According to which of the following theories,communications provide information in
ways beyond the explicit or obvious content of a message?
a. Signal theory
b. Habituation theory
c. Dual-coding theory
d. Prospect theory
e. Multiple store theory
Alice, a five-year-old, used to cry and protest whenever her mother took her to the
dentist for monthly dental checkups. After a dozen visits, however, she stopped crying,
even though Alice admits that she still does not like going to the dentist. This change in
Alice’s response to dental visits is an example of _____.
a. anticipation
b. lateralization
c. rumination
d. expectation
e. habituation
A departmental store realizes that it needs to increase revenue in the face of severe
budget cuts due to the weak economy. The store has decided to run a sale every month
and upgrade their stock more regularly, so that customers don”t see the same products
every month. They are going to begin offering a wider selection of brands for men and
women. They plan to advertise on billboards, on radio, on television, and in newspapers
throughout the state. The store will also send direct mail letters to regular customers.
The sale, the wide selection of brands, and the promotion are examples of _____.
a. blue ocean strategy
b. product differentiation
c. marketing tactics
d. marketing augmentation
e. task implementation
_____ value is the immediate gratification that comes from experiencing some activity.
a. Hedonic
b. Utilitarian
c. End-state
d. Process
e. Terminal
Miss, a popular brand of women’s clothing, introduces a new line of luxury evening
wear. Management at Miss intends to market the new collection as lavish, sophisticated,
and ultra feminine. Which of the following print media advertisements is most likely to
have the intended effect?
a. An ad featuring a model in an orange dress with the brand logo in block font as the
background
b. An ad featuring a model as a tiny figure in the periphery against a huge building
c. An ad featuring a model in a gold dress with the brand logo in script font as the
background
d. An ad featuring a model in a brown dress with the brand logo in script font as the
background
e. An ad featuring a model in a brown dress against a signage with large numerals
quoting the price of the dress
Pi Sigma Epsilon (PSE) is a professional marketing fraternity that has an official
initiation ceremony for all its new members. The national association has a Chapter
Efficiency Index outlining the activities the chapter members are expected to do. PSE is
an example of a(n) _____ group.
a. primary
b. task
c. transitory
d. focus
e. formal
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
Energizer batteries used to feature the Energizer bunny in its TV commercials, often in
unexpected ways to catch viewers off-guard. Boring commercials of fake brands and
mundane products like a hemorrhoid ointment would be interrupted by the sudden
appearance of the Energizer bunny banging a drum. Initially, viewers would sit up and
watch.However, after they had been exposed to the commercial many times, they began
to expect the appearance of the bunny and tended to tune out the commercial. The
consumers’ response to this over-exposure is an example of _____.
a. anticipation
b. adaptation
c. habituation
d. sensitization
e. lateralization
Which of the following types of decision-making approaches occurs when there are
relatively low amounts of purchase risk and product involvement?
a. Limited decision making
b. Extended decision making
c. Experiential decision making
d. Involved decision making
e. Timed decision making
Young adults, aged 18-34, who graduate from college and move back home with their
parents are referred to as the _____.
a. Baby Boomers
b. generation Jones
c. sandwich generation
d. boomerang kids
e. Generation X
A rule that specifies the appropriate behavior in a given situation within a specific
culture is referred to as cultural _____.
a. stereotype
b. bias
c. transmission
d. norm
e. criticism
AUTOMOBILE SCENARIO
Consider a consumer who is contemplating a new automobile purchase. She has
narrowed her decision down to two brands, Honda Accord and Ford Taurus. She has
identified gas mileage, price, warranty, and styling to be important attributes to consider
in her decision. Her evaluative ratings (e) for each attribute and her beliefs of how each
brand performs on a given attribute (b) are given below:
Refer to the Automobile Scenario. The consumer comes across an advertisement that
shows Honda stating that Accord is being offered as an environment-friendly hybrid
model. According to the elaboration likelihood model (ELM), this consumer is most
likely to be influenced by the _____ route to persuasion.
a. central
b. peripheral
c. secondary
d. sentiment
e. unit
GOURMET RESTAURANT SCENARIO
Stella works for a publishing house in Midtown Manhattan. When her company
relocated her to a new city for six months, she had a tough time. She loves Italian food,
but couldn”t find herself a decent Italian gourmet restaurant in the city. When she
finally found one, Olive’s, she started eating there regularly. The food at Olive’s was not
satisfactory and nothing compared to the menu Stella was used to at fancy Italian
restaurants in Midtown Manhattan. However, Stella found the staff at Olive’s friendly
and believed that they could understand her preferences in food and wine. When her
colleagues heard her predicament, they suggested a place she might like but Stella
decided against it as it was a three-hour drive from where she stays. She wished the six
months will end soon and she would visit Italia, her favorite restaurant in Manhattan,
again. Stella vows that after the completion of six months, she is never going to come
back at Olive’s. Refer to Gourmet Restaurant Scenario. When Stella’s colleagues heard
her predicament, they suggested a place she might like. One of the reasons why Stella
decided against it was that she found the staff at Olive’s friendly and believed that they
could understand her preferences in food and wine. Which of the following types of
switching costs does this represent?
a. Transactional switching cost
b. Temporal switching cost
c. Financial switching cost
d. Procedural switching cost
e. Relational switching cost
Refer to Superfocus Scenario. Superfocus is trying to separate its market into different
groups based on age so that it can create customized products for each group. This
indicates that Superfocus is conducting the process of _____.
a. value reengineering
b. mass marketing
c. total quality management
d. social marketing
e. market segmentation
REAL ESTATE BROKER SCENARIO
Jane, a consumer researcher, worked with a real estate broker as part of her research on
consumer decision-making behavior. During the course of her research, she found that
young couples, mostly professionals, look out for a space they can call their own.
Although young, they seldom make spontaneous and impulsive decisions while buying
a house. All of them arrive at a decision after an exhaustive effort of finding more
information, talking to different people, and checking out neighborhoods through
various sources. This strengthens Jane’s hypothesis that people tend to make wise and
informed decisions while buying a house. In her experience of working with the real
estate broker, Jane has had a successful run, except for the time when an elderly man
left disappointed after weeks of continuous search. After his retirement, he had wanted
to invest in a “dream house,” but sadly he could not find what he was looking for.
Whatever he liked exceeded his budget. Jane also met a young couple who spent most
of their weekends house hunting. After being out with them week after week, they
finally admitted that they never intended to buy a house and that they were mostly
interested in gathering information and being updated about the real estate
industry. Refer to Real-Estate Broker Scenario. In her experience of working with the
real estate broker, Jane has had a successful run, except for the time when an elderly
man left disappointed after weeks of continuous search. After his retirement, he had
wanted to invest in a “dream house,” but sadly he could not find what he was looking
for. Whatever he liked exceeded his budget. The disappointment experienced by the
man can be best described as search _____.
a. overdrive
b. regret
c. bias
d. dissonance
e. overload
Danielle is a very careful shopper, and is keen on maximizing the value of every
transaction she makes. She uses coupons whenever possible, and purchases items on
sale to save money. However, she is likely to pay more for a product if she thinks that it
is the best one to meet her or her family’s needs. Which consumer behavior trait does
Danielle display?
a. Materialism
b. Value consciousness
c. Competitiveness
d. Innovativeness
e. Trait Vanity
Which of the following statements is true regarding personality?
a. Personality traits are the same across all individuals.
b. Personality fails to explain why a particular behavior provides great value to one
consumer but none to another.
c. Personality can be conceptualized as a set of acquired habits.
d. Personality traits are relatively stable and interact with situations to influence
behavior.
e. It is possible to predict the exact behavior of a consumer simply by knowing a
specific personality trait possessed by him.
When Janice went for a holiday in the Sahara, she made it a point to drink lots of water
to keep herself hydrated. Which of the following types of motivations drove Janice to
avoid dehydration?
a. Homeostasis
b. Apoptosis
c. Homeorhesis
d. Necrosis
e. Osmosis
Derrick has always been an animal lover. He neither wants to be part of any meat-lovers
club nor wants any form of association with groups that have a history of cruelty toward
animals. In this scenario, Derrick associates such clubs as _____ groups.
a. tangential
b. aspirational
c. primary
d. dissociative
e. reference
Which of the following is true of the idiographic approach?
a. It focuses on the individual traits that can be studied across multiple consumers.
b. It focuses on a single trait that is common across all consumers.
c. It focuses on the complexity of each individual consumer.
d. It examines combinations of traits and the effect of each individual trait.
e. The trait approach takes an idiographic approach to personality.
Aspirational group membership often appeals to the consumer’s _____ self.
a. actual
b. social
c. extended
d. real
e. ideal
Which of the following is a fundamental emotion evoked by negative, anticipatory
appraisals which signal uncertainty about a negative outcome?
a. Envy
b. Fear
c. Hope
d. Surprise
e. Anger
_____ 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
According to _____, consumers agree on the shared meaning of products and symbols.
a. symbolic interactionism perspective
b. symbolic logic perspective
c. nomothetic perspective
d. idiographic perspective
e. self-congruency perspective
A characteristic that allows a consumer to diagnose something distinctive about an
alternative is also known as a _____.
a. beacon
b. sample
c. signal
d. sensor
e. code
A group that includes members who have frequent, direct contact with one another is
known as a(n) _____.
a. focus group
b. primary group
c. secondary group
d. task group
e. outgroup
MNC SCENARIO
Mr. Adam Smith works as a senior executive for Corebiz Corp., a multinational
company with subsidiaries in many Asian countries. The firm believes in a marketing
strategy that strongly resonates the essence of the local culture in its implementation.
The company relocates Mr. Smith to Beijing to handle their operations in China. A few
months into his stay, Mr. Smith begins to learn the ways of life and appropriate
behavior in China. When Mr. Smith was invited for tea by his colleagues, he observed
people around him and learned the right way to tap his finger and fold a napkin. He also
learned that the Chinese revere their elders and treat them with respect. Even when
there is no kinship involved, an older person should never be addressed with his/her
name. Any show of disrespect, especially “name calling,” is shunned upon by society;
and the person found doing so, risks being ridiculed by everyone. Though these
learnings can sometimes be inconvenient for Mr. Smith owing to the vast cultural
difference between the United States and China, Mr. Smith thinks that it is worth all the
trouble. Refer to MNC Scenario. Mr. Smith learns that the Chinese revere their elders
and treat them with respect. Even when there is no kinship involved, an older person
should never be addressed with his/her name. According to the CSV dimension, China
is a culture high in _____.
a. individualism
b. collectivism
c. masculinity
d. power distance
e. long-term orientation
Which of the following is true about message construction?
a. Directly comparing one brand against specific competitors can be effective,
especially when the brand being promoted is not already the market leader.
b. Overly complex messages always lead to favorable reactions.
c. Advertisements that allow consumers to arrive at their own conclusions tend to be
more persuasive when the audience has a low level of involvement with the product.
d. If marketers are attempting to reach a highly involved audience, important
information should ideally be placed later in the message.
e. Consumers with low involvement are more motivated to attend to a larger number of
arguments than are highly motivated consumers.
In China, business deals focus on building lasting and enduring relationships between
the parties involved. This illustrates that China is a country high in _____.
a. masculinity
b. individualism
c. power distance
d. long-term orientation
e. uncertainty avoidance
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
Selective distortion is the process by which:
a. marketers manipulate information to influence consumers.
b. consumers form opinions about one brand over another based on the information
provided by marketers.
c. consumers screen out most stimuli and attend to only a small portion of stimuli.
d. marketers determine the minimum strength of stimulus necessary to influence a
consumer.
e. consumers interpret information in ways that are biased by their previously held
beliefs.
WARNING LABELS SCENARIO
Cigarette packages and advertisements have included warning labels for several years,
but the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act)
signed into law in 2009 required that stronger and more graphic health warnings appear
on cigarette packages by 2012. In 2011, the Food and Drug Administration proposed
nine new textual warning statements that were much stronger than previous warning
statements. The new warning statements included statements such as “Cigarettes are
addictive,” “Cigarettes cause cancer,” and “Tobacco smoke may harm your children.”
These statements were to be accompanied by color graphics depicting the negative
health effects of smoking. Some of the proposed graphics included a picture of diseased
lungs, a man smoking with smoke coming out of a hole in his throat, rotted teeth and
mouth cancer, a mother blowing smoke in her baby’s face, and dead and dying people.
The Tobacco Control Act dictated the placement of these statements and graphics on
packages and advertisements, taking up at least 50 percent of the front of the package
and at least 20 percent of the advertisement. Research reveals that the best way to quit
is the reduce the intake of tobacco in small increments over time rather than an attempt
to quit it altogether. Refer to Warning Labels Scenario. In countries where graphic
warning labels are already present, some smokers put their cigarette packs in a plastic
holder that covers up the information on the package. These consumers’ decision to hide
the warning label is an example of _____.
a. assimilation
b. selective distortion
c. selective exposure
d. cognitive dissonance
e. accommodation
Consumers are undiscriminating in the information to which they pay attention.
Marketing ethics consist of societal and professional standards of right and fair
practices that are expected of marketing managers as they develop and implement
marketing strategies.
Mass media and trade organizations are two of the primary stakeholders of a firm.
Information overload refers to the situation in which consumers are presented with so
much information that they cannot assimilate it all.
The goal of the nomothetic perspective is to find common personality traits that can be
studied across people.
Worth to a consumer is a function of price.
List the fundamental elements of verbal and nonverbal communication. Describe a
recent interaction you had with another person and discuss the elements of verbal and
nonverbal communication that took place.
The term age-based microculturedescribes the finding that people of the same age
develop similar consumer preferences.
A market-oriented firm stresses the importance of creating value for customers among
all employees.
How is culture learned? List the quartet of institutions responsible for communicating
CSVs and discuss which one or ones had the greatest influence on your learning of your
native culture and/or a new culture.
Using the elaboration likelihood model (ELM), illustrate how attitudes are changed
based on differing levels of consumer involvement.
Consumers are less likely to spread word-of-mouth when a product is particularly
relevant to their own self-concept and when they are highly involved with the product
category.
The most basic truth of economics is that as price increases, the quantity demanded will
always decrease.
Utilitarian motivation involves a drive to experience something personally gratifying.
Consumers with a low capacity to self-regulate are referred to as action-oriented.
Pop music used in the background contributes to discount store perceptions.
Negative reinforcement refers to the removal of bad stimuli as a way of encouraging
behavior.
Explain the types of consumer search behavior with an example each.