Chapter 1: What is CB and Why Should I Care?
TRUE/FALSE
1. An understanding of consumer behavior can translate into better public policy for governments.
2. While consumer behavior refers to human thought and action, it is not considered a field of study.
3. Consumer behavior is the set of value-seeking activities that take place as people go about addressing
realized needs.
4. A need is a specific desire that spells out a way a consumer can go about addressing a recognized
want.
5. The basic consumption process begins with the consumer recognizing that he or she wants something
new.
6. An exchange is the acting out of a decision to give something up in return for something of equal
value.
7. Costs are the positive results of consumption.
8. Consumption is a value producing process in which the marketer and the consumer interact to produce
value.
9. The final step in the consumption process is exchange.
10. The process by which goods, services, or ideas are used and transformed into value is referred to as
cost behavior analysis.
11. Costs involve more that just the price of the product.
12. Benefits are the only result of consumption.
13. Consumer behavior has family roots in anthropology.
14. Marketing has its origins in economics with respect to the production and distribution of goods.
15. Social psychology focuses on the thoughts, feelings, and behaviors that people have as they interact
with other people.
16. Social psychology essentially deals with the intricacies of mental reactions involved in information
processing within the individual, rather than between individuals.
17. Cognitive psychology is helpful in understanding how consumers process information from marketing
communications such as advertisements.
18. Marketing actions begin with inputs and end when the completed product is ready for sale.
19. Neuroscience focuses primarily on the study of groups of people within a society.
20. A highly competitive marketplace in which consumers have many alternatives is more likely to result
in better customer service than a marketplace with little competition.
21. A market-oriented firm stresses the importance of creating value for customers among all employees.
22. Mass media and trade organizations are two of the primary stakeholders of a firm.
23. Relationship marketing is based on the belief that firm performance is enhanced through repeat
business.
24. Interaction points refer to direct contacts between the firm and a customer.
25. A market orientation represents a much narrower focus than a strategic orientation that focuses more
solely on production.
26. The resource advantage theory primarily explains the manner in which human resources must be
managed in a company.
27. A product is a potentially valuable bundle of benefits.
28. Touchpoints are the physical parts of a product.
29. Undifferentiated marketing means that the same basic product is offered to all customers.
30. Undifferentiated marketers generally adopt a market orientation.
31. A market orientation means innovation is geared primarily toward making the production process as
efficient and economic as possible.
32. Undifferentiated marketing adopts the consumer orientation.
33. One-to-one marketing treats each customer as a segment of one.
34. Niche marketers specialize in serving one market segment with unique demand characteristics.
35. Researchers agree that the interpretive approach is the best approach to study consumer behavior.
36. Interpretive research seeks to explain the inner meanings associated with specific consumption
experiences.
37. The phenomenological researcher relies on experimentation to establish causal relationships in the area
of consumer behavior.
38. Qualitative research tools gather data in a highly structured way.
39. Data generated from qualitative research are considered researcher independent.
40. Two common interpretative orientations are psychology and sociology.
41. An ethnographic approach to studying consumer behavior often involves analyzing the artifacts
associated with consumption.
42. Netnography applies ethnographic tools to study the behavior of online cultures and communities.
43. A researcher measuring consumers’ attitudes toward different brands on a scale ranging from 1 (very
negative) to 5 (very positive) is using qualitative research.
44. Interpretation of quantitative research data is a function of the researcher’s opinion.
45. Interpretive research better enables researchers to test hypotheses as compared to quantitative research.
46. Quantitative research is more likely to stand on its own and does not require deep interpretation.
47. Companies must deal only with geographical distances when operating in different countries.
48. The Internet has made geographical distance almost a non-issue.
49. Changing demographics have no impact on consumer behavior.
50. One demographic trend shaping consumer behavior is the decreasing birth rates in the U.S. and
Europe.
MULTIPLE CHOICE
1. From which of the following pairs of perspectives can consumer behavior be defined?
a.
Primary and secondary
b.
Human thought and behavior, and as a field of study
c.
Social and psychological
d.
Inputs and outcomes
e.
Needs and wants
2. A market researcher focuses on the psychological process, including thoughts, feelings, and behavior
that people experience once they realize that they have an unmet need. The human behavior that
constitutes this set of value-seeking activities that the researcher is examining is best described as
_____.
a.
opportunistic behavior
b.
consumer behavior
c.
cognitive psychology
d.
social interaction
e.
deviant behavior
3. The first step in the basic consumption process is _____.
a.
cost and benefit analysis
b.
purchase decision
c.
value assessment
d.
want specification
e.
need realization
4. What is the last step in the basic consumption process?
a.
Exchange
b.
Value perception
c.
Need realization
d.
Want specification
e.
Experience costs and benefits
5. A(n) _____ is a specific desire that spells out a way a consumer can go about addressing a recognized
need.
a.
touchpoint
b.
exchange
c.
want
d.
reaction
e.
attribute
6. Renee Samson has been invited to take part in a formal dance programme next month. Though she has
a lot of gowns, she decides to go shopping for a new one that she had seen at a sale. The gown is an
example of a(n) _____ in the basic consumption process.
a.
need
b.
want
c.
reaction
d.
outcome
e.
touchpoint
7. The acting out of a decision to give something up in return for something of greater value is known as
_____.
a.
exchange
b.
touchpoint
c.
differentiation
d.
showrooming
e.
alternative evaluation
8. Customers pay money for those products that they believe to be useful in satisfying their needs and
wants. This transfer of money for goods or services is best described as _____.
a.
benefits
b.
segmentation
c.
transformational marketing
d.
exchange
e.
cost behavior analysis
9. _____ can be thought of as negative results of consumption.
a.
Wants
b.
Exchanges
c.
Costs
d.
Benefits
e.
Stimuli
10. Dana and John are expecting their first child and therefore decide to furnish their baby’s nursery.
They browse over the Internet, read parents’ magazines, look out for advertisements, and visit child–
care stores to purchase reasonable and good quality furniture. Their effort to ensure they make the
right purchase decisions can be described as a _____ associated with the consumption process.
a.
cost
b.
reaction
c.
value outcome
d.
touchpoint
e.
satisfier
11. Positive outcomes of consumption are referred to as _____.
a.
motivators
b.
hygiene factors
c.
benefits
d.
exchanges
e.
costs
12. _____ represents the process by which goods, services or ideas are used and transformed into value.
a.
Value transfer
b.
Cost conversion
c.
Benefits conversion
d.
Consumption
e.
Utilization analysis
13. Apple sold more than 7 million iPads within months of launching the product. Prices for this product
ranged from $499 to more than $800, and Apple had difficulty keeping up with the demand.
Obviously, the _____ outweighed the _____ for this product.
a.
satisfaction; demand
b.
need; want
c.
consumption; need
d.
costs; benefits
e.
supply; demand
14. When consumers recognize they have an unmet need, they usually seek out specific products or
services that they believe will satisfy that need and provide value to them. They are willing to give up
something, such as money and effort, to find the products or services that will provide the benefits they
seek. This process that consumers go through to satisfy their needs is best described as the _____
process.
a.
branding
b.
consumption
c.
exchange
d.
positioning
e.
advertising
15. Which of the following statements is true of consumer behavior as a field of study?
a.
Consumer behavior traces its roots back to the 1700s when the first book in this field was
published.
b.
Consumer behavior shares strong interdisciplianry connections with economics,
psychology, and marketing.
c.
Consumer behavior excludes from its purview the influence of human sciences like
psychology and sociology to maintain its scientific nature.
d.
Consumer behavior allows little scope for conducting original research.
e.
Consumer behavior uses quantitative research methods like experimentation and
correlation exclusively.
16. Which discipline is often defined as the study of production and consumption?
a.
Philosophy
b.
Psychology
c.
Economics
d.
Management
e.
Anthropology
17. Juan Chavez is majoring in a discipline that examines the production and consumption of goods and
services. Which of the following best describes Juan’s major?
a.
Economics
b.
Accounting
c.
Anthropology
d.
Psychology
e.
Production management
18. Which of the following disciplines studies human reactions to their environment?
a.
Marketing
b.
Economics
c.
Psychology
d.
Anthropology
e.
Operations management
19. Marian Carter takes an aptitude test offered by the career services department at her school to decide
on a particular discipline for her majors. The results indicate that she fared better in topics related to
human reactions to their environment, human thoughts, feelings, and behaviors. Which of the
following disciplines should Marian pursue?
a.
Accounting
b.
Economics
c.
Anthropology
d.
Psychology
e.
Biology
20. Social psychologists focus on the _____.
a.
intricacies of mental reactions involved in information processing
b.
production and consumption of goods and services
c.
value-producing activities that facilitate exchanges between buyers and sellers
d.
relationships between people and their possessions
e.
thoughts, feelings and behaviors that people have as they interact with other people
21. John Cameron is a psychologist and he analyzes the thoughts, feeling and behaviors that people have
as they interact with other people in groups. John is a _____.
a.
evolutionary psychologist
b.
forensic psychologist
c.
quantitative psychologist
d.
cognitive psychologist
e.
social psychologist
22. Marie Johns is a psychologist who studies consumer behavior. She specializes in the mental reactions
involved in consumer information processing, such as how advertisements persuade consumers to buy
a product. Which field of psychology is Marie practicing?
a.
Forensic psychology
b.
Evolutionary psychology
c.
Quantitative psychology
d.
Cognitive psychology
e.
Social psychology
23. _____ involves the multitude of value-producing seller activities that facilitate exchanges between
buyers and sellers.
a.
Operations management
b.
Sociology
c.
Marketing
d.
Psychology
e.
Economics
24. Cognitive psychology differs from social psychology in that cognitive psychology:
a.
focuses on the thoughts, feelings, and behaviors that people have as they interact with
other people.
b.
focuses exclusively on group interactions and group behavior.
c.
applies psychological principles and research methods to the work place in the interest of
improving productivity and the quality of work life.
d.
deals with the intricacies of mental reactions involved in information processing.
e.
focuses on the psychological development of the human being that takes place throughout
life.
25. Karen Suthers, an academician and researcher, works primarily in the area of group interactions within
a society. The discipline that most closely corresponds to this study is _____.
a.
economics
b.
sociology
c.
philosophy
d.
cognitive psychology
e.
operations mangement
26. Which discipline has contributed to consumer behavior research by allowing researchers to interpret
the relationships between consumers and the things they purchase, the products they own, and the
activities in which they participate?
a.
Economics
b.
Sociology
c.
Anthropology
d.
Cognitive psychology
e.
Operations management
27. Organizations must consider the competitiveness of the marketing environment and the _____, when
they try to understand the importance of serving customers well.
a.
price charged for the product or service
b.
income level of customers
c.
social impact of the product or service
d.
dependency of the marketer on repeat business
e.
objectives of the marketer
28. Kim Mathews, a retired school teacher, recently relocated to her old neighborhood. She called the
trash collection company of her new neighborhood to enter her address but was dismayed to learn that
they charged an extra $10 compared to the other companies in other areas. She complained to the
company manager but was told that she had to either pay the bill or dispose the trash on her own. Kim
had no other option but to pay the bill. Which of the following is the reason why Kim was treated so
poorly by the company?
a.
The trash company was dependent on her repeat business.
b.
The trash company had no other competitors providing this service.
c.
It was a regulated service funded by the city’s authorities.
d.
e.
The trash company served only the higher-income households.