Question 1

The _____ rule of combining attribute information simply multiplies each attribute importance weight by the attribute value and sums these terms for the relevant products.
A) Lexicographic
B) Conjunctive
C) Compensatory
D) Zero-sum
E) Problem solving

Accepted Answer

The compensatory rule involves multiplying each attribute's importance weight by the attribute value and then summing these terms for the relevant products, allowing poor attributes to be compensated by better ones.

Question 2

Identify the rule of combining attribute information that first compares all products on the most important characteristic alone and eliminates those not at the top.
A) Lexicographic
B) Conjunctive
C) Zero-sum
D) Consumptive
E) Consensus

Accepted Answer

The lexicographic rule is a decision-making process where alternatives are evaluated and compared based on the most important attribute first. Products not performing well on this key attribute are eliminated from consideration, focusing only on the top performers for further evaluation.

Question 3

This rule, of combining attribute information, assumes the consumer sets minimum cutoffs on each dimension and rejects a product if it has any characteristics below the cutoff.
A) Compensatory
B) Conjunctive
C) Progressive
D) Lexicographic
E) Zero-sum

Accepted Answer

The conjunctive rule is where a consumer sets minimum acceptable cutoff levels for each attribute and rejects any option that does not meet all the minimum criteria.

Question 4

Consumers considering the purchase of a radically new technological product are MOST likely to use
A) Routinized response behaviors
B) Limited problem-solving
C) Technological-aversive behaviors
D) Extensive problem-solving
E) Habitual problem-solving

Accepted Answer

Consumers are likely to use extensive problem-solving when purchasing a radically new technological product because it involves a high level of involvement, research, and evaluation due to the unfamiliarity and complexity of the product.

Question 5

A consumer considering replacing his old Kenmore dishwasher after looking at a couple of other brands and choosing between them is MOST likely to use
A) Routinized response behavior
B) Limited problem-solving
C) Technology-aversive behavior
D) Extensive problem-solving
E) Habitual problem-solving

Accepted Answer

Limited problem-solving is most likely used in this scenario because the consumer is considering a few options and making a decision based on a comparison, which involves more thought than habitual or routinized behavior but less than extensive problem-solving.

Question 6

Value of a product to the customer
A) Is always high for costly products
B) Is judged only on the basis of the costs involved
C) Is what the product is worth to the customer
D) Depends only on the benefits offered
E) Is always low for inexpensive products

Accepted Answer

Value of a product to the customer is subjective and is determined by what the product is worth to them, considering both its benefits and costs.

Question 7

This judgment bias, relevant to marketing, suggests that when individuals do not have strong preferences, they will tend toward a middle choice, i. e., a middle-price, middle-quality product.
A) Losses loom larger than gains
B) Compromise effect / extremism aversion
C) Attraction effect
D) Transaction utility
E) Status quo bias

Accepted Answer

The Compromise Effect or Extremism Aversion describes the tendency of consumers to choose an option that represents a compromise among the available options, often a middle-ground choice, especially when they lack strong preferences. This is particularly relevant in marketing, where offering a range of products can guide consumers towards a middle-priced option.

Question 8

Richard bought a new 4 GB USB flash drive, costing $100, for $85 in a sale. He was extremely happy with his buy and the fact that he had saved $15, even though he did not really require a flash drive. Richard's behavior relates BEST to which of the following biases relevant to marketing?
A) Losses loom larger than gains
B) Compromise effect / extremism aversion
C) Attraction effect
D) Transaction utility
E) Status quo bias

Accepted Answer

Richard's satisfaction comes from the perceived value of the deal rather than the necessity of the product, which is a clear example of transaction utility. This concept refers to the psychological satisfaction or dissatisfaction associated with the financial aspects of a deal, separate from the actual utility or use value of the product or service purchased.

Question 9

_____ can be represented by the premium a customer would pay for one product over another when the economic and functional attributes are identical.
A) Value added tax
B) Market dominance
C) Brand equity
D) Brand attribution
E) Segmentation efficiency

Accepted Answer

Brand equity represents the value a brand adds to a product, which can be reflected in how much more a customer is willing to pay for a product from one brand over another, assuming all other factors are equal.

Question 10

Loyalty to a brand is the strongest type of equity and the most beneficial for sellers. It BEST relates to which of the following broad categories of customers thinking and behavior toward a brand.
A) Awareness
B) Association
C) Attitude
D) Attachment
E) Alertness

Accepted Answer

Attachment best describes the strong loyalty to a brand, as it implies a deep emotional connection and commitment that goes beyond mere awareness, associations, or attitudes. This level of customer-brand relationship is highly beneficial for sellers because it often leads to repeat purchases and advocacy.

Question 11

This broad category of customer thinking and behavior toward a brand has the strongest fans of a brand who become advocates, spreading positive word of mouth and encouraging channels to stock the brand as well as participating in brand communities.
A) Awareness
B) Association
C) Attitude
D) Attachment
E) Activity

Accepted Answer

The answer of This broad category of customer thinking and...

Question 12

A really new product is LESS likely to succeed if
A) It is adopted by a variety of parties
B) It is not complex
C) Its usage is consistent with the consumers' past behavior
D) It has a relative advantage
E) Its sampling requires major commitment.

Accepted Answer

A new product's success is often hindered by high initial commitment requirements, as potential users are typically hesitant to make significant investments without assurance of value or satisfaction.

Question 13

Using customer responses to estimate the value of a product typically involves direct ratings by customers and may include all of the following approaches, EXECPT
A) Ratings.
B) Balance scorecards
C) Constant sum ratings across brands
D) Graded paired comparisons
E) Conjoint analysis

Accepted Answer

Balance scorecards are a strategic planning and management system used for organizational performance management, not specifically for estimating the value of a product based on customer responses. The other options (A, C, D, E) are direct or indirect methods for assessing customer preferences or the perceived value of products.

Question 14

This method for assessing sensitivity to elements of the marketing mix uses the knowledge of managers, the sales force, etc.
A) Expert judgment
B) Customer survey-based methods
C) Experiments
D) Analyses of past data
E) Scanner data

Accepted Answer

Expert judgment relies on the insights and experiences of managers, the sales force, and other knowledgeable individuals to assess sensitivity to marketing mix elements, rather than on direct customer feedback, experimental data, or historical data analysis.

Question 15

The net margin of customer transactions, less any cost attributable to maintaining a particular customer and discounted appropriately over time to current value is the
A) Operational profit of a firm
B) Monetary value of a customer
C) Opportunity cost of a firm
D) Transaction cost of a customer
E) Net worth of the firm

Accepted Answer

The net margin of customer transactions, less any cost attributable to maintaining a particular customer and discounted appropriately over time to current value, defines the monetary value of a customer. This concept is used in customer relationship management and marketing to assess the financial value each customer brings to the business over time.

Question 16

Under _____, products and services are marketed to individuals rather than to segments.
A) Mass customization
B) Customized segmentation
C) Segmented marketing
D) Mass production
E) Individual segmentation

Accepted Answer

Mass customization is a strategy that allows for the creation and marketing of products and services tailored to individual customers' needs, rather than targeting broader market segments. This approach combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Question 17

A good market segment should be all of the following, EXCEPT
A) Sizable
B) Identifiable
C) Reachable
D) Heterogeneous within
E) Coherent

Accepted Answer

A good market segment should be homogeneous within, meaning that the consumers in the segment should have similar needs and characteristics. "Heterogeneous within" would imply diversity within the segment, which is not ideal for targeted marketing strategies.

Question 18

_____ analysis examines the values of the variables for each respondent-from a sample of customers-and then groups respondents with similar values.
A) Cluster
B) Tabular
C) Chi-square
D) Cross-tabular
E) Regression

Accepted Answer

Cluster analysis is used to group respondents based on similar values of variables, making it the correct choice for examining values of variables for each respondent and then grouping them accordingly.

Question 19

This geodemographic system uses census data to examine the means of a set of demographic variables for all U.S. ZIP codes and defines every household in terms of 66 demographically and behaviorally distinct segments.
A) Cluster analysis
B) PRIZM-NE
C) Demographic segmentation
D) ClusterPLUS
E) Hierarchal matrix

Accepted Answer

PRIZM-NE (Potential Rating Index for Zip Markets-New Evolution) is the geodemographic system that uses census data to examine demographic variables for all U.S. ZIP codes, categorizing households into 66 distinct segments.

Question 20

_____ analysis is used when a marketing manager can specify an explicit relationship between a dependent variable and one or more descriptor variables.
A) Risk
B) ClusterPLUS
C) Regression
D) Ratio
E) Cluster

Accepted Answer

Regression analysis is used to specify an explicit relationship between a dependent variable and one or more independent (descriptor) variables, making it the correct choice for this context.

Quiz 5: Customer Analysis

The _____ rule of combining attribute information simply multiplies each attribute importance weight by the attribute value and sums these terms for the relevant products.

Identify the rule of combining attribute information that first compares all products on the most important characteristic alone and eliminates those not at the top.

This rule, of combining attribute information, assumes the consumer sets minimum cutoffs on each dimension and rejects a product if it has any characteristics below the cutoff.

Consumers considering the purchase of a radically new technological product are MOST likely to use

A consumer considering replacing his old Kenmore dishwasher after looking at a couple of other brands and choosing between them is MOST likely to use

Value of a product to the customer

This judgment bias, relevant to marketing, suggests that when individuals do not have strong preferences, they will tend toward a middle choice, i. e., a middle-price, middle-quality product.

Richard bought a new 4 GB USB flash drive, costing $100, for $85 in a sale. He was extremely happy with his buy and the fact that he had saved $15, even though he did not really require a flash drive. Richard's behavior relates BEST to which of the following biases relevant to marketing?

_____ can be represented by the premium a customer would pay for one product over another when the economic and functional attributes are identical.

Loyalty to a brand is the strongest type of equity and the most beneficial for sellers. It BEST relates to which of the following broad categories of customers thinking and behavior toward a brand.

This broad category of customer thinking and behavior toward a brand has the strongest fans of a brand who become advocates, spreading positive word of mouth and encouraging channels to stock the brand as well as participating in brand communities.

A really new product is LESS likely to succeed if

Using customer responses to estimate the value of a product typically involves direct ratings by customers and may include all of the following approaches, EXECPT

This method for assessing sensitivity to elements of the marketing mix uses the knowledge of managers, the sales force, etc.

The net margin of customer transactions, less any cost attributable to maintaining a particular customer and discounted appropriately over time to current value is the

Under _____, products and services are marketed to individuals rather than to segments.

A good market segment should be all of the following, EXCEPT

_____ analysis examines the values of the variables for each respondent-from a sample of customers-and then groups respondents with similar values.

This geodemographic system uses census data to examine the means of a set of demographic variables for all U.S. ZIP codes and defines every household in terms of 66 demographically and behaviorally distinct segments.

_____ analysis is used when a marketing manager can specify an explicit relationship between a dependent variable and one or more descriptor variables.