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Chapter 06: Consumer Decision Making
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1. The value of a product can mean an enduring belief shared by a society that a specific mode of conduct is personally or
socially preferable to another mode of conduct.
a.
True
b.
False
ANSWER:
True
2. In the context of individual influences on consumer buying decisions, individual characteristics are generally unstable
over the course of one's life.
a.
True
b.
False
ANSWER:
False
3. Consumers can be influenced by reference groups only if they belong to those groups.
a.
True
b.
False
ANSWER:
False
4. Need recognition cannot be triggered when a consumer is exposed to an external stimulus.
a.
True
b.
False
ANSWER:
False
5. People in a subculture do not share the characteristics of the broader culture.
a.
True
b.
False
ANSWER:
False
6. How well a consumer's expectations are met from a product determines whether the consumer is satisfied or dissatisfied
with the purchase.
a.
True
b.
False
ANSWER:
True
7. Through self-concept, people define their identity, which in turn provides for consistent and coherent behavior.
a.
True
b.
False
ANSWER:
True
8. Marketers often try to create opinion leaders as it is rare to find an opinion leader who spans multiple diverse domains.
a.
True
b.
False
ANSWER:
True
9. Involvement is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of
consumer behavior.
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a.
True
b.
False
ANSWER:
True
10. The Internet has failed to change the quality of information available to make purchase decisions.
a.
True
b.
False
ANSWER:
False
11. The process by which we select, organize, and interpret stimuli into a meaningful and coherent picture is called
learning.
a.
True
b.
False
ANSWER:
False
12. Rapid changes in digital technology have hampered the consumers' decision making process due to an increasing
overload of information.
a.
True
b.
False
ANSWER:
False
13. The Internet has always been the domain of the blue-collar workers and homemakers.
a.
True
b.
False
ANSWER:
False
14. Perception is the process that creates changes in behavior through experience and practice.
a.
True
b.
False
ANSWER:
False
15. Consumers' product preferences for themselves remain stagnant in all stages of the family life cycle.
a.
True
b.
False
ANSWER:
False
16. Personality refers to how consumers perceive themselves in terms of attitudes, perceptions, and beliefs.
a.
True
b.
False
ANSWER:
False
17. Unlike high-involvement products, low-involvement goods and services are generally associated with routine response
behavior.
a.
True
b.
False
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ANSWER:
True
18. According to Maslow's hierarchy of needs theory, self-actualization is the highest human need of all.
a.
True
b.
False
ANSWER:
True
19. Consumers try to reduce dissonance by justifying their purchase decision.
a.
True
b.
False
ANSWER:
True
20. Unlike experiential learning, conceptual learning occurs when an experience changes your behavior.
a.
True
b.
False
ANSWER:
False
21. Unlike affluent upper-class consumers, working-class or middle-class consumers are more likely to be salaried
executives or self-employed professionals with at least an undergraduate degree.
a.
True
b.
False
ANSWER:
False
22. Which of the following statements is true of trends in gender marketing?
a.
Today, men rely on the women in their lives to shop for them.
b.
It is unaffected by the roles of men and women in society.
c.
Men are more price-conscious than women.
d.
While shopping, men use tablets twice as often as they use smartphones.
ANSWER:
c
23. Melina considers herself a fashionista and would like to be perceived as more fashion oriented than her friends and
family. Her family and friends, however, feel she dresses just like them. In this case, the perception of Melina's friends
and family contradicts Melina's _____.
a.
real self-image
b.
personality
c.
ideal self-image
d.
social class
ANSWER:
c
24. Which of the following strategies is a marketing manager most likely to follow to increase the sales of a high-
involvement product?
a.
Creating advertisements that give consumers all the necessary information to make the purchase decision
b.
Focusing on the package design of the product so that it will be eye-catching and easily recognized on the
store shelf
c.
Linking the product to a lower-involvement issue to create publicity
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d.
Offering coupons, cents-off deals, and two-for-one offers on the product
ANSWER:
a
25. Linda usually does not spend much time selecting gifts while buying them. However, when buying a pen for her
husband's birthday, she visited several stores and spent a lot of time selecting the pen. This scenario is an example of
_____.
a.
product involvement
b.
situational involvement
c.
shopping involvement
d.
enduring involvement
ANSWER:
b
26. Which of the following statements is true of the social class system in the United States?
a.
Interest in organized labor is one of the most common attributes among the working class.
b.
The working class spends more on vacation homes, jewelry, vacations and cruises.
c.
The majority of Americans today define themselves as upper class.
d.
Social class includes people belonging to the same age and gender.
ANSWER:
a
27. In the context of the purchase process of a family, _____ are members who suggest or plant the seed for the purchase
process.
a.
influencers
b.
purchasers
c.
consumers
d.
initiators
ANSWER:
d
28. _____ is the most complex type of consumer buying decision and is associated with high involvement on the part of
the consumer.
a.
Limited decision making
b.
Routine response behavior
c.
Extensive decision making
d.
Postpurchase evaluation
ANSWER:
c
29. _____ occurs when consumers change information that conflicts with their feelings or beliefs.
a.
Stimulus generalization
b.
Selective distortion
c.
Cognitive dissonance
d.
Selective retention
ANSWER:
b
30. In the consumer decision making process, _____ extends customer interactions to new sources of value, such as
related products or partnered businesses.
a.
automation
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b.
journey innovation
c.
proactive personalization
d.
contextual interaction
ANSWER:
b
31. Joshua prefers to do his grocery shopping at Fresnas Mart because his mother also prefers to shop there. He also does
not shop groceries online because his mother does not prefer shopping groceries online. In this case, Joshua's shopping
behavior is a result of _____.
a.
want-got gap
b.
the socialization process
c.
cognitive dissonance
d.
the decision-making process
ANSWER:
b
32. In the consumer decision making process, _____ uses information—either based on past interactions or collected
through external sources—to instantaneously customize the customer experience.
a.
Automation
b.
Contextual innovation
c.
Journey innovation
d.
Proactive personalization
ANSWER:
d
33. Careers often create a _____ for single parents.
a.
poverty of time
b.
want-got gap
c.
cultural complexity
d.
traditional life cycle
ANSWER:
a
34. _____ is an example of routine response behavior.
a.
Booking a cruise vacation
b.
Buying an $800 personal computer
c.
Buying an air conditioner for the first time
d.
Purchasing groceries
ANSWER:
d
35. In which of the following ways are consumers influenced by reference groups?
a.
Norms of reference groups do not constrain consumer behavior.
b.
Consumers are prohibited from dissociating themselves from reference groups.
c.
Consumers use the same criteria as their reference groups to make their own consumer decisions.
d.
Consumers are influenced only by the reference groups to which they belong.
ANSWER:
c
36. The _____ is an orderly series of stages in which consumers' attitudes and behavioral tendencies evolve through
maturity, experience, and changing income and status.
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a.
socialization process
b.
consumer decision-making process
c.
family life cycle
d.
want-got gap
ANSWER:
c
37. _____ is the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts,
or products, of that behavior as they are transmitted from one generation to the next.
a.
Loyalty
b.
Culture
c.
Consumerism
d.
Perceived value
ANSWER:
b
38. Which of the following is a psychological factor that impacts consumer buying decisions?
a.
Social class
b.
Learning
c.
Age
d.
Lifestyle
ANSWER:
b
39. During an external information search, a consumer is most likely to enlarge his search and consider more alternative
brands when:
a.
the consumer is knowledgeable and well informed about a potential purchase.
b.
the perceived risk of the product or service to be purchased increases.
c.
the consumer is confident of making a purchase decision with the information at hand.
d.
the product or service to be bought is a frequently purchased, low-cost item.
ANSWER:
b
40. Unlike external stimuli, internal stimuli:
a.
do not have multiple sources.
b.
cannot be satisfied through purchases.
c.
include stimuli such as hunger and thirst.
d.
include stimuli such as advertisements and videos.
ANSWER:
c
41. _____ refers to how an individual actually perceives himself or herself.
a.
Self-esteem
b.
Self-actualization
c.
Ideal self-image
d.
Real self-image
ANSWER:
d
42. Which of the following statements is true of consumer behavior?
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a.
People's value systems do not affect their consumer behavior.
b.
Consumer behavior cannot be learned.
c.
The study of consumer behavior includes factors that influence purchase decisions and product use.
d.
Consumers' product and service preferences are constant and do not change over time.
ANSWER:
c
43. According to Maslow's hierarchy of needs, the most basic human needs are _____.
a.
safety needs
b.
physiological needs
c.
social needs
d.
self-esteem needs
ANSWER:
b
44. Recently, Jenny Inc. launched a new laptop in the market. Blake bought the laptop but was disappointed when several
cheaper laptops were successfully launched in the market soon after. To get over his disappointment, he convinced
himself that those laptops were inferior in quality. This scenario illustrates _____.
a.
selective distortion
b.
stimulus discrimination
c.
cognitive dissonance
d.
confirmation bias
ANSWER:
a
45. Andrea wants to take her husband, Bill, to an exotic island to surprise him on their tenth wedding anniversary. She has
made reservations at an expensive hotel. However, she is now worried whether she is going to get service worth the
money she spent. In this scenario, Andrea's inner tension would reduce if:
a.
she has no other hotel to stay on the island.
b.
she differentiates between her needs and wants.
c.
she focuses on her internal stimuli than external stimuli.
d.
her friends also recommend the hotel.
ANSWER:
d
46. Which of the following is a social factor that can influence consumer buying decisions?
a.
A social class
b.
Gender
c.
A reference group
d.
Ethnicity
ANSWER:
c
47. Becky wants to buy a new cell phone. She asks her friends who are technologically savvy to recommend a good,
lightweight phone that is easy to use. In this scenario, Becky is obtaining information using a(n) _____.
a.
marketing-controlled information source
b.
internal information search
c.
nonmarketing-controlled information source
d.
external information search
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ANSWER:
c
48. To increase the sales of low-involvement products, marketing managers can:
a.
focus on the package design of the products.
b.
promote the products extensively to the target market.
c.
design advertisements with highly emotional messages.
d.
adopt strategies that are used for marketing high-involvement products.
ANSWER:
a
49. Products that appeal to mothers have evolved since mothers are no longer homogeneous like before. Instead, there are
traditional, blended, and nontraditional moms. Which of the following factors that affect consumer buying decisions is
responsible for this change?
a.
Increased motivation
b.
Changes in lifestyle
c.
Creation of poverty of time
d.
Increased involvement
ANSWER:
b
50. Which of the following statements is true of nonmarketing-controlled information sources?
a.
It includes mass media advertising like television, and newspaper advertising.
b.
It is biased towards a specific product because it originates with marketers promoting that product.
c.
It includes Internet forums and other forms of public sources of information.
d.
It is monitored anonymously by marketers acting as nonmarketing agents to promote their product.
ANSWER:
c
51. Which of the following statements is true of postpurchase behavior?
a.
Communication with consumers does not help in reducing cognitive dissonance.
b.
Marketers encourage customers to have doubts even after they purchase a product.
c.
Consumers expect certain outcomes from a product after making a purchase.
d.
Consumers tend to increase dissonance by justifying their purchase decision.
ANSWER:
c
52. Saraz Inc., a leading brand of apparels, has several branches all over the country. Upon research, the marketing
managers identify that teenagers do not prefer their brand as much as other age groups do. Therefore, the firm modifies its
existing designs to attract the youth. In this case, the teenage group can be referred to as a _____.
a.
subculture
b.
social class
c.
popular culture
d.
reference group
ANSWER:
a
53. A _____ is any unit of input affecting one or more of the five senses: sight, smell, taste, touch, and hearing.
a.
consideration set
b.
need
c.
stimulus
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d.
want
ANSWER:
c
54. _____ occur when consumers feel that making the wrong decision might cause some concern or anxiety.
a.
Physiological risks
b.
Financial risks
c.
Social risks
d.
Psychological risks
ANSWER:
d
55. Ramelson Inc., a footwear and apparel company, features photographs of celebrities wearing Ramelson clothes and
shoes. The company launched a commercial for its new line of football shoes. This commercial featured famous football
stars as it believes that celebrities can influence customers' buying decisions. In this case, the football stars served as
_____.
a.
opinion leaders
b.
aspirational reference groups
c.
nonaspirational reference groups
d.
decision makers
ANSWER:
a
56. Marina buys a new pair of shoes from Repop, an online store. She logs in to Repop's Web site and finds that her
homepage has been customized to display the status of her latest purchase. Along with that information, other products
like socks, jeans, and T-shirts were also displayed as recommendations. In this scenario, Repop is using _____ in order to
exert influence over the decision making journey.
a.
contextual interaction
b.
proactive personalization
c.
journey innovation
d.
automation
ANSWER:
a
57. Which of the following is an individual characteristic that influences a person's buying decisions?
a.
Gender
b.
Culture
c.
Motivation
d.
Learning
ANSWER:
a
58. Ryan and Ben are best friends. Ryan regularly runs marathons and is a member of the Marathon Runners Club at his
university. Ben also wants to join the club, but he is not a very strong runner. Ben decides to start running every day so
that he can participate in marathons and become a member of the club. Given this information, the Marathon Runners
Club can be categorized as a(n) _____.
a.
interest reference group
b.
primary reference group
c.
aspirational reference group
d.
nonaspirational reference group
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ANSWER:
c
59. Sam uses public transport to commute to work. However, he has always wanted to own a car and believes commuting
by car will save time. This scenario exemplifies Sam's _____.
a.
selective retention
b.
cognitive dissonance
c.
value
d.
want
ANSWER:
d
60. Which of the following statements is true of culture?
a.
It cannot be learned.
b.
It influences individuals in a way that they are completely aware of its values.
c.
It encompasses all the things that consumers do without conscious choice.
d.
It is static and does not change.
ANSWER:
c
61. Rochelle wants to purchase a new gaming laptop. She compares two latest models of gaming laptops from different
manufacturers with similar build quality and hardware specifications. Rochelle reads reviews of each product on reputed
online forums before making her decision. In this scenario, Rochelle is being influenced by _____.
a.
a marketing-controlled information source
b.
routine responsive behavior
c.
a nonmarketing-controlled information source
d.
an internal information search
ANSWER:
c
62. _____ occur when consumers feel that making the wrong decision might cause some concern or anxiety.
a.
Physiological risks
b.
Financial risks
c.
Social risks
d.
Psychological risks
ANSWER:
d
63. By sending postpurchase letters and giving guarantees on products, marketing managers can help reduce _____.
a.
cognitive dissonance
b.
internal stimuli
c.
selective exposure
d.
the want-got gap
ANSWER:
a
64. After being influenced by frequent advertisements, Jeremy buys a new cell phone. However, he discovers that the new
cell phone does not offer the features he expected. This scenario illustrates that _____ of the purchase is less than Jeremy's
expectations.
a.
the perceived value
b.
the actual value
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c.
an evoked set
d.
a consumer set
ANSWER:
b
65. Social influences on consumer buying decisions are most likely to help in:
a.
reducing a feeling of uncertainty among consumers.
b.
making impulse purchase decisions.
c.
recognizing one's feelings and formulating opinions.
d.
shaping human behavior and transmitting it from one generation to the next.
ANSWER:
a
66. Which of the following statements is true of the factors determining the level of consumer involvement?
a.
Involvement is not related to consumer interests.
b.
Consumers are not involved when the perceived risk in purchasing a product is high.
c.
Consumers become less involved in the purchase of a familiar product.
d.
Involvement decreases as the social visibility of a product increases.
ANSWER:
c
67. Which of the following is true of the dynamic nature of culture?
a.
The least defining element of a culture is its values.
b.
Culture prohibits the changing of an environment.
c.
Culture sets up ethics regarding technology.
d.
Consumers are born with a cultural identity.
ANSWER:
c
68. Jane and Kyle have been married for four years. Jane recently gave birth to a baby girl. In the context of the family life
cycle, which of the following is most likely to be true of their spending behavior?
a.
They will spend more than average on alcoholic beverages, education, and entertainment.
b.
They will increase their spending on health care, clothing, housing, and food.
c.
They will increase their spending on education, and transportation.
d.
They will increase their spending on vehicles, women's clothing, and health care.
ANSWER:
b
69. Which of the following is an effect of social influences on consumer buying decisions?
a.
Consumers base decision making solely on the values and beliefs of their culture.
b.
Consumers rely only on personal experience while making a buying decision.
c.
Consumers seek out the opinions of others for making purchase decisions.
d.
Consumers make decisions based on their ideal self-image.
ANSWER:
c
70. _____ is a process whereby a consumer notices certain stimuli and ignores others.
a.
Stimulus generalization
b.
Selective exposure
c.
Cognitive dissonance
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d.
Selective retention
ANSWER:
b
71. Unlike hedonic value, utilitarian value:
a.
is a form of perceived value.
b.
is obtained from products rather than services.
c.
can be viewed as a means to an end.
d.
can be enjoyed without making a purchase.
ANSWER:
c
72. Herbert and Lily wanted to purchase a new set of curtains for their bedroom. However, they could not decide upon
which color to pick. Herbert chose solid-dark-blue curtains whereas, Lily picked lilac curtains with embroidery on it. In
this scenario, the difference between Herbert and Lily's choices is due to their _____.
a.
involvement
b.
gender
c.
age
d.
lifestyle
ANSWER:
b
73. Unlike nonmarketing-controlled information sources, marketing-controlled information sources:
a.
are types of internal information sources.
b.
include friends and families.
c.
are unbiased toward a specific product.
d.
include mass media advertising.
ANSWER:
d
74. Joshua is a millionaire, and he manages several successful companies. He usually interacts with people of similar
status. Given this information, Joshua and the people he interacts with are part of a _____.
a.
family
b.
social class
c.
popular culture
d.
reference group
ANSWER:
b
75. Explain the consumer decision journey.
ANSWER:
Answers will vary. The consumer decision journey begins when an advertisement or other stimulus causes a
consumer to research a number of products or services to meet his or her needs. Even at this early stage, the
consumer may drop a number of items from the potential purchase set. The second phase of the journey
begins when the consumer evaluates the alternatives using input from peers, reviewers, retailers, the brand
itself, and competitors. At this stage, new brands may be added and options from the initial set may be
dropped as the selection criteria shift. The consumer then buys (or doesn't buy) the product, and if he or she
enjoys the purchase, may advocate and bond with the brand. This feedback loop of ratings, rankings, and
referrals pressures brands to deliver a superior experience on an ongoing basis. Researchers have found that
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76. How do reference groups influence consumer buying decisions?
ANSWER:
Answers will vary. A reference group consists of all the formal and informal groups that influence the buying
behavior of an individual. Consumers may use products or brands to identify with or become a member of a
group. They learn from observing how members of their reference groups consume, and they use the same
criteria to make their own consumer decisions.Reference groups are particularly powerful in influencing the
clothes people wear, the cars they drive, the electronics they use, the activities they participate in, the foods
they eat, and the luxury goods they purchase. In short, the activities, values, and goals of reference groups
directly influence consumer behavior. For marketers, reference groups have three important implications: (1)
They serve as information sources and influence perceptions; (2) they affect an individual's aspiration levels;
and (3) their norms either constrain or stimulate consumer behavior.
77. Discuss the importance of understanding consumer behavior.
ANSWER:
Answers will vary. Consumers' product and service preferences are constantly changing. Marketing
managers must understand these desires in order to create a proper marketing mix for a well-defined market.
So it is critical that marketing managers have a thorough knowledge of consumer behavior. Consumer
behavior describes how consumers make purchase decisions and how they use and dispose of the purchased
goods or services. The study of consumer behavior also includes factors that influence purchase decisions
and product use. Understanding how consumers make purchase decisions can help marketing managers in
several ways.
78. Explain how cultural influences affect consumer decision making.
ANSWER:
Answers will vary. Of all the factors that affect consumer decision making, cultural factors exert the broadest
and deepest influence. Cultural values and influences are the ocean in which individuals swim, and yet most
are completely unaware that it is there. What people eat, how they dress, what they think and feel, and what
language they speak are all dimensions of culture. Culture encompasses all the things consumers do without
conscious choice because their culture's values, customs, and rituals are ingrained in their daily habits.Human
interaction creates values and prescribes acceptable behavior for each culture. By establishing common
expectations, culture gives order to society. Sometimes these expectations are enacted into laws. For
example, drivers in our culture must stop at a red light. Other times these expectations are taken for granted:
grocery stores and hospitals are open twenty-four hours, whereas banks are open only during "bankers'
hours," typically nine in the morning until five in the afternoon.
79. Discuss how personality affects consumer behavior.
ANSWER:
Answers will vary. Each consumer has a unique personality. Personality is a broad concept that can be
thought of as a way of organizing and grouping how an individual typically reacts to situations. Thus,
personality combines psychological makeup and environmental forces. It includes people's underlying
dispositions, especially their most dominant characteristics. Although personality is one of the least useful
concepts in the study of consumer behavior, some marketers believe personality influences the types and
brands of products purchased. For instance, the type of car, clothes, or jewelry a consumer buys may reflect
one or more personality traits.
80. How do psychological factors affect consumer buying decisions?
ANSWER:
Answers will vary. An individual's buying decisions are influenced by psychological factors: perception,
motivation, and learning. These factors are what consumers use to interact with their world. They are the
tools consumers use to recognize their feelings, gather and analyze information, formulate thoughts and
opinions, and take action. Unlike the other three influences on consumer behavior, psychological influences
can be affected by a person's environment because they are applied on specific occasions.The process by
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Chapter 06: Consumer Decision Making
perception of products. Marketing managers first identify the important attributes, such as price or quality,
that the targeted consumers want in a product and then design signals to communicate these attributes.By
studying motivation, marketers can analyze the major forces influencing consumers to buy or not buy
products. When you buy a product, you usually do so to fulfill some kind of need. These needs become
motives when they are aroused sufficiently. A motive is the driving force that causes a person to take action
to satisfy specific needs.Almost all consumer behavior results from learning, which is the process that creates
changes in behavior through experience and practice. It is not possible to observe learning directly, but we
can infer when it has occurred by a person's actions. Repetition is a key strategy in promotional campaigns
because it can lead to increased learning. Most marketers use repetitious advertising so that consumers will
learn what their unique advantage is over the competition. Generally, to heighten learning, advertising
messages should be spread out over time rather than clustered together.
81. In the context of information searches, explain a marketing-controlled information source.
ANSWER:
Answers will vary. A marketing-controlled information source is biased toward a specific product because it
originates with marketers promoting that product. Marketing-controlled information sources include mass
media advertising (radio, newspaper, television, and magazine advertising), sales promotion (contests,
displays, premiums, and so forth), salespeople, product labels and packaging, and digital media.
82. How does marketing strategy differ based on the level of involvement associated with a product?
ANSWER:
Answers will vary. For high-involvement product purchases, marketing managers have several objectives.
One of them is that promotion to the target market should be extensive and informative. A good
advertisement gives consumers the information they need for making the purchase decision and specifies the
benefits and unique advantages of owning the product.For low-involvement product purchases, consumers
may not recognize their wants until they are in the store. Therefore, in-store promotion is an important tool
when promoting low-involvement products. Marketing managers focus on package design so the product
will be eye-catching and easily recognized on the shelf. Linking a product to a higher-involvement issue is
another tactic that marketing managers can use to increase the sales or positive publicity of a low-
involvement product.
