Marketing Chapter 5 Questions

137 Children exert little influence on family buying decisions, particularly in areas such as entertainment and food. t/f

137 false

138 Personality is a person's pattern of living as expressed in his or her psychographics. t/f

138 false

139 A person's buying choices are influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes. t/f

139 true

140 Maslow's theory is that human needsincluding physiological, safety, social needs, esteem, and self-actualization needsare arranged in a hierarchy and that an unsatisfied need motivates an individual to take action to satisfy it. t/f

140 true

141 Alternative evaluation is the process by which people select, organize, and interpret information to form a meaningful picture of the world. t/f

141 false

142 A belief is the specific mix of human traits that may be attributed to a particular brand. t/f

142 false

143 Dissonance-reducing buying behavior typically occurs when a buyer sees little difference among brands but is highly involved with the purchase. t/f

143 true

144 A person buying a car would be unlikely to exhibit complex buying behavior. t/f

144 false

145 A marketer seeking to create brand familiarity should be more concerned about creative ad copy content than ad repetition. t/f

145 false

146 Commercial sources of information typically legitimize and evaluate products for buyers. t/f

146 false

147 After purchasing a product, the consumer will be satisfied or dissatisfied and will engage in post-purchase behavior. t/f

147 true

148 Most unhappy customers explain their reasons for dissatisfaction to the company who sold the product. t/f

148 false

149 When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the alternative evaluation process. t/f

149 false

150 People differ greatly in their readiness to try new products. In each product area, there are "consumption pioneers." They are also called laggards. t/f

150 false

151 Early adopters are opinion leaders in their communities and adopt new ideas early but carefully. t/f

151 true

152 Ed purchases new technological devices such as PDAs, DVRs, and MP3 players after many people he knows already own the devices. However, Ed is rarely among the last people he knows to purchase a new technology. Ed is part of the laggard adopter group. t/f

152 false

153 Members of the early majority are deliberate; although they rarely are leaders, they adopt new ideas before the average person. t/f

153 true

154 In general, innovators tend to be relatively older, be more mature, and have a lower income than late adopters. t/f

154 false

155 Two of the characteristics that are especially important in influencing an innovation's rate of adoption are relative advantage and compatibility. t/f

155 true

156 Cultural factors exert a broad and deep influence on consumer behavior. The marketer needs to understand the role played by the buyer's culture, subculture, and social class. Compare the roles of culture, subculture, and social class.

156 Culture is the most basic cause of a person's wants and behavior. Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important markets. Social classes are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Unlike nationality or ethnic subculture, social class is determined by a combination of many variables, such as occupation, income, education, and wealth. Social scientists have identified seven social classes within the American culture, ranging from upper class to lower class.

157 Many subcultures make up important market segments. Examples of four such important subculture groups include Hispanics, African Americans, Asian Americans, and mature consumers. Describe the general characteristics of each of these groups.

157 Hispanic consumers tend to buy more branded, higher-quality productsgenerics do not sell well to Hispanics. Perhaps more important, Hispanics are very brand loyal, and they favor companies who show special interest in them. African American consumers are more price-conscious than other segments; they are also strongly motivated by quality and selection. African Americans seem to enjoy shopping more than other ethnic groups and are also more fashion conscious. Asian American consumers are the most affluent U.S. demographic segment and are the second-fastest-growing population subculture, after Hispanics. Asian American consumers are very tech-savvy and are the most brand conscious of all the ethnic groups. Mature consumers are better off financially than are younger consumer groups. They are an ideal market for travel, restaurants, high-tech home entertainment products, convenient services, financial services, and healthcare services.

167 Give an example of a cultural shift that may impact the marketing of products or services.

167 Answers will vary. Currently, the shift toward greater concern about health and fitness has generated increased marketing of exercise equipment and gear.

168 Why might the Hispanic market be a viable targeted group for a new marketer of products?

168 Hispanics are the fastest growing U.S. subculture and they tend favor companies who show special interest in them, attributes a new marketer of a product could capitalize on.

169 In what way might a marketer rely on opinion leaders?

169 Opinion leaders can influence other larger groups of consumers to be attracted to a marketer's products.

170 How does marketing through online social networks differ from more traditional marketing?

170 Marketers hope to use social networks to interact with consumers and become a part of their everyday lives instead of relying on the one-way commercial messages of more traditional media.

171 Explain why typical husband-dominant or wife-dominant products of the 1970s may no longer be regarded as typical.

171 Changes in the traditional family structure, such as more women holding jobs outside the home and more single-parent households, have changed the traditional buying roles over time.

172 Explain the concept of brand personality.

172 A brand personality is the specific mix of human traits that may be attributed to a particular brand.

173 Explain why selective attention is not controllable by a marketer.

173 A marketer cannot guarantee that a consumer will pay attention to or remember a specific ad; people use selective attention because it is impossible for them to pay attention to the thousands of marketing stimuli they experience each day.

174 Explain how selective distortion is somewhat controllable by a marketer.

174 Marketers can attempt to understand consumers' mindsets and how these will affect perceptions of advertisements.

175 Knowing that selective retention prevents consumers from remembering everything about an ad, what might a marketer do to enhance retention?

175 Use of drama, fear, or extreme humor in an ad can often promote retention among consumers; ad repetition may also work.

176 Explain the role of marketers in the information search step of the consumer decision-making process. Give an example of how the marketer might execute this role.

176 The role of marketers in the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible by the consumer.

177 Explain how marketers may be able to reduce postpurchase cognitive dissonance.

177 Marketers must make every effort to enhance after-sale communications, providing evidence and support to help consumers feel good about their purchases.

178 Why should marketers set up systems that encourage customers to complain about products?

178 Most customers never share their complaints with marketers; without this information, it is difficult for a company to identify how it can improve.

179

179

180 What strategy should a marketer use upon learning that consumers are not buying a product because they do not perceive a need for it?

180 Marketing might launch an advertising campaign that shows customers how the product can solve their existing problems and meet their existing needs.

181 What are the differences between innovators and early adopters?

181 Innovators are more willing to take on risk; early adopters try new ideas early on but are much more deliberate.

127 Refer to the scenario below to answer the following questions. The Attic Trunk began in 1979 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract an affluent, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby. By the late 1980s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and useless flowered parasols, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in population and buying behavior of the typical shopper by the late 1980s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted a "typical shopper." The wealthy, mature clientele had been partially replaced with affluent families with children, a mix of Asian and African Americans as well as Caucasians. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, colognes, and jewelry. Other owners followed suit in the early 1990s, bringing restaurants, an outdoor cafe, and a day spa to the main avenue in Forest Ridge.

127

128 ) Which of the following is the strongest reason that the owners of The Attic Trunk might NOT want to completely discount the mature consumers as a still-viable target market?

128 Mature consumers are the largest and wealthiest demographic segment in the United States.

129 Many families with children are now attracted to the shopping district in Forest Ridge. What characteristics about families as consumer groups might the owners of The Attic Trunk want to keep in mind?

129 Children have considerable amounts of disposable income and have a strong influence on family buying decisions.

130 It is most likely that each consumer segment attracted to The Attic Trunk would have which of the following in common with the other consumer segments?

130 AIO dimensions

131 The starting point of understanding how consumers respond to various marketing efforts is called the marketing stimulus model of buyer behavior. t/f

131 false

132 Subcultures are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. t/f

132 false

133 Younger consumers are better off financially than mature consumers. They are the ideal market for travel, restaurants, high-tech home entertainment products, and convenient services. t/f

133 false

134 Social class is based on shared value systems and common life experiences and situations. t/f

134 false

135 Because people are able to move between social classes, these classes are relatively impermanent and disordered divisions whose members share dissimilar values, interests, and behaviors. t/f

135 false

136 Online social networks represent an important new form of buzz for marketers. t/f

136 true

158 A consumer's behavior is influenced by social factors, such as the consumer's small groups, family, and social roles and status. Explain the differences among these social factors.

158 Small groups to which a person belongs have a direct influence on what a person buys. Reference groups serve as direct or indirect points of comparison or reference in forming a person's attitudes or behaviors. An aspirational group is one to which the individual wishes to belong. Reference groups expose a person to new behaviors and lifestyles, influence a person's attitudes and self-concept, and create pressures to conform that may affect the person's product and brand choices. Opinion leaders are also included in reference groups. The group closest to consumers is the family, the most important consumer buying organization in society. Marketers are interested in the changing roles and influence of each family member, particularly as male and female purchasing roles evolve and children wield more purchasing influence. Within groups, including families, the position of an individual is defined by role and status. A role consists of the activities people are expected to perform according to the persons around them, while status is the general esteem given to that role. People tend to choose products that fit with their roles and status.

159 Each person's distinct personality influences his or her buying behavior. Personality is usually described in terms of traits. What are these traits, and how do they affect the way people purchase items? Give at least one example.

159 Personality is described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Personality can be useful in analyzing behavior for certain products. Consumers are likely to choose brands with personalities that match their own. For example, someone with a sophisticated personality might be attracted to a more sophisticated product, such as a BMW, while someone with a more rugged personality might be attracted to a more rugged product, such as a Jeep.

160 Explain Maslow's Hierarchy of Needs.

160 Maslow suggested that our unfulfilled needs motivate us and that our needs are arranged in a hierarchy. The hierarchy of needs includes physiological, safety, social, self-esteem, and self-actualization needs. Maslow suggested that we fill the bottom-level, basic needs first before moving up the hierarchy. Until more basic needs such as safety are fulfilled, an individual has little interest in higher-level needs such as esteem and self-actualization.

161 Compare and contrast the four types of buying decision behavior exhibited by consumers.

161 A consumer exhibits complex buying behavior when he or she is highly involved in a purchase decision and perceives significant differences among the choices. Consumers will engage in a learning process as they gather and analyze information about their choices before making a purchase. When a consumer is highly involved with a purchase but does not perceive significant differences among his or her choices, he or she will most likely engage in dissonance-reducing behavior. This behavior involves less time learning about each product's attributes, and a consumer is more likely to make a choice based on a good price or convenience. Habitual buying behavior and variety-seeking behavior are exhibited when a consumer has a low involvement with the product. When the consumer sees little difference between brands, he or she will most likely engage in habitual buying behavior, buying the most familiar brands out of habit. When the consumer perceives some significant brand differences, he or she is more likely to engage in variety-seeking buying behavior, doing a lot of brand switching without a great deal of evaluation before purchase.

162 Describe some important strategies for a marketer of a high-involvement product.

162 Marketers must understand the information-gathering and evaluation behavior of their high-involvement customers. This involves helping customers learn about the product attributes and their relative importance, as well as clearly differentiating the brand's features. Marketers might use long copy in print media to satisfy the customer's need for information. Marketers must also motivate salespeople to influence the customer's choice. To discourage customers' postpurchase dissonance, after-sale communications from the marketer should help customers feel good about their purchase decision.

163 Listing them in the proper order, what are the stages in the buyer decision process? Describe each.

163 In the need recognition stage, consumers become aware of a new problem or need. Then, consumers seek information products to meet that need in the information search stage. In the alternative evaluation stage, consumers use the gathered information to compare and contrast the choices. Consumers do not use the same evaluation process in all buying situations; sometimes they may make careful, logical calculations and other times they may rely on intuition and buy on impulse. Consumers then make the purchase decision, buying the product. The last component of the process is postpurchase behavior, which is determined by any difference between the consumer's expectations for the product and the perceived performance of the product.

164 Identify and describe the stages in the adoption process.

164 In the awareness stage, consumers become aware of the new product but lack information about it. Then, consumers seek information about the new product in the interest stage. In the evaluation stage, consumers consider whether trying the new product makes sense. Consumers try the product on a limited basis in the trial stage. Finally, consumers decide to make full use of the product in the adoption stage.

165 Identify the product characteristics that influence the rate of adoption. Explain how each characteristic affects the rate of adoption

165 The five most important product characteristics that influence the rate of a product's adoption are relative advantage, compatibility, complexity, divisibility, and communicability. Relative advantage is the degree to which an innovation appears superior to existing products; the greater the perceived relative advantage, the sooner the product will be adopted. Compatibility is the degree to which the innovation fits the values and experiences of potential consumers; high compatibility leads to quick adoption. Complexity is the degree to which the innovation is difficult to understand or use; the greater the complexity, the slower the adoption rate. Divisibility is the degree to which the innovation may be tried on a limited basis; the higher the divisibility, the slower the rate of adoption. Finally, communicability is the degree to which the results of using the innovation can be observed or described to others; high communicability lends itself to a higher rate of adoption.

166 What role do the four Ps play in consumer behavior?

166 The four Ps are the marketing stimuli that affect buyer behavior: marketers use product, price, place, and promotion to attract the targeted consumers.