Marketing Midterm
Mike chooses a Toyota despite the fact that it is much more expensive than the other two cars. He is convinced that higher price ensures better quality. This is an example of:
Decision heuristics
A company that sells bags launches a category of bags featuring children's favourite cartoon characters. It also launches a line of stylish travel bags for adults. This is an example of:
Demographic Segmentation
A chainsaw company markets its products only in areas with forests. This is an example of:
Geographic segmentation
A company develops a variety of exotic breads targeted at suburban areas where large families reside and the demand for easy breakfast options is high. This is an example of:
Geographic segmentation
A juice packaging company develops packaged juices for the Canadian market, each targeted to a specific region. This is an example of:
Geographic segmentation
Tommy's Own introduces snacks with different flavours for Asia and Europe. This is an example of:
Geographic segmentation
A credit card company issues a special card only to those customers who spend more than $500,000 a year on its other cards. This is an example of:
Income segmentation
Which of the following holds true for the term physiological risk?
It is the risk associated with the fear of an actual harm should the product not perform properly.
Which of the following holds true for the term psychological risk?
It is the risk associated with the way people will feel if the product or service does not convey the right image.
Which of the following holds true for the term financial risk?
It is the risk which includes the initial cost of the purchase, as well as the costs of using the item or service.
Which of the following holds true for the term social risk?
It is the risk which involves the fears that consumers suffer when they worry others might not regard their purchases positively.
Which of the following holds true for the term performance risk?
It is the risk which involves the perceived danger inherent in a poorly performing product or service.
Which of the following holds true for the term impulse buying?
It refers to a buying decision made by customers on the spot when they see the merchandise.
Which of the following holds true for the term behavioural component?
It refers to a part of attitude that comprises the actions a person takes with regard to the issue at hand.
Which of the following holds true for the term cognitive component?
It refers to a part of attitude that reflects what a person believes to be true.
Which of the following holds true for the term affective component?
It refers to a part of attitude that reflects what a person feels about the issue at hand—his or her like or dislike of something.
Which of the following holds true for the term limited problem solving?
It refers to a purchase decision process during which consumers devote, at most, a moderate amount of effort and time.
Which of the following holds true for the term habitual decision making?
It refers to a purchase decision process in which consumers engage with little conscious effort.
Which of the following holds true for the term negative word of mouth?
It refers to consumers spreading adverse information about a product, service, or store to others.
Which of the following holds true for the term reference group?
It refers to one or more persons an individual uses as a basis for comparison regarding beliefs, feelings, and behaviours.
Which of the following holds true for the term postpurchase dissonance?
It refers to the internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behaviour.
Which of the following statements holds true for the term decision heuristics?
It refers to the mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation.
Which of the following holds true for the term self-actualization?
It refers to the mental state which occurs when individuals feel completely satisfied with their lives and how they live.
Which of the following holds true for the term determinant attributes?
It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.
Which of the following holds true for geographic segmentation?
It refers to the segmentation of consumers based on where they live.
Which of the following holds true for the term noncompensatory decision rule?
It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
Which of the following holds true for the term compensatory decision rule?
It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another, such that good characteristics compensate for bad ones.
A company, which has a clothing line, launches a marketing campaign that features Hollywood stars and well-known sports personalities. These individuals are those with whom consumers might want to identify. This is an example of:
Psychographic segmentation
A hockey equipment manufacturing company is endorsed by NHL superstars. Therefore, ice hockey fans tend to buy hockey equipment from this company. This is an example of:
a reference group.
Many firms use athletes as spokespeople who represent what many people would ideally like to be. This is an example of:
a reference group.
A buyer who examines his own memory and knowledge about a product or service, gathered through past experiences, is experiencing:
an internal search for information.
A person's enduring evaluation of his or her feelings about and behavioural tendencies toward an object or idea is called:
attitude
Megan loves visiting Williams Café near her college. Her enduring evaluation of Williams Café is that she loves the ambience but doesn't like the food too much. She spends over an hour at the café, almost every day, sipping coffee and reading her books. This is an example of customer:
attitude
Jack wants to buy a car. The Nissan receives a low mileage rating when compared to cars by Honda and Toyota, but it scores higher than those cars when it comes to price. Jack feels that the price of a Nissan compensates for its weakness when it comes to mileage. This is an example of:
compensatory decision rule.
Jim wants to buy a new bike. He considers several factors, such as mileage, style, and price. Although the bike he chooses is priced a little higher than he was planning to spend, the superb mileage compensates for the higher price. This is an example of:
compensatory decision rule.
Joss wants to buy a T-shirt. He prefers branded T-shirts to non-branded ones. Though the Calvin Klein T-shirt is very expensive, Joss believes he is buying a higher quality item. This is an example of:
decision heuristics.
Companies have started creating marketing campaigns to specifically target the female market. This is an example of:
demographic segmentation
Skincare Co. offers skin-care products for men. This is an example of:
demographic segmentation
what refers to the segmentation of consumers on the basis of easily measured, objective characteristics such as age, gender, income, and education.
demographic segmentation
Jerry wants a car that has good mileage but low gas consumption. He buys a Toyota. In this case, __________ determines the purchase of the car.
determinant attribute
In Toronto, a retail food store dropped its prices by 12 percent, which led to an increase in its market share from 30 to 45 percent. Because the lower price was the reason why shoppers wanted to buy at that particular store, this is an example of:
determinant attribute.
John attends meditation classes. He believes that meditation will help him maintain a happy, satisfied outlook on life. This is an example of:
esteem needs
Anne is the vice-president of a bank who is well respected in her community. The community has recognized her social contributions by naming a lane after her. This fulfills Anne's:
esteem needs.
what refers to a purchase decision process during which consumers devote considerable time and effort to analyzing alternatives.
extended problem solving
A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives, which often occurs when the consumer perceives that the purchase decision entails a great deal of risk is called:
extended problem solving.
Jeff is a football player. He wants to join a college that provides scholarships to football players and better facilities for athletes. He also checks the fees and dorm facilities of each of these colleges. Jeff devotes considerable time and effort to analyzing his alternatives. He finally settles on the school that best matches his criteria. This is an example of:
extended problem solving.
Allison believes that adequate research will get her the best deal. This is an example of:
external locus of control.
Mary believes that if she makes a wise decision, it is not to her credit, and if she makes a poor one, it is not her fault. This is an example of:
external locus of control.
The consumer belief that fate or other external factors control all outcomes is called:
external locus of control.
A buyer seeks information beyond her personal knowledge base to help make a buying decision. This is an example of:
external search for information.
Allison's level of research is an example of:
external search for information.
Gina wants to buy a car. Before buying it, she asks her friends for their opinions, reads reviews in consumer reports, consults several websites, and visits several dealerships. This is an example of:
external search for information.
Jeff wants to purchase a new house. He consults his family and friends on the area where he should buy. He contacts a number of house agents to find out more about the prices of the houses. He also searches online to have a look at the houses for sale and reads the comments of people interested in buying houses. This is an example of:
external search for information.
Which of the following needs is fulfilled when Jake uses the Mills International equipment?
functional needs
The performance of a product or service fulfills:
functional needs.
Mary usually buys a large tin of Ricoffy coffee and never considers buying any other type of coffee. Mary is indulging in:
habitual decision making.
While on his way home, Jack buys a box of Guardian Original cereal and a family pack of Rice Krispies for his kids. He does not ponder the benefits provided by the competitors' products. This is an example of:
habitual decision making.
Allison is buying fruit juice. She scrutinizes all the information provided. She checks the ingredients for artificial flavours, the calorie and vitamin content, and the expiry date. Allison is a __________ customer.
high-involvement
Mary, a 20-something administrator, enjoys going out every weekend. One afternoon, while in the mall to exchange a pair of shoes, Mary spots a handbag sale. Despite making a strict resolution not to buy unnecessary goods, Mary weakens and buys a purse, a pair of jeans, and another new pair of shoes. This is an example of:
impulse buying
Jeff goes to the supermarket to buy groceries for his family with an elaborate grocery list in hand. After buying all his groceries, he spots some candy that is prominently displayed at the checkout aisle. He picks up a chocolate bar even though it was not part of his grocery list. This is an example of:
impulse buying.
Dean believes that he can get a better deal when buying his first bike. This is because he believes that he has some control over the outcome of his actions if he conducts an extensive search for information and tries to use the information when negotiating his purchase. This is an example of:
internal locus of control.
When consumers believe they have some control over the outcomes of their actions, they generally engage in more search activities. This is called:
internal locus of control.
While buying a new gown, Rhonda goes online and looks at several websites. She makes copious notes and spends hours comparing prices and designs. She then consults a designer friend, looks at several magazines and discusses the issue with her sisters and mother. This is an example of:
internal locus of control.
Maggie is planning to throw a party for her friends in a restaurant. She tries to recall all the restaurants that she has visited over the years and weighs the pros and cons of each of these restaurants before coming to a decision. This is an example of:
internal search for information
Jeff wants to go to a good fast-food restaurant for dinner. He thinks of all the fast-food restaurants that he has eaten in. He then decides on his favourite, a restaurant that he has been visiting since childhood. This is an example of:
internal search for information.
When Allison tries to remember the brands her brother used when he played the game, this is an example of:
internal search for information.
The consumer's degree of interest or concern in a product or service is called:
involvment
A change in a person's thought process or behaviour that arises from experience and takes place throughout the consumer decision process is called:
learning
Bill wants to play football. He consults coaches on what chances he might have to play at the national level. He also consults players who are already playing football at school and university level. He reads articles. He learns from each new piece of information, and his thoughts about the game are different from what he thought before he had read anything. This is an example of customer:
learning
Drew went to the grocery store to do her weekly shopping. She saw some cookies that she had bought before. She bought a pack just in case some of her children's friends came to visit over the weekend. She was sure the cookies were nice. This is an example of:
limited problem solving.
Mila wants to find out more about a newly launched detergent. She seeks additional information on the product from her friend who has used this particular good. This is an example of:
limited problem solving.
When Allison decides to borrow some clothes for the tryouts, she does not give the matter too much thought. This is an example of:
limited problem solving.
A need or want that is strong enough to cause a person to seek satisfaction is called:
motive
John is thirsty and looks for the nearest store to buy a bottle of water to quench his thirst. This is an example of customer:
motive
Allison bought a laptop from Bell and Co. While working one day, the laptop suddenly stopped. Despite Allison's best efforts, it did not start again. She made a visit to the service centre, which refused to check the laptop, saying that it did not have the requisite expertise. The centre also refused to make any alternative arrangements. Allison then decided to post her problems on Facebook to advise people not to buy computers from Bell and Co. This is an example of:
negative word of mouth.
Tom wants to buy a new bike. He considers several factors, such as mileage, style, and price. Tom finds the perfect bike, but it is priced quite high. Although the mileage is superb, Tom rejects the bike because it is priced higher than what he is willing to pay. This is an example of:
noncompensatory decision rule.
Most shoppers believe that Walmart has the lowest price on every product it sells. This belief is a result of the message used in Walmart's advertising and the opinions expressed by its customers. This is an example of customer:
perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world is called:
perception
Mark works hard to ensure that his family has basic needs such as water, food, and sleep. This fulfills the __________ of the family.
physiological needs
The basic biological necessities of life, such as food, drink, rest, and shelter, relate to:
physiological needs.
After having eaten an Indian meal, Shane realized that what he really wanted was to have eaten a Chinese meal. This is an example of:
postpurchase dissonance.
Allison buys a new car. Then she sees the advertisement of another car listing all its benefits and feels confused as to whether she bought the right car. She feels that she should have bought the car advertised in the paper. This is an example of:
postpurchase dissonance.
Which of the following needs is fulfilled when Jake uses the equipment endorsed by Sidney Crosby that is of the same quality but more expensive than the Mills International equipment?
psychological need
The personal gratification that consumers associate with a product or service fulfills:
psychological needs
Mia goes to the local bakery every morning to have her breakfast, which consists of a bagel with cream cheese and a freshly brewed cup of coffee. She has been doing this for the last 10 years. This is an example of:
ritual consumption
A corporate company provides Christmas fun for juvenile detention centres every year as part of their social responsibility program. They deliver beautifully wrapped gifts and stockings filled with fruit and chocolates. On Christmas morning, the company serves cinnamon rolls or coffee cake for breakfast and for dinner there is typically ham and occasionally plum pudding. This is an example of:
ritual consumption.
A pattern of behaviours tied to life events that affect what and how people consume is called:
ritual consumption.
Jim desires steady employment, health insurance, safe neighbourhoods, and shelter from the environment. These fulfill the __________ of an individual.
safety needs
Russell practises law. Most of his clients are poor, or working poor, or on disability. He enjoys helping them solve their problems. Sometimes he gets paid and sometimes he doesn't. But he is satisfied with his life and doesn't care what others have to say about it. The act of helping out the poor satisfies Russell's:
self-actualization needs.
Boris wants to get married and have a family. His need for companionship and acceptance are called:
social needs.
School reunions help individuals bond with friends and teachers and fulfill their:
social needs.
Products or services toward which customers show a strong preference and for which they will expend considerable effort to search for the best suppliers are called:
specialty goods/services.
Jesse feels that Ross is kind, charming, and humorous and that is why she feels good when she is around him. This is an example of:
the affective component of attitude.
Michelle is scared of spiders and feels a strong wave of fear whenever she sees one. This is an example of:
the affective component of attitude.
Jesse feels that Ross is kind, charming, and humorous and therefore she tries to hang out with him whenever she gets the chance. This is an example of:
the behavioural component of attitude.
Michelle is so scared of spiders that she screams loudly every time she sees one. This is an example of:
the behavioural component of attitude.
Two colleagues were angry after a hotel clerk gave away their room reservations. They lashed out against the company by posting a nasty slide show of their experience online, which more than 20,000 people saw when it went viral. This is an example of:
the behavioural component of attitude.
Jesse believes that Ross is honest and generous. This is an example of:
the cognitive component of attitude.
Michelle believes that spiders are dangerous and that a spider bite can have fatal consequences. This is an example of:
the cognitive component of attitude.
A Toyota has great mileage compared to a Honda. But its weaknesses are style and price. Gina feels that Toyota's excellent mileage is outweighed by its weaknesses in price and style. She chooses a Honda. Gina's choice represents:
the noncompensatory decision rule.