Chapter 1: Consumer Behavior and Marketing Strategy

B. Regulatory policy

Which application of consumer behavior serves to protect consumers? A. Market analysis B. Regulatory policy C. Greenwashing D. Social marketing

C. Its product position.

The most fundamental outcome of a company's marketing strategy is A. Customer satisfaction. B. Need satisfaction. C. Its product position. D. Consumer impressions.

D. Injurious consumption

Identify a phenomenon that has a major negative impact on the social welfare of a society and not just the individuals involved. A. Product positioning B. Customer satisfaction C. Social marketing D. Injurious consumption

C. It makes individualized communication more cost effective.

Identify an accurate statement about behavioral targeting. A. It has enabled firms to target large market segments for the first time. B. It focuses on larger markets rather than market segments. C. It makes individualized communication more cost effective. D. It has made it harder for firms to target smaller segments.

A. Be more effective as consumers.

It is important for individuals in consumption societies to be aware of the marketing strategies and tactics that influence their decisions so as to ________________________. A. Be more effective as consumers. B. Transcend limits on consumption. C. Spend as little time on consumption as possible. D. Be more easily persuaded to buy products they do not need.

A. Marketing strategy

A _______________ is how a company can provide superior customer value to its target market that involves the formulation of a marketing mix. A. Marketing strategy B. Market analysis C. Regulatory policy D. Product-related need set.

B. How will we provide superior customer value to our target market?

A firm developing a marketing strategy seeks to answer which question? A. How can we portray our competitors in a negative light in the minds of consumers? B. How will we provide superior customer value to our target market? C. How can we serve the market without utilizing the marketing mix? D. How can we provide products to consumers at the highest price possible?

Service

A firm that offers auxiliary or peripheral activities that enhance the primary product is offering a ________.

C. Segment.

A portion of a larger market with similar needs that are somewhat different from the larger market is known as a market A. Position. B. Outcome. C. Segment. D. Mix

Target market

A(n) __________________________ is a segment of a larger market on which a firm focuses its marketing strategies and tactics.

D. The consumer decision process

According to the conceptual model of consumer behavior, what is the process by which an individual meets needs and desires that shape and are shaped by self-concept and lifestyle? A. The market development process B. The customer segmentation process C. The product distribution process D. The consumer decision process

C. Maximize customer value.

Along with obtaining a profit for the firm, a marketing strategy also seeks to A. Minimize customer value. B. Minimize competition C. Maximize customer value. D. Maximize competition.

(2) With whom, exactly, do we want to communicate? (3) What message should we use to reach the target audience? (4) What media should we use to reach our target audience?

An effective communications strategy answers which three of the following questions? (1) How do we determine who our target audience is? (2) With whom, exactly, do we want to communicate? (3) What message should we use to reach the target audience? (4) What media should we use to reach our target audience?

D. Distribution

An element in a marketing strategy that involves making a product available in places where its target customers can purchase it is known as A. Advertising B. Communication. C. Pricing. D. Distribution

C. Product position

An image of a product or brand in a consumer's mind in comparison to its competitors is known as A. Consumer value B. Total product C. Product position D. Self-concept.

B. Marketing communications

Any and all signals that a company provides about itself and its products through advertising, packaging, or public relations are referred to as A. Social marketing B. Marketing communications C. Product analysis D. Market segmentation.

C. Believe that a brand offers superior value after they have used it.

Creating satisfied customers in order to ensure future sales requires customers to A. Remain convinced that a brand offers superior value before the initial sale. B. Be persuaded to purchase a poor-quality product. C. Believe that a brand offers superior value after they have used it. D. Have one or two negative experiences with the product before they become loyal.

D. Sales and profits

Critical outcomes of a company's marketing strategy include ____________, as these are necessary for the company to sustain its business. A. Injurious consumptions B. Regulatory policies C. Social welfare programs D. Sales and profits

C. The difference between the benefits derived from a total product and the costs of acquiring those benefits.

Customer value can be defined as A. The steps a consumer goes through in order to select a product or service. B. Obtaining a product or service at the lowest price possible, regardless of the benefits received. C. The difference between the benefits derived from a total product and the costs of acquiring those benefits. D. A marketing strategy that results in the purchase of a product by a consumer.

D. Injurious consumption

Decisions regarding ______________ have a major impact not only on the individual involved, but on the overall quality of life in a society. A. Social marketing B. Customer satisfaction C. Product positioning D. Injurious consumption

D. Consumption societies.

Economically developed societies are often called A. Developing countries. B. Segmented societies. C. Frugal societies. D. Consumption societies.

D. Consumer cost.

Everything a consumer must surrender to obtain the benefits of possessing or using a product is known as A. Customer value. B. Product value. C. Product price. D. Consumer cost.

C. Achieving some level of satisfaction of the need that initiated the process.

For an individual, the most obvious outcome of the consumption process is A. Taking consumption decisions that negatively affect his or her well-being. B. Attaining complete satisfaction of all possible needs. C. Achieving some level of satisfaction of the need that initiated the process. D. Making a purchase regardless of how well it fulfills a need.

A. They can have sharply different demographics

Identify an accurate statement about groups of customers with similar need sets. A. They can have sharply different demographics B. They never have varied demographic features. C. They belong to a single, homogeneous demographic group. D. They always have identical demographics.

C. To provide a customer with more value than a competitor while reaping a profit.

In the context of customer value, what is the aim of a marketing strategy? A. To provide a customer with more value than a competitor at any cost. B. To reap a profit from a customer while providing him or her no value for a product. C. To provide a customer with more value than a competitor while reaping a profit. D. To reap a profit from a customer while providing him or her less value than a competitor.

D. Most products in developed economies fulfill more than one need.

In the process of market segmentation, marketers need to identify product-related need sets because A. Every product can only satisfy a single need, therefore marketers must create multiple products. B. Every need in a need set represents a separate market segment. C. The needs of each market segment are the same as those of the larger market. D. Most products in developed economies fulfill more than one need.

B. Grouping customers with similar need sets

In the process of market segmentation, what step occurs after identifying product-related need sets? A. Selecting a target market B. Grouping customers with similar need sets C. Choosing an attractive segment to serve D. Defining a target market

D. Describing customers with similar needs in terms of their demographics

In the process of market segmentation, which of the following is the step that comes after identifying customers with similar need sets that are related to a product? A. Placing related needs into groups. B. Providing the customers with superior customer value at a profit C. Distributing products to a target market. D. Describing customers with similar needs in terms of their demographics

A. That have negative consequences for their long-run well being.

Injurious consumption occurs when individuals make consumption decisions A. That have negative consequences for their long-run well being. B. Without having gone through all the steps of the consumer decision process. C. Based on hunches or intuition instead of on solid research.

A. The methods used to reach each group differs.

It is necessary to describe groups of customers with similar need sets in terms of demographics, lifestyle, and media usage during the process of market segmentation because A. The methods used to reach each group differs. B. Each group requires a different product. C. Every customer in a group requires a unique strategy. D. The target market within each group is different.

A. Self-concept.

Lifestyle is the manifestation of a person's A. Self-concept. B. Perceived satisfaction. C. Need set. D. Actual need fulfillment.

D. Are changing their behavior to minimize their impact.

Many consumers who are aware of the indirect impact their consumption has on the environment A. Have stopped consumption altogether to reduce their impact. B. Have decided not to consume anything that impacts the environment in any way. C. Are increasing consumption to increase their impact on the environment. D. Are changing their behavior to minimize their impact.

A. Consumer research

Marketers use _____________ to understand how specific consumers will behave in specific situations for any given product category. A. Consumer research B. Promotional tactics C. Purchase intent D. Pricing strategies

D. Explicit consumer behavior theory, assumptions, and research.

Marketing decisions are likely to be successful if they are based on A. The same strategies used by a firm's competitors. B. Hunches and wild ideas, rather than on research. C. The intuition and gut reaction of marketers. D. Explicit consumer behavior theory, assumptions, and research.

Self-Concept: The totality of a person's thoughts and feelings about him or herself. Lifestyle: The manifestation of the total image a person has of him or herself.

Match the definitions of the concepts in consumer behavior against the corresponding concepts (Self-concept and Lifestyle). The totality of a person's thoughts and feelings about him or herself. The manifestation of the total image a person has of him or herself.

D. Customers rarely go to great lengths to secure a particular brand and expect cross-channel options.

Product distribution is essential to the success of a marketing strategy because A. Customers are always prepared to travel long distances for a preferred brand. B. Consumers are always looking for new brands and avoid available brands. C. Consumers rarely buy a brand that is stocked by every store they visit. D. Customers rarely go to great lengths to secure a particular brand and expect cross-channel options.

(1) Identify product-related need sets. (2) Group customers with similar need sets. (3) Describe each group. (4) Select a segment to service.

Select from the following the four steps of the market segmentation process. (1) Identify competitors' segments (2) Evaluate the success of the chosen segment (3) Identify product-related need sets. (4) Group customers with similar need sets. (5) Describe each group. (6) Select a segment to service.

B. Despite the health warnings, Henry still smokes a pack of cigarettes a day. C. Thalia bought way more furniture than she had budgeted for because the store offered her cheap credit terms. D. Loretta does not have a high paying job, so each week she gambles at the casino in hopes of making more money.

Select from the following the scenarios that illustrate injurious consumption. A. Even though he has to travel far to the warehouse store and spend money on gas, Derek shops there once a month to stock up on items for his family. B. Despite the health warnings, Henry still smokes a pack of cigarettes a day. C. Thalia bought way more furniture than she had budgeted for because the store offered her cheap credit terms. D. Loretta does not have a high paying job, so each week she gambles at the casino in hopes of making more money.

A. The consumption process of potential customers. B. The capabilities of current and future competitors. C. The economic, physical, and technological environment D. The organization's own capabilities

Select the components of market analysis. A. The consumption process of potential customers. B. The capabilities of current and future competitors. C. The economic, physical, and technological environment. D. The organization's own capabilities. E. An understanding of injurious consumption.

A. The Nutrition Labeling and Education Act and D. The Food and Drug Administration

Select the regulatory bodies and/or policies that are designed to protect and educate consumers. A. The Nutrition Labeling and Education Act B. The National Labor and Relations Board C. The Internal Revenue Service D. The Food and Drug Administration

C. Consumer research

Successful marketing decisions require an understanding of specific consumers involved in the marketing decision at hand. This information can be gained through the use of A. Company advertising. B. Market segmentation. C. Consumer research. D. Targeted advertising.

Social marketing

The application of not-for-profit marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole is referred to as _________________.

C. Self-concept and lifestyle

The consumer decision process, along with the experiences and acquisitions associated with it, affects the internal and external characteristics of consumers. What aspect of the consumer is most influenced by this? A. The credit rating B. The situations in which a consumer makes decisions. C. Self-concept and lifestyle D. The awareness of new products.

A. Customer value.

The difference between all the benefits derived from a total product and all the costs of obtaining those benefits is known as A. Customer value. B. Market analysis. C. Product price. D. Consumer cost.

C. Consumption decisions made in large, wealthy societies.

The economic health of many countries is highly influenced by A. Injurious consumption in small, developing nations. B. Consumer behavior in underdeveloped economies. C. Consumption decisions made in large, wealthy societies. D. Revenues generated in tiny, island nations.

A. Complex; multidimensional

The process of consumer behavior is best described as a ________________________ and _________________________ process. A. Complex; multidimensional B. Simple; multidimensional C. Simple; one dimensional D. Complex; one dimensional

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

D. Price

The sum of money a person must pay to acquire the right to use a product is known as the product's A. Desired image. B. Signal of quality. C. Ownership. D. Price

C. Injurious consumption

The term ________________ refers to individuals or groups making decisions about consumption that have negative impacts on their well-being in the long run. A. Consumer satisfaction B. Perceived need fulfillment C. Injurious consumption D. Product positioning

FALSE Reason: This is false. A product's position is an image of the product in consumers' mind and consists of a set of beliefs, pictorial representations and feelings about the product. It does not require purchase of the product for it to develop

True or False: A product's position in the minds of consumers can only take place if the consumers actually purchase the product.

TRUE! Reason: This is true. Some of the examples of injurious consumption include overspending, consuming unhealthy food products like fast food, cigarettes, alcohol and so on, and engaging in activities such as gambling.

True or False: Drinking alcohol and smoking cigars are examples of injurious consumption.

TRUE Reason: This is true. When a purchase increases a consumer's need, he or she experiences a negative level of satisfaction.

True or False: Purchases can increase a consumer's need rather than reduce it when he or she has a negative level of satisfaction.

(1) Government regulations (4) Deterioration of the physical environment

What two items have prompted consumer demand for environmentally sound products? (1) Government regulations (2) International trade barriers (3)The ethnic makeup of the market (4) Deterioration of the physical environment

A. It must understand its own ability to meet customer needs.

When conducting market analysis, which of the following must a company do? A. It must understand its own ability to meet customer needs. B. It must create a solution to a problem that does not yet exist. C. It must devise an innovative marketing plan. D. It must diversify and venture into unchartered territory.

C. After describing each group of customers with similar need sets.

When does a firm select its target market for a product? A. Before grouping customers according to their need sets. B. Before identifying customers with similar need sets related to the product. C. After describing each group of customers with similar need sets.

B. Free delivery and set-up when purchasing appliances.

Which is an example of an auxiliary service? A. Receiving a sample of conditioner with the purchase of a bottle of shampoo. B. Free delivery and set-up when purchasing appliances. C. Opening stores early to accommodate the holiday shopping season. D. Being able to purchase a product online or in stores.

A. Marketing research

Which is the most effective way to discover customers' needs? A. Marketing research B. Regulatory oversight C. Using social media D. Selecting a target market

A. The conditions

Which market analysis component includes consideration of the state of the economy, the physical environment, government regulations, and technological developments? A. The conditions B. The competitors C. The company D. The consumers

A. They are the result of a complex set of forces. and C. They can be a result of powerful and nuanced motivations.

Which of the following are true of consumer decisions? A. They are the result of a complex set of forces. B. They are based solely on need and function. C. They can be a result of powerful and nuanced motivations. D. They are predictable and linear.

A. The cumulative impact of its citizens' consumption decisions

Which of the following is a major determinant of the state of a country's economy? A. The cumulative impact of its citizens' consumption decisions B. The emphasis the country places on keeping its citizens well informed C. The number of developing countries that neighbor the country. D. The degree to which the country encourages gender equality.

B. A health food store distributing leaflets that illustrate harmful effects of drug use.

Which of the following is most likely a social marketing campaign? A. An advertisement promoting a furniture company's carpets B. A health food store distributing leaflets that illustrate harmful effects of drug use. C. A company that manufactures office supplies distributing promotional samples of printer paper. D. A clothing store selling many different styles of clothing to attract a longer market segment.

A. Consumption frequently has deep meaning for the consumer.

Which of the following is true about the meaning of consumption? A. Consumption frequently has deep meaning for the consumer. B. It is mechanical and linear and can be quantified. C. Buying decisions are a result of good marketing strategies and financial standing. D. A solid marketing strategy can accurately assess the meaning of consumption for most consumers.

D. It is more profitable to maintain existing customers than to attract new ones.

Why is customer satisfaction a major concern for marketers? A. It is better to look for new target markets than to keep targeting the same segments. B. It is hard to satisfy existing customers as they always have high expectations. C. It is impossible to look for new customers to satisfy once a product is launched. D. It is more profitable to maintain existing customers than to attract new ones.

A. A product whose position matches the desired position of a target market is likely to be purchased. Reason: Consumers can develop a product position without actually purchasing the product

Why is product position important? A. A product whose position matches the desired position of a target market is likely to be purchased. B. A product's position determines how a firm will segment its market. C. Product position develops only after a product is purchased, so greater sales means a better product position.

B. Consumption decisions

______________________ have major negative impacts on the physical environments of societies. A. Social marketing strategies B. Consumption decisions C. Eco-friendly products D. Cause-related marketing tactics