Chapter 2: Value and the Consumer Behavior Value Framework
TRUE/FALSE
1. The Consumer Behavior Framework (CBF) represents consumer behavior theory illustrating factors
that shape consumption-related behaviors and ultimately determine the value associated with
consumption.
2. Situational influences are unique to a time or place that can affect consumer decision making and the
value received from consumption.
3. Learning, perception, memory, and attitudes are examples of elements comprising the personality of a
consumer.
4. A basic customer relationship management premise is that customers form relationships with
companies as opposed to companies conducting individual transactions with customers.
5. A customer relationship management system allows a firm to be more customer-focused.
6. Relationship quality reflects the connectedness between a consumer and a retailer, brand, or service
provider.
7. A strong, or high-quality, relationship is typified by a consumer who buys the same brand each time a
need for that product arises.
8. Internal influences on the consumption process include factors, such as social class.
9. Cognition refers to the mental processes that go on as we process and store things that can become
knowledge.
10. Individual differences, which include personality and lifestyle, help determine consumer behavior.
11. Individual differences have little effect on the value experienced by consumers and the reaction
consumers have to consumption.
12. Internal influences include the social and cultural aspects of life as a consumer.
13. People and groups who help shape a consumer’s everyday experiences are a part of the social
environment.
14. The presence of music in an environment is a social influence that may shape consumer behavior.
15. The core concept of consumer behavior is value.
16. The concept of “value” captures how much gratification a consumer receives from consumption.
17. Worth to a consumer is a function of price.
18. Value equals the difference between what you get and what you have to give to get the product.
19. Two types of values are primary value and secondary value.
20. Utilitarian value is derived from a product that helps the consumer solve problems and accomplish
tasks that are a part of being a consumer.
21. Hedonic value is the immediate gratification that comes from experiencing some activity.
22. One conceptual difference between utilitarian value and hedonic value is that utilitarian value is an end
in and of itself rather than a means to an end.
23. Rather than being viewed as opposites, utilitarian and hedonic values are not mutually exclusive.
24. Any act of consumption cannot provide both utilitarian and hedonic value.
25. A strategy is a planned way of doing something to accomplish some goal.
26. A corporate strategy is the way a company goes about creating value for customers.
27. Marketing myopia is defined as a condition in which a company views itself competing in a value or
benefits producing business rather than in a product business.
28. Strategies exist at more than one level in an organization.
29. A marketing strategy provides an operating orientation for the company.
30. To deliver superior customer value, different business units within the firm must have the same
marketing strategy.
31. Marketing tactics are ways marketing management is implemented.
32. Marketing tactics include price, promotion, product, and distribution decisions.
33. The term augmented product means the original product plus the extra things needed to increase the
value from consumption.
34. Products are multifaceted and can provide value in many ways.
35. Every product’s value is made up of the basic benefits, plus the augmented product, plus the “feel”
benefits.
36. Companies embracing the total value concept demonstrate an understanding that products provide
value in multiple ways.
37. A product’s value can only be created by what the marketer is offering.
38. The marketing mix is the combination of product, pricing, promotion, and distribution strategies used
to position some product offering or brand in the marketplace.
39. The segment or segments of a market that a company serves to is called the focal market.
40. The marketing mix represents the way a marketing strategy is implemented within a given market or
exchange environment.
41. Target marketing is the separation of a market into groups based on the different demand curves
associated with each group.
42. In economics, the term “buoyancy” represents the degree to which a consumer is sensitive to changes
in some product characteristic.
43. The market for any product is the sum of the demand existing in individual groups or segments of
consumers.
44. The most basic truth of economics is that as price increases, the quantity demanded will always
decrease.
45. Consumer segments exist because different consumers do not value different alternatives the same
way.
46. Product differentiation is a marketplace condition in which consumers do not view all competing
products as identical to one another.
47. Product differentiation becomes the basis for product positioning.
48. Positioning refers to the way a product is perceived by a consumer.
49. A perceptual map is used to depict graphically the positioning of competing products.
50. A blue ocean strategy seeks to position a firm so far away from competitors that, when successful, the
firm creates an industry of its own and at least for a time, isolates itself from competitors.
51. Ideal points on a perceptual map represent each marketer’s product offering.
52. Both consumers and marketers enter exchange-seeking value.
53. All the customers are equally valuable to a firm.
54. Customer lifetime value represents the approximate worth of a customer to a company in economic
terms.
55. Customer lifetime value is equal to sales attributed to a particular customer minus the costs associated
with satisfying that customer over the lifetime of that customer.
MULTIPLE CHOICE
1. The _____ represents consumer behavior theory illustrating factors that shape consumption-related
behaviors that ultimately determine the value associated with consumption.
a.
Consumer Behavior Framework (CBF)
b.
Consumer Value Framework (CVF)
c.
Consumption Process Framework (CPF)
d.
Customer Relationship Framework (CRF)
e.
Marketing-Consumer Framework (MCF)
2. Which of the following is at the heart of the consumer value framework and the focus of marketing
efforts?
a.
Utilitarian and hedonic values
b.
Personal values
c.
Consumer perception
d.
Environment
e.
Cultural values
3. Which of the following is an element of consumer psychology?
a.
Environment
b.
Media
c.
Implicit memory
d.
Culture
e.
Emotional intelligence
4. Which of the following is an internal influence on consumer value?
a.
Costs
b.
Learning
c.
Social class
d.
Time
e.
Family
5. Which of the following is an external influence on consumer value?
a.
Personal values
b.
Attitude
c.
Needs
d.
Perception
e.
Reference groups
6. An automobile marketer is interested in studying the internal influences that affect the psychology of
the potential buyers of luxury automobiles. Which of the following would this marketer be interested
in studying?
a.
Lifestyles of luxury car buyers
b.
Political choices of potential buyers
c.
Social status of potential buyers
d.
Buyers’ attitudes toward different brands
e.
The accessories that car owners prefer
7. Which of the following is considered a part of the consumer’s personality?
a.
Memory
b.
Attitude
c.
Intuition
d.
Categorization
e.
Personal values
8. A basic _____ premise is that customers form relationships with companies as opposed to companies
conducting individual transactions with customers.
a.
Consumer Behavior Framework
b.
Customer Relationship Management
c.
Marketing Consumer Framework
d.
Relationship Quality Management
e.
Consumption Process Framework
9. According to the Customer Relationship Management (CRM) orientation:
a.
each customer represents just a single sale rather than a potential stream of resources.
b.
customers who switch providers each time they make a purchase tend to be more
profitable than loyal customers due to their wide range of purchases.
c.
the most profitable customers are those who search for information about a product online
and then buy it in a brick-and-mortar store.
d.
customers form relationships with companies as opposed to companies conducting
individual transactions with customers.
e.
a strong, or high-quality, relationship is typified by a consumer who buys different brands
of a product each time a need for that product arises.
10. As the manager of a leading banking institution, Bijou tracks detailed information about the bank’s
clients. This way more client-oriented decisions can be made, leading to longer-lasting affiliations with
clients. Bijou is involved in _____.
a.
customer relationship management
b.
marketing management
c.
consumer value management
d.
quality management
e.
internal marketing management
11. According to which of the following orientations, each customer represents a potential stream of
resources rather than just a single sale?
a.
Product orientation
b.
CVF orientation
c.
Hedonic orientation
d.
CRM orientation
e.
Utilitarian orientation
12. _____ reflects the connectedness between a consumer and a retailer, a brand, or service provider.
a.
Hedonic value
b.
Interconnectivity
c.
Synergy
d.
Consumption
e.
Relationship quality
13. When a consumer realizes high value from an exchange with a company, _____ improves.
a.
relationship quality
b.
internalization
c.
emotional contagion
d.
augmented quality
e.
elasticity
14. _____ are things that can be thought of as part of the consumer.
a.
External influences
b.
Innate influences
c.
Internal influences
d.
Social influences
e.
Personal influences
15. Which of the following terms refers to the thinking or mental processes that go on as we process and
store things that can become knowledge?
a.
Cognition
b.
Schema
c.
Affect
d.
Synergy
e.
Internalization
16. Since childhood, Meg’s parents always told her that milk is good for health. As a result, Meg
developed a liking for milk and started drinking it regularly. In this case, Meg’s thinking or mental
process is referred to as _____.
a.
sensitization
b.
affect
c.
emotional contagion
d.
emotional intelligence
e.
cognition
17. _____ refers to the feelings that are experienced during consumption activities or associated with
specific objects.
a.
Cognition
b.
Internalization
c.
Affect
d.
Habituation
e.
Utilitarian value
18. Hannah is an avid reader and looks forward to going to the library at the end of each week to issue
more books. Which of the following terms refers to the sense of satisfaction she feels from this
activity?
a.
Affect
b.
Delusion
c.
Schema
d.
Synergy
e.
Externalities
19. Characteristics and traits, including personality and lifestyles, that help define a consumer are referred
to as _____.
a.
value enhancers
b.
individual identifiers
c.
discriminators
d.
individual differences
e.
exemplars
20. Which of the following environments includes the people and groups who help shape a consumer’s
everyday experiences?
a.
Emotional environment
b.
Internal environment
c.
Social environment
d.
Macro environment
e.
Micro environment
21. Amy is a member of the readers’ club in her school. Before she buys any new book, she checks what is
popular with the others in her club. Amy’s readers’ club is part of her _____ that influences Amy’s
everyday experiences.
a.
internal environment
b.
value network
c.
relationship network
d.
emotional environment
e.
social environment
22. _____ are unique to a time or place that can affect consumer decision making and the value received
from consumption.
a.
Situational influences
b.
Temporal factors
c.
Social influences
d.
Internal factors
e.
Socio-environmental factors
23. The presence of music in an environment may shape consumer behavior and even change buying
patterns. In this case, music is an example of a _____.
a.
social influence
b.
situational influence
c.
socio-economic factor
d.
hedonic factor
e.
perceptional influence
24. Which of the following terms refers to a personal assessment of the net worth a consumer obtains from
an activity?
a.
Quality
b.
Experience
c.
Prestige
d.
Value
e.
Effort
25. _____ captures how much gratification a consumer receives from consumption.
a.
Opportunity cost
b.
Internal rate of return
c.
Value
d.
Emotional contagion
e.
Sunk cost
26. Which of the following is a negative consequence of consumption?
a.
Quality
b.
Opportunity costs
c.
Prestige
d.
Convenience
e.
Experience
27. Two main types of values are _____.
a.
internal and external