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Chapter 06 Consumer Decision Making

TRUEFALSE

1. Value of a product can mean an enduring belief shared by a society that a specific mode of
conduct is personally or socially preferable to another mode of conduct.

(A) True (B)

False

Answer : (A)

2. Hedonic value is derived from a product or service that helps a consumer solve problems and
accomplish tasks.

(A) True (B)

False

Answer : (B)

3. Need recognition cannot be triggered when a consumer is exposed to an external stimulus.

(A) True

(B) False

Answer : (B)

4. Consumers try to reduce cognitive dissonance by justifying their purchase decision.

(A) True

(B) False

Answer : (A)
5. Involvement is the amount of time and effort a buyer invests in the search, evaluation, and
decision processes of consumer behavior.

(A) True (B)

False

Answer : (A)

6. Unlike high-involvement products, low-involvement goods and services are generally associated
with routine response behavior.

(A) True

(B) False

Answer : (A)

7. People in a subculture do not share the characteristics of the broader culture.

(A) True

(B) False

Answer : (B)

8. Unlike affluent upper-class consumers, working-class or middle-class consumers are more likely
to be salaried executives or self-employed professionals with at least an undergraduate degree.

(A) True (B)

False

Answer : (B)

9. Consumers can be influenced by reference groups only if they belong to those groups.

(A) True

(B) False

Answer : (B)

10. Marketers often try to create opinion leaders as it is rare to find an opinion leader who spans
multiple diverse domains.

(A) True (B)

False

Answer : (A)

11. In the context of individual influences on consumer buying decisions, individual characteristics
are generally unstable over the course of one's life.

(A) True

(B) False
Answer : (B)

12. Consumers' product preferences for themselves remain stagnant in all stages of the family life
cycle.

(A) True (B)

False

Answer : (B)

13. Personality refers to how consumers perceive themselves in terms of attitudes, perceptions, and
beliefs.

(A) True (B)

False

Answer : (B)

14. The process by which we select, organize, and interpret stimuli into a meaningful and coherent
picture is called learning.

(A) True (B)

False

Answer : (B)

15. According to Maslow's hierarchy of needs theory, self-actualization is the highest human needs
of all.

(A) True (B)

False

Answer : (A)

16. Perception is the process that creates changes in behavior through experience and practice.

(A) True

(B) False

Answer : (B)

17. Unlike experiential learning, conceptual learning occurs when an experience changes your
behavior.
(A) True (B)

False

Answer : (B)

18. Learning to differentiate among similar products is known as stimulus generalization.

(A) True

(B) False

Answer : (B)

MULTICHOICE

19. Which of the following statements is true of consumer behavior?

(A) People's value systems do not affect their consumer behavior.

(B) Consumer behavior cannot be learned.

(C) The study of consumer behavior includes factors that influence purchase decisions and product
use.

(D) Consumers' product and service preferences are constant and do not change over time.

Answer : (C)

20. After being influenced by frequent advertisements, Jeremy buys a new cell phone. However, he
discovers that the new cell phone does not offer the features he expected. This scenario illustrates
that the of the purchase is less than Jeremy's expectations.

(A) perceived value

(B) actual value (C)

an evoked set (D) a

consumer set

Answer : (B)

21. Unlike hedonic value, utilitarian value:

(A) is a form of perceived value.

(B) is obtained from products rather than services.

(C) can be viewed as a means to an end.

(D) can be enjoyed without making a purchase.

Answer : (C)

22. Sam uses public transport to commute to work. However, he has always wanted to own a car
and believes commuting by car will save time. This scenario exemplifies Sam's .

(A) selective retention

(B) cognitive dissonance

(C) value

(D) want

Answer : (D)

23. A is any unit of input affecting one or more of the five senses: sight, smell, taste, touch, and
hearing.

(A) consideration set

(B) need

(C) stimulus

(D) want

Answer : (C)

24. Unlike external stimuli, internal stimuli:

(A) do not have multiple sources.

(B) cannot be satisfied through purchases.

(C) include stimuli such as hunger and thirst.

(D) include stimuli such as advertisements and videos.

Answer : (C)

25. Becky wants to buy a new cell phone. She asks her friends who are technologically savvy to
recommend a good, lightweight phone that is easy to use. In this scenario, Becky is obtaining
information using a(n) .

(A) marketing-controlled information source

(B) internal information search

(C) nonmarketing-controlled information source

(D) marketing-controlled information search

Answer : (C)

26. During an external information search, a consumer is most likely to enlarge his search and
consider more alternative brands when:

(A) the consumer is knowledgeable and well informed about a potential purchase.

(B) the perceived risk of the product or service to be purchased increases.

(C) the consumer is confident of making a purchase decision with the information at hand.

(D) the product or service to be bought is a frequently purchased, low-cost item.

Answer : (B)

27. Unlike nonmarketing-controlled information sources, marketing-controlled information sources:

(A) are types of internal information sources.

(B) include friends and families.

(C) are unbiased toward a specific product.

(D) include mass-media advertising.

Answer : (D)

28. Andrea wants to take her husband, Bill, to an exotic island to surprise him on their tenth
wedding anniversary. She has made reservations at an expensive hotel. However, she is now worried
whether she is going to get service worth the money she spent. In this scenario, Andrea's inner
tension would reduce if:

(A) she has no other hotel to stay in the island.

(B) she differentiates between her needs and wants.

(C) she focuses on her internal stimuli than external stimuli.

(D) her friends also recommend the hotel.

Answer : (D)

29. By sending postpurchase letters and giving guarantees on products, marketing managers can
help reduce .
(A) cognitive dissonance

(B) internal stimuli

(C) selective exposure

(D) want-got gap

Answer : (A)

30. is an example of routine response behavior.

(A) Booking a cruise vacation

(B) Buying an $800 worth personal computer

(C) Buying an air conditioner for the first time

(D) Purchasing groceries

Answer : (D)

31. typically occurs when a consumer has previous product experience but is unfamiliar with
the current brands available.

(A) Stimulus generalization

(B) Routine response behavior

(C) Limited decision making

(D) Extensive decision making

Answer : (C)

32. is the most complex type of consumer buying decision and is associated with high
involvement on the part of the consumer.

(A) Limited decision making

(B) Routine response behavior

(C) Extensive decision making

(D) Postpurchase evaluation

Answer : (C)

33. occur when consumers feel that making the wrong decision might cause some concern or
anxiety.
(A) Physiological risks

(B) Financial risks

(C) Social risks

(D) Psychological risks

Answer : (D)

34. Linda usually does not spend much time selecting gifts while buying them. However, when
buying a pen for her husband's birthday, she visited several stores and spent a lot of time selecting
the pen. This scenario is an example of .

(A) product involvement

(B) situational involvement

(C) shopping involvement

(D) enduring involvement

Answer : (B)

35. Which of the following strategies is a marketing manager most likely to follow to increase the
sales of a high-involvement product?

(A) Creating advertisements that give consumers all the necessary information to make the purchase
decision

(B) Focusing on the package design of the product so that it will be eye-catching and easily
recognized on the store shelf

(C) Linking the product to a lower-involvement issue to create publicity

(D) Offering coupons, cents-off deals, and two-for-one offers on the product

Answer : (A)

36. To increase the sales of low-involvement products, marketing managers can:

(A) focus on the package design of the products.

(B) promote the products extensively to the target market.

(C) design advertisements with highly emotional messages.

(D) adopt strategies that are used for marketing high-involvement products.

Answer : (A)
37. is the set of values, norms, attitudes, and other meaningful symbols that shape human
behavior and the artifacts, or products, of that behavior as they are transmitted from one generation
to the next.

(A) Loyalty

(B) Culture

(C) Consumerism

(D) Perceived value

Answer : (B)

38. Which of the following statements is true of culture?

(A) It cannot be learned.

(B) It influences individuals in a way that they are completely aware of its values.

(C) It encompasses all the things that consumers do without conscious choice.

(D) It is static and does not change.

Answer : (C)

39. Saraz Inc., a leading brand of apparels, has several branches all over the country. Upon
research, the marketing managers identify that teenagers do not prefer their brand as much as other
age groups do. Therefore, the firm modifies its existing designs to attract the youth. In this case, the
teenage group can be referred to as a .

(A) subculture

(B) social class

(C) popular culture

(D) reference group

Answer : (A)

40. Joshua is a millionaire, and he manages several successful companies. He usually socializes with
people of similar status. Given this information, Joshua and the people he socializes with are
examples of a .

(A) family

(B) social class

(C) popular culture

(D) reference group

Answer : (B)

41. Which of the following statements is true of the social class system in the U.S.?

(A) Interest in organized labor is one of the most common attributes among the working class.

(B) The working class spends more on vacation homes, jewelry, vacations and cruises.

(C) The majority of Americans today define themselves as upper class.

(D) Social class includes people belonging to the same age and gender.

Answer : (A)

42. Social influences on consumer buying decisions are most likely to help in:

(A) reducing a feeling of uncertainty among consumers.

(B) making impulse purchase decisions.

(C) recognizing one's feelings and formulating opinions.

(D) shaping human behavior and transmitting it from one generation to the next.

Answer : (A)

43. Which of the following is an effect of social influences on consumer buying decisions?

(A) Consumers base decision making on the values and beliefs of their culture.

(B) Consumers rely on personal experience while making a buying decision.

(C) Consumers seek out the opinions of others for decision making.

(D) Consumers make decisions based on their ideal self-image.

Answer : (C)

44. Which of the following is a social factor that can influence consumer buying decisions?

(A) A social class

(B) Gender

(C) A reference group

(D) Ethnicity

Answer : (C)
45. In which of the following ways are consumers influenced by reference groups?

(A) Norms of reference groups do not constrain consumer behavior.

(B) Consumers are prohibited from dissociating themselves from reference groups.

(C) Consumers use the same criteria as their reference groups to make their own consumer
decisions.

(D) Consumers are influenced only by the reference groups to which they belong.

Answer : (C)

46. Ryan and Ben are best friends. Ryan regularly runs marathons and is a member of the Marathon
Runners Club at his university. Ben also wants to join the club, but he is not a very strong runner.
Ben decides to start running every day so that he can participate in marathons and become a
member of the club. Given this information, the Marathon Runners Club can be categorized as a(n)
.

(A) interest reference group

(B) primary reference group

(C) aspirational reference group

(D) nonaspirational reference group

Answer : (C)

47. Ramelson Inc., a footwear and apparel company, features photographs of celebrities wearing
Ramelson clothes and shoes. The company launched a new commercial for its new line of football
shoes. This commercial featured famous football stars as it believes that celebrities can influence
customers' buying decisions. In this case, the football stars served as .

(A) opinion leaders

(B) aspirational reference groups

(C) nonaspirational reference groups

(D) decision makers

Answer : (A)

48. Joshua prefers to do his grocery shopping at Fresnas Mart because his mother also prefers to
shop there. He also does not shop groceries online because his mother does not prefer shopping
groceries online. In this case, Joshua's shopping behavior is a result of .

(A) want-got gap

(B) the socialization process

(C) cognitive dissonance

(D) the decision-making process

Answer : (B)

49. In the context of the purchase process of a family, are members who suggest or plant the
seed for the purchase process.

(A) influencers

(B) purchasers

(C) consumers

(D) initiators

Answer : (D)

50. Which of the following is an individual characteristic that influences a person's buying
decisions?

(A) Gender

(B) Culture

(C) Motivation

(D) Learning

Answer : (A)

51. Which of the following statements is true of trends in gender marketing?

(A) Today, men rely on the women in their lives to shop for them.

(B) It is unaffected by the roles of men and women in society.

(C) Men are more price-conscious than women.

(D) While shopping, men use tablets twice as often as they use smartphones.

Answer : (C)

52. The is an orderly series of stages in which consumers' attitudes and behavioral tendencies
evolve through maturity, experience, and changing income and status.

(A) socialization process

(B) consumer decision-making process

(C) family life cycle

(D) want-got gap

Answer : (C)

53. Jane and Kyle have been married for four years. Jane recently gave birth to a baby girl. In the
context of the family life cycle, which of the following is most likely to be true of their spending
behavior?

(A) They will spend more than average on alcoholic beverages, education, and entertainment.

(B) They will increase their spending on health care, clothing, housing, and food.

(C) They will increase their spending on alcohol, education, and transportation.

(D) They will increase their spending on vehicles, women's clothing, and health care.

Answer : (B)

54. In the context of the family life cycle, which of the following statements is true of households
with older children?

(A) They buy cars to display their status more than to fulfill their needs.

(B) They will increase their spending on health care, clothing, housing, and food.

(C) They spend more on food, entertainment, education, as well as cars and gasoline.

(D) They will decrease their spending on alcohol, education, and transportation.

Answer : (C)

55. Careers often create a for single parents.

(A) poverty of time

(B) want-got gap

(C) cultural complexity

(D) traditional life cycle

Answer : (A)

56. Melina considers herself a fashionista and thinks that she dresses more fashionably than her
friends and family. Her family and friends, however, feel she dresses just like them. In this case, the
perception of Melina's friends and family contradicts Melina's .

(A) real self-image

(B) lifestyle

(C) ideal self-image

(D) social class

Answer : (C)

57. refers to how an individual actually perceives himself or herself.

(A) Self-esteem

(B) Self-actualization

(C) Ideal self-image

(D) Real self-image

Answer : (D)

58. Products that appeal to mothers have evolved since mothers are no longer homogeneous like
before. Instead, there are traditional, blended, and nontraditional moms. Which of the following
factors that affect consumer buying decision is responsible for this change?

(A) Increased motivation

(B) Changes in lifestyle

(C) Creation of poverty of time

(D) Increased involvement

Answer : (B)

59. Which of the following is a psychological factor that impacts consumer buying decisions?

(A) Social class

(B) Learning

(C) Age

(D) Lifestyle

Answer : (B)

60. is a process whereby a consumer notices certain stimuli and ignores others.

(A) Stimulus generalization

(B) Selective exposure

(C) Cognitive dissonance

(D) Selective retention

Answer : (B)

61. occurs when consumers change information that conflicts with their feelings or beliefs.

(A) Stimulus generalization

(B) Selective distortion

(C) Cognitive dissonance

(D) Selective retention

Answer : (B)

62. Recently, Jenny Inc. launched a new laptop in the market. Blake bought the laptop but was
disappointed when several cheaper laptops were successfully launched in the market soon after. To
get over his disappointment, he convinced himself that those laptops were inferior in quality. This
scenario illustrates .

(A) selective distortion

(B) stimulus discrimination

(C) cognitive dissonance

(D) confirmation bias

Answer : (A)

63. According to Maslow's hierarchy of needs, the most basic human needs are .

(A) safety needs

(B) physiological needs

(C) social needs

(D) self-esteem needs

Answer : (B)

ESSAY

64. Discuss the importance of understanding consumer behavior.

Graders Info :

Answers will vary. Consumers' product and service preferences are constantly changing. Marketing
managers must understand these desires in order to create a proper marketing mix for a well-
defined market. So it is critical that marketing managers have a thorough knowledge of consumer
behavior. Consumer behavior describes how consumers make purchase decisions and how they use
and dispose of the purchased goods or services. The study of consumer behavior also includes
factors that influence purchase decisions and product use. Understanding how consumers make
purchase decisions can help marketing managers in several ways. REJ: Please see the section "The
Importance of Understanding Consumer Behavior" for more information.

65. In the context of information searches, explain a marketing-controlled information source.

Graders Info :

Answers will vary. A marketing-controlled information source is biased toward a specific product
because it originates with marketers promoting that product. Marketing-controlled information
sources include mass media advertising (radio, newspaper, television, and magazine advertising),
sales promotion (contests, displays, premiums, and so forth), salespeople, product labels and
packaging, and digital media. REJ: Please see the section "The Consumer Decision-Making Process"
for more information.

66. How does marketing strategy differ based on the level of involvement associated with a product?

Graders Info :

Answers will vary. For high-involvement product purchases, marketing managers have several
objectives. One of them is that promotion to the target market should be extensive and informative.
A good advertisement gives consumers the information they need for making the purchase decision
and specifies the benefits and unique advantages of owning the product. For low-involvement
product purchases, consumers may not recognize their wants until they are in the store. Therefore,
in-store promotion is an important tool when promoting low-involvement products. Marketing
managers focus on package design so the product will be eye-catching and easily recognized on the
shelf. Linking a product to a higher-involvement issue is another tactic that marketing managers can
use to increase the sales or positive publicity of a low-involvement product. REJ: Please see the
section "Types of Consumer Buying Decisions and Consumer Involvement" for more information.

67. Explain how cultural influences affect consumer decision making.

Graders Info :

Answers will vary. Of all the factors that affect consumer decision making, cultural factors exert the
broadest and deepest influence. Cultural values and influences are the ocean in which individuals
swim, and yet most are completely unaware that it is there. What people eat, how they dress, what
they think and feel, and what language they speak are all dimensions of culture. Culture
encompasses all the things consumers do without conscious choice because their culture's values,
customs, and rituals are ingrained in their daily habits. Human interaction creates values and
prescribes acceptable behavior for each culture. By establishing common expectations, culture gives
order to society. Sometimes these expectations are enacted into laws. For example, drivers in our
culture must stop at a red light. Other times these expectations are taken for granted: grocery stores
and hospitals are open twenty-four hours, whereas banks are open only during "bankers' hours,"
typically nine in the morning until five in the afternoon. REJ: Please see the section "Cultural
Influences on Consumer Buying Decisions" for more information.

68. How do reference groups influence consumer buying decisions?

Graders Info :

Answers will vary. A reference group consists of all the formal and informal groups that influence the
buying behavior of an individual. Consumers may use products or brands to identify with or become
a member of a group. They learn from observing how members of their reference groups consume,
and they use the same criteria to make their own consumer decisions. Reference groups are
particularly powerful in influencing the clothes people wear, the cars they drive, the electronics they
use, the activities they participate in, the foods they eat, and the luxury goods they purchase. In
short, the activities, values, and goals of reference groups directly influence consumer behavior. For
marketers, reference groups have three important implications: (1) They serve as information
sources and influence perceptions; (2) they affect an individual's aspiration levels; and (3) their
norms either constrain or stimulate consumer behavior. REJ: Please see the section "Social
Influences on Consumer Buying Decisions" for more information.

69. Discuss how personality affects consumer behavior.

Graders Info :

Answers will vary. Each consumer has a unique personality. Personality is a broad concept that can
be thought of as a way of organizing and grouping how an individual typically reacts to situations.
Thus, personality combines psychological makeup and environmental forces. It includes people's
underlying dispositions, especially their most dominant characteristics. Although personality is one
of the least useful concepts in the study of consumer behavior, some marketers believe personality
influences the types and brands of products purchased. For instance, the type of car, clothes, or
jewelry a consumer buys may reflect one or more personality traits. REJ: Please see the section
"Individual Influences on Consumer Buying Decisions" for more information.

70. How do psychological factors affect consumer buying decisions?

Graders Info :

Answers will vary. An individual's buying decisions are influenced by psychological factors:
perception, motivation, and learning. These factors are what consumers use to interact with their
world. They are the tools consumers use to recognize their feelings, gather and analyze information,
formulate thoughts and opinions, and take action. Unlike the other three influences on consumer
behavior, psychological influences can be affected by a person's environment because they are
applied on specific occasions. The process by which we select, organize, and interpret these stimuli
into a meaningful and coherent picture is called perception. In essence, perception is how we see
the world around us. We act based upon perceptions that may or may not reflect reality. Marketers
must recognize the importance of cues, or signals, in consumers' perception of products. Marketing
managers first identify the important attributes, such as price or quality, that the targeted
consumers want in a product and then design signals to communicate these attributes.
By studying motivation, marketers can analyze the major forces influencing consumers to buy or not
buy products. When you buy a product, you usually do so to fulfill some kind of need. These needs
become motives when they are aroused sufficiently. A motive is the driving force that causes a
person to take action to satisfy specific needs.
Almost all consumer behavior results from
learning
, which is the process that creates changes in behavior through experience and practice. It is not
possible to observe learning directly, but we can infer when it has occurred by a person's actions.
Repetition is a key strategy in promotional campaigns because it can lead to increased learning.
Most marketers use repetitious advertising so that consumers will learn what their unique
advantage is over the competition. Generally, to heighten learning, advertising messages should be
spread out over time rather than clustered together. REJ: Please see the section "Psychological
Influences on Consumer Buying Decisions" for more information.