective: Difficulty: Moderate 135) List and briefly characterize Maslow's Hierarchy of Needs Answer: Beginning with the most basic needs to the most advanced, the need structure is as follows: (1) physiological needs—food, water, shelter; (2) safety needs—security, protection; (3) social needs—sense of belonging, love; (4) esteem needs—self-esteem, recognition, status; and (5) self-actualization needs—self-development and realization Page Ref: 161 Objective: Difficulty: Moderate 136) Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world For a marketer, what is the key point of perception? Answer: The key point is that perceptions can vary widely among individuals exposed to the same reality In marketing, perceptions are more important than the reality, as it is perceptions that will affect consumers' actual behavior Page Ref: 161-162 Objective: Difficulty: Moderate 137) What does the learning theory teach marketers about demand for products? Answer: The learning theory teaches marketers that they can build demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement Page Ref: 163 Objective: Difficulty: Moderate 35 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 138) What are the five stages of the consumer buying process? Answer: The five stages are problem recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior Page Ref: 166 Objective: Difficulty: Moderate 139) Describe how the problem recognition process works in the five-stage model of the consumer buying process Answer: The buying process starts when the buyer recognizes a problem or need With an internal stimulus, one of the person's normal needs—hunger, thirst, sex—rises to a threshold level and becomes a drive; or a need can be aroused by an external stimuli such as an advertisement Page Ref: 167 Objective: Difficulty: Moderate 140) Through market research a consumer gathers information about the competing brands of a product and their features The consumer then advances through four sets with respect to brands before a decision is reached What are those four sets? Answer: The four sets are: (1) the total set, (2) the awareness set, (3) the consideration set, and (4) the choice set Page Ref: 167 Objective: Difficulty: Moderate 141) Explain the differences between a belief and an attitude Answer: A belief is a descriptive thought that a person holds about something An attitude is a person's enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward some object or idea Page Ref: 168 Objective: Difficulty: Easy 142) What you understand by the term market partitioning? Answer: Marketers need to identify the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed This process of identifying the hierarchy is called market partitioning Page Ref: 168 Objective: Difficulty: Moderate 36 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 143) How is the expectancy-value model used in the evaluation of alternatives as a consumer engages in a buying process? Answer: The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs—the positives and negatives—according to importance The model assists consumers in making choices Page Ref: 169 Objective: Difficulty: Moderate 144) Describe the lexicographic heuristic used to make consumer choices Answer: The lexicographic heuristic is in use when the consumer chooses the best brand on the basis of its perceived most important attribute Page Ref: 170 Objective: Difficulty: Easy 145) What four strategies can marketers of low-involvement products employ in an effort to convert their products into ones of higher involvement? Answer: The four strategies are: (1) linking the product to some involving issue; (2) linking the product to some involving personal situation; (3) designing advertising to trigger strong emotions related to personal values or ego defense; and (4) adding important features to the product Page Ref: 174 Objective: Difficulty: Difficult 146) Heuristics can come into play when consumers forecast the likelihood of future outcomes or events When would a consumer use an anchoring and adjustment heuristic? Answer: Consumers will use this heuristic when the consumer arrives at an initial judgment and then makes adjustments of that first impression based on additional information Page Ref: 176 Objective: Difficulty: Moderate 37 Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall ... called A) market partitioning B) brand association C) market valuation D) market estimation E) market identification Answer: A Page Ref: 168 Objective: Difficulty: Moderate 56) are a... retrieval C) memory decoding D) memory formation E) memory augmentation Answer: B Page Ref: 165 - 166 Objective: AACSB: Analytic skills Difficulty: Moderate 44) Cognitive psychologists believe... external stimuli B) internal stimuli C) peer stimuli D) secondary stimuli E) marketing induced stimuli Answer: A Page Ref: 167 Objective: AACSB: Analytic skills Difficulty: Moderate 51) A consumer