Deck 1: The foundations of consumer behaviour

Question 1

The selling concept fails to consider:

A) consumer needs.
B) consumer satisfaction.
C) personalisation of products.
D) all of the above.

Answer 1

all of the above.

Question 2

The digital revolution introduced all of the following dramatic changes into the business environment, except:

A) marketers are facing much greater difficulty in obtaining large amounts of information on their customers.
B) marketers are able to reach their customers more easily and efficiently.
C) marketers can gather complex and valuable data on consumers' buying patterns and personal characteristics.
D) organisations are able to provide much higher levels of customisation in their offerings.

Answer 2

marketers are facing much greater difficulty in obtaining large amounts of information on their customers.

Question 3

Service providers know that marketing their offerings can be quite difficult because services cannot be tested or purchased in advance, their quality may not be consistent, and because services are:

A) perishable.
B) expensive.
C) inconsistent.
D) unpredictable.

Answer 3

perishable.

Question 4

The consumer-oriented philosophy that evolved when marketers realised it would be easier to sell more goods to consumers who had already expressed interest is:

A) the selling concept.
B) the marketing concept.
C) the societal marketing concept.
D) the customer satisfaction philosophy.

Question 5

The implicit marketing objective of the production concept included:

A) quick production and sales of goods.
B) efficient production of goods to satisfy the target market's wants and needs.
C) cheap, efficient production and intensive distribution of goods.
D) cheap and quick production to satisfy the target market's wants and needs.

Question 6

The digital revolution introduced all of the following dramatic changes into the business environment, except:

A) consumers have more power than ever.
B) consumers face more barriers to accessing information.
C) consumers can receive more personalised products and promotions.
D) consumers are able to provide the business with feedback.

Question 7

The following are all benefits for Australian businesses exporting their products and services internationally, except:

A) increasing their sales.
B) achieving economies of scale.
C) attaining a complex company structure.
D) growing and surviving in the long-term.

Question 8

The term 'consumer behaviour' describes two different kinds of consuming entities: _____ and ______ consumers.

A) non-profit; government
B) non-profit; for-profit
C) personal; organisational
D) government; private

Question 9

An organisational consumer:

A) only purchases goods but not services.
B) purchases products used in making other products.
C) is an end user.
D) could be any of these.

Question 10

New product introductions and changes in technology have caused product life cycles to:

A) lengthen.
B) disperse.
C) shorten.
D) remain the same.

Question 11

Organisational consumers include all except:

A) government agencies.
B) households.
C) non-profit businesses.
D) for-profit businesses.

Question 12

Today, the ______ that consumers are experiencing allows for greater customisation of products, services and promotional messages than older marketing tools.

A) digital revolution
B) one-to-one concept
C) consumerism movement
D) environmental conversion

Question 13

All of the following are examples of customisation of products and services except:

A) Amazon.com sending personalised emails to previous book purchasers announcing newly published books on similar topics.
B) Qantas sending tailored emails to its frequent flyer members with specialised offers.
C) an online business sending you updated product information on your recent purchase.
D) when entering a keyword, the website displaying all related products containing that keyword with price information included.

Question 14

A personal consumer buys goods for all except:

A) personal consumption.
B) gifts.
C) home business.
D) use of one's household.

Question 15

Personal consumers buy goods and/or services:

A) for themselves and other individuals.
B) for use by their company.
C) for the production of personal care products.
D) as intermediary users.

Question 16

The ______ concept assumes that consumers will buy the product that offers them the highest quality, the most features and the best performance.

A) production
B) product
C) selling
D) marketing

Question 17

________ is the study of behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of the products and services that they expect will satisfy their needs.

A) Consumptive behaviour
B) Consumer behaviour
C) User behaviour
D) End-use consumption

Question 18

The underlying premise of the marketing concept is that a company should:

A) strive to make products available at the lowest prices possible.
B) make what it can sell.
C) sell what it can make best.
D) include the latest features and technologies in their products.

Question 19

Industry trade practices, advertising and pricing practices are monitored by the:

A) Pricing Commission.
B) Federation of Australian Commercial Television Stations (FACTS).
C) Australian Bureau of Statistics.
D) Australian Competition and Consumer Commission.

Question 20

Which of the following is an incorrect statement about buyers and users?

A) The primary focus of marketers should be placed on the buyer.
B) The buyer is not always the user.
C) The payer is not necessarily the one who makes the product decision.
D) The product may be used by people other than the buyer.

Question 21

A study that identified several types of customers, identified ______ as being customers whose experiences exceeded their expectations and who provide positive word-of-mouth about the company.

A) loyalists
B) apostles
C) mercenaries
D) activists

Question 22

The major deterrent to the implementation of the societal marketing concept is:

A) unethical consumer behaviour.
B) the lack of ethics training in business schools today.
C) the general deterioration of morals in Australian society.
D) the short-term orientation by which most companies are managed.

Question 23

The selling orientation:

A) is typically used when demand exceeds supply.
B) relies on aggressive persuasion.
C) generally develops positive word-of-mouth.
D) none of the above.

Question 24

Which of the following are the four drivers of a successful relationship between customers and marketers?

A) Customer trust, customer retention, customer value and customer satisfaction.
B) Customer retention, customer feedback, customer willingness-to-spend and customer satisfaction.
C) Customer feedback, customer trust, customer value and customer loyalty.
D) Customer satisfaction, customer loyalty, customer willingness-to-spend and customer feedback.

Question 25

The ________ requires that all marketers adhere to principles of social responsibility in the marketing of their goods and services.

A) marketing concept
B) societal marketing concept
C) environmental marketing concept
D) ethical marketing concept

Question 26

_______ is defined as the ratio between the customers' perceived benefits (economic, functional, physiological) and the resources (monetary, time, effort, psychological) used to obtain those benefits.

A) Customer satisfaction
B) Customer value
C) Customer relationship management
D) Consumer decision making

Question 27

The societal marketing concept sees all marketers adhering to principles of social responsibility in the marketing of their goods and services which means that:

A) marketers should focus on satisfying the needs and wants of their target market.
B) marketers should focus on preserving the environment and enhancing the well-being of society.
C) marketers should balance the needs and wants of their target markets in ways that preserve and enhance the well-being of consumers and society.
D) marketer should balance the needs and wants of their target markets with their business objectives.

Question 28

According to the societal marketing concept, businesses would not:

A) sell foods with high levels of nutrients and vitamins.
B) emphasise quality over price in their promotions.
C) use celebrities or athletes to advertise alcohol to teenagers.
D) do all of these.

Question 29

The concept of customer satisfaction is a function of:

A) customer experience.
B) customer knowledge.
C) customer expectations.
D) price.

Question 30

It is important to retain customers and keep them highly satisfied for several reasons, except:

A) it is usually more expensive to win new customers than to keep existing ones.
B) to avoid negative word-of-mouth.
C) a satisfied customer is a repeat customer.
D) satisfied customers will endure unsatisfactory service from a company but will feel obligated not to switch to a competing brand.

Question 31

The discipline of consumer behaviour has been strongly influenced by:

A) companies' need to focus on the features of products to satisfied consumers.
B) the fields of psychology, sociology and anthropology.
C) the Japanese and other international competitors producing better products.
D) the major differences between the needs of personal and organisational consumers.

Question 32

Customers whose experience exceeds expectations will most likely experience:

A) satisfaction.
B) delight.
C) disappointment.
D) dissatisfaction.

Question 33

Which of the following sources of information about a product is a consumer most likely to trust?

A) A company airs a television advertisement featuring real customers using their products.
B) An online blog with recommendations and reviews about a certain product set up independently by customers.
C) An advertisement flyer at their local supermarket.
D) Customer reviews featuring on the company website.

Question 34

Which of the following is an example of the marketing concept?

A) Ferdinand Porsche creating a 'people's car', The Volkswagen which was produced intensively in a cheap and efficient manner.
B) A funeral insurance company aggressively advertising its policy options on television to a wide variety of consumers.
C) A modern technology company creating a new mobile device to suit the wants and needs of the population.
D) Qantas offering and emailing specialised deals to their frequent flyer customers suited to their individual needs.

Question 35

Astute marketers realise that in order to outperform the competition, they must achieve full profit potential from each and every customer by viewing each customer as a(n) _____ rather than a _____.

A) product; person
B) relationship; transaction
C) opportunity; possibility
D) profit; loss

Question 36

Lexus claims to deliver its buyers quality, zero defects in manufacturing, and superior and personal post-purchase service. This is an example of (a):

A) quality control management.
B) corporate futuristic vision.
C) customer satisfaction guarantee.
D) value proposition.

Question 37

_________ are very satisfied customers but have no real loyalty to the company and may defect because of a lower price elsewhere or on impulse, defying the satisfaction-loyalty rationale.

A) Apostles
B) Activists
C) Hostages
D) Mercenaries

Question 38

The key assumption in applying the marketing concept is to:

A) analyse the wants and needs of the target market.
B) project the number of units that need to be sold in the next period.
C) look for available efficiencies in the production of the product.
D) be 'in love' with your product and promote it aggressively.

Question 39

Focus groups, observational research and surveys are all examples of which of the following?

A) Secondary research.
B) Advertisement.
C) Primary research.
D) Anthropological research.

Question 40

Some consumers flock to the thousands of McDonald's outlets because they know what to expect and know they are getting value for the resources expended. Other consumers however, do not feel they get value for money. This is because:

A) the notion of consumer value does not apply to fast-food chains.
B) those consumers do not know what value for money is.
C) those consumers cannot afford to purchase McDonald's products.
D) the notion of consumer value is an individual's relative and subjective assessment.

Question 41

The input stage of the consumer decision-making model is most influenced by:

A) psychological factors.
B) affective factors.
C) sociocultural environment.
D) physiological environment.

Question 42

Many product life cycles have shortened due to new product development and changes in technology.

Question 43

Many product life cycles are increasing as products are modified, improved or replaced by new and substitute products.

Question 44

The consumer's recognition of a product need happens in the _____ stage of the consumer decision-making model.

A) input
B) process
C) post-purchase
D) output

Question 45

With respect to services marketing, the product offering cannot be tested in advance of purchase nor is its quality consistent over time.

Question 46

Organisational consumers include both commercial for-profit and non-profit organisations.

Question 47

It is possible for a person to be the buyer, payer and consumer of a product.

Question 48

Consumer behaviour is defined as the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of the products and services that they expect will satisfy their needs.

Question 49

In the customer pyramid classification, where customers are ranked according to profitability, the gold tier group members are those who are all of the following except:

A) heavy users.
B) somewhat price-sensitive.
C) usually willing to try new offerings.
D) likely to buy from several providers.

Question 50

Personal consumers buy goods and services for commercial reasons and are not the end-user of those goods and services.

Question 51

The input stage of the consumer decision-making model is where consumers:

A) become aware of a product need.
B) make decisions.
C) evaluate choices.
D) buy the product.

Question 52

The consumers' experience with product exploration happens in the:

A) input stage.
B) process stage.
C) output stage.
D) post-purchase stage.

Question 53

The researcher is most interested in the psychological factors that affect purchase in:

A) the input stage.
B) the process stage.
C) the output stage.
D) all of the stages in the model.

Question 54

Studies have shown that small reductions in customer defections produce significant increases in profits because of all of the following reasons except:

A) loyal customers buy more products.
B) loyal customers are less price-sensitive.
C) loyal customers pay less attention to competitors' advertising.
D) loyal customers will not mind paying higher prices than new customers.

Question 55

Product trial or product exploration happens in:

A) the input stage.
B) the process stage.
C) the output stage.
D) a separate stage.

Question 56

The fact that not all customers are equal in terms of profitability has encouraged companies to categorise customers into tiers. The popular 'customer pyramid' groups customers into one of four tiers: platinum, gold, iron and:

A) sand.
B) wood.
C) lead.
D) copper.

Question 57

The digital revolution allows for greater customisation with greater efficiencies in order to reach the ultimate goal of conducting the maximum number of transactions.

Question 58

Consumer behaviour includes two types of consuming entities: the personal consumer and households.

Question 59

The person who purchases a product is always the end user.

Question 60

When a consumer buys a new product, that purchase is more likely to signify adoption of that product when it is a relatively; _______ and _______ product.

A) high-priced, durable
B) low-priced, durable
C) high-priced, non-durable
D) low-priced, non-durable

Question 61

An organisation using online data freely available from the Australian Business Statistics (ABN) website for their consumer research, is considered an example of primary data.

Question 62

The key assumption underlying the marketing concept is that, to be successful, a company must determine the needs and wants of specific target markets and deliver goods or services better than the competition.

Question 63

The use of focus groups and in-depth interviews with subjects are examples of quantitative research.

Question 64

The selling concept is typically utilised by marketers of unsought goods such as life insurance.

Question 65

A marketer 'in love' with his or her product is typical of the selling concept.

Question 66

The disciplines of psychology, sociology and archaeology have strongly influenced developments in the field of consumer research.

Question 67

The concept of customer satisfaction is a function of customer expectations.

Question 68

The societal marketing concept calls on marketers to fulfil the needs of the target audience in ways that improve society without regard to the objectives of the company.

Question 69

Studies have shown that small reductions in customer defection produce increased profits because loyal customers are more price-sensitive than new customers.

Question 70

The term consumer research represents the process and tools used to study consumer behaviour.

Question 71

In the simplified model of consumer decision making, the process stage of the model focuses on the external sociological influences on the consumer.

Question 72

Recent developments in technology indicate that the TV and the computer will merge into a single device that will provide households with interactive capabilities with broadcasters and high-speed wireless access to the Web.

Question 73

The product concept assumes that consumers will buy the product that offers them the highest quality, the best performance and the most features.

Question 74

The selling concept focuses on selling products that the target market demands.

Question 75

According to customer satisfaction research, one type of customer, the mercenary, is a very satisfied consumer who has no real loyalty to the company.

Question 76

According to the 'customer pyramid' model, the 'lead' tier of customers includes heavy users who are not price-sensitive.

Question 77

The Australian Securities and Investments Commission monitors business and industry practices, advertising and pricing practices at the federal level.

Question 78

The production concept assumes that consumers are mostly interested in product availability at low prices.

Question 79

As with traditional advertising, the digital revolution allows for two-way interactive exchanges between customers and marketers.

Question 80

Whenever supply exceeds demand, the production concept can work.