Consumer Behavior Chapter 12

Discretionary income is the money available to a household over and above that required for a comfortable standard living.

True

American spendthrifts outnumber American tightwads.

False

Downward mobility is not possible in the U.S. social class system.

False

Sandra Jackson decided to become a nurse after several years as an elementary teacher. She still wanted to help people; she just wanted to do it differently. Sandra's case is an example of which of the following?

horizontal mobility

Of the countries listed below, which is thought to be highly status-conscious? A) Canada B) Japan C) Brazil D) Spain

B) Japan

All of the following are important components of social class except for ________. A) gender B) income C) educational attainment D) occupational prestige

A) Gender

The wealthiest 160,000 U.S. families are considers one percenters.

True

TRUE AND FALSE

ON PACKETS

Which of the following theorists is best known for arguing that an individual's relationship to the means of production determines his position in society? A) Karl Marx B) Max Weber C) Horatio Alger D) Thorstein Veblen

A) Karl Marx

________ defines a pattern of consumption reflecting a person's choices on how he or she spends their time and money. A) Lifestyle B) Habitus C) Social class D) Cultural capital

A) Lifestyle

According to the classic view of the American class structure, the newer social elites, drawn from current professionals, belong to which of the following social class categories? A) Lower-Upper B) Upper-Upper C) Upper-Middle D) Lower-Middle

A) Lower-Upper

The lower classes use more restrictive codes than do the upper classes. How does this knowledge change the way insurance might be sold to a working-class man compared to an upper-class man? A) The promotion to the working-class man should emphasize his immediate satisfaction in knowing that his family will be cared for, while the upper-class promotion should emphasize the long-term consequences of the choice. B) The promotion to the working-class man should emphasize the long-term benefits of insurance, while the upper-class promotion should emphasize the short-term consequences of the choice. C) The promotion to the working-class man should emphasize pictures while the upper-class promotion should emphasize words. D) Both men would receive the same ad because elaboration codes have been found to be irrelevant to this product category.

A) The promotion to the working-class man should emphasize his immediate satisfaction in knowing that his family will be cared for, while the upper-class promotion should emphasize the long-term consequences of the choice.

A person who is born into a rich, powerful family (i.e. "She was born with a silver spoon in her mouth") is said to have _________ status. A) ascribed B) hierarchical C) achieved D) longitudinal

A) ascribed

Consumers' beliefs about what the future holds are an indicator of ________. A) consumer confidence B) optimism C) price sensitivity D) behavioral economics

A) consumer confidence

Trisha grew up in a drug-ridden inner city neighborhood. Through sheer determination and intelligence, Trisha is now a medical doctor teaching on the staff of a large university hospital. Trisha is proud of what she has accomplished, but sometimes she feels stressed and uncertain of who she really is. The concept of ________ assesses the impact of such inconsistencies. A) status crystallization B) homogamy C) habitus D) invidious distinction

A) status crystallization

Most groups exhibit a structure called a ________ in which some members are somehow better off than others in terms of authority, power, or respect. A) status hierarchy B) social array C) social mobility D) symbolic reference

A) status hierarchy

A person in the middle class, but with an income at least 15 percent lower than the median for the middle class, would be known as a(n) ________ consumer. A) underprivileged B) invidious C) restricted D) conspicuous

A) underprivileged

Which of the following phrases is the best illustration of homogamy?A) Opposites attract B) Birds of a feather flock together C) Leave no stone unturned D) To the victor go the spoils

B) Birds of a feather flock together

Evan was an aggressive, rich, and determined businessman originally from a working class family. He had become wealthier than he had ever imagined by buying and selling other businesses. Evan seemingly could do anything until he tried a hostile takeover of an established bank owned by several prestigious families. When his bid failed, Evan said "I always knew there was an elite, but up to now I thought I was part of it." What type of capital was Evan lacking? A) Economic B) Cultural C) Psychological D) Sociological

B) Cultural

_____________ income is the money available to a household over and above that required for a comfortable standard of living. A) Captial B) Discretionary C) Net D) Invidious

B) Discretionary

________ is a system in which we define people by what they do for a living. A) Status hierarchy B) Occupational prestige C) Social prestige D) Social class

B) Occupational prestige

Which of the following is NOT listed as a determiner of how much a person will save (saving rate)? A) The individuals own sense of optiminism about his or her personal circumstances B) The relationship between the lending prime rate and growth rates C) World events such as wars D) Cultural differences

B) The relationship between the lending prime rate and growth rates

John Jones purchases products to show visible evidence of his ability to afford luxury goods, John is practicing ________. A) brand prominence B) conspicuous consumption C) brand D) homogamy

B) conspicuous consumption

Consumers use a set of products called a(n) ________ to define, communicate, and perform social roles. A) brand prominence group B) consumption constellation C) restricted code D) elaborated code

B) consumption constellation

Which of the following refers to consumers who refuse to sacrifice style but who receive the style on budget? A) spendthrifts B) frugalistas C) tightwads D) ostriches

B) frugalistas

Luminaries from Amazon, Google, and Twitter tend to use ________. A) hedonic adaptation B) glamping C) social capital D) cultural capital

B) glamping

We tend to marry people in a similar social class to our own. Sociologists call this ________, or assortative mating. A) marriage complementarity B) homogamy C) monogamy D) status crystallization

B) homogamy

Which of the following questions would be LEAST likely to appear on a questionnaire designed to determine consumer confidence? A) "Would you say that you and your family are better off or worse off financially than a year ago?" B) "Will you be better off or worse off a year from now?" C) "Are you happy with your employer and job?" D) "Do you plan to buy a car in the next year?"

C) "Are you happy with your employer and job?"`

Which of the following variables related to social class distinction is identified by the text as being unclear and the subject of debate with respect to its role as an indicator of social class? A) Occupation B) Education C) Amount of income D) How income is spent

C) Amount of income

Vance comes from the lower-upper class as does Jeff. They are both madly in love with Julia, who is beautiful enough to do part-time modeling. According to the principle of ________, Julia could be attracted to both men. A) elaborated codes B) ascribed status C) homogamy D) restricted codes

C) Homogamy

_______ are wealthy individuals who are likely to suffer from status anxiety, trying to display symbols of their success to make up for an internal lack of assurance about the "correct" way to behave. A) Old money consumers B) The working wealthy C) The nouveau riche D) Typical millionaires

C) The nouveau riche

A person who receives rewards and status because of his hard work is said to have _____________ status. A) ascribed B) hierarchical C) achieved D) longitudinal

C) achieved

Anna is a millionaire but she is constantly stressed and unhappy despite her wealth, Anna is experiencing ________. A) burnout B) class warfare C) affluenza D) cosmopolitanism

C) affluenza

Product ________ occurs when the symbolic meanings of different products are related to one another. A) distinction B) crystallization C) complementarity D) hierarchy

C) complementarity

Fred has been a farmer all his life. He inherited the family farm when he was 35, but that was twenty years ago. It looks like he is going to lose the farm and have to take a manual labor job in the city to support his family. What form of mobility best describes Fred's position? A) horizontal mobility B) two-way stretch mobility C) downward mobility D) upward mobility

C) downward mobility

The ________ marketing perspective recognizes that people sort themselves into groups on the basis of the things they like to do, how they like to spend their leisure time, and how they choose to spend their disposable income. A) personality B) motivation C) lifestyle D) social

C) lifestyle

The best predictor of major expenditures that do not have status or symbolic value is _______________. A) social class B) income C) social class and income D) occupation

C) social class and income

Consumers who are ________ love buying everything in sight. A) tightwads B) price-sensitive affluents C) spendthrifts D) socially stratified

C) spendthrifts

A Rolls-Royce, a Cartier diamond, and an Andy Warhol painting are all items bought and displayed as markers of social class. These products are ________. A) social inhibitors B) social parameters C) status symbols D) psychological blocks

C) status symbols

When people are differentiated in terms of their aesthetic and intellectual preferences, a ________ concept is being applied. A) cultural code designation B) social cluster C) taste culture D) consumption constellation

C) taste culture

A member of ________ has recently gained personal wealth and may experience status anxiety. Such individuals may try to display symbols of their success to make up for an internal lack of assurance about the "correct" way to behave. A) an old money family B) the taste culture C) the nouveau riche D) the mass class

C) the nouveau riche

SRBI Consulting Business Intelligence divides consumers into which of the following groups? A) Luxury is functional B) Luxury is a reward C) Luxury is indulgence D) All of the above

D) All of the above

________ measures how optimistic or pessimistic people are about the future health of the economy and how they will fair in the future. A) Income inequality B) Credit score C) Saving rate D) Consumer confidence

D) Consumer confidence

Lee-Ann Wang is young and enjoys risky experiences such as skydiving, bungee jumping, and snowboarding. To which of the following VALS2 groups would Lee-Ann most likely belong? A) Thinkers B) Achievers C) Strivers D) Experiencers

D) Experiencers

China's economic boom has created 130 million people in what social class? A) Upper-upper class B) Lower-upper class C) Upper-lower class D) Lower-middle class

D) Lower-middle class

Jim is considered a part of the upper middle class, while Marcos is considered part of the lower upper class. Jim and Marcos have been identified in terms of ________. A) cultural capital B) occupational prestige C) social rank D) social class

D) Social Class

Amos always felt that it was unfair that society created artificial divisions that discouraged him from having friends from different social structures. Which of the following terms describes the process that Amos is having difficulty with? A) Reference group affiliation B) Bias C) Social anxiety D) Social stratification

D) Social stratification

Although teenagers do not have the income of older consumers, they are still an attractive marked based on income. Why? A) Because they have less money, they are more careful of how they spend it. B) Parents lead the teenagers into what they buy; hence any understanding of adult buying patterns can be useful for teenagers as well. C) Teenagers have more consumer confidence and are, therefore, more likely to be swayed by promotional material. D) Teenagers don't have the income of adults, but it's almost all discretionary, meaning that they can spend it as they see fit.

D) Teenagers don't have the income of adults, but it's almost all discretionary, meaning that they can spend it as they see fit.

Harry was the lead singer in a band that hit it big. For his birthday, Harry had two hundred friends flown by chartered jets to a private island in the South Pacific. They ate the most expensive food, and every morning the bungalows were burned to the ground and rebuilt for the next night. Harry's party is a good example of ________. A) parody display B) social mobility C) ascribed status D) conspicuous consumption

D) conspicuous consumption

The hundreds of millions of consumers around the world who can now afford higher quality products belong to the ____________. A) prestige class B) mobile demanders C) ruling class D) mass class

D) mass class

The phenomenon called __________ refers to the creation of artificial divisions in a society. A) reference group affiliation B) ascribed status C) mass class D) social stratification

D) social stratification

______________ refers to the passage of individuals from one social class to another.

Social Mobility

An economy that is driven by a fairly small number of rich people is called a plutonomy.

True

Consumers' beliefs about what the future holds are an indicator of consumer confidence.

True

Education is one determining factor in future income.

True

Mothers with preschool children are the fastest-growing segment of working people.

True

Pierre Bourdieu concluded that "taste" is a ________ that causes consumption preferences to cluster together. A) habitus B) code C) hierarchy D) capital

A) habitus

Fred Johnson has worked hard all of his life to make a decent living for himself and his family. However, in recent years he has become obsessed with a fear of being ruined, either because of losing his job or losing all of his savings. According to clinical psychologists, Fred Johnson's fear of being ruined is equated to which of the following phobias? A) atephobia B) harpaxophia C) peniaphobia D) aurophobia

A) atephobia

Social class is a strong predictor of purchases that have symbolic aspects, but low to moderate prices. Which of the following is the best example of a product with those characteristics? A) liquor B) cars C) homes D) refrigerators

A) liquor

If a social researcher wanted to investigate social status in a small city, her best choice for a questionnaire would be one that included questions or observations on education, area of residence, total family income per year, and ________. A) occupation prestige level of the household head B) membership groups of the primary income earners C) ability to utilize electronic communication channels D) ability to win friends and influence people

A) occupation prestige level of the household head

If the super rich bought "shredded Levi's jeans" to wear to formal parties, they would be exhibiting a sophisticated form of conspicuous consumption known as ________. A) parody display B) invidious distinction C) downsizing D) elaborated codes

A) parody display

Sharon noticed that many of her high-end, outdoor spa customers drive Volvos, a luxury car known for its safety record and high performance. Which of the following terms best illustrates what Sharon has observed in her customers? A) product complementarity B) motivational compliance C) conscientious association D) parody display

A) product complementarity

Jason is a marketing researcher working for a client who believes that social class will be an important segmenting device. Jason decides to find social class categories by simply asking respondents to pick their own category. Which of the following best supports Jason's approach? A) Most Americans don't mind talking about social class but usually misclassify themselves. B) American consumers generally have little difficulty accurately placing themselves in the lower-middle class or middle class. C) American consumers are generally better able to identify their neighbors' social class than their own social class. D) Respondents will list the social class they wish to belong to rather than the one they actually occupy.

B) American consumers generally have little difficulty accurately placing themselves in the lower-middle class or middle class.

One percenters are an example of ________. A) pay pay ratio B) income equality C) saving rate D) plutonomy

B) income inequality

Social analyst Thorstein Veblen believed that we buy things to create ________. This means we use our purchases to inspire envy in others through our display of wealth or power. A) affluenza B) invidious distinction C) status crystallization D) cultural capital

B) invidious distinction

With respect to social organization, some barnyard animals exhibit signs of a dominance-submission hierarchy. Which of the following terms best communicates such a hierarchy? A) dog-eat-dog B) pecking order C) follow-the-leader D) king-of-the-hill

B) pecking order

A ____________ is an economy that is driven by a fairly small group of rich people. A) democracy B) plutonomy C) monarchy D) homogany

B) plutonomy

Blue-collar workers with relatively high-prestige jobs consider themselves as ________. A) upper middle class B) working class lower middle C) upper lower class D) lower lower class

B) working class lower middle

The field of ___________ is concerned with all information about the effects of drugs on living systems. A) clinical psychology B) microeconomics C) macroeconomics D) behavioral economics

D) behavioral economics

The term affluenza refers to ________. A) members of the lower-middle class who are struggling to make ends meet B) tightwads who are reluctant to spend money on anything but basic necessities C) scrimpers who have traded down to less expensive brands to save money D) well-off consumers who are stressed or unhappy despite or even because of their wealth

D) well-off consumers who are stressed or unhappy despite or even because of their wealth

Social Stratification refers to the creation of artificial divisions in a society.

True

The average American's standard of living continues to improve. These income shifts are linked to two key factors:

a shift in women's roles and increases in educational attainment