CB Chapter 1 Book

______ studies the processes that people use to choose, secure, utilize, and dispose of products, services, experiences, or ideas to satisfy needs and the effect of these processes on the consumer and society.

Consumer behavior

_____ have major negative impacts on the physical environments of societies.

Consumption decisions

Which of the following is true about the meaning of consumption?

Consumption frequently has deep meaning for the consumer.

An effective communications strategy answers which three of the following questions?

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

Which of the following is most likely a social marketing campaign?

a health food store distributing leaflets that illustrate harmful effects of drug use

For an individual, the most obvious outcome of the consumption process is

achieving some level of satisfaction of the need that initiated the process.

When does a firm select its target market for a product?

after describing each group of customers with similar need sets

Many consumers who are aware of the indirect impact their consumption has on the environment

are changing their behavior to minimize their impact.

It is important for individuals in consumption societies to be aware of the marketing strategies and tactics that influence their decisions so as to _____.

be more effective as consumers

In the context of market segmentation, the process of tracking the online activity of consumers and displaying banner ads to them that are related to their activity is known as

behavioral targeting.

Creating satisfied customers in order to ensure future sales requires customers to

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

The process of consumer behavior is best described as a ______ and ______ process.

complex; multidimensional

Everything a consumer must surrender to obtain the benefits of possessing or using a product is known as

consumer cost.

Marketers use ______ to understand how specific consumers will behave in specific situations for any given product category.

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

consumer research.

The economic health of many countries is highly influenced by

consumption decisions made in large, wealthy societies.

Economically developed societies are often called

consumption societies.

The difference between all the benefits derived from a total product and all the costs of obtaining those benefits is known as

customer value.

Product distribution is essential to the success of a marketing strategy because

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

Decisions regarding ______ have a major impact not only on the individual involved, but on the overall quality of life in a society.

injurious consumption

Identify a phenomenon that has a major negative impact on the social welfare of a society and not just the individuals involved.

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.

injurious consumption

The most fundamental outcome of a company's marketing strategy is

its product position.

Any and all signals that a company provides about itself and its products through advertising, packaging, or public relations are referred to as

marketing communications.

Which is the most effective way to discover customers' needs?

marketing research

A ______ is how a company can provide superior customer value to its target market that involves the formulation of a marketing mix.

marketing strategy

Along with obtaining a profit for the firm, a marketing strategy also seeks to

maximize customer value.

In the process of market segmentation, marketers need to identify product-related need sets because

most products in developed economies fulfill more than one need.

An image of a product or brand in a consumer's mind in comparison to its competitors is known as

product position.

Which application of consumer behavior serves to protect consumers?

regulatory policy

Critical outcomes of a company's marketing strategy include _____, as these are necessary for the company to sustain its business.

sales and profits

A market _ is a portion of a larger market whose needs differ somewhat from the larger market.

segment

A portion of a larger market with similar needs that are somewhat different from the larger market is known as a market

segment

Consumer behavior can best be defined as the study of the processes individuals, groups, or organizations go through in order to

select, secure, use and dispose of products, services, experiences or ideas.

Lifestyle is the manifestation of a person's

self-concept.

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

service

Select the components of a market analysis. (Select all that apply)

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

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

social marketing

The application of marketing strategies and practices not for profit but rather to change or create behaviors that have a beneficial impact on targeted individuals or society as a whole is known as

social marketing.

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

target market

Injurious consumption occurs when individuals make consumption decisions

that have negative consequences for their long-run well being.

Which market analysis component includes consideration of the state of the economy, the physical environment, government regulations, and technological developments?

the conditions

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?

the consumer decision process

Which of the following is a major determinant of the state of a country's economy?

the cumulative impact of its citizens' consumption decisions

Customer value can be defined as

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

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

the methods used to reach each group differs.

In the context of customer value, what is the aim of a marketing strategy?

to provide a customer with more value than a competitor while reaping a profit

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

true

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

true

In the context of firm outcomes, when do sales and profits occur? (Select two answers)

when the analysis of consumers by a firm proves to be accurate when a firm's marketing mix suits the consumer decision process

Which is an example of an auxiliary service?

Free delivery and set-up when purchasing appliances

Select from the following the four steps of the market segmentation process.

group customers with similar need sets describe each group select a segment to serve Identify product-related need sets

In the process of market segmentation, what step occurs after identifying product-related need sets?

grouping customers with similar need sets

Which of the following are approaches to identify need sets of groups in the process of market segmentation?

identifying ethnic groups first followed by consumption-related needs across the groups identifying needs first followed by consumer characteristics associated with those needs

During market analysis, which of the following questions should a company ask regarding competition?

How are competitors likely to respond if we are successful? If we are successful, which firms will be hurt?

A firm developing a marketing strategy seeks to answer which question?

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

What is the likely outcome for a firm that bases its marketing decisions on explicit consumer behavior theory, assumptions, and research?

It can create a competitive advantage for the firm.

Which two statements about determining customers' needs are true?

It is a complex process. It can often be accomplished by marketing research.

Select those items that describe consumer behavior.

It is a complex process. It is influenced by a number of factors. It is a multidimensional process.

Why is customer satisfaction a major concern for marketers?

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

Identify an accurate statement about behavioral targeting.

It makes individualized communication more cost effective.

When conducting market analysis, which of the following must a company do?

It must understand its own ability to meet customer needs.

Select the ways by which a company can understand its own ability to meet customer needs. (Check all that apply.)

It should understand the skills of its marketing department. It should consider its production capabilities. It should evaluate its own financial condition.

Click and drag on elements in order Place the steps of the market segmentation process in the order in which they are implemented by a firm. Place the first step at the top and the last step at the bottom.

1. identifying the needs sets related to products 2. sorting consumers into groups with similar need sets 3. describing each group of consumers with similar need sets 4. choosing one or more attractive segments to serve

Select from the following the campaigns that would qualify as a social marketing campaign.

A campaign to support a local charity A campaign to reduce smoking A campaign to encourage recycling

Why is product position important?

A product whose position matches the desired position of a target market is likely to be purchased.

Which of the following are the most likely responses from competing companies if your company is successful?

Competitors will reduce prices on their products. Competitors will increase their advertising.

Select from the following the scenarios that illustrate injurious consumption.

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

Match the term to its correct description

Price = The amount of money that must be paid to obtain the right to use a product Consumer cost = What is surrendered in order to receive the benefits of owning/using a product

Drag and drop the definitions of the concepts in consumer behavior against the corresponding concepts.

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

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?

Self-concept and lifestyle

Select the regulatory bodies and/or policies that are designed to protect and educate consumers. (Select all that apply.)

The Food and Drug Administration The Nutrition Labeling and Education Act

Match the components of a market analysis (in the left column) to what the components entail (in the right column).

The consumers = The consumption process of potential customers The company = The organization's own capabilities The competitors = The capabilities of present and future rivals The conditions = The economic, physical, and technological context of the components

Which of the following are true of consumer decisions? (Select all that apply.)

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

Identify an accurate statement about groups of customers with similar need sets.

They can have sharply different 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?

describing customers with similar needs in terms of their demographics

What two items have prompted consumer demand for environmentally sound products?

deterioration of the physical environment government regulations

An element in a marketing strategy that involves making a product available in places where its target customers can purchase it is known as

distribution

Marketing decisions are likely to be successful if they are based on

explicit consumer behavior theory, assumptions, and research.

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

false