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Consumer Behavior 11th Edition

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Consumer Behavior, 11e (Schiffman/Kanuk)
Chapter 10 The Family and Its Social Class Standing

1) Traditionally, ________ is defined as two or more people related by blood, marriage, or


adoption who reside together.
A) friendship
B) celebrity
C) household
D) a work group
E) family
Answer: E
Diff: 1
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

2) A married couple and one or more children constitute a(n) ________.


A) work group
B) nuclear family
C) extended family
D) friendship group
E) life cycle
Answer: B
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

3) Kevin and Lisa have been married for two years and have not yet had their first child. What
kind of family does this constitute?
A) empty nest
B) married couple
C) extended family
D) single-parent family
E) nuclear family
Answer: B
Diff: 1
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

1
Copyright © 2015 Pearson Education, Inc.
4) Joanne and Juan have three children: Emma, Ava, and Joseph. They are an example of a(n)
________.
A) empty nest
B) married couple
C) extended family
D) single-parent family
E) nuclear family
Answer: E
Diff: 1
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

5) A husband and wife and one or more children, together with at least one grandparent living
within the household, constitutes a(n) ________.
A) empty nest
B) married couple
C) extended family
D) single-parent family
E) nuclear family
Answer: C
Diff: 1
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

6) ________ responsibilities have been expanding because attaining good jobs as adults has
become harder and parents feel that children must be ahead of other children from a young age.
A) Intergenerational brand transfer
B) Peer socialization
C) Consumer socialization
D) Shared shopping experience
E) Parental socialization
Answer: E
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

2
Copyright © 2015 Pearson Education, Inc.
7) In the context of marketing, the most important role of the family is ________.
A) intergenerational brand transfer
B) peer socialization
C) socialization of family members
D) shared shopping experience
E) parental socialization
Answer: C
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

8) ________ is defined as the process by which children acquire the skills, knowledge, attitudes,
and experiences necessary to function as consumers.
A) Intergenerational brand transfer
B) Peer socialization
C) Consumer socialization
D) Shared shopping experience
E) Parental socialization
Answer: C
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

9) Children perceive ________ to be a close and reliable source of information, whereas


adolescents and teenagers are likely to look to ________ for models of acceptable consumption
behavior.
A) their families; their friends
B) their friends; media
C) media; their friends
D) media; their families
E) their friends; their families
Answer: A
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

3
Copyright © 2015 Pearson Education, Inc.
10) A ________ is a person or organization involved in the socialization process because of
frequency of contact with the individual and control over the rewards and punishments given to
the individual.
A) socialization agent
B) status agent
C) consumption agent
D) decision agent
E) composite agent
Answer: A
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

11) Mothers are stronger consumer socialization agents than their husbands because ________.
A) they are more involved with their children
B) they often control their children's exposure to commercial messages
C) they provide instruction in the skills needed to become consumers
D) they regulate the amount of money children can spend and how they spend it
E) all of the above
Answer: E
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

12) Deborah is married and has a career. She multitasks and teaches her children how to become
good consumers. She lets them learn from experience and make buying mistakes. When
characterizing mothers' socialization-related attitudes, Deborah would be categorized as a
________.
A) Struggler
B) Nurturer
C) Protector
D) Balancer
E) Stoic
Answer: D
Diff: 2
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

4
Copyright © 2015 Pearson Education, Inc.
13) Chris does not have the money to indulge her children's requests. She is very price and value
conscious. She views her life negatively. When characterizing mothers' socialization-related
attitudes, Chris would be categorized as a ________.
A) Struggler
B) Nurturer
C) Protector
D) Balancer
E) Stoic
Answer: A
Diff: 2
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

14) Sarah is focused on her family, and often sacrifices her own desires to meet the wants of her
children. She trusts well-known companies and brands. When characterizing mothers'
socialization-related attitudes, Sarah would be categorized as a ________.
A) Struggler
B) Nurturer
C) Protector
D) Balancer
E) Stoic
Answer: B
Diff: 2
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

5
Copyright © 2015 Pearson Education, Inc.
15) Josie is culturally and socially isolated. She views herself as a caretaker and homemaker. She
loves her children, but feels emotionally distanced from them. She deliberates regarding
purchases. When characterizing mothers' socialization-related attitudes, Josie would be
categorized as a ________.
A) Struggler
B) Nurturer
C) Protector
D) Balancer
E) Stoic
Answer: E
Diff: 2
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

16) Hillary has a high income and a Master's degree. She is rational and teaches her children to
shop and spend responsibly. She resents the influence of the media on her children. When
characterizing mothers' socialization-related attitudes, Hillary would be categorized as a
________.
A) Struggler
B) Nurturer
C) Protector
D) Balancer
E) Stoic
Answer: C
Diff: 2
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

6
Copyright © 2015 Pearson Education, Inc.
17) Kristen is self-focused and seeks acceptance and attention from others. She is a conspicuous
consumer. She views her children as part of her image, and often gives in to her children's
requests to make her life easier. When characterizing mothers' socialization-related attitudes,
Kristen would be categorized as a ________.
A) Struggler
B) Nurturer
C) Protector
D) Diva
E) Stoic
Answer: D
Diff: 2
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

18) ________ parents are very nurturing and highly permissive in respect to consumer
socialization.
A) Rigid
B) Indulgent
C) Neglecting
D) Authoritative
E) Authoritarian
Answer: B
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

19) ________ parents are very permissive, but provide their children with little or no nurturing
during consumer socialization.
A) Rigid
B) Indulgent
C) Neglecting
D) Authoritative
E) Authoritarian
Answer: C
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

7
Copyright © 2015 Pearson Education, Inc.
20) ________ parents are very nurturing but very restrictive in respect to consumer socialization.
A) Rigid
B) Indulgent
C) Neglecting
D) Authoritative
E) Authoritarian
Answer: D
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

21) ________ parents are very restrictive and not nurturing in respect to consumer socialization.
A) Rigid
B) Indulgent
C) Neglecting
D) Authoritative
E) Authoritarian
Answer: E
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

22) ________ involves the transfer of values, product loyalties, or brand preferences from one
generation to another.
A) Intergenerational transfer
B) Peer socialization
C) Consumer socialization
D) Shared shopping experience
E) Family member socialization
Answer: A
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

8
Copyright © 2015 Pearson Education, Inc.
23) Gloria buys Crest toothpaste because her mother always bought Crest for her family when
she was growing up. This is an example of ________.
A) intergenerational transfer
B) peer socialization
C) consumer socialization
D) shared shopping experience
E) family member socialization
Answer: A
Diff: 2
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

24) Socialization is best described as ________.


A) a one-way process whereby adults socialize children
B) a one-way process whereby children socialize adults
C) a one-way process that occurs only during adolescence
D) a one-way process that occurs only during adulthood
E) a two-way process in which the young person is both socialized and influences those who are
doing the socializing
Answer: E
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

25) The family function related to setting priorities regarding learning and education,
recreational activities, hobbies, setting career goals, media exposure, and shopping habits is
________.
A) economic well being
B) emotional support
C) communication support
D) suitable family lifestyles
E) shopping support
Answer: D
Diff: 1
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

9
Copyright © 2015 Pearson Education, Inc.
26) When Joan got transferred to a new city, she went there ahead of the rest of her family and
independently shopped for and purchased a home for them to move into upon their arrival. Joan's
role as the only decision maker in the house purchase makes it an example of a ________.
A) husband-dominated decision
B) wife-dominated decision
C) joint decision
D) autonomic decision
E) heuristic decision
Answer: D
Diff: 3
Skill: Application
Learning Obj: 10.2: To understand family decision making and its members' consumption-
related roles.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

27) Derek was the primary decision maker when it came to automotive purchases in his
household, but asked for and considered feedback from his wife and children when they went to
purchase a new car. Derek's approach makes the car purchase an example of a(n) ________.
A) husband-dominated decision
B) wife-dominated decision
C) joint decision
D) autonomic decision
E) heuristic decision
Answer: A
Diff: 2
Skill: Application
Learning Obj: 10.2: To understand family decision making and its members' consumption-
related roles.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

10
Copyright © 2015 Pearson Education, Inc.
28) Kim wants a candy bar and tries to convince her father to purchase one for her by threatening
to throw a fit in the crowded grocery store if he does not. This is an example of which of the
following tactics used by children to influence their parents?
A) pressure tactic
B) ingratiating tactic
C) exchange tactic
D) coalition tactic
E) consultation tactic
Answer: A
Diff: 3
Skill: Application
Learning Obj: 10.2: To understand family decision making and its members' consumption-
related roles.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

29) Billy tries to convince his mother to buy him a new set of markers by suggesting that he will
be good and clean his room if she purchases the markers for him. This is an example of which of
the following tactics used by children to influence their parents?
A) inspirational appeal
B) coalition tactic
C) consultation tactic
D) exchange tactic
E) rational persuasion
Answer: D
Diff: 3
Skill: Application
Learning Obj: 10.2: To understand family decision making and its members' consumption-
related roles.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

11
Copyright © 2015 Pearson Education, Inc.
30) Frank tries to get buy-in from his father on the purchase of a new tablet by asking his father
to help him research the different types of tablets and getting him involved in the shopping
process. This is an example of which of the following tactics used by children to influence their
parents?
A) inspirational appeal
B) coalition tactic
C) consultation tactic
D) exchange tactic
E) rational persuasion
Answer: C
Diff: 3
Skill: Application
Learning Obj: 10.2: To understand family decision making and its members' consumption-
related roles.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

31) Vacuum cleaner manufacturers should conduct research on children who perform
housekeeping chores by themselves in their roles as ________.
A) buyers
B) maintainers
C) deciders
D) preparers
E) gatekeepers
Answer: B
Diff: 3
Skill: Application
Learning Obj: 10.2: To understand family decision making and its members' consumption-
related roles.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

12
Copyright © 2015 Pearson Education, Inc.
32) Which of the following is NOT one of the variables that is combined to make the family life
cycle composite variable?
A) marital status
B) size of family
C) age of family members
D) family income
E) employment status of the head of household
Answer: D
Diff: 2
Skill: Concept
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Analytical thinking

33) In the ________ stage of the traditional family life cycle, single young individuals have
established households apart from their parents.
A) bachelorhood
B) honeymooner
C) parenthood
D) postparenthood
E) dissolution
Answer: A
Diff: 1
Skill: Concept
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

34) Marriage marks the transition from the ________ stage to the ________ stage of the
traditional family life cycle.
A) bachelorhood; honeymooner
B) honeymooner; parenthood
C) parenthood; postparenthood
D) postparenthood; dissolution
E) dissolution; bachelorhood
Answer: A
Diff: 1
Skill: Concept
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking
13
Copyright © 2015 Pearson Education, Inc.
35) Ken and Kira recently married and do not currently have any children. They both work and
are conscientiously saving their money so that they can go on a cruise next summer. Ken and
Kira are best described as being at the ________ stage of the traditional family life cycle.
A) bachelorhood
B) honeymooner
C) parenthood
D) postparenthood
E) dissolution
Answer: B
Diff: 1
Skill: Application
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

36) The birth of the first child marks the transition from the ________ stage to the ________
stage of the traditional family life cycle.
A) bachelorhood; honeymooner
B) honeymooner; parenthood
C) parenthood; postparenthood
D) postparenthood; dissolution
E) dissolution; bachelorhood
Answer: B
Diff: 1
Skill: Concept
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

14
Copyright © 2015 Pearson Education, Inc.
37) During the ________ stage of the traditional family life cycle, married couples tend to be
most comfortable financially.
A) bachelorhood
B) honeymooner
C) parenthood
D) postparenthood
E) dissolution
Answer: D
Diff: 3
Skill: Concept
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

38) The ________ stage of the basic family unit occurs with the death of one spouse.
A) bachelorhood
B) honeymooner
C) parenthood
D) postparenthood
E) dissolution
Answer: E
Diff: 3
Skill: Concept
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

39) Families that do not readily fit into the family life cycle are called ________.
A) atypical families
B) extended families
C) non-family households
D) nuclear families
E) nontraditional families
Answer: E
Diff: 2
Skill: Concept
Learning Obj: 10.4: To understand the consumption patterns of non-traditional families and non-
family households.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

15
Copyright © 2015 Pearson Education, Inc.
40) Which DSWI Household Classification group is most likely to consume healthy food items
and avoid convenience foods?
A) dual low occupation career couples, white-collar husband
B) nonworking wives
C) low husband occupation households
D) dual low occupation career couples, blue-collar husband
E) very high occupation career couples
Answer: E
Diff: 3
Skill: Application
Learning Obj: 10.4: To understand the consumption patterns of non-traditional families and non-
family households.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

41) Social class stems from ________, which is the degree of prestige the members of one social
class have in comparison with members of the other social classes.
A) religion
B) power
C) social status
D) upward mobility
E) education
Answer: C
Diff: 1
Skill: Concept
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

42) Social Comparison Theory suggests ________.


A) power is related to the amount of economic assets an individual has
B) wealth is related to the degree of influence over others an individual has
C) social stratification is only present in materialistic societies, as has been the case throughout
the history of human existence
D) individuals compare their own material possessions with those owned by others in order to
determine relative social standing
E) belonging to a given social class is no longer reflected in differences in values, attitudes and
behaviors
Answer: D
Diff: 2
Skill: Concept
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking
16
Copyright © 2015 Pearson Education, Inc.
43) Relative ________ is a measure of the amount of economic assets an individual possesses.
A) wealth
B) affluence
C) social status
D) power
E) prestige
Answer: A
Diff: 3
Skill: Concept
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

44) Paul is an analyst at an investment bank. He notices that many of the senior executives at his
office wear Rolex watches, so he decides to save up and buy a Rolex so that he will appear to be
more like those executives. Paul's comparison of his own material possessions with those owned
by others to determine his relative social standing is an example of ________.
A) Social Comparison Theory
B) affluent consumption
C) downward comparison
D) social stratification
E) antisocial comparison
Answer: A
Diff: 2
Skill: Application
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

45) According to the ________ measure of social class, the phenomenon of social class is one
that reflects an individual's sense of belonging or identification with others.
A) subjective
B) consumption
C) reputational
D) status
E) objective
Answer: A
Diff: 3
Skill: Concept
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking
17
Copyright © 2015 Pearson Education, Inc.
46) The feeling of social-group membership is referred to as ________.
A) reputational measures
B) class identification
C) social class involvement
D) class consciousness
E) reputational class
Answer: D
Diff: 3
Skill: Concept
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

47) In the subjective measurement approach to social classification, most respondents have a
tendency to classify themselves in the ________ class.
A) upper
B) middle
C) lower
D) working
E) highest
Answer: B
Diff: 2
Skill: Concept
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

48) Occupation, amount of income, and education are typical variables used as ________
measures of social class.
A) subjective
B) consumption
C) reputational
D) status
E) objective
Answer: E
Diff: 1
Skill: Concept
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking
18
Copyright © 2015 Pearson Education, Inc.
49) Streamline Luggage Company markets its roll-aboard suitcases to international executives
and businesspeople that travel regularly. This is an example of segmenting based on ________.
A) education
B) occupation
C) conspicuous consumption
D) income
E) prestige
Answer: B
Diff: 2
Skill: Application
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

50) The ________ consists of giving respondents index cards with about 100 or so jobs listed on
them and asking them to arrange the cards from the most to the least prestigious.
A) ladder of conspicuous consumption
B) ladder of social ranking
C) occupational prestige scale
D) collective will scale
E) social-class consciousness scale
Answer: B
Diff: 3
Skill: Concept
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

19
Copyright © 2015 Pearson Education, Inc.
51) A ________ consists of more than one demographic variable and combines several
socioeconomic factors to determine social-class standing.
A) subjective measure
B) ladder of social ranking
C) social consciousness scale
D) multi-variable index
E) socioeconomic potpourri index
Answer: D
Diff: 2
Skill: Concept
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

52) ________ is a weighted measure of occupation, source of income, house type, and quality of
neighborhood to assess social class.
A) Social Stratification Theory
B) Chapin's Social Status Scale
C) Social Comparison Theory
D) The Index of Status Characteristics
E) The Socioeconomic Status Score
Answer: D
Diff: 3
Skill: Concept
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

53) Which of the following social class strata are typically conspicuous users of new wealth?
A) upper-upper class
B) lower-upper class
C) lower-middle class
D) upper-lower class
E) low-lower class
Answer: B
Diff: 3
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

20
Copyright © 2015 Pearson Education, Inc.
54) Which of the following class strata view work as means to "buy" enjoyment?
A) lower-upper class
B) upper-middle class
C) lower-middle class
D) upper-lower class
E) lower-lower class
Answer: D
Diff: 3
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

55) Which of the following class strata constitute a major market for do-it-yourself products?
A) lower-upper class
B) upper-middle class
C) lower-middle class
D) upper-lower class
E) lower-lower class
Answer: C
Diff: 3
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

56) The classic Horatio Alger tale of a penniless young orphan who managed to achieve great
success in business and in life is an example of ________.
A) downward mobility
B) conspicuous consumption
C) downward comparison
D) power
E) upward mobility
Answer: E
Diff: 3
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

21
Copyright © 2015 Pearson Education, Inc.
57) The ________ states that members of lower classes adopt the fashions of the upper class and
maintain them even after the upper class has abandoned these fashions.
A) upward mobility effect
B) downward mobility effect
C) trickle-down effect
D) exclusivity bias
E) trickle-up effect
Answer: C
Diff: 2
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

58) Which of the following is NOT a characteristic of affluent customers, relative to the less
wealthy?
A) healthier
B) higher life expectancies
C) less likely to become marketers' "customers for life"
D) more pressure to achieve
E) more isolated from parents
Answer: C
Diff: 2
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Analytical thinking

59) Why do many researchers maintain that America's middle class has been shrinking?
A) the global shrinkage of the middle class
B) the failing economy
C) the geographic shift from metropolitans to the suburbs
D) some members are moving upstream to upper-middle class while others are slipping
backward to the working class
E) the expansion of educational opportunity
Answer: D
Diff: 3
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge
22
Copyright © 2015 Pearson Education, Inc.
60) Downscale consumers are more brand loyal than upscale consumers because ________.
A) they have found the brand that satisfies their needs the best
B) upscale consumers are never satisfied
C) they cannot afford to make mistakes by switching to unfamiliar brands
D) they have loyalty towards companies that target them specifically
E) intergenerational brand transfer is more prevalent in these households
Answer: C
Diff: 2
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

61) Downscale consumers often spend a higher percentage of their available incomes on
________ than do their middle-class counterparts.
A) entertainment
B) housing
C) education
D) food
E) clothing
Answer: D
Diff: 2
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

62) The ________ look, consisting of practical, comfortable, and timeless (vs. trendy) clothing,
is often identified with the upper social class and emulated by lower classes.
A) preppy
B) WASP
C) strata
D) symbolic
E) downscale
Answer: A
Diff: 1
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking
23
Copyright © 2015 Pearson Education, Inc.
63) Relative to working-class study participants, young professionals are more likely to perceive
themselves as ________.
A) average
B) frustrated about their ability to finish things
C) uncertain about the future
D) undisciplined
E) empowered in the sense that they could achieve whatever they set their minds to
Answer: E
Diff: 2
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

64) Which of the following is true of social class as it relates to saving, spending, and credit?
A) Upper-class consumers tend to use their bank credit cards for installment purchases.
B) Young professionals perceive themselves as being average and have a strong sense of
uncertainty about the future.
C) Lower-class consumers are more future oriented and confident of their financial acumen.
D) Lower-class consumers tend to pay their credit card bills in full each month.
E) Upper-class purchasers use their credit cards as a convenient substitute for cash and pay their
credit card bills in full each month.
Answer: E
Diff: 3
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

24
Copyright © 2015 Pearson Education, Inc.
65) In an example of ________, many predict that today's youngest generation, the Eco
Boomers, will experience lower living standards than their parents.
A) upward mobility
B) conspicuous consumption
C) downward mobility
D) symbolic consumption
E) reverse stratification
Answer: C
Diff: 2
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

66) The rationale for using ________ is that "birds of a feather flock together," or families of
similar socioeconomics reside in the same neighborhoods or communities.
A) sociodemographics
B) social class
C) social strata
D) geodemographics
E) ISC
Answer: D
Diff: 1
Skill: Concept
Learning Obj: 10.8: To understand how to employ geodemographics to locate target markets.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior

67) Which PRIZM segment should marketers of very expensive vacations and conspicuous
luxury goods study and/or target?
A) Striving Singles
B) Young Accumulators
C) Accumulated Wealth
D) Sustaining Seniors
E) Cautious Couples
Answer: B
Diff: 3
Skill: Application
Learning Obj: 10.8: To understand how to employ geodemographics to locate target markets.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

25
Copyright © 2015 Pearson Education, Inc.
WATCH MINI CASE: Bob is interviewing for high-level managerial jobs in the Boston area. He
decides that, in order to make himself more appealing for the job, he should wear expensive suits
and carry expensive business accessories. To this end, he has decided to purchase an Icon
watch, because Bob perceives that Icon watches are expensive and typically worn by people with
high social status. In fact, Icon specifically targets its wristwatches to image-conscious business
executives and has its best results focusing its marketing efforts on men between the ages of 35
and 50 living in affluent zip codes of New York City and its surrounding suburbs.

68) In the WATCH MINI CASE, seeking a job with higher income and greater prestige, Bob is
trying to exercise ________.
A) downward mobility
B) conspicuous consumption
C) downward comparison
D) power
E) upward mobility
Answer: E
Diff: 3
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

69) In the WATCH MINI CASE, Icon seems to be appealing to a target market of consumers
seeking a wristwatch that provides ________.
A) a sense of achievement
B) a sense of power
C) a sense of being well-educated
D) a sense of status
E) a sense of importance
Answer: D
Diff: 2
Skill: Application
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

26
Copyright © 2015 Pearson Education, Inc.
70) In the WATCH MINI CASE, Icon's focus on men of a given age in specific zip codes is an
example of ________.
A) affluence targeting
B) single-variable indexing
C) geodemographic clustering
D) autonomic decision making
E) socialization
Answer: C
Diff: 3
Skill: Application
Learning Obj: 10.8: To understand how to employ geodemographics to locate target markets.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

SMITH MINI CASE: Nathan Smith is single and lives in Detroit, where he works on the
assembly line at the local automobile manufacturing plant and is a member of the Automobile
Workers Union. He views work as a means to buy things to enhance his leisure time and recently
purchased a new television so that he could better watch his favorite team, the Detroit Lions,
play football. Nathan has always followed the Lions, largely because his dad was a big Lions
fan.

71) In the SMITH MINI CASE, Nathan is most likely considered to be in the ________ stage of
the traditional family life cycle.
A) bachelorhood
B) honeymooner
C) parenthood
D) postparenthood
E) dissolution
Answer: A
Diff: 1
Skill: Application
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

27
Copyright © 2015 Pearson Education, Inc.
72) In the SMITH MINI CASE, Nathan is most likely to be a part of which of the following
social classes?
A) lower-upper class
B) upper-middle class
C) lower-middle class
D) upper-lower class
E) lower-lower class
Answer: D
Diff: 3
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

73) In the SMITH MINI CASE, which of the following is most likely to describe Nathan?
A) Nathan uses his credit card as a convenient substitute for cash.
B) Nathan perceives himself to be empowered in the sense that he can achieve whatever he sets
his mind to.
C) Nathan saves money primarily in the interest of safety and security.
D) Nathan is likely to attend the theater and concerts.
E) Nathan prefers to spend his leisure time on cerebral activities, like reading or visiting
museums.
Answer: C
Diff: 3
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

74) In the SMITH MINI CASE, Nathan roots for the Lions because his dad did. This is an
example of ________.
A) subjective measurement
B) geodemographic clustering
C) intergenerational transfer
D) syncratic decision making
E) status consumption
Answer: C
Diff: 3
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge
28
Copyright © 2015 Pearson Education, Inc.
75) The family commonly provides the opportunity for product exposure and trial and imparts
consumption values to its members.
Answer: TRUE
Diff: 1
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

76) All households are families.


Answer: FALSE
Diff: 1
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

77) Structured activities for children, along with constantly being surrounded by mass media and
online social networks, provide children with lots of time to explore their creativity.
Answer: FALSE
Diff: 2
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

78) Fathers are stronger consumer socialization agents than their wives.
Answer: FALSE
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

29
Copyright © 2015 Pearson Education, Inc.
79) The Stoic socialization-related attitude is characterized as a mother who has the highest
income and education, is rational, teaches her children to shop and spend responsibly, and
resents the influence of the media on her children.
Answer: FALSE
Diff: 3
Skill: Application
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

80) The four parental styles are classified across two dimensions: permissive vs. restrictive and
very nurturing vs. non-nurturing.
Answer: TRUE
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

81) Most adolescents and teens prefer to look to their parents and older siblings in the
development of consumer behavior norms.
Answer: FALSE
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

82) Socialization begins in early childhood and culminates in early adulthood.


Answer: FALSE
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

30
Copyright © 2015 Pearson Education, Inc.
83) The relative influence of a husband and wife on a particular consumer decision depends in
part on the product or service category.
Answer: TRUE
Diff: 1
Skill: Application
Learning Obj: 10.2: To understand family decision making and its members' consumption-
related roles.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

84) Husband-wife decision making appears to be independent of cultural influences.


Answer: FALSE
Diff: 1
Skill: Concept
Learning Obj: 10.2: To understand family decision making and its members' consumption-
related roles.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

85) Over the past several decades, as a result of families having fewer children, there has been a
trend toward children playing a more active role in the family decision-making process.
Answer: TRUE
Diff: 2
Skill: Application
Learning Obj: 10.2: To understand family decision making and its members' consumption-
related roles.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

86) Increases in the divorce rate and the number of out-of-wedlock births, and the decline in the
number of extended families has resulted in an increase in the percentage of families that
progress through the traditional family life cycle.
Answer: FALSE
Diff: 2
Skill: Concept
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making

31
Copyright © 2015 Pearson Education, Inc.
87) Families in the parenthood stage are an important market for luxury goods, new automobiles,
expensive furniture, and vacations to faraway places.
Answer: FALSE
Diff: 2
Skill: Application
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Application of knowledge

88) According to social comparison theory, individuals normally compare their own material
possessions with those owned by others in order to determine their relative social standing.
Answer: TRUE
Diff: 2
Skill: Concept
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

89) Individuals with more purchasing power or a greater ability to make purchases have more
status.
Answer: TRUE
Diff: 2
Skill: Application
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

90) Conspicuous possessions serve as markers or indicators of one's own status and the status of
others.
Answer: TRUE
Diff: 1
Skill: Concept
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

32
Copyright © 2015 Pearson Education, Inc.
91) Social-class membership serves consumers as a framework or reference for the development
of their attitudes and behavior and provides a natural basis for market segmentation for many
products and services.
Answer: TRUE
Diff: 3
Skill: Application
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

92) Age and religion are especially important as a means of locating concentrations of consumers
with specific social-class membership.
Answer: FALSE
Diff: 2
Skill: Concept
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

93) There is a strong positive relationship between health and economic status.
Answer: TRUE
Diff: 3
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

94) Although only a minority of U.S. households are considered "affluent," these households
account for the majority of household income in the United States.
Answer: TRUE
Diff: 2
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

33
Copyright © 2015 Pearson Education, Inc.
95) All affluent consumers share the same lifestyle.
Answer: FALSE
Diff: 1
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

96) The choice of how many different social classes to use depends on the amount of detail that
the researcher believes is necessary to explain adequately the attitudes or behavior under study.
Answer: TRUE
Diff: 2
Skill: Concept
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

97) Nouveau rich consumers believe "toys" that are bought to display wealth publicly (e.g.
yachts) are vulgar.
Answer: FALSE
Diff: 2
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

98) The most sophisticated geodemographic segmentation is Nielsen's PRIZM®, which


combines sociodemographic and demographic factors with consumer buying and media exposure
data to locate consumers with similar lifestyles and buying behaviors.
Answer: TRUE
Diff: 1
Skill: Concept
Learning Obj: 10.8: To understand how to employ geodemographics to locate target markets.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

34
Copyright © 2015 Pearson Education, Inc.
99) The PRIZM® "Accumulated Wealth" segment shies away from buying conspicuous luxury
goods because they regard them as in poor taste/showing off money.
Answer: TRUE
Diff: 2
Skill: Application
Learning Obj: 10.8: To understand how to employ geodemographics to locate target markets.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

100) Why are mothers generally stronger consumer socialization agents than their husbands?
Answer: Mothers are more involved with their children, they often control their children's
exposure to commercial messages, they provide instruction in the skills needed to be consumers,
and they regulate the amount of money children can spend and how they spend it.
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

101) Differentiate between the four parental styles and their respective attitudes towards
advertising, consumption and yielding to children's buying requests.
Answer: Indulgent parents are very nurturing and highly permissive; neglecting parents are very
permissive but provide their children with little or no nurturing; authoritative parents are very
nurturing and very restrictive; authoritarian parents are very restrictive and not nurturing.
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Analytical thinking

102) Identify and describe the three supportive roles a family plays in the socialization process
and consumer behavior.
Answer: Economic well-being: the provision of financial resources to its members and
allocation of income to adequately support members.
Emotional support: the provision of love, affection, and intimacy to family members.
Suitable family lifestyles: the prioritization of learning and education, recreational activities,
hobbies, setting career goals, media exposure, and shopping habits.
Diff: 2
Skill: Concept
Learning Obj: 10.1: To understand the family as a consumer socialization agent.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

35
Copyright © 2015 Pearson Education, Inc.
103) What are the stages of the traditional family life cycle? What happens at each stage?
Answer: Bachelorhood refers to young single men and women, mostly college educated, who
have incomes that allow them to leave home and establish their own households.
Honeymooners are young and newly married couples. They tend to be educated, engaged and
have combined discretionary income that make them desirable for marketers.
Parenthood is married couples with at least one child living at home. It is divided into the
preschool phase, the elementary school phase, the high school phase and the college phase.
Financial resources, child rearing and educational responsibilities change over these phases.
Postparenthood is older married couples with no children living at home. Often these empty
nesters can do things they could not afford to do when their children lived at home or went to
college and, after the empty nest stage, travel frequently, take extended vacations, purchase a
second home, etc.
Dissolution refers to one surviving spouse who tends to follow a more economical lifestyle.
Diff: 2
Skill: Concept
Learning Obj: 10.3: To understand the role of the family life cycle in market segmentation and
targeting.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Reflective thinking

104) What is social comparison theory? How might marketers use this theory in advertising?
Answer: Social comparison theory suggests that individuals normally compare their own
material possessions with those owned by others in order to determine their relative social
standing. Because visible or conspicuous possessions are easy to spot, they especially serve as
markers or indicators of one's own status and the status of others. An individual consumer might
decide to compare himself to someone who is worse off in order to bolster his self-esteem.
Alternatively, he might elect to compare upward with someone who appears to have more
purchasing power, which is likely to make the consumer feel somewhat inferior.

Marketers can capitalize on tendencies among people by displaying their products as


contributing to or elevating the status of its owners. They can provide points of comparison in
advertisements to increase consumer motivation to purchase a product because the consumer
believes it will elevate his/her status.
Diff: 2
Skill: Application
Learning Obj: 10.5: To understand the impact of social stratification on consumer behavior.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

36
Copyright © 2015 Pearson Education, Inc.
105) Why do marketers target affluent households? If affluent households are such great targets,
why not target them exclusively?
Answer: Affluent households constitute an especially attractive target segment because its
members have incomes that provide them with a disproportionately larger share of all
discretionary income. Members of affluent households are also healthier, helping them live
longer than members of non-affluent households and giving them a longer consumption life.

Despite their lower proportion of discretionary income, downscale consumers control


somewhere near 30% of the total income in the United States. Lower-income consumers may
also be more brand loyal than wealthier consumers, because they cannot afford to make mistakes
by switching to unfamiliar brands.
Diff: 2
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

106) Identify the benefits and dangers of a single company marketing different brands to
different social class segments. Give an example.
Answer: People tend to avoid stores that have the image of appealing to a social class very
different from their own. For this reason, in order to appeal to working class consumers without
driving away their middle and upper class consumers, companies will market different brands of
their products, or even different stores, to different social class segments. For example, Gap
opened its Old Navy stores with cheaper clothing in order to sell to working class consumers
without giving its Gap stores a working class reputation and driving away Gap's middle and
upper class customers. While Old Navy has increased the parent company's sales by targeting a
new social class segment, the downside to this strategy is that Old Navy sales have cannibalized
some Gap sales, with Gap customers instead choosing to buy their clothes at the less expensive
Old Navy.
Diff: 3
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

37
Copyright © 2015 Pearson Education, Inc.
107) How do the lower classes and upper classes differ in terms of saving, spending and credit?
Answer: Upper class segments are more future-oriented and confident of their financial acumen,
and they are more willing to invest in insurance, stocks, and real estate. In comparison, lower-
class consumers are generally more concerned with immediate gratification. When they do save,
they are primarily interested in safety and security.

As for their credit card usage, members of the lower classes tend to use their credit cards for
installment purchases, whereas members of the upper social classes pay their credit card bills in
full each month.
Diff: 2
Skill: Application
Learning Obj: 10.7: To understand the demographics, lifestyles, and consumption patterns of
America's social classes.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Application of knowledge

108) Differentiate between non-traditional families and non-family households. What are the
implications of the difference between these two groups for marketers?
Answer: Nontraditional families do not readily fit into the family life cycle, while non-family
households are living situations that are not legally defined as families. Non-family households
change in composition over time. Marketers need to be aware of the composition of non-family
households and the role of non-family household members in decision making. Nontraditional
families have risen, so marketers must acknowledge their existence in a way that does not
alienate traditional households.
Diff: 2
Skill: Concept
Learning Obj: 10.4: To understand the consumption patterns of non-traditional families and non-
family households.
Learning Outcome: 12: Describe the effects of changing family structures on family decision
making
AACSB: Analytical thinking

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Copyright © 2015 Pearson Education, Inc.
109) What is the difference between subjective and objective measures of social class? Explain
how each is used.
Answer: Subjective measures consist of asking people to estimate their own social class. It is
misleading because some consumers incorrectly identify themselves as middle class, but it
represents the participants' self-perceptions and sense of belonging or identification with others.
Objective measures use demographic variables and ask respondents factual questions about
themselves, their families and their places of residence. Objective measures include occupation,
amount of income, education and/or sources of income and are used in geodemographic
clustering.
Diff: 2
Skill: Concept
Learning Obj: 10.6: To understand how to measure social class and segment consumers
accordingly.
Learning Outcome: 13: Describe the influence of social class and economics class on consumer
behavior
AACSB: Reflective thinking

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