Deck 8: Final Consumers

Question 1

Final consumers purchase goods and services for

A) personal use.
B) personal, family, or household use.
C) family use.
D) household use.

Answer 1

personal, family, or household use.

Question 2

Those buying goods and services purchased for further production, usage in operating an organization, or resale to other consumers are

A) large businesses.
B) small businesses.
C) organizational consumers.
D) final consumers.

Answer 2

organizational consumers.

Question 3

The objective and quantifiable population characteristics of consumers are known as

A) sociographics.
B) demographics.
C) census data.
D) psychographics.

Answer 3

demographics.

Question 4

Which of these is NOT a consumer demographics variable?

A) Status consciousness
B) Mobility
C) Marital status
D) Education

Question 5

As of 2010, the world population was about ___ people.

A) 500 million
B) 900 million
C) 7 billion
D) 10 billion

Question 6

As of 2010, the U.S. population was about ___ people.

A) 240 million
B) 310 million
C) 350 million
D) 425 million

Question 7

The U.S. population is growing at ___ percent per year.

A) less than 1
B) 2
C) 3
D) 4

Question 8

The United States accounts for about what percent of the world's population?

A) Less than 1
B) 2
C) 5
D) 10

Question 9

The current life expectancy for newborn U.S. females is about ___ years.

A) 68
B) 80
C) 85
D) 88

Question 10

Compared with U.S. males, U.S. females are expected to live

A) to about the same age.
B) three years longer.
C) six years longer.
D) twelve years longer.

Question 11

The smallest amount of residence changes in the United States involves moves

A) to a different region.
B) within the same region.
C) within the same county.
D) within the same state.

Question 12

Recently, the greatest population growth in the United States has been in which geographic region?

A) Central Southeast
B) Northeast
C) Mountain
D) Middle Atlantic

Question 13

A measure of a region's wealth that is less affected by very high incomes of a small segment of the population than GDP per capita is

A) mean discretionary income.
B) mean disposable income.
C) the Buying Power Index.
D) median income.

Question 14

The total amount consumers annually pay for goods and services is known as the

A) consumer price index.
B) cost of living.
C) index of buying power.
D) gross domestic product.

Question 15

Over the past 20 years, which sector within the United States has had the largest cost increases?

A) Apparel
B) Telephone services
C) Medical care
D) Household furnishings

Question 16

Changes in the cost of living are monitored through the

A) index of buying power.
B) cost of living index.
C) consumer price index.
D) index of retail saturation.

Question 17

Disposable income is defined as the

A) actual income a consumer has to spend.
B) income left for luxuries, after necessities are bought.
C) real income a consumer has to spend.
D) after-tax income to be used for spending and/or savings.

Question 18

Discretionary income is defined as the

A) income to be used for spending and/or savings.
B) income available for luxuries, after necessities are bought.
C) real income a consumer has to spend.
D) actual income a consumer has to spend.

Question 19

A marketing manager is seeking to forecast sales of a luxury product in the United States. What income measure should the manager use?

A) GDP per capita
B) Disposable income
C) Discretionary income
D) Per-capita income

Question 20

The U.S. labor force is continuing its steady movement away from

A) managerial and administrative professions.
B) service-based occupations.
C) sales occupations.
D) nonskilled workers.

Question 21

In the United States, approximately what proportion of adults age 25 and older have graduated from high school?

A) 50 percent
B) 75 percent
C) 88 percent
D) 95 percent

Question 22

Which of the following countries has the highest percent of 4-year college graduates?

A) Canada
B) Italy
C) United States
D) Great Britain

Question 23

A family is defined as

A) all persons who occupy a housing unit together.
B) a husband, wife, and children.
C) two or more persons residing together who are related by blood, marriage, or adoption.
D) married individuals living together or apart.

Question 24

A household is defined as

A) a person or group of persons who occupy a housing unit, whether related or unrelated.
B) a husband, wife, and children.
C) two or more persons residing together who are related by blood, marriage, or adoption.
D) a married couple living together or apart.

Question 25

A composite description of a consumer group which is based upon such factors as age, income, and education is a

A) lifestyle profile.
B) buying power profile.
C) consumer demographic profile.
D) socioeconomic profile.

Question 26

Demographic data can answer which one of these questions?

A) Why are some consumers innovators?
B) What is the impact of perceived risk on consumer decision making?
C) What are the differences between purchases in single- and multiple-person households?
D) Why do some consumers become brand loyal?

Question 27

Which of the following characteristics illustrate a cultural component of a consumer's social characteristics?

A) Aspirational, membership, and dissociative
B) Vice-president, social, and married
C) Achievement and success, youthfulness, and fitness
D) Income, education, and dwelling type

Question 28

The social class system classifies individuals on the basis of

A) income, education, and marital status.
B) income, occupation, education, and dwelling type.
C) age, education, and family position.
D) social performance and reference group structure.

Question 29

In contrast to social class structure in less-developed and developing nations,

A) social performance is easier to measure in industrialized countries.
B) social classes are more rigidly defined in industrialized countries.
C) the middle class is smaller in industrialized countries.
D) social class mobility is greater in industrialized countries.

Question 30

Which social class group consists of business leaders and professionals?

A) Upper-lower
B) Upper-middle
C) Upper-upper
D) Lower-upper

Question 31

Social performance focuses on

A) a person's role as an opinion leader.
B) how a person carries out his or her roles as a worker, family member, citizen, and friend.
C) how innovative a person is in making purchases.
D) the reference groups a person uses in reaching decisions.

Question 32

Opinion leaders

A) are the first to purchase a new product.
B) are a company-sponsored source of information.
C) communicate with others through face-to-face communication.
D) have an impact over a wide range of products.

Question 33

Which of these is NOT included in the traditional family life-cycle concept?

A) Divorced individuals who remarry
B) Bachelors
C) Newly-married couples
D) Sole survivors

Question 34

Which family life-cycle stage most closely corresponds to the oldest age group?

A) Full nest III
B) Sole survivor I
C) Sole survivor II
D) Empty nest II

Question 35

The sum total of a person's enduring psychological traits that make that person unique is his or her

A) social class.
B) personality.
C) psychological profile.
D) lifestyle.

Question 36

Which of these behaviors is most appropriate for an inner-directed person?

A) Seeking products with high social visibility
B) Seeking products that are prestigious
C) Relying upon one's judgment
D) Seeking approval by face-to-face groups

Question 37

A person who seeks approval by reference groups is an

A) opinion follower.
B) opinion leader.
C) inner-directed person.
D) outer-directed person.

Question 38

A consumer's overall perceived risk can be reduced by

A) introducing a constant stream of new products.
B) conforming to Underwriters Laboratory tests for electrical safety.
C) offering money-back guarantees if customers are not satisfied for any reason whatsoever.
D) using components that are made in the United States.

Question 39

Which lifestyle is most closely compatible with a concern for ecological issues?

A) Blurring of gender roles
B) Component life-style
C) "Me" generation
D) Voluntary simplicity

Question 40

Which lifestyle places less emphasis on responsibilities and loyalties?

A) Blurring of gender roles
B) Component life-style
C) "Me" generation
D) Voluntary simplicity

Question 41

The increase in working women, the long distances between home and work, and the rise in people working at second jobs have led to an increase in which consumer lifestyle?

A) Poverty of time
B) Blurring gender roles
C) Voluntary simplicity
D) "Me" generation

Question 42

Which stimulus directly affects a consumer's physical senses?

A) Commercial cue
B) Noncommerical cue
C) Social cue
D) Physical drive

Question 43

At the problem awareness stage, a consumer

A) recognizes that a good, service, organization, person, place, or idea under consideration may solve a problem of shortage or unfullfilled desire.
B) decides a shortage or unfulfilled desire is worthy of consideration.
C) selects an alternative from a variety of choices.
D) evaluates alternatives before making a decision.

Question 44

A consumer lists alternatives that will solve a problem at hand and determines the characteristics of them in which stage in the decision process?

A) Problem awareness
B) Evaluation of alternatives
C) Stimulus
D) Information search

Question 45

A retailer can best reduce cognitive dissonance through

A) determining customer satisfaction through consumer surveys.
B) charging low prices through providing low levels of customer service.
C) lowering purchase costs through mail order sales.
D) providing aftercare to consumers.

Question 46

Which type of decision making process is most likely to occur when a consumer has little or no experience in buying a particular product and considers this purchase to be quite important?

A) Extended decision making
B) Limited decision making
C) Routine decision making
D) Brand loyalty

Question 47

Which type of decision process has the LOWEST degree of perceived risk?

A) Extended consumer decision making
B) Low-involvement purchasing
C) Limited decision making
D) Cognitive decision making

Question 48

For products perceived to be socially and/or psychologically unimportant, consumers utilize

A) low-involvement purchasing.
B) cognitive decision making.
C) brand loyalty.
D) limited decision making.

Question 49

Brand loyalty involves

A) passive information seeking and evaluating products after (rather than before) purchases are made.
B) the consistent repurchase and preference toward a particular brand.
C) brand preference toward several brands.
D) only low-involvement purchasing situations.

Question 50

A major limitation of the consumer's decision process is that

A) many elements in the process are unexpressed.
B) social factors are not considered.
C) personality is not considered.
D) demographic factors are not considered.

Question 51

In contrast to social and psychological characteristics about consumers, demographic data

A) are more helpful in specifying a target market.
B) can be better used in understanding consumer behavior.
C) can be used to develop consumer profiles.
D) are easier to collect and measure.

Question 52

By establishing consumer demographic profiles, a firm can

A) see the interaction of lifestyles and demographics.
B) better focus on a firm's target market.
C) determine the effect of price on consumer buying behavior.
D) measure opportunities in less-developed and developing countries.

Question 53

The major advantage of the Survey of Buying Power in comparison to the Census of Population is its

A) smaller geographic unit of aggregation.
B) not being subject to copyright laws.
C) being more up-to-date.
D) being available in small units called blocks and tracts.

Question 54

Which statement about the quality of worldwide demographic data is correct?

A) Less-developed and developing countries have considerable experience collecting and analyzing demographic data.
B) Demographic data is likely to be systematically collected in developing and less-developed nations due to concern for an area's progress.
C) No major secondary source exists which regularly publishes worldwide demographic data.
D) Demographic data is generally more accurate and more current for industrialized countries than for developing and less-developed countries.

Question 55

A maker of low-salt food items is considering distributing its products in regions with high concentrations of senior citizens (defined by the company as over 70 years old). In developing its advertising strategy, the firm should keep in mind that these regions are most likely to have

A) more females than males.
B) high proportions of married persons (with both spouses alive).
C) high disposable incomes.
D) large proportions of professionals.

Question 56

Which of these statements about the mobility of the U.S. population is correct?

A) The greatest growth in the United States from 1990 to 2000 was in the Middle Atlantic region.
B) Most of the moves within the United States are outside a person's current region.
C) The mobility of the U.S population is the same in all regions of the United States.
D) About 14 percent of the U.S. population moves annually.

Question 57

The most appropriate measure of personal income in a country is

A) GDP per capita.
B) GNP per capita.
C) median income.
D) the number of people classified as being "absolute poor."

Question 58

The consumer price index is used

A) to measure the penetration rate for selected goods and services.
B) to convert disposable income to discretionary income.
C) to indicate the number of hours an average person needs to work to purchase selected goods and services.
D) as a measure of a country's rate of inflation during a specific time period.

Question 59

The consumer price index for apparel was 100 in a given year; five years later it was 131. This means that an article of clothing that initially sold for $30 would cost ___ five years later.

A) $24
B) $39
C) $61
D) $69

Question 60

If a consumer's actual earnings increase by 3 percent but the consumer price index (CPI) rises by 5 percent, that consumer is facing a(n)

A) increase in discretionary income.
B) decline in disposable income.
C) falling CPI.
D) constant real income.

Question 61

Which of the following statements concerning disposable or discretionary income is correct?

A) Discretionary income reflects one's take-home pay.
B) Disposable income is greater than discretionary income.
C) Disposable income is generally used to predict purchases of luxuries.
D) Unlike discretionary income, disposable income reflects the applicable inflation rate.

Question 62

A fine watch manufacturer that markets watches costing from $3,000 to $25,000+ wants to determine the percentage of an area's households that would purchase its products. The firm plans to determine the number of authorized watch dealers in each territory based upon this calculation. This manufacturer should study the average household's

A) disposable income.
B) discretionary income.
C) per-capita income.
D) real income.

Question 63

The large number of working women increases the need for

A) value-oriented pricing.
B) greater consumer choice.
C) time-saving services.
D) increased consumer voice.

Question 64

The major difference between a family and a household is based upon

A) the size of the unit.
B) whether the members of the unit are related or unrelated.
C) whether the head of the household unit is male or female.
D) whether the female head of household is working on a full-time basis.

Question 65

Which statement concerning ethnicity/race is correct?

A) Worldwide, there are less than five different languages that are each spoken by at least one million people.
B) Hispanic is a racial term.
C) The percent of white population in the United States is forecast to increase between 2010 and 2050.
D) The increase in ethnic and racial segments in the United States is due to both birth rates and immigration.

Question 66

Which of these data would NOT be part of a demographic profile of the American consumer?

A) The life expectancy is 79 years for females.
B) Sixty-four percent of Americans own their home.
C) Sixty-four percent of the male population is introverted.
D) Seventy-five percent of adults are high school graduates.

Question 67

Eighty-three percent of the readers of a popular business magazine are male. Its readers' average household income is $85,800, and over 97 percent work in a professional/managerial capacity. These data describe the magazine's consumer

A) buying power index.
B) life-style profile.
C) demographic profile.
D) sociographic profile.

Question 68

Which of the following is NOT a major limitation of demographic data?

A) Poor reliability due to difficulties in measurement
B) Time lags between collection and distribution of data
C) Poor availability of demographic data in less-developed and developing countries
D) Broad demographic data that can hide opportunities

Question 69

Which of these questions could be answered by collecting and analyzing demographic data?

A) Why do consumers with similar demographic characteristics act so different?
B) How do different motives affect consumer decisions?
C) What are the factors that affect a consumer's perceived risk?
D) What geographic areas have the largest population increases of senior citizens?

Question 70

An advertising agency has developed a campaign for an exercise machine that stresses youthfulness, fitness, and health. The campaign is focusing on which of these concepts?

A) Social performance
B) Reference group influence
C) Social class
D) Culture

Question 71

Which of these statements about social class is NOT correct?

A) The middle class is known as "typical Americans."
B) Each social class may represent a distinct target market.
C) The lower-upper class has the highest income level.
D) The largest social class is the upper-middle.

Question 72

A person has a position as an executive with a major firm, is active in the community, and has many friends. These characteristics describe the person's

A) reference group.
B) social class.
C) social performance.
D) family life cycle.

Question 73

Which statement concerning opinion leaders is NOT correct?

A) They are generally expert about a product category.
B) They are viewed as credible by consumers.
C) They have an impact over a wide range of products.
D) They generally provide information on a face-to-face basis.

Question 74

An appliance salesperson has learned to focus his or her presentation to the female head of household in terms of color, freezer location preference (side or top), and shelf preference (glass or coated wire). In contrast, the salesperson tends to focus his or her presentation to the male head of the household when discussing water hookups and payment terms options. The salesperson is demonstrating which aspect of consumer decision making?

A) Joint decision making
B) Family life cycle
C) Household life cycle
D) Perceived risk

Question 75

Which lifestyle most closely matches the behavior of inner-directed persons?

A) "Me" generation
B) Blurring of gender roles
C) Voluntary simplicity
D) Poverty of time

Question 76

Which of these types of perceived risk is most likely to be high for outer-directed persons?

A) Social
B) Psychological
C) Time
D) Financial

Question 77

Which of these statements about perceived risk is correct?

A) A consumer's assessment of perceived risk may not necessarily correlate with the real level of risk.
B) Perceived risk, as judged by consumers, is less important than actual risk to marketers.
C) Functional perceived risk relates to a product's safety.
D) Marketers have little control in reducing consumers' perceived risk levels.

Question 78

The Following Questions are linked to this scenario: An amateur photographer is especially interested in the quality of photo processing in terms of trueness of color, sharpness of image, and absence of scratches on the negative.

-What type of perceived risk is most critical to this photographer?

A) Financial perceived risk
B) Social perceived risk
C) Psychological perceived risk
D) Functional perceived risk

Question 79

The Following Questions are linked to this scenario: An amateur photographer is especially interested in the quality of photo processing in terms of trueness of color, sharpness of image, and absence of scratches on the negative.

-Which consumer behavior decision process would best explain the photographer's purchase process?

A) Routine consumer decision making
B) Limited consumer decision making
C) Low-involvement purchasing
D) High importance of purchase

Question 80

Which strategy is most appropriate for a retailer that seeks to appeal to the poverty-of-time lifestyle?

A) Display of working models in each store
B) Overordering inventory to limit stockouts
C) Appeal to male shoppers by using additional male employees
D) Catalog-based sales and home delivery