Deck 1: An Introduction to Consumer Behaviour

Question 1

List the three stages of the consumption process, indicating for each stage some of the issues of concern to the consumer as well as to the marketer.

Answer 1

Pre-purchase stage:
Consumer concerns: How does the consumer decide if a product is needed? What are the best sources for information to learn more about alternative choices?
Marketers' concerns: How are consumer attitudes formed or changed? What cues do consumers use to infer which products are superior to others?
Purchase stage:
Consumer concerns: Is acquiring a product a stressful or pleasant experience? What does the purchase say about the consumer?
Marketers' concerns: How do situational factors, such as time pressure or store displays, affect the consumer's purchase decisions?
Post-purchase stage:
Consumer concerns: Does the product provide pleasure or perform its intended function? How is the product eventually disposed of, and what are the environmental consequences of this action?
Marketers' concerns: What determines whether a consumer will be satisfied with a product and buy it again? Does this person tell others about his/her experience with the product and affect their purchase decisions?

Question 2

A fast-food chain describes its core customer as a single male under 30 years of age with a working-class job, who reads little, likes loud music, and hangs out with friends. This is an example of:

A) subculture.
B) marketing segmentation.
C) demographics.
D) a typical male Canadian consumer of burgers.

Answer 2

B

Question 3

In studying consumer behaviour, it is often useful to categorize people on the basis of some similarity. Descriptions such as age, gender, income, or occupation are called:

A) demographics.
B) psychographics.
C) personal profiles.
D) physiology.

Answer 3

A

Question 4

Gail decides to take a break from studying and goes online to check things out. She connects with one of the product discussion groups that she participates in. This is an example of a:

A) lifestyle discussion.
B) brand competition.
C) consumption community.
D) marketplace competition.

Question 5

If a product succeeds in satisfying needs and is purchased over and over again, it most likely has attained:

A) product separation.
B) brand loyalty.
C) lifestyle variation.
D) purchase conception.

Question 6

The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires is called:

A) market segmentation.
B) relationship marketing.
C) market research.
D) consumer behaviour.

Question 7

In studying consumers like Gail, a college student, marketers often find it useful to learn their interests in music or clothing, how they spend their leisure time, and even their attitudes about social issues, to be able to categorize consumers according to their lifestyles. This sort of information is called:

A) core values.
B) psychographics.
C) configurations.
D) physiognomies.

Question 8

The expanded view of consumer behaviour recognizes that the consumption process includes issues that influence consumers before, during, and after a purchase is made.

Question 9

Which of the following is NOT an example of a demographic variable?

A) age
B) geography
C) lifestyle
D) ethnicity

Question 10

Tina, a supervisor of displays for Sears Canada, knows that attractive displays can generate additional sales of particular items. From a marketer's perspective, this is:

A) a purchase issue.
B) a post purchase issue.
C) merchandising complexity.
D) a loss leader.

Question 11

The expanded view of the exchange that includes the issues that influence the consumer before, during, and after a purchase is called:

A) the value.
B) the strategic focus.
C) the pre-sell strategy.
D) the consumption process.

Question 12

In the early stages of development, what was the field of consumer behaviour known as? What important understanding of the exchange process does this change in name reflect?

Question 13

What do we mean when we say that consumer behaviour is a process?

Question 14

John is the vice president of marketing for a local tour guide company. He is concerned that his customers are not recommending his company to their friends. For John, this problem is a:

A) purchase issue.
B) demographic problem.
C) prepurchase issue.
D) post purchase issue.

Question 15

Recently marketers have come to realize the value of relationship marketing. In marketing terms, "relationship marketing" means:

A) developing friendships with foreign governments so that American products can be sold in their countries at a fair price.
B) instituting practices that show companies' awareness of their responsibilities to the environment and society.
C) building bonds between brands and customers that will last over time.
D) using new electronic capabilities to ensure that all channel members work smoothly together, for example, in seeing that products get to retailers before retailers' inventories run out.

Question 16

Marketers who interact with their customers on a regular basis, and not just at the time of purchase, are most likely engaged in:

A) brand loyalty.
B) psychographic segmentation.
C) market segmentation.
D) relationship marketing.

Question 17

Consumer behaviour as a discipline deals mainly with what happens at the point of purchase.

Question 18

In the early stages of development, consumer behaviour was known as buyer behaviour. What important aspect of the exchange process does this change in name reflect?

Question 19

Mary designed an unsuccessful advertising campaign for a medical insurance company that was targeted at 18- to 34-year-old males. The campaign only included one commercial, which featured a young man who had become crippled in a skydiving accident. While planning the campaign, Mary failed to recognize that:

A) 18- to 34-year-old males are not interested in medical insurance.
B) not all 18- to 34-year-old males share the same lifestyle.
C) television commercials are not effective for advertising medical insurance.
D) she should have also segmented based on ethnicity.

Question 20

Explain the view that marketing is more than just an exchange.

Question 21

Popular culture is both a ________ of and an inspiration to ________.

A) market; advertisers
B) product; marketers
C) product; consumers
D) market; consumers

Question 22

The collection and analysis of extremely large data sets:

A) result in delays in the development of marketing strategies.
B) do not aid with relationship marketing.
C) are called big data.
D) have declined in recent years.

Question 23

Alan owns an independent coffee shop in a trendy urban neighbourhood. He asks you to explain "relationship marketing" and how he might implement this in his business.

Question 24

Tony Roma's restaurant sends regular customers a coupon for a free meal on their birthdays. This is an example of:

A) a company seeking to attract lost clients back to base.
B) a social networking process.
C) a loss-leading promotion campaign.
D) relationship marketing.

Question 25

Why would a marketer use age as a segmentation variable?

Question 26

The growth of the Web has created thousands of online consumption communities. What is the biggest danger of such communities?

A) The members will receive bad information.
B) The members will feel pressure to conform to certain types of purchase behaviour.
C) The members will become frustrated in their communication efforts.
D) The members of have no sense of mission.

Question 27

Doritos has capitalized on ________ by using video created by the market in their memorable Superbowl ads.

A) spokes characters
B) social marketing
C) green marketing
D) consumer-generated content

Question 28

Define demographics. Next, using information that you have learned from the text about the demographics of consumers, identify three marketing opportunities that match demographic trends. Justify your opportunities with specifics from your demographic appraisal.

Question 29

In which relationship type do users see the product as a part of their daily routine?

A) self-concept attachment
B) interdependence
C) nostalgic attachment
D) love

Question 30

Rather than try to reach everybody, a marketer today usually targets his product to specific consumers, even if he makes other people deliberately avoid it as a result.

Question 31

Social class is not considered a demographic variable because it is not a directly observable aspect of the population.

Question 32

The Jones and Smiths were born in the 1960s, so they tend to share a common set of cultural experiences that they carry throughout life.

Question 33

Age, gender, ethnicity, income, geography, and purchase frequency are all potential segmentation variables.

Question 34

The key issue about market segmentation is that consumers within a segment have to be psychographically the same.

Question 35

While marketers cannot create needs, they:

A) may affect an environment in which specific needs may be activated.
B) can always sell to somebody.
C) are close to being able to create needs in the next five years.
D) control the mass media-almost the same thing.

Question 36

Gail is studying the interests and values of a group of ten consumers for some consumer researcher. What category of information is Gail studying and what other aspects of the consumers may also be included in her study?

Question 37

Differentiating products by gender does not begin until the teenage years.

Question 38

What is relationship marketing? How might relationship marketing be used by marketers to become "closer" to consumers?

Question 39

When Gail investigates sex, age, and income characteristics of her friends, she is studying psychographics.

Question 40

One of the fundamental premises of the modern field of consumer behaviour is that people often buy products not for what they do, but for what they:

A) cost.
B) mean.
C) look like.
D) promise.

Question 41

Sara and Jessica text back and forth while Sara is shopping and Jessica is riding the bus to work. This is an example of:

A) a synchronous interaction.
B) an asynchronous interaction.
C) utilitarian consumption.
D) a consumption community.

Question 42

Today each of us can communicate information across huge numbers of people and are witnessing revolutions that profoundly change our lives. This newest revolution is called:

A) B2B commerce.
B) M2M
C) horizontal flow.
D) B2C commerce.

Question 43

What is a virtual brand community? Give an example that demonstrates the concept.

Question 44

Consumer-generated opinion-based content found on social networking sites and other interactive mediums about products is an important part of marketing influence on culture.

Question 45

Groups of people that unite on the Internet to share a passion for a product are known as:

A) chat rooms.
B) virtual brand communities.
C) consumer networks.
D) product organizations.

Question 46

Billy is an avid collector of shoes. He constantly voices his opinion on blogs and product review websites of what features new shoes should have. His behaviour is consistent with the concept of:

A) file sharing.
B) database marketing.
C) interpretivism.
D) consumer-generated content.

Question 47

Provide a definition for two of the marketing strategies that are positioned to impact the near future.

Question 48

Organizations who devote huge resources to monitoring do so with specific interest in mind. Explain why organizations find it so important to understand consumer trends.

Question 49

Online shopping does not create opportunities for small, specialized businesses.

Question 50

Saucony Canada held a contest asking consumers to send in their own photos, which will be utilized in a future advertising campaign for the company. This is an example of:

A) anticonsumption.
B) consumer-generated content.
C) social marketing.
D) green marketing.

Question 51

Describe what is meant by a "culture of participation."

Question 52

Virtual consumption has greatly facilitated ________ activity.

A) C2C
B) B2C
C) U-commerce
D) e-tailing

Question 53

Underlying values that drive consumers toward certain products and services and away from others is also known as:

A) U-commerce.
B) consumer trends.
C) the internet of things.
D) culture of participation.

Question 54

Research has shown that Mexican firms are less likely to have formal codes of ethics and more likely to bribe public officials than are American or Canadian companies. This demonstrates that:

A) business practices can be unethical without being illegal.
B) social marketing is not important in Mexico.
C) cultural values and beliefs are important for determining what is considered ethical.
D) American and Canadian companies are more respectful than Mexican companies.

Question 55

An important consumer trend that will impact marketing strategies in the near future which is described as, "a continued blurring of boundary between producers and consumers" is known as:

A) competition.
B) segmentation.
C) sharing economy.
D) bribery.

Question 56

Consumer behaviour theorists have found that consumers only buy products and services for what the products /services do.

Question 57

What are social media? Give an example.

Question 58

The economics-of-information perspective says consumers are willing to pay for advertising because:

A) it is cheaper than paying for sales promotion.
B) it offers entertainment value.
C) the information provided reduces search time.
D) it reduces consumerism.

Question 59

The multiplayer online game "League of Legends" is a good example of:

A) consumer-generated content.
B) the dark side of consumerism.
C) a virtual brand community.
D) anti-consumption.

Question 60

If you listed your collection of NHL rookie cards on eBay, you would be engaging in which type of commerce?

A) transactional
B) psychographic
C) B2C
D) C2C

Question 61

Canada is one of the "cleanest" countries in the world when it comes to issues like bribery or giving "gifts" in exchange for getting business from suppliers.

Question 62

Frog Box is a Canadian company that offers consumers reusable moving boxes and donates a percentage of its revenue to frog habitat restoration. Discuss the two main marketing processes that are being used by this company.

Question 63

Which of the following pieces of legislation is intended to protect the consumer and to prevent the sale of dangerous products?

A) Textile Labelling Act
B) Food and Drugs Act
C) Canada Consumer Product Safety Act
D) Hazardous Products Act

Question 64

Distinguish between green marketing and social marketing.

Question 65

If Maple Leaf Foods of Toronto were to donate a certain percentage of its annual profits to adult literacy, they would be engaged in:

A) lifestyle segmentation.
B) irresponsible practices.
C) corporate giving.
D) database marketing.

Question 66

Business ethics essentially are rules of conduct that guide actions in the marketplace.

Question 67

You have just told a girl you recently met about your enrolment in a consumer behaviour class, to which she replies, "I don't agree with marketers. They manipulate us through advertising by telling us we need something that we don't." What counterarguments (if any) could you give her and are there any examples you could use to be more convincing?

Question 68

Keith went into a store to return a shirt. The owner of the store replied that she needed Keith's address and phone number to refund his money. After providing his information, Keith asked why the information was needed, but the owner of the store would not tell him. The owner's actions are in direct violation of the Competition Act.

Question 69

What is culture jamming? Give an example.

Question 70

Although research has shown that consumers think better of products made by firms they feel are behaving ethically, many "ethical" companies encounter difficulties selling their products. What is a good a reason for this?

A) Ethical companies do not make good-quality products.
B) Products made by ethical companies are hard to find for consumers.
C) Sometimes consumers' buying behaviour is not consistent with their positive attitudes about ethical products.
D) Consumers lie on surveys about ethical companies to appear like they care.

Question 71

Firms that are interested in voluntarily protecting or enhancing their positive social and environmental impacts are engaged in:

A) relationship marketing.
B) transformative consumer research.
C) green marketing.
D) corporate social responsibility.

Question 72

When companies make false or exaggerated claims about how environmentally friendly their products are, it is known as:

A) greenwashing.
B) social marketing.
C) relationship marketing.
D) consumer trending.

Question 73

Many firms choose to protect or enhance the natural environment as they go about their business activities. This is called "corporate giving."

Question 74

To reduce waste associated with their Downy fabric softener, Procter & Gamble introduced refillable containers. This is an example of:

A) green marketing.
B) ethical marketing.
C) culture jamming.
D) anticonsumption.

Question 75

Which Act is designed to protect consumers, and prohibits against any person from making false or misleading claims in regards to a product?

A) Canada Competition Act
B) Consumer Packaging and Labelling Act
C) Hazardous Products Act
D) National Trademark and True Labelling Act

Question 76

In a survey designed to measure people's willingness to pay for fair-trade coffee, researchers found that most coffee drinkers were willing to pay an average price premium of:

A) 10 percent.
B) 20 percent.
C) 30 percent.
D) 40 percent.

Question 77

A low tar claim in an advertisement for Brand X cigarettes proved to be misleading. Which Act was violated and in what way?

Question 78

What is Transformative Consumer Research? Give an example.

Question 79

What is CSR? Give an example.

Question 80

The fact that bribery in business is acceptable in some countries but not in others demonstrates that:

A) ethics are relative to the situation in which business persons find themselves.
B) cultural jamming has been successfully practiced in some countries.
C) ethics are incompatible with social marketing.
D) practices can be unethical without being illegal.