FDM 493F Exam 2 Review Questions

Characterize the straight rebuy, the modified rebuy, and new task decision in organizational purchasing. Provide an example of each.

A) The straight rebuy is like a habitual decision. This entails an automatic decision as when an inventory level reaches a pre-established reorder point. Most organizations maintain an approved vendor list. As long as experience with the vendor is satisfactory, there is little to no ongoing information search or evaluation. B) A modified rebuy situation involves limited decision making. It occurs when an organization wants to repurchase a product or service, but with some minor modifications. This decision might involve a limited search for information, most likely by speaking to a few vendors. The decision will probably be made by one or a few people. C) A new task involves extensive problem solving. Because the decision has not been made before, there is often a serious risk that the product won't perform as it should or that it will be too costly. The organization designates a buying center with assorted specialists to evaluate the purchase; they typically gather a lot of information before coming to a decision.

The balance theory perspective involves relations among three elements (a triad). Which of the following is one of the elements of the triad? A) A person and his or her perceptions B) The marketer and its strategy of image building C) A person's beliefs D) Subconscious motives

A. A person and his or her perceptions

Researchers agree that there are various levels of commitment to an attitude. The highest level of involvement is ________. A) internalization B) identification C) compliance D) actualization

A. Internalization

Casinos make their interiors very plush and expensive looking, knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains gamblers' behavior? A) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational. B) Most people are unaware of the true risk of making certain decisions and believe that a larger wager has higher odds of winning. C) The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behavior that is not rational. D) The functional risk of gambling is decreased in luxurious surroundings, leading gamblers to wager more.

A. Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.

According to the ________ rule, a product with a low standing on one attribute cannot make up for this position by being better on another attribute. A) noncompensatory B) lexicographic C) elimination-by-aspects D) conjunctive

A. Non-compensatory

According to ________, utility is defined in terms of gains and losses. A) prospect theory B) heuristics C) hyperopia D) Zipf's law

A. Prospect Theory

26) ________ is the first element in the traditional communications model. A) Source B) Media C) Receiver D) Noise

A. Source

33) Since Janie is seen as a beautiful female, many friends also perceive her to be smarter, cooler, and happier. These assumptions illustrate ________. A) the "halo effect" B) the "beauty" factor C) cultural meanings D) the "sleeper effect"

A. The "halo effect"

Which theory of attitudes states that people are motivated to take action to resolve inconsistencies between attitudes and behaviors? A) Theory of cognitive dissonance B) Self-perception theory C) Social judgement theory D) Balance theory

A. Theory of Cognitive Dissonance

If Volkswagen owners see themselves as being more economical and conservative than do owners of the Buick Regal, ________ is probably at work. A) self-image congruence model B) self-concept C) self-image D) looking-glass self

A. self-image congruence model

List the various ways that psychographic segmentation can be used.

Answer: a. To define the target market b. T o create a new view of the market c. To position a product d. To better communicate product attributes e. To develop overall strategy f. To market social and political issues

Explain the principle of cognitive consistency.

Answer: According to the principle of cognitive consistency, we value harmony among our thoughts, feelings, and behaviors, and a need to maintain uniformity among these elements motivates us. This desire means that, if necessary, we change our thoughts, feelings, or behaviors.

Pepsi A.M. was positioned as a coffee substitute. In one test market, Pepsi A.M. was introduced onto a university campus. It was both an immense hit and a total failure. The product always sold out in vending machines, but the consumption of coffee stayed the same and the sale of other Pepsi products declined. In terms of levels of categorization, discuss what created the problem in the test market.

Answer: Pepsi A.M. and coffee on this campus did not occupy the same basic level. Coffee and tea were most seen as belonging to the same product category as cola drinks. Cola drinks came in a bottle and were sold from vending machines. Coffee drinks came in a cup and were less likely to come from a vending machine. The superordinate level of caffeinated drinks was not strong enough to create a successful product positioning strategy. The basic level category is typically the most useful in classifying products.

Explain and give a brief example of symbolic self-completion theory.

Answer: Symbolic self-completion theory suggests that people who have an incomplete self-definition tend to complete this identity by acquiring and displaying symbols they associate with a desired role. Adolescent boys, for example, may use "macho" products such as cars and cigarettes to bolster their developing masculinity; these items act as a "social crutch" during a period of uncertainty about their new identity as adult males.

A professor came to class dressed in a formal shirt and tie. He stated that he would like to explain the concept of self. He took off his tie and shirt. Underneath he had a on a t-shirt with a picture of a handsome tennis player on the front. Then the professor turned around to show a picture of a cartoon clown on the back. "All of these express who I am," he said. What point was the professor trying to make? What did his choice of varying dress forms and associated iconic symbols most likely represent?

Answer: The concept of self is complex. Each of us has multiple selves depending upon role identities that may be modified by many factors such as self-fulfilling prophecies, cultural differences, and personal situational differences. The formal shirt and tie represent the public self, which students and colleagues see. Within the inner self, symbolized by the t-shirt, are the ideal self, the handsome tennis player, and perhaps the actual self, as shown by the cartoon clown.

Differentiate between an evoked set and a consideration set. Provide examples to illustrate the two terms.

Answer: The evoked set consists of all those product alternatives a consumer knows about, while the consideration set consist of all those products actively considered by the consumer during his or her choice process. Both sets can be composed of products already in memory (the retrieval set) as well as those prominently displayed in the retail environment.

List and define the five stages of the cognitive decision-making process.

Answer: The five stages are problem recognition, information search, evaluation of alternatives, product choice, and post-purchase evaluation. Problem recognition occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired or ideal state. Information search is the process by which the consumer surveys his or her environment for appropriate data to make a reasonable decision. Evaluation of alternatives—during this phase the consumer evaluates the products in his or her consideration set. Product choice—A product is or is not chosen to solve the buyer's problem. Post purchase evaluation—it occurs when we experience the product or service and decide whether it meets (or even exceeds) our expectations.

"Maleness-femaleness" and "masculinity and femininity" —do these terms basically mean the same thing? Discuss and illustrate with sex-typed products.

Answer: The issue is gender versus sexuality. Gender differences are biologically determined whereas the subjective feelings of sexuality are socially learned. Culturally, males are often controlled by agentic goals, which stress self-assertion and mastery. Females are taught to value communal goals such as affiliation and cooperative relationships. A person's biological gender (i.e. male or female) does not totally determine if he or she will exhibit sex-typed traits—characteristics usually associated with one sex or the other. A consumer's subjective feelings about his or her sexuality are crucial as well. Unlike maleness and femaleness, masculinity and femininity are not biological characteristics. A behavior that would be considered masculine in one culture may not necessarily be regarded as such in another culture. Also, products are often sex-typed. That is, they take on masculine or feminine attributes and may be stereotypically associated by consumers with one sex. The car, for example, has long been thought of a as a masculine product. Androgyny refers to the possession of both masculine and feminine traits, although androgyny can also refer to traits that are neutral. Products that are not sex typed are considered to be marketable to androgynous people whose mixture of characteristics allows them to function well in a variety of social situations.

Discuss the low-involvement hierarchy of effects.

Answer: The low-involvement hierarchy assumes that the consumer initially does not have a strong preference for one brand over another.

An anti-smoking campaign that showed autopsies of people who died of lung cancer had no effect on the rate that teenagers took up smoking. Why do you think the campaign was ineffective?

Answer: The threat created by the promotion was probably too strong. When promotions create strong threats, or fear, then the receiver is too busy thinking of reasons why the message doesn't apply to him or her, and either pays no attention to the offered solution or discounts the threat as not applying to him or her because things like this do not happen to "people like me."

________ are universally recognized ideas and behavioral patterns. A) Compliant B) Archetypes C) Aggressive D) Detached

B. Archetypes

Kraft has repackaged its salad dressings as "anything" dressings to encourage people to shift their ________ and consider the dressings as a complement to more than just salads. A) demonstration signals B) knowledge structures C) mental maps D) mean-end chains

B. Knowledge Structures

According to the two-factor theory, the net effect of being exposed repeatedly to the same message is a combination of ________. A) argument and counter-argument B) learning and tedium C) compliance and non-compliance D) affect and cognition

B. Learning and Tedium

According to ________, we evaluate the effort we'll need to make a particular choice and then we tailor the amount of cognitive "effort" we expend to make that choice. A) cognitive processing B) mental processing C) constructive processing D) behavioral processing

C. Constructive Processing

The ________ hierarchy of effects assumes the consumer does not initially have a strong preference for one brand over another. Instead, a consumer acts on the basis of limited knowledge and then forms an evaluation only after the product has been purchased or used. A) experiential B) habitual C) low-involvement D) standard learning

C. Low-involvement

Jeffrey Quills is seen by his friends as a somewhat strange person. At times he is lovable, warm, and friendly. At other times he can be mean-spirited, uncaring, and hostile to all who know him. Which of the following general statements about personality most closely matches what friends observe about Jeffrey? A) People have a standard personality that can be identified as belonging to one of five categories. B) Psychologists agree that a standard personality component exists in all people. C) Many studies have found that people do not seem to exhibit stable personalities. D) Most psychologists have completely abandoned the concept of personality.

C. Many studies have found that people do not seem to exhibit stable personalities.

When marketer's use psychological, sociological, and anthropological factors to analyze a market, they are using ________. A) demographics B) personality C) psychographics D) positioning

C. Psychographics

28) A communicator's expertise, objectivity and trustworthiness refer to ________. A) corporate social responsibility B) ethics C) source credibility D) expert power

C. Source Credibility

One element in the muliattribute attitude model is ________. A) evaluations B) salient beliefs C) object-attribute linkage D) beliefs

D. Belief

Fred Johnson lives, eats, and breathes pro football. His favorite team is the Dallas Cowboys. His home looks like a Dallas Cowboy's museum. Which level of the extended self would most likely apply to Fred's situation? A) family level B) individual level C) community level D) group level

D. Group Level

27) What does the sleeper effect suggest about source credibility? A) If a receiver is not paying attention, a message cannot be effective. B) Many people can learn the important parts of a message even when asleep. C) The effectiveness of a message will increase over time. D) The effectiveness of positive sources over less positive sources can be erased over time.

D. The effectiveness of positive sources over less positive sources can be erased over time.

The fine line between familiarity and boredom has been explained by the ________, which proposes that two separate psychological processes are operating when a person is repeatedly exposed to an ad. A) balance theory B) repetition theory C) halo theory D) two-factor theory

D. Two-Factor Theory

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia? A) The cost of the product B) The social risk of the product C) Whether the purchase is made after a compensatory or noncompensatory decision process D) Whether the customers hold a very positive or weak attitude toward the product

D. Whether the customers hold a very positive or weak attitude toward the product

The ideal self is a reference to our more realistic appraisals of the qualities we have and don't have.

False

The superego is also known as the pleasure principle.

False

Explain the Freudian system of personality as it might apply to the behavior of a consumer.

Sigmund Freud developed the idea that much of one's adult personality stems from a fundamental conflict between a person's desire to gratify his or her physical needs and the necessity to function as a responsible member of society. This struggle is carried out in the mind among three systems. The id is entirely oriented toward immediate gratification—it is the "party animal" of the mind. It operates according to the pleasure principle. It tries to maximize pleasure and minimize pain. The superego is the counterweight to the id. This system is essentially the person's conscience. It internalizes society's rules and works to prevent the id from seeking selfish gratification. The id would like another drink, but the superego reminds the customer that one must drive home safely. Finally, the ego is the system that mediates between the id and the superego. It is the referee in the fight between temptation and virtue. The ego tries to balance the opposing forces according to the reality principle. The ego attempts to find a way for another drink and still find a way to get home safely.

Explain the elaboration likelihood model (ELM).

The elaboration likelihood model assumes that under conditions of high-involvement, consumers take a central route to persuasion. Under conditions of low-involvement, we take a peripheral route instead.

Brand personality is a set of traits people attribute to a product as if it was a person

True

Hirosi ordered the expensive "heart attack special" at the local pub. It came with a one-pound hamburger and a full bucket of fries. Halfway through the meal, Hirosi was not feeling well. Yet according to the sunk-cost fallacy, Hirosi will likely continue until he has finished the "special."

True

Humorous ads receive attention, but many times the humor distracts from the promotional message.

True

If a consumer is following the lexicographic rule in her decision making, than she would select a brand that is the best on the most important attribute.

True

Lifestyles are identified by a convergence of personality, product and setting.

True

Mary Ann reads fashion magazines weekly. Many times she is frustrated because she has been unable to achieve "a look" that she thinks features the "real her." When Mary Ann thinks this way, she is going through a social comparison process.

True

The ego is the referee in the fight between temptation and virtue.

True

The success of a positioning strategy depends on the marketer's ability to convince the consumer to consider its product within a given category.

True

The tendency to attribute human characteristics to objects or animals is called anthropomorphism.

True

The utilitarian function relates to the basic principles of reward and punishment.

True