Question 1

Microeconomics deals primarily with aggregates such as the total amount of products produced by society and the absolute levels of prices.

Accepted Answer

Microeconomics focuses on individual units, such as consumers and firms, and their decisions, rather than on aggregates, which are the concern of macroeconomics.

Question 2

In a command system, a central government agency ascertains collective or governmental ownership and administration of the means of production and distribution of goods.

Accepted Answer

In a command system, also known as a planned economy, the central government makes all decisions regarding the production and distribution of goods and services, including the ownership and management of the means of production.

Question 3

Most modern economies in democratic nations are free market economies.

Accepted Answer

False

Question 4

Consumer sovereignty is the notion that people are only as rational as their limited resources, knowledge, and time will permit.

Accepted Answer

Consumer sovereignty is the idea that consumers have the ultimate control over the goods and services produced by choosing what to purchase, and their preferences and spending decisions guide the types of products that are produced.

Question 5

It is not rational to purchase a product or service based on emotions, or feelings that are not physically controllable.

Accepted Answer

Emotions play a significant role in decision-making processes, including purchasing decisions. Emotional connections can drive consumer behavior and loyalty, making it rational in certain contexts to consider emotions in purchasing choices.

Question 6

Needs originate from either psychological makeup or from the consumer's sociocultural environment, and therefore it is doubtful that marketers can create needs or desires.

Accepted Answer

Marketers cannot create the fundamental needs that arise from the psychological or sociocultural conditions of consumers. They can only influence desires or wants by positioning their products or services as solutions to existing needs.

Question 7

An extended warrantee is an example of improving relationship marketing and focusing on post-purchase behavior.

Accepted Answer

Offering an extended warranty can improve relationship marketing by enhancing customer satisfaction and loyalty, as it shows the company's commitment to quality and customer service even after the purchase has been made.

Question 8

Physical activity, sensory stimulation, and social experiences are examples of nonfunctional shopping motives.

Accepted Answer

Physical activity, sensory stimulation, and social experiences are all examples of hedonic shopping motives, which are nonfunctional motives that are not related to the actual purchase of a product.

Question 9

When there is a high level of affective involvement, consumers wish to make a rational, informed decision and put lots of thought into their decision process.

Accepted Answer

High levels of affective involvement usually mean that emotions and feelings play a significant role in the decision-making process, rather than a purely rational or extensively thought-out approach.

Question 10

Newspapers, magazines, direct mail, and mobile media tend to be high involvement media.

Accepted Answer

The answer of Newspapers, magazines, direct mail, and mobile media...

Question 11

The key assumption that underlies microeconomics is ________.
A) Consumption
B) Rationality
C) Maximizing profit
D) Elasticity
E) Production

Accepted Answer

Rationality is the key assumption that underlies microeconomics. It assumes that individuals and firms make decisions that they believe will maximize their benefit or utility.

Question 12

In which economic system is the means of production and distribution privately owned?
A) Command System
B) Statism
C) Mixed Economy
D) Market Economy
E) Centrally Planned Economy

Accepted Answer

In a market economy, the means of production and distribution are owned by private individuals or companies rather than by the state. This system relies on the free market to determine what goods and services are produced, how they are produced, and for whom they are produced.

Question 13

What is the name of the state in which a consumer experiences a discrepancy between her desired state of affairs and her actual state of affairs, resulting in an unsatisfied need or want or an unsolved problem?
A) Problem recognition
B) Problem-solution advertising
C) Covert problem
D) Internal search
E) Environmental search

Accepted Answer

Problem recognition occurs when a consumer identifies a difference between their current state and their desired state, leading to the realization of an unsatisfied need or want.

Question 14

You are about to rent a car for your one-week family vacation in Toronto. You have used car rental services from Avis, Alamo, Enterprise, and Budget in the past and you were unsatisfied with the customer service provided by Budget. When you used Avis, you thought that the rates were much too high. Which brands are in your evoked set?
A) Budget
B) Avis
C) Budget and Avis
D) Alamo and Enterprise
E) Avis, Alamo, Enterprise, and Budget

Accepted Answer

An evoked set refers to the group of brands a consumer considers when making a purchase decision. Since you were unsatisfied with Budget and found Avis too expensive, you would likely consider the remaining options, Alamo and Enterprise, for your rental needs.

Question 15

You are about to rent a car for your one-week family vacation in Toronto. You have used car rental services from Avis, Alamo, Enterprise, and Budget in the past and you were unsatisfied with the customer service provided by Budget. When you used Avis, you thought that the rates were much too high. Which brands are in your evoked set?
A) Budget
B) Avis
C) Budget and Avis
D) Alamo and Enterprise
E) Avis, Alamo, Enterprise, and Budget

Accepted Answer

The evoked set includes brands that a consumer considers when making a purchase decision. Since you were unsatisfied with Budget and found Avis too expensive, they would not be in your evoked set, leaving Alamo and Enterprise as the brands you would consider.

Question 16

The extent to which the purchase decision has perceived personal importance and relevance for the buyer is __________.
A) Value-expressive products
B) Involvement
C) Semantic differential scales
D) Search time
E) Environmental involvement

Accepted Answer

Involvement refers to the level of perceived personal importance and relevance that a purchase decision has for a consumer. It indicates how much effort the buyer is willing to put into the decision-making process.

Question 17

Which type of consumer involvement is related to utilitarian needs?
A) Affective involvement
B) Ego involvement
C) Cognitive involvement
D) Purchase situation involvement
E) Product involvement

Accepted Answer

Cognitive involvement is related to utilitarian needs because it involves a functional or practical aspect of product usage, focusing on the consumer's information processing and decision-making processes.

Question 18

What is a sticky Web site?
A) A website that attracts repeat visitors that are engaged enough to stay for extended periods of time
B) A website that spreads rapidly in popularity due to word-of-mouth.
C) A website that has a regular repeat audience that stays for short time periods but visits often
D) A website that provides more sales revenue for a product than its retail outlets
E) A website that is constantly being updated with new sales promotions generating a new audience daily

Accepted Answer

A sticky website is one that attracts repeat visitors who are engaged enough to stay for extended periods of time, often due to compelling content or interactive features.

Question 19

Items for which consumers have very strong brand preferences are __________.
A) Shopping goods
B) Convenience goods
C) Credence goods
D) Specialty goods
E) Experience goods

Accepted Answer

Specialty goods are those for which consumers have very strong brand preferences and are willing to make a special effort to purchase. They typically involve high consumer loyalty and unique characteristics that set them apart from other types of goods.

Question 20

Utilization of loyalty marketing, affinity marketing, and club marketing programs are examples of strategies for __________.
A) Building a consumer brand franchise
B) Building brand attribute awareness
C) Building consumer involvement
D) Responding to hedonic needs
E) Responding to ego risk

Accepted Answer

Loyalty marketing, affinity marketing, and club marketing programs are strategies aimed at creating a strong, loyal customer base by rewarding customers for their continued business. This approach helps in building a consumer brand franchise by fostering a sense of belonging and loyalty among consumers, encouraging repeat purchases and long-term commitment to the brand.

Quiz 3: Overview of Consumer Decision Making

Microeconomics deals primarily with aggregates such as the total amount of products produced by society and the absolute levels of prices.

In a command system, a central government agency ascertains collective or governmental ownership and administration of the means of production and distribution of goods.

Most modern economies in democratic nations are free market economies.

Consumer sovereignty is the notion that people are only as rational as their limited resources, knowledge, and time will permit.

It is not rational to purchase a product or service based on emotions, or feelings that are not physically controllable.

Needs originate from either psychological makeup or from the consumer's sociocultural environment, and therefore it is doubtful that marketers can create needs or desires.

An extended warrantee is an example of improving relationship marketing and focusing on post-purchase behavior.

Physical activity, sensory stimulation, and social experiences are examples of nonfunctional shopping motives.

When there is a high level of affective involvement, consumers wish to make a rational, informed decision and put lots of thought into their decision process.

Newspapers, magazines, direct mail, and mobile media tend to be high involvement media.

The key assumption that underlies microeconomics is ________.

In which economic system is the means of production and distribution privately owned?

What is the name of the state in which a consumer experiences a discrepancy between her desired state of affairs and her actual state of affairs, resulting in an unsatisfied need or want or an unsolved problem?

The extent to which the purchase decision has perceived personal importance and relevance for the buyer is __________.

Which type of consumer involvement is related to utilitarian needs?

What is a sticky Web site?

Items for which consumers have very strong brand preferences are __________.

Utilization of loyalty marketing, affinity marketing, and club marketing programs are examples of strategies for __________.