Suppose an insurance salesman in Southern California is trying to predict the likelihood
of a client’s house being damaged by an earthquake in order to estimate insurance
premium costs. Within the last several weeks, there were three moderate earthquakes
that received lots of media coverage and several stories in the news related to
earthquakes. In what cognitive heuristic is the salesman most likely to engage?
a. Representativeness heuristic
b. Availability Heuristic
c. Lexicographic Heuristic
d. The Price/Quality Heuristic
e. The Anchoring-and-Adjustment Heuristic
In an experiment, participants were asked to rank order a list of laundry detergents.
Later they were asked to choose a brand to purchase. The results of the experiment
showed that the how participants ranked the brands influenced subsequent choices. This
is an example of:
a. truth effect
b. distraction effect
c. procedural priming effect
d. assimilation effect
e. contrast effect
A reciprocal relationship exists between attitudes and behavior.
a. True
b. False
When a person likes a product, he/she will always engage in word-of-mouth.
a. True
b. False
When a purchase involves product options that are very different in terms of product
attributes and overall attractiveness, post-purchase dissonance is more likely to occur.
a. True
b. False
In balance theory, imbalanced triads produce pleasant tension that makes
advertisements seem exciting.
a. True
b. False
Those with old money are sometimes accused of conspicuous consumption in that they
consume luxury goods just to demonstrate their wealth.
a. True
b. False
Which of the following is not a major type of product attribute?
a. Consumption attributes
b. Search attributes
c. Credence attributes
d. Experience attributes
e. All of the above are major types of product attributes.
The sunk cost effect (i.e., the reluctance to give up a product or service after an
investment of time, money, or effort) is most closely tied to what social influence
technique?
a. Low-ball technique
b. Even-a-penny technique
c. Because heuristic
d. Multiple-deescalating-requests technique
e. Door-in-the-face technique
Organic word-of-mouth, which is word-of-mouth that occurs naturally, is ahnost always
negative.
a. True
b. False
Why are subsistence consumer-merchants needed when marketing to subsistence
economies?
a. distribution systems are not well developed in these markets
b. they are opinion leaders in such markets
c. they control pricing schedules
d. all of the above
What social influence principle is at work with the door-in-the-face technique?
a. Liking
b. Social validation
c. Authority
d. Reciprocity
e. Commitment and consistency
Advertising and other marketing activities help new and existing products take on
cultural meaning.
a. True
b. False
In brand clusters, the degree to which brands within a single cluster are dissimilar from
each other is called the cluster frontier.
a. True
b. False
Brand loyalty can reverse the stimulus-based choice (over memory-based) choice
advantage.
a. True
b. False
Microenterprises are small informal groups that help supply goods and services to rural
customers.
a. True
b. False
Self-perception theory is the best explanation for the low-ball effect.
a. True
b. False
Politicians often market themselves by emphasizing situations in which their opponents
exercised poor judgment in an attempt to get voters to change how the opponent is
judge d. This is an example of what type of positioning?
a. User
b. Attribute/benefit
c. Usage Situation
d. Positioning a leader
e. Repositioning the competition
______ is the tendency for a company to focus exclusively on large, average market
segments and neglect small, less typical segments.
a. Repositioning
b. False thinking
c. Market neglect
d. Majority fallacy
e. Market aggregation
During the peak of the Motivation Research movement, Ernest Dichter performed
in-depth interviews for over 200 different product categories.
a. True
b. False
Positioning brand images to be consistent with consumers’ self-concepts can be seen in
how marketers segment markets.
a. True
b. False
Consider the following example:
Imagine that Mary is planning a vacation and has to choose between two vacation spots.
Based on the phenomenon of selective thinking, if asked to choose the best spot, which
would Mary choose?
Spot A average weather average beaches medium-quality hotel medium-temperature
water average nightlife
Spot B lots of sunshine gorgeous beaches and coral reefs ultra-modern hotel very cold
water very strong winds no nightlife
Spot C mostly rainy rocky beaches older hotel very cold water very strong winds no
nightlife
a. Spot A
b. SpotB
c. SpotC
d. Either A orB
e. We can’t answer the question with the information provided.
_____ is a consumer’s natural inertia toward a product or service based on familiarity
and convenience, rather than a fundamental commitment to the brand.
a. Variety seeking
b. Brand loyalty
c. Brand laziness
d. Involvement
e. Bounded rationality
The McDonald’s brand includes a word mark consisting of the words “McDonald’s”
written in white lettering written across the “golden arches,” and superimposed against
a red background. Specifically, this is an example of a(n):
a. brand jingle
b. trademark
c. brand logo
d. brand mark
e. None of the above is correct.
Mystery ads and fear appeals are types of prevention-focused ads.
a. True
b. False
Define the endowment effect and provide an example of this effect.
A recent research study examining prescription drug advertisements showed that the
number of ads shown for a prescription medication influenced the number of inquiries
about the medication that patients made to their doctors. Is this a correlational or causal
relationship or is there actually no relationship? Justify your answer.
What is the difference between needs and wants?
In terms of search goods, experience goods, and credence goods, which is easiest to sell
online? Why?
Identify the five basic traits in Aaker’s brand personality framework and identify a
brand that would fit two of the traits.
Describe the conjunctive heuristic.
Define individualism and give an example of an individualistic country and why.