Assignment 7

Click on the suitable alternative.

1. Which law states that the proportion of the increase in utility gradually diminishes
with the consumption of additional units of the product?
a. Law of Diminishing Marginal Equity
b. Law of Diminishing Marginal Utility
c. Law of Increasing Marginal Equity
d. Law of Increasing Marginal Utility
Ans. b.
Explanation: This is in accordance with the law of diminishing marginal
utility.

2. _______________ are referred to those groups of people who have a special

interest and knowledge of a particular type of product and convey that
information to the other relevant groups.
a. Celebrities
b. Opinion leaders
c. Brand ambassadors
d. None of the above
Ans. b.
Explanation: This is the correct definition of opinion leaders.

3. _____________ is a purchase behaviour that is assumed to be made without prior

planning or thought.
a. Crafted Buying
b. Impulse Buying
c. Liquid Buying
d. None of the above
Ans. b.
Explanation: This is the correct definition of Impulse Buying.

4. Internal influencing factors of consumer decision-making are:

a. Perception
b. Attitude
c. Lifestyle Factor
d. All of the above
Ans. d.
Explanation: all the options a, b, c, motivation, and personality refer to
internal influencing factors.

5. _____________ refers to the symbolic or significative cues or actions that

evoke/stimulate a reaction from the receiver.
 a. Motive
b. Stimuli
c. Dispersion
d. None of the above
Ans. b.
Explanation: It is the definition of Stimuli.

6. ---------------------has created the bridge between the desirability of the luxury world
and the function and necessity of the mass market
a. Premiumisation
b. Customisation
c. Globalisation
d. Socialisation
Ans. a.
Explanation: This is the definition of Premiumisation.

7. Product, price, place, and promotion are:

a. Social parameters
b. Situational factors
c. Marketing mix elements
d. Economic factors
Ans. c.
Explanation: These are the elements of the marketing mix.

8. _____________ refers to the resultant brand attitude and the confidence

associated with the purchase decision.
a. Brand Loyalty
b. Brand Comprehension
c. Brand Apprehension
d. None of the above
Ans. b.
Explanation: This is the definition of Brand Comprehension.

9. In which choice rule do consumers establish a minimum cutoff point for each
attribute?
a. Conjunctive rule
b. Disjunctive rule
c. Lexicographic heuristics
d. None of the above
Ans. a.
Explanation: This is the correct definition of the Conjunctive rule.

10. Rogers (2003) delineates ………………as the degree to which an innovation is

perceived as being better than the idea it supersedes.
 a. relative advantage
b. trialability
c. comprehensibility
d. acceptability
Ans. a
Explanation: This is how the relative advantage of innovation is defined.