Procter and Gamble offers over 10 different diaper products. Unfortunately, many of
these products are similar and compete with each other. What is this consequence of
segmentation?
a. The majority fallacy
b. Cannibalization
c. The sales-cost trade-off
d. Mass customization
e. None of the above is correct.
First impressions are more accurate when people focus on verbal information and
ignore nonverbal information.
a. True
b. False
The first step in the Scientific Method is to form a hypothesis and make a prediction.
a. True
b. False
Informational beliefs are beliefs based on indirect experience or what other people tell
us.
a. True
b. False
Which of the following statement about current media is true?
a. Television advertising on prirnetime network television now exceeds ten minutes per
hour.
b. Prices for television advertising vary greatly but can reach close to a million dollars
for a 30-second advertisement.
c. Network television viewership is slowly eroding.
d. With the advent of digital video recorders, consumers can skip over commercials.
e. All of the above are true.
Loss aversion implies that losses have a bigger impact on people, relative to equivalent
gains.
a. True
b. False
According to the elaboration likelihood model of persuasion, when will a celebrity
endorser serve as a peripheral
cue?
a. When motivation to elaborate is low and ability to elaborate is low
b. When motivation to elaborate is high but ability to elaborate is low
c. When motivation to elaborate is low but ability to elaborate is high
d. All of the above are correct.
e. Never- a celebrity endorser can only be a central cue
Experimentation is the best method for determining causality.
a. True
b. False
Penturbia refers to:
a. remote suburbs
b. large towns/cities that have decreased in population by 10% in one year
c. remote suburbs that have decreased in population by 10% in one year
d. clusters of suburbs encircling cities
e. None of the above is correct.
The principal behind social class is that consumers who occupy the same social class
are likely to share common lifestyles and preferences based on similarities in income,
property ownership, and occupation.
a. True
b. False
People that live near one another often become more alike over time.
a. True
b. False
People assume that attractive people are also kind and honest.
a. True
b. False
Executives at McDonald’s were curious to know if their new soft-drink cup design was
attractive to customers. Basic research can help them find the answer to this question.
a. True
b. False
Research on culture and regulatory focus shows that consumers with an independent
self-view (as is prominent in
Western cultures) often adopt a promotion focus.
a. True
b. False
Lois is consideriog buyiog a new bicycle for $200. It has a 20% chance of breaking
down in the next year. What is the expected value in terms of repair cost for this
purchase?
a. $240
b. $400
c. $20
d. $200
e. $40
_____are behaviors, both formal or informal, handed down from generation to
generation. An example would include throwing a party on sorneone’s birthday.
a. Crescive norms
b. Customs
c. Rituals
d. Mores’
e. Sanctions
Excessive concern about possible future feelings of regret can lead consumers to
commit:
a. selective processing
b. loss aversion
c. the brand positivity effect
d. choice deferral
e. the endowment effect
Premium priciug, which is sometimes called prestige pricing, is priciug a brand at the
top end of a product category’s pnce range.
a. True
b. False
Customs are passed down from generation to generation.
a. True
b. False
Which of the following related to positioning is true?
a. The first brand to enter and define a market is known as a pioneering brand.
b. According to Reis and Trout, positioning is something you do to your product and
your competitors’ products.
c. “Tylenol- The first word in relief’ is an example of positioning by usage occasion.
d. Perceptual maps show how our products and our competitors’ product are clustered
by market share.
e. All of the above are true.
The fact that the difference between $0 and $100 seems larger than the difference
between $1000 and $1,100 is due
to loss aversion.
a. True
b. False
The primary methods of Behavioral Science include the experimental approach and the
marketing science approach.
a. True
b. False
People want scarce objects except when the objects are not perceived as higher in
quality.
a. True
b. False
Moderately (medium) experienced customers are more likely to engage in extensive
information search during consumer decision making than those with low levels of
expertise or experience.
a. True
b. False