Consumer Behavior, Final Exam - Tran

New task buy

Buying decision is very important and the choice is quite complex. The DMU is large and evolves over time. Top managers will be involved.

Committed customers are less likely to forgive a product or service failure. True or False

False

Concern over the invasion of children's privacy prompted Congress to pass the Children's Internet Protection Act in October 1998. True False

False

Corrective advertising is advertising run by the government to cause consumers to unlearn inaccurate information they acquired as a result of a firm's earlier advertising. True False

False

Early adopters are innovative organizations that derive a great deal of their success from leading change. True False

False

In a compensatory decision, a brand's weakness on one attribute cannot be overcome by its strength on another attribute. True or False

False

Making a brand a compromise option in the choice set decreases that brand's probability of being chosen because consumers do not like "middle-of-the road" brands. True or False

False

Most purchases in supermarkets are planned. True or False

False

People from different functional areas of an organization in a DMU will always use the same evaluative criteria. True False

False

Recent research finds that roughly 20 percent of online consumers abandon their shopping carts without making a purchase. True or False

False

The regulation of marketing activities aimed at children focuses primarily on which of the following? product safety advertising promotion privacy protection all of the above

all of the above

Which of the following is a noncompensatory decision rule? conjunctive disjunctive lexicographic elimination-by-aspects all of the above

all of the above

Use innovativeness

consumer using a product in a new way Example: Baking Soda is now used as a cleaning product

Tangible evaluative criteria

cost and performance features

Functional performance relates to the physical functioning of the product. true or false

false

Nominal and most limited decision making will not produce postpurchase dissonance. true or false

false

The minimum amount that one brand can differ from another with the difference still being noticed is referred to as the ______. discriminatory difference sensory difference just noticeable difference recognition difference None of the above

just noticeable difference

Compensatory decision rule

the brand with that rates the highest on the sum of the consumer's judgements of the relevant evaluative criteria will be chosen. The total mix of the relevant attributes must be considered to be superior to those of the competition.

Monique is buying a new coat for the winter. While she is concerned with how well the coat will keep her warm, she is also concerned with how stylish it will make her look. Her concern for stylishness represents which dimension of product performance? direct affective instrumental symbolic None of the above

symbolic

Piaget's theory and stages of cognitive development

1) The period of sensorimotor intelligence(0-2) years. Child does not "think" conceptually yet, but cognitive development is seen. 2) The period of preoperational thoughts (3-7) development of language a rapid conceptual development. 3) Concrete operations(8-11) apply logical thought to concrete problems. 4) Formal operations (12-15) cognitive structures reach their greatest level of development, and the child becomes able to apply logic to all classes of problems.

Estimates of the number of TV ads that children are exposed to per year range from _____. 1,000 to 5,000 8,500 to 15,000 18,000 to 40,000 48,000 to 60,000 None of the above

18,000 to 40,000

Service failure

34% service employees were uncaring, impolite, unresponsive, or unknowledgeable

Core service failure

44%. Mistakes, billing errors, and service catastrophes that harm the customer

Store image dimensions

A given consumers or target markets perception of all the attributes associated with a retail outlet.

Decision making unit (DMU)

Are the individuals (representing functional areas and management) within an organization who participate in making a given purchase decision

Time cost, Satisfaction, Physical risk, Physical facilities, Personal sources of information, Merchandise, Marketing sources of information, Marketing communications, Marketing and internet marketing to children, Internet shopping, Independent sources of information, Dissatisfaction, Culture of organizations, Actual risk, Economic risk

DO NOT HAVE

Shopping bots

Do the shopping/searching for them robots or bots online

Catalogs have appeared to suffer due to the growth of the Internet. True or False

False

Nominal decision making

Habitual decision making. Very low involvement

Conor is 15 years old. Which of the following statements is true regarding him and other children his age? - He most likely still lacks the ability to fully process and understand information, including marketing messages. - Most marketing programs aimed at him deliberately attempt to exploit him. - He most likely has the ability to fully process and understand information, including marketing messages. - While he has the ability to process information, he does not yet have the ability to understand the information. - Most regulation regarding marketing to children includes him.

He most likely has the ability to fully process and understand information, including marketing messages.

Relational exchanges

Involve multiple events, occur over an extended period of time, involve significant investments by the buyer and the seller, and involve higher levels of loyalty. Opposite of transactional exchange - one time transactions.

Firmographics

Involves both organization characteristics - for example: size, activities, objectives, location, and industry category - and characteristics of the composition of the organization - for example: gender, age, education, and income distribution of employees.

Which of the following is a characteristic of a decision-making unit? - They are often relatively permanent for nonroutine decisions. - Even less important decisions are likely to involve individuals form a wide variety of functional areas. - Large, highly structured organizations ordinarily involve more individuals in a purchase decision than do small, less formal organizations. - Decision-making units are typically a separate permanent organizational department in large organizations. - Small organizations do not use formalized decision-making units.

Large, highly structured organizations ordinarily involve more individuals in a purchase decision than do small, less formal organizations.

Which decision rule requires the consumer to rank the criteria in order of importance, and then the consumer selects the brand that performs best on the most important attribute? conjunctive disjunctive lexicographic elimination-by-aspects compensatory

Lexicographic

Modified rebuy

Moderately important to the firm or the choice is more complex. The firm may periodically evaluate the brand or product. Mid-level managers.

Which of the following is NOT an information-processing related guideline of the CARU? - Claims should not unduly exploit a child's imagination. - Ads should demonstrate the performance and use of the product in a way that can be duplicated by the child for whom the product is intended. - Representation of food products should be made so as to encourage sound use of the product with a view toward healthy development of the child and development of good nutritional practices. - Program personalities, live or animated, should not be used to sell products, premiums, or services in or adjacent to programs primarily directed to children under 12 years of age in which the same personality or character appears. -All disclosures and disclaimers material to children should be understandable to the children in the intended audience and account for their limited vocabulary and language skills.

Representation of food products should be made so as to encourage sound use of the product with a view toward healthy development of the child and development of good nutritional practices.

Spillover sales

Sales of additional items to customers who came to purchase an advertised item

Various factors beyond functional utility influence organizational decisions. True False

True

Intangible evaluative criteria

Style, taste, prestige, feelings generated, and brand image

Affective choice

The immediate emotional response, tend to be more holistic in nature. Example: A women purchases a camera because of the way it looks, and the vision she has of taking pictures with it and how people will view her

Just noticeable difference

The minimum amount that one brand can differ from another with the difference still being noticeable. Individuals typically do not notice relatively small differences between brands or changes in brand attributes.

Disposition

The product or the products container may occur before, during, or after the product use

Postpurchase dissonance

This is a common consumer reaction after making a difficult, relatively permanent decision. Doubt or anxiety feelings. - From degree of communication or irrevocability of the decision. - The importance of the decision to the consumer. - The difficulty of choosing among alternatives. - The individual's tendency to experience anxiety. - These are mainly after high involvement decisions.

Straight rebuy

This situation occurs when the purchase is of minor importance and is not complex. Price and reliability are the only factors here

A consumer can be neither satisfied nor dissatisfied. True or False

True

All consumers have a bounded rationality. True or False

True

Conjunctive, disjunctive, elimination-by-aspects, and lexicographic are noncompensatory decision rules. True or False

True

Factors affecting the relative importance and influence of evaluative criteria include usage situation, competitive context, and advertising effects. True or False

True

For many products and services, there are wide variations in profitability across customers. True or False

True

Gillette's advertising for the M3 Power razor which claimed that "gentle micropulses stimulate hair up and away from skin" was deemed to be literally false by the court hearing the case. True False

True

Organizational purchase situations are known as straight rebuy, modified rebuy, and new task. True False

True

There are three major concerns focused on the information that marketers provide to consumers, generally in the form of advertisements-the accuracy of the information provided, the adequacy of the information provided, and the cumulative impact of marketing information on society's values. True False

True

Bounded rationality

a limited capacity for processing information

Internal reference price

a price or price range that a consumer retrieves from memory to compare with a price in the market

Reference price

a price with which other prices are compared. Example: " Regularly $9.95, now only $6.95" the reference price would be the $9.95

Instrumental motives

actives behaviors designed to achieve a second goal Example: The camera does not only look good but can take high quality pictures that can be enjoyed later

Corrective advertising

advertising run by a firm to cause consumers to unlearn inaccurate information they acquired as a result of the firm's earlier advertising

Symbolic performance

aesthetic or image-enhancement performance

The "Merchandise" dimension of store image includes _____. quality selection price style all of the above

all of the above

A new brand of peanut butter cookies includes Hershey's Kisses chocolates on top. Which of the following is this new brand using in an attempt to gain from the quality associated with Hershey's chocolate? blind test brand alliance two-sided message conjoint alliance None of the above

brand alliance

Which of the following is an infrastructure reference group? business press followers early adopters lead firms None of the above

business press

Which type of customer has an emotional attachment to the brand or firm? repeat purchaser satisfied buyer total buyer committed customer None of the above

committed customer

The individuals (representing functional areas and management) within an organization who participate in making a given purchase decision make up the _____. strategic business unit (SBU) decision center (DC) decision-making unit (DMU) strategic decision unit (SDU) None of the above

decision-making unit (DMU)

Servicescape

describes a service business such as hospital, bank or restaurant

Miles is considering the purchase of a new car. Price is the most important criterion for him, and he will only consider those models that do not exceed $20,000. Since several models satisfy this criterion, he then considers how each alternative performs with respect to gas mileage, and he will not consider any that get less than 20 miles per gallon in the city. Which decision rule is Miles using? conjunctive disjunctive lexicographic elimination-by-aspects compensatory

elimination-by-aspects

** Disjunctive decision rule **

establishes a minimum level of performance for each important attribute. Any brands that meet or exceed the performance level for any key attribute are considered acceptable.

** Conjunctive decision rule **

establishes minimum requires performance standard for reach evaluate criterion and selects the first or all brands that meet or exceed these minimum standards.

Carlos is trying to understand the organizational buyer behavior of firms in his sales territory. Which of the following is an external influence on an organization's culture that he should examine? organizational values needs desires firmographics None of the above

firmographics

Employees who deal directly with consumers are known as _____. foot soldiers clerks consumer-level employees frontline employees None of the above

frontline employees

Store atmosphere

influenced by such attributes as lighting, layout, presentation of merchandise, fixtures, floor coverings, colors, sounds, odors, and the dress and behavior of sales and service personnel

Neil is considering the purchase of a 4-wheeler ATV. He visited a distributor to look at different models, and when he looked at prices he compared them with a price his brother told him he paid for an ATV. The price Neil retrieves from memory is known as a(n) _____. base reference price external reference price internal reference price private reference price personal reference price

internal reference price

Attitude-based choice

involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice. Motivation, information availability, and situational factors interact to determine the likelihood that attitude based choices are made. The less information and time they have the more likely they will make a decision based off attitude. Example: She has a previous attitude towards her old camera and she has some current attitude towards her current camera she decides to go with the one that will reflect the best attitude.

Awareness set

is composed of those brands consumers are aware of. For many products there are two dimensions to performance; instrumental, or expressive (symbolic)

A difference between large and small organizations when making a purchase decision is _____. - small organizations generally involve more individuals in the decision-making process - large organizations generally involve more individuals in the decision-making process - large organizations typically have less specialization - small organizations typically have more specialized purchasing tools - all of the above

large organizations generally involve more individuals in the decision-making process

Consumption guilt

negative emotions or guilt feelings are aroused by the use of a product or a service

Instrumental performance

physical functioning of the product

External reference price

price presented by a marketer for the consumer to use to compare with the current price

The trustworthiness dimension of an online retailer's image is represented by which components? - good product offers and information, value, aligned with interests - fun, attractive, pleasant to browse - easy to use and navigate, flexible site - reputation, information safety and security - None of the above

reputation, information safety and security

** Lexicographic decision rule **

requires the consumer to rank the criteria in order of importance. The consumer than selects the brand that performs best on the most important attribute. Seeks maximum performance at each stage.

** Elimination by aspects decision rule **

requires the consumer to rank the evaluative criteria in terms of their importance and to establish a cutoff point for each criterion. Wants to buy the brand with the most important attributes. A desired attribute other brands do not have

Attribute-based choice

requires the knowledge of specific attributes at the tune the choice is made, and it involves attribute-by-attribute comparisons, across brands. Examples: She checks out all the attributes of the different cameras first and then decides on which camera to buy

Simon was dissatisfied with the meal and service he received at a restaurant, so he complained. The manager came out and was arrogant to Simon, and Simon felt like he was trying to blame him for the bad experience he had by saying he was too picky. Simon vowed never to eat at that restaurant again. Which reason for changing providers does this represent? involuntary switching responses to service failures pricing attraction by competitors None of the above

responses to service failures

Purchase of which product typically represents low social risk and low economic risk for consumers? deodorant automobile socks auto repairs hair cut/style

socks

Which of the following is NOT a type of cost associated with perceived risk? social cost time cost effort cost physical cost spatial cost

spatial cost

A retailer being temporarily out of a particular brand is called _____. whiteouts blackouts stockouts shortage None of the above

stockouts

A given consumer's or target market's perception of all the attributes associated with a retail outlet is generally referred to as the _____. store atmosphere servicescape store image store ambiance store personality

store image

Juan's job as a purchasing agent consists mostly of reordering basic supplies and component parts. Which type of organizational purchase situation does this represent? nominal straight rebuy modified rebuy new task None of the above

straight rebuy

Evaluative criteria

the carious dimensions, features, or benefits a consumer looks for in response to a specific problem.Evaluative criteria can also be emotions. Evaluative criteria area typically associated with desired benefits. Example: consumers want fluoride in there toothpaste (evaluative criteria) for the benefit of reducing cavities (benefit).

Conjoint analysis

the consumer is presented with a set of products or product descriptions in which the evaluative criteria change, the most popular indirect measurement approach for evaluative criteria.

Switching costs

the costs of finding, evaluation, and adopting another solution

Affective performance

the emotional response that owning or using the product or outlet provides

Metagoals

the general nature of the outcome being sought and minimizes decision effort or maximizing the extent to which a decision is justifiable to others.

Cindy is bothered about the amount of advertising her 10 year old daughter sees for cosmetics and designer clothes that she feels are too suggestive in nature. Which is Cindy's major area of concern regarding advertising to children? - the impact of commercial messages on children's values - the impact of commercial messages on Cindy's budget - the impact of commercial messages on the economy - the impact of commercial messages on her children's cognitive development - None of the above

the impact of commercial messages on children's values

Stockouts

the store being temporarily out of a brand product

Which of the following is the most difficult to regulate? - the explicit verbal content of ads - the subtle meanings implied by the visual content of ads - the adequacy of the information provided in ads - a website's privacy policy with respect to children - None of the above

the subtle meanings implied by the visual content of ads

Consummatory motives

underlie behaviors that are intrinsically rewarding to the individual involved.

Using WD-40 as an additive to fish bait is an example of _______. counterfeit thinking prefactual thinking use innovativeness usage all of the above

use innovativeness

Retail gravitation model

used to calculate the level of store attraction based on store size and distance to the consumer