Deck 3: Consumer Theories and Developing a Model

Question 1

The way consumers are actually living is known as their

A)consumption quality.
B)level of living.
C)quality of life.
D)standard of living.

Answer 1

B

Question 2

The Consumer Price Index (CPI)measures price each month of a fixed basket of 400 durable goods.

Answer 2

False

Question 3

When millions of consumers make similar choices, this is called regional consumption.

Answer 3

False

Question 4

Public policy anticipates potential areas of conflict and deals with them before, during, and after they have happened.

Question 5

There is a downward trend in buying online.

Question 6

What percentage of Americans state that they have a religious affiliation?

A)30%
B)10%
C)60%
D)90%

Question 7

The CPI is published by the Bureau of Labor Statistics.

Question 8

The Consumer Expenditure Survey is collected from a national sample of 30,000 families and provides detailed information on spending habits.

Question 9

In the U.S., women account for approximately what percentage of spending?

A)40%
B)60%
C)20%
D)80%

Question 10

How people frame or put into context their buying and selling is called the

A)innovation theory.
B)theory of mental accounting.
C)endowment effect.
D)entropy theory.

Question 11

The Human Development Index (HDI)quantifies

A)market inflation.
B)the consumer price index.
C)human well-being.
D)market deflation.

Question 12

Economists generally agree that consumers are rational and acquisitive.

Question 13

The right to safety and to goods and services that provide for oneʹs physical needs is called

A)emotional well-being.
B)economic well-being.
C)social well-being.
D)physical well-being.

Question 14

Socialization refers to the process of learning to interact with others, forming cooperative relationships, participating in society, and learning the ways of daily life.

Question 15

The shows how all the components including the consumers, markets, public policy, and media fit together.

A)Consumer Power Model
B)Broadcast Model
C)FTC Model
D)Pillingerʹs Research Model

Question 16

The Consumer Price Index (CPI)sets a base year equal to 100 for comparison. The current base year is

A)1986.
B)1990.
C)1982.
D)1980.

Question 17

It is estimated that what percentage of new products fail?

A)60%
B)90%
C)30%
D)10%

Question 18

Consumer durables are products bought by consumers that are expected to last how many years?

A)3 years or more
B)5 years or more
C)10 years or more
D)1 years or more

Question 19

The application of scientific knowledge to useful purposes is called

A)technological obsolescence.
B)the media mix.
C)technology.
D)innovation.

Question 20

Theories can be measured.

Question 21

What are the three qualities of a successful entrepreneur?

Question 22

The measures prices each month of a fixed basket of 400 goods and services.

Question 23

What are the two parts of the environment? Briefly define each.

Question 24

A plan or decision by government to act in a certain way or direction such as to keep products safe or open up competition is called .

Question 25

The movement means consumers want more say about products and services.

Question 26

The goal of business is to maximize profits.

Question 27

Describe behavioral economics or behavioral finance or neuroeconomics.

Question 28

If a product outdates soon after purchase or before it is worn out, a consumer experiences
.

Question 29

The degree to which individuals and families have economic adequacy and security is called .

Question 30

When Old Spice, a company that makes after -shave, antiperspirants, and deodorants, launched an Old Spice High Endurance body wash, it was an example of
.

Question 31

Consumer confidence is reported by the Conference Board and the University of Georgia Survey Research Center.

Question 32

Briefly explain the theory of reasoned action.

Question 33

Describe the scientific method consumer researchers use.