58) Barry has avoided purchasing a new laptop because prices keep falling and he is worried
that, if he buys a laptop today, the same laptop will be cheaper in six months. Barry perceives
________ associated with the purchase of a new laptop.
A) financial risk
B) social risk
C) psychological risk
D) functional risk
E) time risk
59) Alice needs a new cell phone, but is anxious about which phone she should buy. Many of her
friends own popular phone models but complain about lost calls, short battery life, and poor
predictive text functionality. While she has identified several attractive phone models, she
doesn’t feel like she can really try the phones out in such an artificial setting and is nervous that
she might pick a phone that doesn’t work as well as she had hoped. Alice perceives ________
associated with the purchase of a new phone.
A) financial risk
B) social risk
C) psychological risk
D) functional risk
E) time risk
60) ________ is time spent in product search that may be wasted if the product does not perform
as expected.
A) Financial risk
B) Social risk
C) Psychological risk
D) Functional risk
E) Time risk
61) If a mobile phone company, Mobile Power, offers a money-back guarantee to offset concerns
that the product will not be worth its cost, it is an attempt to help mitigate consumers’ perception
of ________.
A) functional risk
B) financial risk
C) psychological risk
D) social risk
E) physical risk
62) If a cell phone company, Mobile Power, offers a warranty on their phones as an assurance
their phones will perform as expected, it is likely an attempt to help mitigate consumers’
perception of ________.
A) functional risk
B) financial risk
C) psychological risk
D) social risk
E) physical risk
63) Ragu, a spaghetti sauce maker, has decided to launch its most popular sauce flavors in a
small pouch format that is more convenient to use. When they choose to launch their most
popular sauce flavors, which are “tried and true,” instead of new flavors, Ragu is seeking to
minimize consumers’ perception of ________.
A) physical risk
B) functional risk
C) psychological risk
D) financial risk
E) time risk
64) Ragu, a spaghetti sauce maker, has decided to launch its most popular sauce flavors in a
small pouch format that is more convenient to use. When they choose to launch their most
popular sauce flavors, which are “tried and true,” instead of new flavors, Ragu is trying to appeal
to ________.
A) low-risk perceivers
B) broad categorizers
C) consumer innovators
D) narrow categorizers
E) process-oriented consumers
65) If a consumer is concerned he will be embarrassed when his friends see him with a particular
product, he is perceiving ________ risk.
A) financial
B) psychological and social
C) time
D) physical
E) functional
66) Jeff wants to switch mobile phone carriers, but is concerned that if he switches, he may have
to compare all the different carriers’ calling plans again if he experiences a lot of “dropped calls”
with his new provider. He is perceiving ________ risk.
A) financial
B) psychological
C) time
D) physical
E) functional
67) Lola is concerned about the impact of genetically modified ingredients found in foods on the
long-term health of her family members. She is perceiving ________ risk.
A) financial
B) psychological
C) time
D) physical
E) functional
68) Which of the following is NOT a way for a consumer to overcome perceived risk?
A) use a random choice model
B) seek information
C) remain brand loyal
D) rely on store image
E) buy the most expensive model
69) The ________ of a product or service is the process by which a company creates a distinct
image and identity for its products, services, and brands in consumers’ minds.
A) segmentation
B) target
C) positioning
D) psychographic inventory
E) concentrated marketing strategy
70) The image and unique identity of a product, service, or brand in consumers’ minds is called
its ________.
A) position
B) perception
C) segment
D) target
E) imposition
71) What is the FOURTH step in the positioning process?
A) Create a positioning statement focused on the benefits and value that the product provides.
B) Determine the target market’s preferred combination of attributes.
C) Define the market in which the product or brand competes, relevant buyers and competitors.
D) Develop a distinctive, differentiating, value-based positioning concept.
E) Research how consumers perceive competing offerings on relevant attributes.
72) What is the FIFTH step in the positioning process?
A) Create a positioning statement focused on the benefits and value that the product provides.
B) Determine the target market’s preferred combination of attributes.
C) Define the market in which the product or brand competes, relevant buyers and competitors.
D) Develop a distinctive, differentiating, value-based positioning concept.
E) Research how consumers perceive competing offerings on relevant attributes.
73) What is the THIRD step in the positioning process?
A) Create a positioning statement focused on the benefits and value that the product provides.
B) Determine the target market’s preferred combination of attributes.
C) Define the market in which the product or brand competes, relevant buyers and competitors.
D) Develop a distinctive, differentiating, value-based positioning concept.
E) Research how consumers perceive competing offerings on relevant attributes.
74) ________ is a statement or slogan that describes a company’s character without referring to
its specific branded products.
A) Premier position
B) Positioning against competition
C) Umbrella positioning
D) Key attribute positioning
E) Un-owned perception positioning
75) Campbell’s slogan “soup is good food” is an example of ________.
A) premier position
B) positioning against competition
C) umbrella positioning
D) key attribute positioning
E) un-owned perception positioning
76) McDonald’s slogans “You deserve a break today,” “Make every time a good time,” and “I’m
Lovin’ It” are examples of ________.
A) premier position
B) positioning against competition
C) umbrella positioning
D) key attribute positioning
E) un-owned perception positioning
77) ________ focuses on a brand’s exclusivity to give the consumer a reason to buy the product.
A) Premier position
B) Positioning against competition
C) Umbrella positioning
D) Key attribute positioning
E) Un-owned perception positioning
78) The New York Times’ positioning as “All the news that’s fit to print” is an example of
________.
A) premier position
B) positioning against competition
C) umbrella positioning
D) key attribute positioning
E) un-owned perception positioning
79) Positioning Joy (a fragrance brand) as “the costliest perfume in the world” is an example of
________.
A) premier position
B) positioning against competition
C) umbrella positioning
D) key attribute positioning
E) un-owned perception positioning
80) Positioning Bounty, a paper towels brand, as “the quicker picker upper” is an example of
________.
A) premier position
B) positioning against competition
C) umbrella positioning
D) key attribute positioning
E) un-owned perception positioning
81) Positioning Avis using the claim that “We’re No. 2. We Try Harder.” was an example of
________.
A) premier position
B) positioning against competition
C) umbrella positioning
D) key attribute positioning
E) un-owned perception positioning
82) ________ is the process by which a company intentionally changes the distinct image and
identity that its product or brand occupies in consumers’ minds.
A) Premier position
B) Positioning against competition
C) Repositioning
D) Key attribute positioning
E) Umbrella positioning
83) Yellow Tail wines changed its taglines from “Open for everything” and “Tails, you win” to
“The go to” as part of its ________.
A) premier position
B) positioning against competition
C) repositioning
D) key attribute positioning
E) umbrella positioning
84) When Healthy Choice positions its products as more nutritional than Italian sub sandwiches
and prepared salads, which type of positioning is it using?
A) umbrella positioning
B) premier position
C) positioning against competition
D) un-owned position
E) predictive positioning
85) In the JUICE MINI CASE, Fruit Fusions is taking advantage of ________ in extending its
brand name association to its new juice line as a means of increasing consumer acceptance of the
new product.
A) umbrella positioning
B) product repositioning
C) contrast
D) consumer stereotypes
E) the halo effect
86) In the JUICE MINI CASE, Fruit Fusions only sells its new juice line through high-end
grocery stores and lunch boutiques in an effort to create a high-end reputation for its juice line
through ________.
A) retail store image
B) consumer stereotypes
C) playing on consumers’ need for closure
D) making a good first impression
E) perceived risk
87) In the JUICE MINI CASE, Fruit Fusions’ print ads are meant to draw a reader’s attention
through ________.
A) consumers’ need for closure
B) an attribute focus
C) figure and ground relationships
D) consumers’ tendency to jump to conclusions
E) consumers’ tendency to group stimuli together
88) In the JUICE MINI CASE, Fruit Fusions explores consumers’ ________ in order to
determine the best price for its new fruit drinks.
A) satisfaction prices
B) efficiency prices
C) relationship prices
D) internal reference prices
E) satisfaction-based prices
89) In the JUICE MINI CASE, Fruit Fusions places its advertisements in magazines focused on
health and wellness under the assumption that people reading such magazines are interested in
health foods and are more likely to seek out information about Fruit Fusions from the
advertisements than consumers reading a magazine focused on news and entertainment. This
phenomenon is known as ________.
A) selective exposure
B) perceptual defense
C) selective organization
D) the contrast effect
E) perceptual blocking
90) For each individual, reality is a totally personal phenomenon, based on that person’s needs,
wants, values, and personal experiences.
91) Marketers are much more interested in what consumers objectively know about their
products than what they perceive.
92) The minimal difference that can be detected between two similar stimuli is called the
absolute threshold.
93) According to Weber’s law, a consumer will notice a 25 cent rise in the price of a 50 cent
product more than a 25 cent rise in the price of a $10 product.
94) The marketer’s objective is to far exceed consumers’ JND for product improvements in order
to engender greater brand loyalty from consumers.
95) There is strong evidence that subliminal advertising persuades people to buy goods or
services.
96) People perceive all stimuli to which they are exposed.
97) People usually see what they expect to see, and what they expect to see is usually based on
familiarity, previous experience, or expectations.
98) Irrelevant sexuality in advertising leads viewers to remember the sexual aspects of the ad, not
the product or brand advertised.
99) In one type of perceptual defense, individuals sometimes unconsciously distort information
that is not consistent with their needs, values, and beliefs.
100) People tend to experience the numerous stimuli they select from the environment as
separate and discrete sensations.
101) Deliberate blurring of figure and ground, as when Absolut Vodka embeds the distinct shape
of its bottle in a print image, can result in greater engagement of the audience with the
advertisement.
102) Completed messages or tasks are better remembered than those that are incomplete.
103) When forming first impressions, the perceiver typically knows which stimuli are relevant,
important, or predictive of later behavior.
104) Products and brands have symbolic value for individuals, who evaluate them on the basis of
their consistency with their personal pictures of themselves.
105) Positioning is more important to the ultimate success of a product than are its actual
characteristics.
106) Because services are intangible, image becomes a key factor in differentiating a service
from its competition.
107) Delivery vehicles painted in distinct colors, restaurant matchbooks, packaged hotel soaps
and shampoos are all ways to make service offerings seem more tangible with visual images.
108) When consumers evaluate concrete attributes of a product, such as performance and
durability, they rely less on price and brand name as indicators of quality than when they
evaluate the product’s prestige and symbolic value.
109) Reference pricing coupled with limited-time availability (e.g. regularly $599, now $359 and
on sale, three days only) produces more favorable price and store perceptions than each
technique used alone.
110) When consumers encounter prices that are in line with their expectations and feel
harmonious, they engage in dissonance reduction.
111) Consumers are influenced by risks that exist whether they perceive the risks or not.
112) The amount of risk perceived depends on the specific consumer.
113) Define Weber’s law in the context of the differential threshold and cite an example of
Weber’s law in practice.
114) How do marketers take advantage of the JND?
115) What is subliminal perception? How does it relate to marketing?
116) Identify and briefly describe three of the basic principles of perceptual organization that
relate to consumer behavior.
117) Differentiate between intrinsic cues and extrinsic cues and provide examples of each.
118) What are the types of perceived risk consumers have to deal with?
119) There are many ways consumers handle risk. Identify and discuss three methods.
120) Provide an example of how a demographic variable has been used to position a product to a
target market.
121) What steps are involved in the positioning process?
122) Describe three of the commonly used positioning strategies and provide an example of
each.