Deck 2: Value and the Consumer Behavior Framework

Question 1

In the context of Customer Relationship Management (CRM), people and groups who help shape a consumer's everyday experiences also include people unknown to the consumer.

Answer 1

True

Question 2

Cognition refers to the feelings experienced during consumption activities or feelings associated with specific objects.

Answer 2

False

Question 3

Worth to a consumer is actually a function of much more than price.

Answer 3

True

Question 4

A marketer's offering does not create value directly, but rather consumption involves value co-creation.

Question 5

Marketers can maximize the value they receive from exchange by concentrating their marketing efforts on consumers with high customer lifetime values (CLVs).

Question 6

A company that focuses on value creation builds innovative solutions around consumer needs and wants, not the physical product.

Question 7

Situational influences are unique to a time or place that can affect consumer decision making and the value received from consumption.

Question 8

In the context of Customer Relationship Management (CRM), the social and cultural aspects of life are the internal influences that shape consumption-related behavior of a consumer.

Question 9

Every product's value proposition is made up of the basic benefits a product provides and the estimated life of the product.

Question 10

The Consumer Value Framework (CVF) represents consumer behavior (CB) theory illustrating factors that shape consumption-related behaviors and ultimately determine the value associated with consumption.

Question 11

Utilitarian value is the immediate gratification that comes from experiencing some activity.

Question 12

Utilitarian and hedonic values are mutually exclusive.

Question 13

Value can be modeled by playing between "what you get" and "what you have to give" to get the product.

Question 14

The object or activity that allows something else good to happen or be accomplished provides utilitarian value.

Question 15

The same act of consumption cannot provide both utilitarian and hedonic value.

Question 16

A corporate strategy deals with how a company goes about creating value for customers.

Question 17

In the context of customer lifetime value (CLV), every customer is equally valuable to a firm.

Question 18

In the context of Consumer Value Framework (CVF), learning and perception are external influences that shape consumption-related behaviors of consumers.

Question 19

A corporate strategy provides the operating orientation for a company.

Question 20

Relationship quality reflects the connectedness between a consumer and a retailer, brand, or service provider.

Question 21

In the context of perceptual maps, the ideal point represents temporary factors unique to a time or place that can change the value seen in a buying decision.

Question 22

Individual differences have little effect on the value experienced by consumers and the reaction consumers have to consumption.

Question 23

A basic Customer Relationship Management (CRM) premise is that customers form relationships with companies as opposed to companies conducting individual transactions with customers.

Question 24

Consumers ultimately pursue good quality products because they address motivations that manifest themselves in needs and desires.

Question 25

The presence of music in an environment is a social influence.

Question 26

In economics, product differentiation is a term used to represent market sensitivity to changes in price or other characteristics.

Question 27

Hedonic value is derived from a product that helps the consumer solve problems and accomplish tasks that are a part of being a consumer.

Question 28

A market for any product is the sum of the demand existing in individual groups or segments of consumers.

Question 29

In the context of Consumer Value Framework (CVF), social class is an internal influence that shape consumption-related behaviors of consumers.

Question 30

Which of the following scenarios is an example of hedonic value?

A) A man engaging a tutor for his child
B) A woman hiring a laundry service
C) A man reading the latest fiction novel
D) A woman filling out insurance forms for her car

Question 31

Daniel is planning to start a mobile food business to cater to office workers. After conducting a small survey, he finds out that consumers prefer quick but healthy food options. He adjusts his menu to incorporate quick and healthy food alternatives. The busy professionals are Daniel's _____ for his new restaurant.

A) capital market
B) target market
C) warm market
D) close range market

Question 32

The core concept of consumer behavior (CB) is the product quality.

Question 33

Market segmentation is a marketplace condition in which consumers do not view all competing products as identical to one another.

Question 34

A strong, or high-quality, relationship is typified by a consumer who buys the same brand each time a need for that product arises.

Question 35

When firms fail to realize how their products provide value, they run the risk of developing _____.

A) marketing dissonance
B) equity risk
C) margining risk
D) marketing myopia

Question 36

Marketing tactics are ways marketing management is implemented.

Question 37

Customer Relationship Management (CRM) means each customer represents more than just a single sale.

Question 38

In the context of Consumer Value Framework (CVF), lifestyle is considered a(n) _____.

A) virtual influence
B) situational influence
C) social influence
D) internal influence

Question 39

The characteristics and traits that help define a consumer as a distinct person are called _____.

A) value enhancers
B) touchpoints
C) ideal points
D) individual differences

Question 40

The marketing mix represents the factors that shape consumption-related behaviors and ultimately determine the value associated with consumption.

Question 41

A marketing strategy:

A) is the way marketing management is implemented.
B) should provide the vision statement of a company.
C) should provide an effective way of dealing with competition.
D) deals with how a company will be defined.

Question 42

Which of the following scenarios is an example of utilitarian value?

A) A child enjoying a ride on a merry-go-round
B) A man hiring a housekeeping service
C) A woman watching a street performance
D) A man playing video games at a gaming kiosk

Question 43

Raleigh Trust Bank is analyzing its customer database to identify customers with similar patterns of income and expenditure. The bank is looking at data such as age, sex, family size, loan activity, credit card activity, deposits, withdrawal, and account balances of consumers. The bank has identified three different types of customers based on these factors and is planning to offer different products to better meet the needs of each group. Which of the following marketing concepts is illustrated by the given scenario?

A) Cause marketing
B) Market segmentation
C) Corporate strategy
D) Product augmentation

Question 44

Andrea wanted to purchase a gaming desktop computer. After a lot of research, she decided to buy a desktop from a retail store which was giving 3 videogames free with the computer. In this scenario, the gaming computer, along with free videogames, is an example of a(n) _____.

A) diversified product
B) differentiated product
C) segmented product
D) augmented product

Question 45

Which of the following is an example of a marketing tactic?

A) Implementing a new technology in order to reduce costs over the next few years
B) Analyzing the marketing budget for the next two years
C) Distributing a product only through discount stores
D) Setting a company's sales goal

Question 46

Martha, the owner of a small handicrafts store, sometimes decorates her store with festive decorations such as colorful lights, balloons, and fragrant flowers. She observes that customers tend to spend more time in her store and usually end up buying more goods when there is a festive atmosphere in the store. In this scenario, the festive decorations are examples of _____.

A) social influences
B) situational influences
C) utilitarian influences
D) functional influence

Question 47

The Consumer Value Framework (CVF) represents:

A) the set of value-seeking activities that take place as consumers go about addressing their real needs.
B) the multitude of value-producing seller activities that facilitate exchanges between consumers and marketers.
C) the consumer behavior theory, illustrating factors that shape consumption-related behaviors.
D) the approximate worth of a customer to a company in economic terms.

Question 48

_____ captures how much gratification a consumer receives from consumption.

A) Value
B) Positioning
C) Cost-benefit analysis
D) Effort estimation

Question 49

Which of the following statements is true in the context of utilitarian value?

A) Utilitarian value is the immediate gratification that comes from experiencing some activity.
B) Actions that provide utilitarian value are worthwhile because they are an end in and of themselves.
C) When consumers do something to obtain utilitarian value, the action can sometimes be very difficult to explain objectively.
D) When consumers buy something in pursuit of utilitarian value, they can typically provide a clearly rational explanation for the purchase.

Question 50

PrimeAqua Inc. is a company that manufactures and markets bodysuits for professional kayakers. These consumers are predominantly in the age group of 25-45 years. In the given scenario, the market segment that PrimeAqua Inc. serves with a specific marketing mix is called its _____.

A) emerging market
B) warm market
C) target market
D) high-end market

Question 51

In the context of Consumer Value Framework (CVF), which of the following is an external influence?

A) Search
B) Categorization
C) Enculturation
D) Perception

Question 52

_____ deals with how a firm will be defined and sets general goals.

A) Corporate strategy
B) A marketing strategy
C) Customer Relationship Management
D) Perceptual mapping

Question 53

In the context of the value equation, which of the following is a benefit for the customer?

A) Interaction
B) Time
C) Prestige
D) Opportunity

Question 54

Unlike utilitarian value, hedonic value:

A) is a means to an end.
B) solves problems or accomplishes tasks.
C) can be rationally explained.
D) is subjective in nature.

Question 55

Which of the following is an element of the marketing mix?

A) Relationship quality
B) Distribution strategy
C) Corporate strategy
D) External influence

Question 56

Amy is a member of the readers' club in her school. Before she buys any new book, she checks what is popular with the others in her club. In the context of Consumer Value Framework (CVF), Amy's readers' club is a part of her _____ that influences Amy's reading experiences.

A) value network
B) social environment
C) internal environment
D) integrated network

Question 57

As the manager of a leading bank, Ashley regularly collates information about the bank's clients from the "customer preference" page of the bank's website. This enables the bank to make more client-oriented decisions, leading to longer-lasting affiliations with clients. Ashley's actions are an example of _____.

A) Customer Relationship Management (CRM)
B) marketing management
C) Total Quality Management (TQM)
D) internal marketing management

Question 58

The term _____ signifies which market segment a company will serve with a specific marketing mix.

A) nascent market
B) close range market
C) target market
D) warm market

Question 59

Which of the following is true of market segmentation?

A) It is essentially a part of the marketing tactics.
B) It is created by the marketers through differentiated offerings.
C) It is a part of the corporate strategy.
D) It is created by consumers through their unique preferences.

Question 60

In the context of Consumer Value Framework (CVF), _____ is an internal influence.

A) timing
B) categorization
C) family influence
D) acculturation

Question 61

EasyShop, a chain of supermarkets, recognizes that it needs to increase revenue in the face of severe budget cuts due to the weak economy. The store has decided to run a sale every month and upgrade their stock more regularly so that customers see new products every month. They are planning to offer a wider selection of brands for men and women. They are also planning to advertise on billboards, radio, and television, and in newspapers throughout the state. In this scenario, which of the following strategies is EasyShop using?

A) Marketing tactics
B) Product differentiation
C) Perceptual mapping
D) Customer value proposition

Question 62

A garment manufacturing company, Stitch Inc., plans to launch a clothing line for teenagers. Before designing the clothes, it surveys teenagers to understand their requirements. In the given scenario, the teenage group can be best described as the _____.

A) emerging market
B) target market
C) close range market
D) community market

Question 63

A product with backward sloping demand displays:

A) a positive price-to-quantity demanded relationship.
B) a negative price-to-quantity demanded relationship.
C) a higher consumer sensitivity toward price than toward product quality.
D) a higher consumer sensitivity toward price than toward product desirability.

Question 64

In the context of Customer Relationship Management (CRM), which of the following statements is true?

A) Customers who experience high value from service do not equate it to high-quality relationship.
B) Loyal customers are more profitable than customers who consider switching brand or providers each time they make a purchase.
C) Irrespective of the relationship quality, customers are highly receptive to brand extensions.
D) High-quality is typified by a consumer who occasionally shops at other stores but keep returning to the preferred store again and again.

Question 65

The term _____ means the original product plus the extra things needed to increase the value from consumption.

A) augmented product
B) complete product
C) differentiated product
D) enhanced product

Question 66

Sam needed a new pair of bicycle pedals as the pedals of his bicycle had cracks in them. After visiting several stores to find the right ones, he purchased a pair from a local store, All Things Sports, and was satisfied that his needs were met. Which of the following best describes the type of value Sam received?

A) Premium value
B) Utilitarian value
C) Hedonic value
D) Terminal value

Question 67

Which of the following statements is true of situational influences?

A) They cannot change the value seen in a buying decision and received from consumption.
B) They include elements like attitude, lifestyle, and emotional intelligence.
C) They shape consumer behavior and even change buying patterns.
D) They are not temporary as they stem from cultural values of a consumer.

Question 68

FameTech is an American software company whose clients are based in France. The company has formed a team to determine the direction the organization should take over the next five years. The focus of this team is to increase the company's clientele in Europe. The company is keen on taking advantage of the opportunities and avoiding threats in the changing environment. In the context of consumer value, this team is involved in developing a _____ for the organization.

A) blueprint
B) strategy
C) Customer Relationship Management (CRM) system
D) Consumer Value Framework (CVF)

Question 69

Natalie and her friends enjoy visiting upscale stores together. Sometimes they indulge in buying things they do not need. The experience of buying things in expensive stores gives them pleasure and satisfaction. In the given scenario, Natalie and her friends experience _____.

A) instrumental value
B) utilitarian value
C) hedonic value
D) terminal value

Question 70

Since childhood, Meg's parents always told her that fruits are good for health. As a result, Meg developed a liking for fruits. She makes sure to include fruits in everyday diet. In this scenario, Meg's thinking or mental process is referred to as _____.

A) internal influence
B) cognition
C) induction
D) situational influence

Question 71

The term _____ refers to the thinking or mental processes that go on as we process and store things that can become knowledge.

A) value co-creation
B) cognition
C) affect
D) circadian rhythm

Question 72

The "zero moment of truth" is the point when:

A) an organization accepts the failure of a product in the market.
B) a consumer realizes that a product has failed to live up to expectations.
C) the demand for a newly introduced product exceeds the production capacity of a company.
D) a passive shopper becomes an active shopper and actively seeks out exchange alternatives.

Question 73

_____ is a personal assessment of the net worth a consumer obtains from an activity.

A) Value
B) Judgment
C) Benefit
D) Effort

Question 74

Which of the following products is an augmented product?

A) A smartphone with the latest specifications and features
B) A car with three years of free service
C) A house with electricity and water
D) A cutlery set that is made of stainless steel

Question 75

Cullen and MacNeil's is a printing press. It currently faces a threat from the electronic media. The company primarily views itself as a printing company instead of a company that delivers the benefits that the consumers want. In the given scenario, Cullen and MacNeil's outlook is an example of _____.

A) marketing myopia
B) attitude inoculation
C) positive disconfirmation
D) marketing dissonance

Question 76

In the context of hedonic value, which of the following statements is true?

A) The actions to obtain hedonic value can sometimes be very difficult to explain objectively.
B) The actions that provide hedonic value are worthwhile because they provide a means to an end.
C) Hedonic value is the gratification derived from actions that help a consumer solve problems.
D) The actions that provide hedonic value allow something to be accomplished.

Question 77

Amanda and Steve wanted to open a convenience store. After conducting some research, they decided to open the store near one of the residential areas of the town that did not have any other convenience store. The people residing in the nearby residential area welcomed the idea of a store close by, and the venture was a success. Which of the following strategies did Amanda and Steve implement to start their business?

A) The blue ocean strategy
B) The cannibalization strategy
C) The acquisition strategy
D) The penetration strategy

Question 78

_____ represents the degree of connectedness between a consumer and a service provider.

A) Relationship quality
B) Utilitarian value
C) Hedonic value
D) Cognition

Question 79

In the value equation, which of the following is identified as a sacrifice for a consumer?

A) Convenience
B) Experience
C) Opportunity
D) Prestige

Question 80

Siesta Inc., a mattress store, recently launched a new range of mattresses. According to the management of the company, these mattresses are made with advanced technology and guarantee a good sleep. However, the sales are not very promising. An in-store survey shows that consumers find the mattresses expensive and are reluctant to invest too much in a product that is new in the market. To boost the sales, the marketing team decides to reduce the price by ten percent and offer a three-month return policy. As soon as these changes are implemented, the sale of the new mattresses picks up. The reduction in the price and the offer of return policy are examples of _____.

A) situational influences
B) switching costs
C) marketing tactics
D) loyalty programs