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Consumer Behavior Building Marketing

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Chapter 07

Group Influences on Consumer Behavior

Multiple Choice Questions

1. Many Jeep owners elect to become members of a Jeep _____ and attend brand fests such as Jeep Jamboree,
Jeep 101, and Camp Jeep.

A. exchange
B. speedway-sponsored event
C. insurance policy
D. community
E. A and B

2. Two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or
explicitly defined relationships to one another such that their behaviors are interdependent is known as a(n)
_____.

A. family
B. organization
C. group
D. cohort
E. generation

3. Tara is a marketing professor and is a member of the American Marketing Association. The members of
this organization are associated with the discipline of marketing, either as academicians or as practitioners.
The purpose of this organization is to disseminate research about marketing, to share best practices, and to
foster the professional development of marketers. The American Marketing Associate is an example of a
_____.

A. group
B. cohort
C. generation
D. primary group
E. consumer group

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4. Which type of group's presumed perspectives or values are being used by an individual as the basis for his
or her current behavior?

A. cohort group
B. generation group
C. community group
D. reference group
E. modeling group

5. Which criterion is used to classify groups?

A. membership
B. strength of social tie
C. type of contact
D. attraction
E. all of the above

6. Which of the following is NOT a criterion used to classify groups?

A. membership
B. strength of social tie
C. number of members
D. type of contact
E. attraction

7. Which group classification variable refers to the closeness and intimacy of the group linkages?

A. membership
B. strength of social tie
C. number of members
D. type of contact
E. attraction

8. Which type of group includes family and friends and involves strong ties and frequent interaction?

A. primary group
B. secondary group
C. consumer group
D. reference group
E. intimate group

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9. Angie is a teenager, living at home with her parents and two brothers. Even though she wants to venture out
more on her own, her parents will not allow it, and she obeys their wishes. Her family represents a(n)
_____ group.

A. primary
B. secondary
C. consumer
D. restrictive
E. intimate

10. Which type of group includes organizations such as professional associations and neighborhood
associations that involve relatively weak ties and less frequent interaction among its members?

A. primary group
B. secondary group
C. tertiary group
D. cohort group
E. work group

11. As a marketing major, Stan is a collegiate member of the American Marketing Association. This
association holds a collegiate conference every year, and he did attend it one year. While this is a group he
belongs to, his ties to other members are relatively weak, and his interaction is infrequent. Which type of
group is this?

A. primary group
B. secondary group
C. tertiary group
D. cohort group
E. work group

12. Groups with negative desirability are referred to as _____.

A. primary reference groups


B. secondary reference groups
C. dissociative reference groups
D. aspiration reference groups
E. unattractive reference groups

13. Bob is somewhat of a loner in high school. He really despises the school "jocks" who seem to be involved
in every sport. He doesn't want anything to do with them or be like them in any way. To Bob, the group of
students who represent the school athletes is a(n) _____.

A. primary reference group


B. secondary reference group
C. dissociative reference group
D. aspiration reference group
E. unattractive reference group

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14. Individuals frequently purchase products thought to be used by a desired group in order to achieve actual or
symbolic membership in the group. This type of group is referred to as a(n) _____.

A. primary reference group


B. secondary reference group
C. dissociative reference group
D. aspiration reference group
E. attractive reference group

15. Amanda is in junior high and begged her mother to buy her a certain brand of athletic shoe that all the
"cool" kids in school were wearing. She thought that if she had those shoes, she would be accepted as one
of them. To Amanda, these other students in school that she wants to be associated with represent a(n)
_____.

A. primary reference group


B. secondary reference group
C. dissociative reference group
D. aspiration reference group
E. attractive reference group

16. A distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular
product class, brand, or consumption activity is known as a _____.

A. cohort group
B. clone group
C. dissociative reference group
D. consumption subculture
E. purchase consortium

17. Which of the following is a characteristic of a consumption subculture?

A. an identifiable, hierarchical social structure


B. a set of shared beliefs or values
C. unique jargon, rituals, and modes of symbolic expression
D. A and B
E. A, B, and C

18. Which of the following statements is FALSE regarding consumption subcultures?

A. These groups have an identifiable, hierarchical social structure.


B. These groups have a set of shared beliefs or values.
C. These groups have a unique jargon, rituals, and modes of symbolic expression.
D. They are reference groups for their members as well as those who aspire to join or avoid them.
E. Consumption must be shared physically to be a shared ritual that creates and sustains a group.

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19. Harley-Davidson motorcycle owners who join a Harley group, Jeep owners who attend events sponsored
by Jeep, and Star Trek "Trekkies" are all examples of _____.

A. cohort groups
B. clone groups
C. dissociative reference groups
D. consumption subcultures
E. purchase consortiums

20. A non-geographically bound community, based on a structured set of social relationships among owners of
a brand and the psychological relationship they have with the brand itself, the product in use, and the firm,
is known as a _____.

A. brand community
B. cohort group
C. purchase consortium
D. clone group
E. census track

21. Todd purchased a Harley-Davidson motorcycle because he identifies himself with what he feels is the
typical owner of a Harley. Many other owners of this brand also feel this way, and they get upset when they
see someone riding one who they think is not the "right" kind of person to own this brand. Which
characteristic of brand communities does this illustrate?

A. consciousness of kind
B. rituals and traditions
C. moral responsibility
D. similarity
E. brand fanaticism

22. Which of the following statements is TRUE regarding brand communities?

A. Brand communities seem most relevant for low-involvement, routinely purchased products.
B. Once a consumer becomes a member of a brand community, he or she is always a member.
C. Brand communities create value through a set of activities that create brand engagement.
D. Brand communities can add value to the ownership of the product, but they do not build loyalty.
E. Fostering a community requires the owners of the brand to come together on their own to establish
relationships.

23. Samantha and Greg have owned an MG for several years and enjoy taking road trips through the Rockies
with other MG owners every year. Which characteristic of brand communities does this illustrate?

A. rituals and traditions


B. similarity
C. brand traditions
D. brand festing
E. consumers of kind

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24. A _____ is a gathering of owners and others for the purposes of interacting with one another in the context
of learning about and using the brand.

A. consumption gathering
B. convention
C. consortium
D. brand community
E. brand fest

25. Jeep Jamboree, Jeep 101, and Camp Jeep, in which owners of Jeeps gather for the purposes of interacting
with one another in the context of learning about and using their Jeeps, are examples of a _____.

A. consumption gathering
B. convention
C. consortium
D. brand event
E. brand fest

26. Brand communities can deliver value-creating activities by _____.

A. social networking
B. community engagement
C. brand use
D. impression management
E. all of the above

27. Which type of community interacts over time around a topic of interest on the Internet?

A. brand community
B. online community
C. cyber community
D. techie community
E. geek squad

28. Jill is a breast cancer survivor. She posts a blog, which is her online journal, on a site that is specifically for
others to share their experiences and support one another. She and others discuss products that help them
deal with the side effects of their treatments as well as products that can help them maintain their self-
esteem (e.g., wigs). Jill is participating in a(n) _____.

A. online consortium
B. online community
C. consumption subculture
D. subversive community
E. electronic community

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29. Which of the following is NOT a guiding principle for marketing to online communities and social
networks?

A. become part of the community


B. post marketing content so it does not stand out and appears as just another participant in the community,
such as a flog
C. take advantage of the unique capabilities of each venue
D. transparency
E. A and D

30. Which type of influence occurs when an individual uses the behaviors and opinions of reference group
members as potentially useful bits of information?

A. transient
B. informational
C. normative
D. identification
E. substantive

31. Jamarcus was his collegiate chapter's delegate at a national conference of a professional business fraternity,
Phi Chi Theta, in which he is a member. When the business meeting was conducted, parliamentary
procedure was used, and Jamarcus was not familiar with this. Thus, he looked to the others to learn how he
should behave in this situation. What type of influence does this reference group exhibit?

A. transient
B. substantive
C. informational
D. legal
E. procedural

32. Which type of reference group influence occurs when an individual fulfills group expectations to gain a
direct reward or to avoid a sanction?

A. informational
B. normative
C. identification
D. transient
E. permanent

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33. Amie usually wears a uniform to her Catholic school, but on the first Friday of every month, students can
wear other clothes as long as they bring in something for the church's food bank. Amie loves to shop and
has plenty of fashionable clothes, but on these free dress days, she usually wears blue jeans, a T-shirt, and
athletic shoes. Her mother asked her why she doesn't wear her nice clothes, and Amie told her that she
would be made fun of at school. Which type of influence do the other students have on Amie?

A. informational
B. normative
C. identification
D. conformist
E. punitive

34. Normative influence is sometimes referred to as _____ influence.

A. utilitarian
B. coercive
C. functional
D. value-expressive
E. conformist

35. Which type of reference group influence occurs when individuals have internalized the group's values and
norms?

A. informational
B. normative
C. identification
D. utilitarian
E. affective

36. Identification influence is also called _____ influence.

A. informational
B. normative
C. value-expressive
D. affective
E. utilitarian

37. Valerie and her family are members of the Baptist Church. They have accepted the Baptist Church's values
as their own and behave in a manner consistent with the Church's values because their values and the
Church's values are the same. Which type of influence does the Church possess with respect to Valerie and
her family?

A. informational
B. exemplary
C. identification
D. utilitarian
E. affective

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38. Which of the following is a factor determining a reference group's influence on a consumer?

A. whether or not the product is a necessity


B. whether the use of the product or brand is visible to the group
C. the degree of commitment the individual feels to a group
D. the individuals confidence in the purchase situation
E. all of the above

39. In which of the following consumption situations will a reference group's influence be strongest?

A. when the use of the product or brand is visible to the group


B. when the product is a necessity
C. when the consumer is confident in the purchase situation
D. when the individual's commitment to the group is low
E. when the reference group is large

40. For which product category would a reference group's influence be strongest?

A. vitamins
B. toilet tissue
C. running shoes
D. insurance
E. clothes washer

41. In experiments, the power of groups to influence an individual to agree with the incorrect judgment of the
others is known as the _____.

A. group effect
B. Asch phenomenon
C. Skinner effect
D. Pavlov phenomenon
E. follower effect

42. Which type of reference group influence do marketers use when developing advertisements?

A. informational
B. normative
C. identification
D. A and B
E. A, B, and C

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43. Which type of communication involves individuals sharing information with other individuals in a verbal
form, including face-to-face, phone, and the Internet?

A. mass advertising
B. word-of-mouth
C. impersonal
D. two-step
E. multistep

44. Clara had an unpleasant experience at a local restaurant at lunch one day. She went back to work and told
all her coworkers about this experience, and many of them said they would never go back to that restaurant.
Which type of communication is this an example of?

A. negative
B. two-step flow
C. multistep flow
D. word-of-mouth
E. indirect

45. Social media is part of an online revolution online, sometimes referred to as _____.

A. online communities
B. Web 2.0
C. social network sites
D. consumer review sites
E. blogging

46. When consumer input is requested by firms online it is called _____.

A. crowdsourcing
B. response generating
C. input requesting
D. data sourcing
E. consumer inputting

47. Which categories of participants are the true leaders of conversation and opinion in Web 2.0?

A. Critics and Inactives


B. Creators and Critics
C. Joiners and Creators
D. Spectators and Joiners
E. Inactives and Spectators

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48. Stephen is 19 years old and is a participant in social media in that he creates content of his own—Web
pages, blogs, videos, and video uploads to places like YouTube. Which category of social media is
Stephen?

A. Creator
B. Critic
C. Joiner
D. Spectator
E. Inactive

49. Which category of Web 2.0 participants are bloggers and post ratings and reviews and tend to be in their
late teens to mid-20?

A. Creators
B. Critics
C. Joiners
D. Spectators
E. Jumpers

50. Howard is 30 years old, does not create his own content, but consumes other people's content by reading
blogs and watching videos. Which category of social media participant is Howard?

A. Creators
B. Critics
C. Joiners
D. Spectators
E. Inactives

51. Which type of participants in social media tend to be older, are online, but don't participate in social
media?

A. Creators
B. Critics
C. Joiners
D. Spectators
E. Inactives

52. Vicki likes to visit a social network site called Fanfiction.com and read the stories that others post on this
site. She doesn't really visit very often, and she has never posted a story on this site. Vicki is which type of
social media participant?

A. Joiners
B. Critics
C. Spectators
D. Inactives
E. Creators

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53. Which of the following statements is FALSE regarding word-of-mouth (WOM) communications?

A. It is estimated that two-thirds of all consumer product decisions are influenced by WOM.
B. Negative experiences are powerful motivators of WOM.
C. Going beyond satisfaction to deliver more than was expected appears to have the potential to generate
substantial WOM.
D. Not all personal sources are equal in value.
E. Consumers generally trust advertising as much as they do WOM.

54. Individuals who filter, interpret, or provide product and brand-relevant information to their family, friends,
and colleagues are known as _____.

A. opinion leaders
B. market mavens
C. interpreters
D. screeners
E. market leaders

55. John doesn't know very much about electronic equipment, but he wanted to get his girlfriend a tablet for
her birthday. His roommate, Hank, knows all about these types of products and made a recommendation to
John. For this product category, Hank is known as a(n) _____.

A. market maven
B. opinion leader
C. interpreter
D. screener
E. market leader

56. The process of one person receiving information from the mass media or other sources and passing it on to
others is known as the _____.

A. direct flow of communication


B. one-step flow of communication
C. two-step flow of communication
D. multistep flow of communication
E. impersonal/personal flow of communication

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57. The _____ flow of communication involves opinion leaders for a particular product area who actively seek
relevant information from the mass media as well as other sources. These opinion leaders process this
information and transmit their interpretations of it to some members of their groups, and these group
members also receive information from the mass media and other members who are not opinion leaders as
well.

A. direct
B. two-step
C. multistep
D. dispersion
E. inoculation

58. Several consumers rely on information they obtain from others they see as knowledgeable about a specific
product they are interested in purchasing (i.e., opinion leaders) as well as information they learn from
marketing communications (i.e., advertisements) and other people that are not experts in the product
category. Which type of communication flow does this represent?

A. direct
B. two-step
C. multistep
D. rapid
E. efficient

59. The exchange of advice and information between group members can occur _____.

A. directly in the form of WOM when one individual seeks information from another
B. directly in the form of WOM when one individual volunteers information
C. indirectly through observation as a by-product of normal group interaction
D. A and B
E. A, B, and C

60. Jamie wants to purchase a notebook computer, but she has limited product knowledge about computers
other than how to turn one on and use it. She expects to pay more than $1,000 for this computer, so this is
an important decision for her and she wants to make the right choice. For Jamie, this represents a(n)
_____.

A. enduring purchase situation


B. marketing dilemma
C. high-involvement purchase situation
D. consumer dilemma
E. Asch phenomenon

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61. In which situation is the likelihood of an individual seeking an opinion leader high?

A. high product/purchase involvement and low product knowledge


B. high product/purchase involvement and high product knowledge
C. low product/purchase involvement and low product knowledge
D. low product/purchase involvement and high product knowledge
E. low product/purchase involvement and either high or low product knowledge

62. Which of the following characterizes opinion leaders?

A. younger
B. older
C. enduring involvement in the product or activity
D. highly educated
E. high income

63. Mitch seems to know everything about cars—at least that's what his friends and family think. He has been
involved with cars since he was a child and even took an engine apart and put it back together again by the
time he was 16 years old. He reads several publications related to cars, visits websites, and hangs out with
others who are interested in cars as well. Due to his enduring involvement with this product category,
Mitch would be considered a(n) _____.

A. product maven
B. opinion leader
C. product fanatic
D. product endorser
E. market leader

64. Some individuals have information about many different kinds of products, places to shop, and other
aspects of markets. They can be considered a special type of opinion leader and are known as _____.

A. product experts
B. shopping experts
C. personal shoppers
D. market mavens
E. market leaders

65. Rayna provides a significant amount of information to others across a wide array of products, including
durables and nondurables, services, and store type. She can provide information on product quality, sales,
usual prices, product availability, store personnel characteristics, and other features of relevance to
consumers. Rayna is best described as a(n) _____.

A. opinion leader
B. market maven
C. shopping expert
D. market leader
E. influencer

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66. According to Roper Starch (a market research company), the 10 percent of the population that have broad
social networks that allow them to influence the attitudes and behaviors of the other 90 percent of the
population are called _____.

A. market mavens
B. opinion leaders
C. shopping experts
D. market leaders
E. influentials

67. _____ represent about 10 percent of the adult online community, but their influence is extensive as they
communicate news, information, and experiences to a vast array of people both online and offline.

A. Market mavens
B. Internet mavens
C. E-fluentials
D. Opinion leaders
E. Cyber leaders

68. With respect to advertising, _____ can involve themes designed to encourage current owners to talk about
the brand or prospective owners to ask current owners for their impressions.

A. simulating
B. stimulating
C. parroting
D. modeling
E. slice of life

69. With respect to advertising, _____ opinion leadership can involve presenting the results of surveys showing
that a high percentage of either knowledgeable individuals or typical users recommend the brand.

A. simulating
B. stimulating
C. parroting
D. modeling
E. faking

70. Nonconventional marketing activities that use a limited budget and can increase buzz are known as _____.

A. gorilla tactics
B. guerilla marketing
C. undercover marketing
D. online guides
E. e-gossip

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71. _____ is defined as the exponential expansion of word-of-mouth.

A. Dispersion
B. Buzz
C. Infection
D. Gossip
E. Dissemination

72. Which of the following is an online "pass-it-along" strategy?

A. online guides
B. dispersion
C. blogs
D. viral marketing
E. e-gossip

73. Twitter is an example of a _____.

A. retailing online ordering service


B. micro-blogging tool
C. hyperlink to online car auctions
D. buzz agent
E. brand community

74. Several girls in the ninth-grade class at a small private school maintained an online journal. In this journal,
some negative comments about the school were made, and the principal made them discontinue this online
journal. The principal was concerned because anybody can read these comments as long as they know the
address. Personalized online journals where people and organizations can keep a running dialogue such as
the one illustrated here are known as _____.

A. search engines
B. diaries
C. blogs
D. viral marketing sites
E. cyber diaries

75. Whether or not a new idea, practice, or product is an innovation is determined by _____.

A. statements made by a celebrity spokesperson


B. product demonstration in an infomercial
C. the perception of the potential market
D. an objective measure of technological change
E. packaging that states "new and improved"

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76. Adoption of which type of innovation requires relatively minor changes in behavior or changes in
behaviors that are unimportant to the consumer?

A. continuous innovation
B. dynamically continuous innovation
C. discontinuous innovation
D. technological innovation
E. nontechnological innovation

77. Leigh received a digital camera for her birthday. She was able to figure this product out pretty easily
because it only required a moderate change in how she used to take pictures. One thing she had to get used
to was printing the pictures instead of taking a roll of film to a processor. This is an example of a _______
innovation.

A. continuous
B. dynamically continuous
C. discontinuous
D. technological
E. nontechnological

78. When purchasing an innovation, individual consumers presumably go through a series of distinct steps or
stages known as the _____.

A. product life cycle


B. consumer life cycle
C. adoption process
D. consumption process
E. diffusion of innovations

79. The manner in which innovations spread throughout a market is referred to as the _____.

A. adoption process
B. consumer decision-making process
C. innovation process
D. diffusion process
E. dissemination process

80. Which of the following is a factor affecting the spread of innovations?

A. type of group
B. type of decision
C. compatibility
D. observability
E. all of the above

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81. Which factor affecting the spread of innovations refers to the consistency with the individual's and group's
values or beliefs?

A. relative advantage
B. complexity
C. compatibility
D. observability
E. type of decision

82. Which of the following is NOT an adopter category?

A. innovators
B. early adopters
C. early majority
D. late majority
E. procrastinators

83. Which adopter group represents the first 2.5 percent to adopt an innovation?

A. innovators
B. early adopters
C. early majority
D. late majority
E. laggards

84. Charles was the last person on his block to purchase a color television set, and that was in the 1980s. He
just couldn't see the reason to purchase a new color television if his old one was working just fine. He
finally purchased one because his old TV stopped working. In terms of adopter categories, Charles would
be classified as a(n) _____.

A. innovator
B. early adopter
C. early majority
D. late majority
E. laggard

85. Potential obstacles to rapid market acceptance of an innovation are known as _____.

A. diffusion delayers
B. laggards
C. diffusion inhibitors
D. diffusion detractors
E. minimizers

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True / False Questions

86. A reference group is a group whose presumed perspectives or values are being used by an individual as the
basis for his or her current behavior.

True False

87. Roughly half of online teens report using social networking sites.

True False

88. The top reason consumers want to interact with firms on social media is to be entertained.

True False

89. A brand community is a geographically bound community, based on a structured set of social relationships
among owners of a brand and the psychological relationship they have with the brand itself, the product in
use, and the firm.

True False

90. Brand communities are relevant for basically any type of products.

True False

91. An e-community is a community that interacts over time around a topic of interest on the Internet.

True False

92. Reference group influence can take three forms: informative, normative, and identification.

True False

93. Group influence is strongest when the use of the product or brand is visible to the group.

True False

94. Spectators consume other people's content by reading blogs and watching videos.

True False

95. Positive experiences are more powerful motivators of WOM than are negative experiences.

True False

96. Enduring involvement leads to enhanced knowledge about and experience with the product category or
activity.

True False

97. Generalized market influencers are referred to as opinion leaders.

True False

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98. Advertising can stimulate and simulate word-of-mouth but not opinion leadership.

True False

99. Buzz is generally supported by large advertising budgets.

True False

100. Adoption of a discontinuous innovation requires major changes in behavior of significant importance to the
individual or group.

True False

101. The more the purchase and use of an innovation are consistent with the individual's and group's values or
beliefs, the more rapid the diffusion.

True False

Essay Questions

102. There are several types of groups that share a set of norms, values, or beliefs. Discuss any three of them.

103. Describe the four types of consumption subcultures and their importance for marketing.

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104. Consumers interact with social media for four reasons other than entertainment or marketing. Name them.

105. You are a marketing manager and want to use the power of reference groups to influence consumers.
Reference group influence can take three forms. Name and describe each, and explain how you could use
each type of influence in an advertisement.

106. Discuss the five determinants of the degree of reference group influence on a consumer.

107. Compare and contrast the categories of innovations, and give an example of each.

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108. Apple recently came out with the video iPod, which allows users to download video content from the
Internet. Very soon after the introduction of this innovation, television shows were made available for
consumers to purchase or to obtain for free. This has brought about a rather radical change in the way
viewers consume television, and some have predicted that this will create significant changes in the current
business model for television networks and program producers. Discuss five of the many factors discussed
in the chapter that will influence the spread of this innovation.

7-22
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Chapter 07 Group Influences on Consumer Behavior Answer Key

Multiple Choice Questions

1. Many Jeep owners elect to become members of a Jeep _____ and attend brand fests such as Jeep
Jamboree, Jeep 101, and Camp Jeep.

A. exchange
B. speedway-sponsored event
C. insurance policy
D. community
E. A and B
At these events, Jeep owners meet and form relationships with other owners, deepen their involvement
with their Jeep vehicles, and become acculturated into the rituals and traditions of the community.

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Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Group Influences on Consumer Behavior

2. Two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or
explicitly defined relationships to one another such that their behaviors are interdependent is known as
a(n) _____.

A. family
B. organization
C. group
D. cohort
E. generation
Most of us belong to a number of different groups and would like to belong to several others.

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Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

7-23
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3. Tara is a marketing professor and is a member of the American Marketing Association. The members of
this organization are associated with the discipline of marketing, either as academicians or as
practitioners. The purpose of this organization is to disseminate research about marketing, to share best
practices, and to foster the professional development of marketers. The American Marketing Associate
is an example of a _____.

A. group
B. cohort
C. generation
D. primary group
E. consumer group
A group is defined as two or more individuals who share a set of norms, values, or beliefs and have
certain defined relationships to one another such that their behaviors are interdependent.

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Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

4. Which type of group's presumed perspectives or values are being used by an individual as the basis for
his or her current behavior?

A. cohort group
B. generation group
C. community group
D. reference group
E. modeling group
An individual uses a reference group as a guide for behavior in a specific situation.

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Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

5. Which criterion is used to classify groups?

A. membership
B. strength of social tie
C. type of contact
D. attraction
E. all of the above
Groups may be classified according to a number of variables.

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Difficulty: 1 Easy

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Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

6. Which of the following is NOT a criterion used to classify groups?

A. membership
B. strength of social tie
C. number of members
D. type of contact
E. attraction
The criteria used to classify groups are membership, strength of social tie, type of contact, and
attraction.

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Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

7. Which group classification variable refers to the closeness and intimacy of the group linkages?

A. membership
B. strength of social tie
C. number of members
D. type of contact
E. attraction
Social ties can be strong or weak.

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Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

8. Which type of group includes family and friends and involves strong ties and frequent interaction?

A. primary group
B. secondary group
C. consumer group
D. reference group
E. intimate group
Primary groups often wield considerable influence.

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Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

7-25
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9. Angie is a teenager, living at home with her parents and two brothers. Even though she wants to venture
out more on her own, her parents will not allow it, and she obeys their wishes. Her family represents
a(n) _____ group.

A. primary
B. secondary
C. consumer
D. restrictive
E. intimate
Primary groups, such as family and friends, involve strong ties and frequent interaction.

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Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

10. Which type of group includes organizations such as professional associations and neighborhood
associations that involve relatively weak ties and less frequent interaction among its members?

A. primary group
B. secondary group
C. tertiary group
D. cohort group
E. work group
Secondary groups include professional associations and neighborhood associations that involve
relatively weak ties and less frequent interaction among its members.

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Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

11. As a marketing major, Stan is a collegiate member of the American Marketing Association. This
association holds a collegiate conference every year, and he did attend it one year. While this is a group
he belongs to, his ties to other members are relatively weak, and his interaction is infrequent. Which
type of group is this?

A. primary group
B. secondary group
C. tertiary group
D. cohort group
E. work group
Secondary groups include professional associations and neighborhood associations that involve
relatively weak ties and less frequent interaction among its members.

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Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

12. Groups with negative desirability are referred to as _____.

A. primary reference groups


B. secondary reference groups
C. dissociative reference groups
D. aspiration reference groups
E. unattractive reference groups
Dissociative reference groups can influence behavior just as groups with positive desirability.

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Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

13. Bob is somewhat of a loner in high school. He really despises the school "jocks" who seem to be
involved in every sport. He doesn't want anything to do with them or be like them in any way. To Bob,
the group of students who represent the school athletes is a(n) _____.

A. primary reference group


B. secondary reference group
C. dissociative reference group
D. aspiration reference group
E. unattractive reference group
Dissociative reference groups can influence behavior just as groups with positive desirability.

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Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

14. Individuals frequently purchase products thought to be used by a desired group in order to achieve
actual or symbolic membership in the group. This type of group is referred to as a(n) _____.

A. primary reference group


B. secondary reference group
C. dissociative reference group
D. aspiration reference group
E. attractive reference group
Aspiration reference groups are non-membership groups with a positive attraction that can also exert a
strong influence.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

15. Amanda is in junior high and begged her mother to buy her a certain brand of athletic shoe that all the
"cool" kids in school were wearing. She thought that if she had those shoes, she would be accepted as
one of them. To Amanda, these other students in school that she wants to be associated with represent
a(n) _____.

A. primary reference group


B. secondary reference group
C. dissociative reference group
D. aspiration reference group
E. attractive reference group
Aspiration reference groups are non-membership groups with a positive attraction that can also exert a
strong influence.

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Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

16. A distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular
product class, brand, or consumption activity is known as a _____.

A. cohort group
B. clone group
C. dissociative reference group
D. consumption subculture
E. purchase consortium
Consumption subcultures are reference groups for their members as well as those who aspire to join or
avoid them.

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Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Consumption Subcultures

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17. Which of the following is a characteristic of a consumption subculture?

A. an identifiable, hierarchical social structure


B. a set of shared beliefs or values
C. unique jargon, rituals, and modes of symbolic expression
D. A and B
E. A, B, and C
A consumption subculture is a distinctive subgroup of society that self-selects on the basis of a shared
commitment to a particular product class, brand, or consumption activity.

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Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Consumption Subcultures

18. Which of the following statements is FALSE regarding consumption subcultures?

A. These groups have an identifiable, hierarchical social structure.


B. These groups have a set of shared beliefs or values.
C. These groups have a unique jargon, rituals, and modes of symbolic expression.
D. They are reference groups for their members as well as those who aspire to join or avoid them.
E. Consumption must be shared physically to be a shared ritual that creates and sustains a group.
Consumption need not be shared physically to be a shared ritual that creates and sustains a group.

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Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Consumption Subcultures

19. Harley-Davidson motorcycle owners who join a Harley group, Jeep owners who attend events
sponsored by Jeep, and Star Trek "Trekkies" are all examples of _____.

A. cohort groups
B. clone groups
C. dissociative reference groups
D. consumption subcultures
E. purchase consortiums
A consumption subculture is a distinctive subgroup of society that self-selects on the basis of a shared
commitment to a particular product class, brand, or consumption activity.

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Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Consumption Subcultures

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20. A non-geographically bound community, based on a structured set of social relationships among owners
of a brand and the psychological relationship they have with the brand itself, the product in use, and the
firm, is known as a _____.

A. brand community
B. cohort group
C. purchase consortium
D. clone group
E. census track
A brand community is a consumption subculture that focuses on the interaction of individuals around an
activity; product category; or, occasionally, a brand.

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Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Brand Communities

21. Todd purchased a Harley-Davidson motorcycle because he identifies himself with what he feels is the
typical owner of a Harley. Many other owners of this brand also feel this way, and they get upset when
they see someone riding one who they think is not the "right" kind of person to own this brand. Which
characteristic of brand communities does this illustrate?

A. consciousness of kind
B. rituals and traditions
C. moral responsibility
D. similarity
E. brand fanaticism
Several new classes of riders think that owning a Harley will transform them into a biker.

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Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Brand Communities

22. Which of the following statements is TRUE regarding brand communities?

A. Brand communities seem most relevant for low-involvement, routinely purchased products.
B. Once a consumer becomes a member of a brand community, he or she is always a member.
C. Brand communities create value through a set of activities that create brand engagement.
D. Brand communities can add value to the ownership of the product, but they do not build loyalty.
E. Fostering a community requires the owners of the brand to come together on their own to establish
relationships.
A brand community is a consumption subculture that focuses on the interaction of individuals around an
activity, product category, or occasionally a brand.

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Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Brand Communities

23. Samantha and Greg have owned an MG for several years and enjoy taking road trips through the
Rockies with other MG owners every year. Which characteristic of brand communities does this
illustrate?

A. rituals and traditions


B. similarity
C. brand traditions
D. brand festing
E. consumers of kind
A brand community is a consumption subculture that focuses on the interaction of individuals around an
activity; product category; or, occasionally, a brand.

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Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Brand Communities

24. A _____ is a gathering of owners and others for the purposes of interacting with one another in the
context of learning about and using the brand.

A. consumption gathering
B. convention
C. consortium
D. brand community
E. brand fest
Brand-related events are often termed brand fests.

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Topic: Brand Communities

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25. Jeep Jamboree, Jeep 101, and Camp Jeep, in which owners of Jeeps gather for the purposes of
interacting with one another in the context of learning about and using their Jeeps, are examples of a
_____.

A. consumption gathering
B. convention
C. consortium
D. brand event
E. brand fest
Brand-related events are often termed brand fests.

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Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Brand Communities

26. Brand communities can deliver value-creating activities by _____.

A. social networking
B. community engagement
C. brand use
D. impression management
E. all of the above
There are a host of activities that can be encouraged and facilitated by both the brand and brand owners
to enhance brand value and loyalty.

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Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Brand Communities

27. Which type of community interacts over time around a topic of interest on the Internet?

A. brand community
B. online community
C. cyber community
D. techie community
E. geek squad
The interactions can take place in various forms, including online message boards and discussion
groups, and blogs, as well as corporate and nonprofit websites.

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Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Online Communities and Social Networks

7-32
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28. Jill is a breast cancer survivor. She posts a blog, which is her online journal, on a site that is specifically
for others to share their experiences and support one another. She and others discuss products that help
them deal with the side effects of their treatments as well as products that can help them maintain their
self-esteem (e.g., wigs). Jill is participating in a(n) _____.

A. online consortium
B. online community
C. consumption subculture
D. subversive community
E. electronic community
An online community interacts over time around a topic of interest on the Internet.

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Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Online Communities and Social Networks

29. Which of the following is NOT a guiding principle for marketing to online communities and social
networks?

A. become part of the community


B. post marketing content so it does not stand out and appears as just another participant in the
community, such as a flog
C. take advantage of the unique capabilities of each venue
D. transparency
E. A and D
Marketers who post content as a fake blog, or flog, risk being found out and subject to massive
criticism.

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Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Online Communities and Social Networks

30. Which type of influence occurs when an individual uses the behaviors and opinions of reference group
members as potentially useful bits of information?

A. transient
B. informational
C. normative
D. identification
E. substantive
This influence is based on either the similarity of the group's members to the individual or the expertise
of the influencing group member.

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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

31. Jamarcus was his collegiate chapter's delegate at a national conference of a professional business
fraternity, Phi Chi Theta, in which he is a member. When the business meeting was conducted,
parliamentary procedure was used, and Jamarcus was not familiar with this. Thus, he looked to the
others to learn how he should behave in this situation. What type of influence does this reference group
exhibit?

A. transient
B. substantive
C. informational
D. legal
E. procedural
Informational influence occurs when an individual uses the behavior and opinions of reference group
members as potentially useful bits of information.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

32. Which type of reference group influence occurs when an individual fulfills group expectations to gain a
direct reward or to avoid a sanction?

A. informational
B. normative
C. identification
D. transient
E. permanent
Normative influence is strongest when individuals have strong ties to the group and the product
involved is socially conspicuous.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

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33. Amie usually wears a uniform to her Catholic school, but on the first Friday of every month, students
can wear other clothes as long as they bring in something for the church's food bank. Amie loves to
shop and has plenty of fashionable clothes, but on these free dress days, she usually wears blue jeans, a
T-shirt, and athletic shoes. Her mother asked her why she doesn't wear her nice clothes, and Amie told
her that she would be made fun of at school. Which type of influence do the other students have on
Amie?

A. informational
B. normative
C. identification
D. conformist
E. punitive
Normative influence is strongest when individuals have strong ties to the group and the product
involved is socially conspicuous.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

34. Normative influence is sometimes referred to as _____ influence.

A. utilitarian
B. coercive
C. functional
D. value-expressive
E. conformist
Normative influence, sometimes referred to as utilitarian influence, is strongest when individuals have
strong ties to the group and the product involved is socially conspicuous.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

35. Which type of reference group influence occurs when individuals have internalized the group's values
and norms?

A. informational
B. normative
C. identification
D. utilitarian
E. affective
The individual has accepted the group's values as his or her own without any thought of reference group
sanctions or rewards.

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Difficulty: 2 Medium
Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

36. Identification influence is also called _____ influence.

A. informational
B. normative
C. value-expressive
D. affective
E. utilitarian
The individual has accepted the group's values as his or her own without any thought of reference group
sanctions or rewards.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

37. Valerie and her family are members of the Baptist Church. They have accepted the Baptist Church's
values as their own and behave in a manner consistent with the Church's values because their values and
the Church's values are the same. Which type of influence does the Church possess with respect to
Valerie and her family?

A. informational
B. exemplary
C. identification
D. utilitarian
E. affective
The individual has accepted the group's values as his or her own without any thought of reference group
sanctions or rewards.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

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38. Which of the following is a factor determining a reference group's influence on a consumer?

A. whether or not the product is a necessity


B. whether the use of the product or brand is visible to the group
C. the degree of commitment the individual feels to a group
D. the individuals confidence in the purchase situation
E. all of the above
There are many factors determining a reference group's influence on a consumer.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: Degree of Reference Group Influence

39. In which of the following consumption situations will a reference group's influence be strongest?

A. when the use of the product or brand is visible to the group


B. when the product is a necessity
C. when the consumer is confident in the purchase situation
D. when the individual's commitment to the group is low
E. when the reference group is large
Reference group influence typically affects only those aspects (e.g., category or brand) that are visible
to the group.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: Degree of Reference Group Influence

40. For which product category would a reference group's influence be strongest?

A. vitamins
B. toilet tissue
C. running shoes
D. insurance
E. clothes washer
Group influence is strongest when the use of a product or brand is visible to the group.

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Topic: Degree of Reference Group Influence

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41. In experiments, the power of groups to influence an individual to agree with the incorrect judgment of
the others is known as the _____.

A. group effect
B. Asch phenomenon
C. Skinner effect
D. Pavlov phenomenon
E. follower effect
The group has the power to influence an individual to agree with an incorrect judgment.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: Personal Sales Strategies

42. Which type of reference group influence do marketers use when developing advertisements?

A. informational
B. normative
C. identification
D. A and B
E. A, B, and C
Marketers use all three types of reference group influence when developing advertisements.

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Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: Advertising Strategies

43. Which type of communication involves individuals sharing information with other individuals in a
verbal form, including face-to-face, phone, and the Internet?

A. mass advertising
B. word-of-mouth
C. impersonal
D. two-step
E. multistep
WOM involves individuals sharing information with other individuals in a verbal form including face-
to-face, phone, and the Internet.

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Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

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44. Clara had an unpleasant experience at a local restaurant at lunch one day. She went back to work and
told all her coworkers about this experience, and many of them said they would never go back to that
restaurant. Which type of communication is this an example of?

A. negative
B. two-step flow
C. multistep flow
D. word-of-mouth
E. indirect
Word-of-mouth communication involves individuals sharing information with other individuals in a
verbal form including face-to-face, phone, and the Internet.

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Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

45. Social media is part of an online revolution online, sometimes referred to as _____.

A. online communities
B. Web 2.0
C. social network sites
D. consumer review sites
E. blogging
Web 2.0 involves technologies that allow users to leverage the unique and collaborative capabilities of
the Internet.

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Difficulty: 1 Easy
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

46. When consumer input is requested by firms online it is called _____.

A. crowdsourcing
B. response generating
C. input requesting
D. data sourcing
E. consumer inputting
Crowdsourcing can involve setting up a forum in which customers can help other customers with their
problems.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

7-39
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47. Which categories of participants are the true leaders of conversation and opinion in Web 2.0?

A. Critics and Inactives


B. Creators and Critics
C. Joiners and Creators
D. Spectators and Joiners
E. Inactives and Spectators
Creators and Critics are the opinion leaders and e-fluentials whose influence cannot be underestimated.

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Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

48. Stephen is 19 years old and is a participant in social media in that he creates content of his own—Web
pages, blogs, videos, and video uploads to places like YouTube. Which category of social media is
Stephen?

A. Creator
B. Critic
C. Joiner
D. Spectator
E. Inactive
Creators create content of their own and tend to be in the teens and early 20s.

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Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

49. Which category of Web 2.0 participants are bloggers and post ratings and reviews and tend to be in their
late teens to mid-20?

A. Creators
B. Critics
C. Joiners
D. Spectators
E. Jumpers
Critics tend to be a bit older than Creators—more in the late teens and mid-20s.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

7-40
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50. Howard is 30 years old, does not create his own content, but consumes other people's content by reading
blogs and watching videos. Which category of social media participant is Howard?

A. Creators
B. Critics
C. Joiners
D. Spectators
E. Inactives
Spectators consume other people's content; they trend young, but also garner more members of the older
generations.

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Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

51. Which type of participants in social media tend to be older, are online, but don't participate in social
media?

A. Creators
B. Critics
C. Joiners
D. Spectators
E. Inactives
Inactives are online but don't participate in social media; they trend older.

AACSB: Analytical Thinking


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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

52. Vicki likes to visit a social network site called Fanfiction.com and read the stories that others post on
this site. She doesn't really visit very often, and she has never posted a story on this site. Vicki is which
type of social media participant?

A. Joiners
B. Critics
C. Spectators
D. Inactives
E. Creators
Spectators consume other people's content; they trend young, but also garner more members of the older
generations.

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Blooms: Understand
Difficulty: 2 Medium

7-41
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

53. Which of the following statements is FALSE regarding word-of-mouth (WOM) communications?

A. It is estimated that two-thirds of all consumer product decisions are influenced by WOM.
B. Negative experiences are powerful motivators of WOM.
C. Going beyond satisfaction to deliver more than was expected appears to have the potential to
generate substantial WOM.
D. Not all personal sources are equal in value.
E. Consumers generally trust advertising as much as they do WOM.
Consumers generally trust the opinions of persons more than marketing communications because
personal sources have no reason to not express their true opinions and feelings.

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Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

54. Individuals who filter, interpret, or provide product and brand-relevant information to their family,
friends, and colleagues are known as _____.

A. opinion leaders
B. market mavens
C. interpreters
D. screeners
E. market leaders
Opinion leaders are known in their circles as the "go-to person" for specific types of information.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

55. John doesn't know very much about electronic equipment, but he wanted to get his girlfriend a tablet for
her birthday. His roommate, Hank, knows all about these types of products and made a recommendation
to John. For this product category, Hank is known as a(n) _____.

A. market maven
B. opinion leader
C. interpreter
D. screener
E. market leader
Opinion leaders are individuals who filter, interpret, or provide product and brand-relevant information
to their family, friends, and colleagues.

AACSB: Analytical Thinking

7-42
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Accessibility: Keyboard Navigation
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Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

56. The process of one person receiving information from the mass media or other sources and passing it on
to others is known as the _____.

A. direct flow of communication


B. one-step flow of communication
C. two-step flow of communication
D. multistep flow of communication
E. impersonal/personal flow of communication
The two-step flow of communication is the process of one person receiving information from the mass
media or other sources and passing it on to others.

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Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

57. The _____ flow of communication involves opinion leaders for a particular product area who actively
seek relevant information from the mass media as well as other sources. These opinion leaders process
this information and transmit their interpretations of it to some members of their groups, and these
group members also receive information from the mass media and other members who are not opinion
leaders as well.

A. direct
B. two-step
C. multistep
D. dispersion
E. inoculation
Communication flows to and from marketers, opinion leaders, and others who are not experts in a
multistep process.

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Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

7-43
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58. Several consumers rely on information they obtain from others they see as knowledgeable about a
specific product they are interested in purchasing (i.e., opinion leaders) as well as information they learn
from marketing communications (i.e., advertisements) and other people that are not experts in the
product category. Which type of communication flow does this represent?

A. direct
B. two-step
C. multistep
D. rapid
E. efficient
Communication flows to and from marketers, opinion leaders, and others who are not experts in a
multistep process.

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Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

59. The exchange of advice and information between group members can occur _____.

A. directly in the form of WOM when one individual seeks information from another
B. directly in the form of WOM when one individual volunteers information
C. indirectly through observation as a by-product of normal group interaction
D. A and B
E. A, B, and C
The exchange of advice and information can occur directly and indirectly.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Situations in Which WOM and Opinion Leadership Occur

60. Jamie wants to purchase a notebook computer, but she has limited product knowledge about computers
other than how to turn one on and use it. She expects to pay more than $1,000 for this computer, so this
is an important decision for her and she wants to make the right choice. For Jamie, this represents a(n)
_____.

A. enduring purchase situation


B. marketing dilemma
C. high-involvement purchase situation
D. consumer dilemma
E. Asch phenomenon
In a high-involvement purchase situation, the purchaser has limited knowledge about an important
decision.

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Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Situations in Which WOM and Opinion Leadership Occur

61. In which situation is the likelihood of an individual seeking an opinion leader high?

A. high product/purchase involvement and low product knowledge


B. high product/purchase involvement and high product knowledge
C. low product/purchase involvement and low product knowledge
D. low product/purchase involvement and high product knowledge
E. low product/purchase involvement and either high or low product knowledge
In a high-involvement purchase situation, the purchaser has limited knowledge about an important
decision.

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Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Situations in Which WOM and Opinion Leadership Occur

62. Which of the following characterizes opinion leaders?

A. younger
B. older
C. enduring involvement in the product or activity
D. highly educated
E. high income
Opinion leaders have enhanced knowledge about and experience with the product category or activity.

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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Characteristics of Opinion Leaders

63. Mitch seems to know everything about cars—at least that's what his friends and family think. He has
been involved with cars since he was a child and even took an engine apart and put it back together
again by the time he was 16 years old. He reads several publications related to cars, visits websites, and
hangs out with others who are interested in cars as well. Due to his enduring involvement with this
product category, Mitch would be considered a(n) _____.

A. product maven
B. opinion leader
C. product fanatic
D. product endorser
E. market leader
Opinion leaders have greater long-term involvement with the product category.

AACSB: Analytical Thinking

7-45
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Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Characteristics of Opinion Leaders

64. Some individuals have information about many different kinds of products, places to shop, and other
aspects of markets. They can be considered a special type of opinion leader and are known as _____.

A. product experts
B. shopping experts
C. personal shoppers
D. market mavens
E. market leaders
Market mavens initiate discussions with others about products and shopping and respond to requests for
market information.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Characteristics of Opinion Leaders

65. Rayna provides a significant amount of information to others across a wide array of products, including
durables and nondurables, services, and store type. She can provide information on product quality,
sales, usual prices, product availability, store personnel characteristics, and other features of relevance
to consumers. Rayna is best described as a(n) _____.

A. opinion leader
B. market maven
C. shopping expert
D. market leader
E. influencer
Market mavens initiate discussions with others about products and shopping and respond to requests for
market information.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Characteristics of Opinion Leaders

7-46
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66. According to Roper Starch (a market research company), the 10 percent of the population that have
broad social networks that allow them to influence the attitudes and behaviors of the other 90 percent of
the population are called _____.

A. market mavens
B. opinion leaders
C. shopping experts
D. market leaders
E. influentials
Influentials are heavy users of print media as well as the Internet and are more likely than the general
population to engage in WOM recommendation.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Characteristics of Opinion Leaders

67. _____ represent about 10 percent of the adult online community, but their influence is extensive as they
communicate news, information, and experiences to a vast array of people both online and offline.

A. Market mavens
B. Internet mavens
C. E-fluentials
D. Opinion leaders
E. Cyber leaders
E-fluentials actively use the Internet to gather and disseminate information through numerous online
avenues including social media.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Characteristics of Opinion Leaders

68. With respect to advertising, _____ can involve themes designed to encourage current owners to talk
about the brand or prospective owners to ask current owners for their impressions.

A. simulating
B. stimulating
C. parroting
D. modeling
E. slice of life
Advertisements can attempt to stimulate WOM by generating interest and excitement.

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Blooms: Remember
Difficulty: 3 Hard

7-47
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Marketing Strategy, WOM, and Opinion Leadership

69. With respect to advertising, _____ opinion leadership can involve presenting the results of surveys
showing that a high percentage of either knowledgeable individuals or typical users recommend the
brand.

A. simulating
B. stimulating
C. parroting
D. modeling
E. faking
Simulating opinion leaderships involves having an acknowledged opinion leader endorse a brand.

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Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Marketing Strategy, WOM, and Opinion Leadership

70. Nonconventional marketing activities that use a limited budget and can increase buzz are known as
_____.

A. gorilla tactics
B. guerilla marketing
C. undercover marketing
D. online guides
E. e-gossip
Guerilla marketing is marketing with a limited budget using nonconventional communication strategies
to generate buzz.

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Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Marketing Strategy, WOM, and Opinion Leadership

71. _____ is defined as the exponential expansion of word-of-mouth.

A. Dispersion
B. Buzz
C. Infection
D. Gossip
E. Dissemination
Buzz happens when word spreads like wildfire with no or limited mass media advertising supporting it.

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Difficulty: 2 Medium

7-48
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Marketing Strategy, WOM, and Opinion Leadership

72. Which of the following is an online "pass-it-along" strategy?

A. online guides
B. dispersion
C. blogs
D. viral marketing
E. e-gossip
Viral marketing uses electronic communications to trigger brand messages throughout a widespread
network of buyers.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Marketing Strategy, WOM, and Opinion Leadership

73. Twitter is an example of a _____.

A. retailing online ordering service


B. micro-blogging tool
C. hyperlink to online car auctions
D. buzz agent
E. brand community
Twitter allows consumer-created content in a blog-like form, but limits posts to 140 characters each.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Marketing Strategy, WOM, and Opinion Leadership

74. Several girls in the ninth-grade class at a small private school maintained an online journal. In this
journal, some negative comments about the school were made, and the principal made them discontinue
this online journal. The principal was concerned because anybody can read these comments as long as
they know the address. Personalized online journals where people and organizations can keep a running
dialogue such as the one illustrated here are known as _____.

A. search engines
B. diaries
C. blogs
D. viral marketing sites
E. cyber diaries
Blogs are personalized journals where people and organizations can keep a running dialog.

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7-49
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Marketing Strategy, WOM, and Opinion Leadership

75. Whether or not a new idea, practice, or product is an innovation is determined by _____.

A. statements made by a celebrity spokesperson


B. product demonstration in an infomercial
C. the perception of the potential market
D. an objective measure of technological change
E. packaging that states "new and improved"
Whether or not a new idea, practice, or product is an innovation is determined by the perception of the
potential market.

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Difficulty: 2 Medium
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Diffusion of Innovations

76. Adoption of which type of innovation requires relatively minor changes in behavior or changes in
behaviors that are unimportant to the consumer?

A. continuous innovation
B. dynamically continuous innovation
C. discontinuous innovation
D. technological innovation
E. nontechnological innovation
Some continuous innovations require complex technological breakthrough, but their use requires little
change in the owner's behavior or attitude.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Categories of Innovations

7-50
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77. Leigh received a digital camera for her birthday. She was able to figure this product out pretty easily
because it only required a moderate change in how she used to take pictures. One thing she had to get
used to was printing the pictures instead of taking a roll of film to a processor. This is an example of a
_______ innovation.

A. continuous
B. dynamically continuous
C. discontinuous
D. technological
E. nontechnological
Adoption of a dynamically continuous innovation requires a moderate change in an important behavior
or a major change in a behavior of low or moderate importance.

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Difficulty: 2 Medium
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Categories of Innovations

78. When purchasing an innovation, individual consumers presumably go through a series of distinct steps
or stages known as the _____.

A. product life cycle


B. consumer life cycle
C. adoption process
D. consumption process
E. diffusion of innovations
Adoption process is a term used to describe extended decision making when a new product is involved.

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Difficulty: 2 Medium
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Categories of Innovations

79. The manner in which innovations spread throughout a market is referred to as the _____.

A. adoption process
B. consumer decision-making process
C. innovation process
D. diffusion process
E. dissemination process
The diffusion process follows a pattern of relatively slow growth, followed by a period of rapid growth,
followed by a final period of slower growth.

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Difficulty: 2 Medium

7-51
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Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Diffusion Process

80. Which of the following is a factor affecting the spread of innovations?

A. type of group
B. type of decision
C. compatibility
D. observability
E. all of the above
There are many factors that affect the spread of innovations.

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Difficulty: 1 Easy
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Diffusion Process

81. Which factor affecting the spread of innovations refers to the consistency with the individual's and
group's values or beliefs?

A. relative advantage
B. complexity
C. compatibility
D. observability
E. type of decision
The more the purchase and use of the innovation are compatible with the individual's and group's values
or beliefs, the more rapid the diffusion.

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Difficulty: 2 Medium
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Diffusion Process

82. Which of the following is NOT an adopter category?

A. innovators
B. early adopters
C. early majority
D. late majority
E. procrastinators
Procrastinators is not an adopter category.

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Difficulty: 2 Medium
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Diffusion Process

7-52
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83. Which adopter group represents the first 2.5 percent to adopt an innovation?

A. innovators
B. early adopters
C. early majority
D. late majority
E. laggards
Innovators are venturesome risk takers.

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Difficulty: 1 Easy
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Diffusion Process

84. Charles was the last person on his block to purchase a color television set, and that was in the 1980s. He
just couldn't see the reason to purchase a new color television if his old one was working just fine. He
finally purchased one because his old TV stopped working. In terms of adopter categories, Charles
would be classified as a(n) _____.

A. innovator
B. early adopter
C. early majority
D. late majority
E. laggard
Laggards adopt innovations only with reluctance.

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Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Diffusion Process

85. Potential obstacles to rapid market acceptance of an innovation are known as _____.

A. diffusion delayers
B. laggards
C. diffusion inhibitors
D. diffusion detractors
E. minimizers
The manager's task is to overcome the inhibitors with diffusion enhancement strategies.

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Difficulty: 2 Medium
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Marketing Strategies and the Diffusion Process

7-53
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True / False Questions

86. A reference group is a group whose presumed perspectives or values are being used by an individual as
the basis for his or her current behavior.

TRUE
An individual uses a reference group as a guide for behavior in a specific situation.

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Difficulty: 1 Easy
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

87. Roughly half of online teens report using social networking sites.
(p. 224)
FALSE
Seventy-five percent of online teens report using social networking sites.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Online Communities and Social Networks

88. The top reason consumers want to interact with firms on social media is to be entertained.

FALSE
The top reason is to get incentives such as coupons.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Online Communities and Social Networks

89. A brand community is a geographically bound community, based on a structured set of social
relationships among owners of a brand and the psychological relationship they have with the brand
itself, the product in use, and the firm.

FALSE
A brand community is a non-geographically bound community, based on a structured set of social
relationships among owners of a brand and the psychological relationship they have with the brand
itself, the product in use, and the firm.

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Blooms: Remember
Difficulty: 3 Hard

7-54
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McGraw-Hill Education.
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Brand Communities

90. Brand communities are relevant for basically any type of products.

FALSE
Brand communities are relevant where consumers have a strong connection with the brand, the product
in use, and the firm.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Brand Communities

91. An e-community is a community that interacts over time around a topic of interest on the Internet.

FALSE
An online community interacts over time around a topic of interest on the Internet.

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Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Online Communities and Social Networks

92. Reference group influence can take three forms: informative, normative, and identification.

TRUE
It is important to distinguish these types because marketing strategies depend on the type of influence
involved.

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Difficulty: 2 Medium
Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

93. Group influence is strongest when the use of the product or brand is visible to the group.
(p. 228)
TRUE
Reference group influence typically affects only those aspects (e.g., category or brand) that are visible
to the group.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: Degree of Reference Group Influence

7-55
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
94. Spectators consume other people's content by reading blogs and watching videos.

TRUE
Spectators consume other people's content; they trend young, but also garner more members of the older
generations.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

95. Positive experiences are more powerful motivators of WOM than are negative experiences.

FALSE
Negative experiences, which are highly emotional and memorable, motivate consumers to talk.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-04 Discuss within-group communications and the importance of word-of-mouth communications to marketers
Topic: Communications Within Groups and Opinion Leadership

96. Enduring involvement leads to enhanced knowledge about and experience with the product category or
activity.

TRUE
In a high-involvement purchase situation, the purchaser has limited knowledge about an important
decision.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Characteristics of Opinion Leaders

97. Generalized market influencers are referred to as opinion leaders.

FALSE
Generalized market influencers are referred to as market mavens.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Characteristics of Opinion Leaders

7-56
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McGraw-Hill Education.
98. Advertising can stimulate and simulate word-of-mouth but not opinion leadership.

FALSE
Advertising can stimulate and simulate WOM through having an opinion leader recommend the
product.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Marketing Strategy, WOM, and Opinion Leadership

99. Buzz is generally supported by large advertising budgets.

FALSE
Buzz happens when word spreads like wildfire with no or limited mass media advertising supporting it.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Understand opinion leaders (both online and offline) and their importance to marketers
Topic: Marketing Strategy, WOM, and Opinion Leadership

100. Adoption of a discontinuous innovation requires major changes in behavior of significant importance to
the individual or group.

TRUE
An example of discontinuous innovation is becoming a vegetarian or purchasing a Honda FCX Clarity
hydrogen car.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Categories of Innovations

101. The more the purchase and use of an innovation are consistent with the individual's and group's values
or beliefs, the more rapid the diffusion.

TRUE
The more compatible the purchase and use of an innovation are consistent with the individual's and
group's values or beliefs, the more rapid the diffusion.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Diffusion Process

7-57
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McGraw-Hill Education.
Essay Questions

102. There are several types of groups that share a set of norms, values, or beliefs. Discuss any three of
them.

The chapter defined several types of groups, and students can discuss any three of the following:

a. Reference group—a group whose presumed perspectives or values are being used by an individual
as the basis for his or her current behavior.
b. Primary group—includes family and friends and involves strong ties and frequent interaction and
often wields considerable influence.
c. Secondary group—involves weaker ties and less frequent interaction (e.g., professional and
neighborhood associations).
d. Dissociative reference group—a group with negative desirability.
e. Aspiration reference group—a nonmembership group with a positive attraction.

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Explain reference groups and the criteria used to classify them
Topic: Types of Groups

103. Describe the four types of consumption subcultures and their importance for marketing.

The four types of consumption subcultures and their importance for marketing are:

a. Consumption-based group, or consumption subculture—a distinctive subgroup of society that


self-selects on the basis of a shared commitment to a particular product class, brand, or consumption
activity.
b. Brand community—a non-geographically bound community, based on a structured set of social
relationships among owners of a brand and the psychological relationship they have with the brand
itself, the product in use, and the firm.
c. Online community—a community that interacts over time around a topic of interest on the Internet.
d. Online social network site—a Web-based service that allows individuals to construct a public or
semipublic profile to be shared with others within the system.

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Consumption Subcultures

7-58
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McGraw-Hill Education.
104. Consumers interact with social media for four reasons other than entertainment or marketing. Name
them.

Other than for entertainment or marketing, consumers interact with social media for these reasons:

a. Providing incentives such as free products and coupons


b. Providing information or solutions to consumer problems
c. Asking for feedback on products and services
d. Finding new ways to interact

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Discuss consumption subcultures; including brand and online communities and their importance for marketing
Topic: Online Communities and Social Networks

105. You are a marketing manager and want to use the power of reference groups to influence consumers.
Reference group influence can take three forms. Name and describe each, and explain how you could
use each type of influence in an advertisement.

Reference group influence can take three forms: informational, normative, and identification.

Informational influence occurs when an individual uses the behaviors and opinions of reference group
members as potentially useful bits of information. This influence is based on either the similarity of the
group's members to the individual or the expertise of the influencing group member. An ad that depicts
typical members of a group or an expert explaining the benefits of a brand could provide relevant
information to consumers.
Normative influence, sometimes referred to as "utilitarian" influence, occurs when an individual
fulfills group expectations to gain a direct reward or to avoid a sanction. This type of influence is
strongest when individuals have strong ties to the group and the product involved is socially
conspicuous. Ads that promise social acceptance or approval if a product is used (or nonacceptance or
disapproval if it not used) are relying on normative influence.
Identification influence, also called "value-expressive" influence, occurs when individuals have
internalized the group's values and norms. Advertisers need to understand the values of their target
audience so as to mirror those back in their advertisements.

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: The Nature of Reference Group Influence

7-59
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McGraw-Hill Education.
106. Discuss the five determinants of the degree of reference group influence on a consumer.

a. Group influence is strongest when the use of the product or brand is visible to the group.
b. Reference group influence is higher the less of a necessity an item is.
c. In general, the more commitment an individual feels to a group, the more the individual will conform
to the group norms.
d. The more relevant a particular activity is to the group's functioning, the stronger the pressure to
conform to the group norms concerning that activity.
e. The individual's confidence in the purchase situation also affects the degree of reference group
influence.

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Summarize the types and degree of reference group influence
Topic: Degree of Reference Group Influence

107. Compare and contrast the categories of innovations, and give an example of each.

Any new product can be placed somewhere on a continuum ranging from no change to radical change,
depending on the target market's perception of the item. This continuum is often divided into three
categories or types of innovations:

a. Continuous innovation—adoption requires relatively minor changes in behavior or changes in


behaviors that are unimportant to the consumer. Examples of this type of innovation are the addition of
a whitening agent in toothpaste, DVD players, or a new type of snack bar.
b. Dynamically continuous innovation—adoption requires a moderate change in an important
behavior or a major change in a behavior of low or moderate importance to the individual. Examples of
this type of innovation include digital cameras, personal navigators, and skin lotion that also reduces the
need for shaving.
c. Discontinuous innovation—adoption requires major changes in behavior of significant importance
to the individual or group. Examples include Norplant contraceptive, becoming a vegetarian, and the
Segway Human Transporter.

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Categories of Innovations

7-60
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McGraw-Hill Education.
108. Apple recently came out with the video iPod, which allows users to download video content from the
Internet. Very soon after the introduction of this innovation, television shows were made available for
consumers to purchase or to obtain for free. This has brought about a rather radical change in the way
viewers consume television, and some have predicted that this will create significant changes in the
current business model for television networks and program producers. Discuss five of the many factors
discussed in the chapter that will influence the spread of this innovation.

The rate at which an innovation is diffused is a function of the following 10 factors, and students can
discuss any five of them:

a. Type of group—some groups are more accepting of change than others. In general, young, affluent,
and highly educated groups accept change readily.
b. Type of decision—this refers to an individual versus a group decision. The fewer the individuals
involved in the purchase decision, the more rapidly an innovation will spread.
c. Marketing effort—rate of diffusion is influenced by the extent of marketing efforts involved, so the
rate of diffusion is not completely beyond the control of the firm.
d. Fulfillment of felt need—the more manifest or obvious the need that the innovation satisfies, the
faster the diffusion.
e. Compatibility—the more the purchase and use of the innovation are consistent with the individual's
and group's values or beliefs, the more rapid the diffusion.
f. Relative advantage—the better the innovation is perceived to meet the relevant need compared to
existing methods, the more rapid the diffusion.
g. Complexity—the more difficult the innovation is to understand and use, the slower the diffusion.
h. Observability—the more easily consumers can observe the positive effects of adopting the
innovation, the more rapid its diffusion will be.
i. Trialability—the easier it is to have a low-cost or low-risk trial of the innovation, the more rapid is its
diffusion.
j. Perceived risk—the more risk associated with trying an innovation, the slower the diffusion.

AACSB: Analytical Thinking


Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Discuss innovation diffusion and use an innovation analysis to develop marketing strategy
Topic: Diffusion Process

7-61
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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