Question 1

Increase in trialability of an innovation is positively related to its success.

Accepted Answer

When an innovation is easy to try or experiment with, people are more likely to adopt it. This is because trialability reduces the perceived risk of adopting something new. Hence, an increase in trialability of an innovation is positively related to its success.

Question 2

The set of products that the customer has no intention of buying or has no information about is known as evoked set.

Accepted Answer

The set of products that the customer considers buying or is aware of is known as evoked set. The set of products that the customer has no intention of buying or no information about is known as an inert set or unawareness set.

Question 3

The perceived complexity of the innovation is positively related to the success of an innovation.

Accepted Answer

The perceived complexity of an innovation can actually hinder its success as it may make it difficult for consumers to understand and adopt. Innovations that are perceived as simple and easy-to-use are more likely to be successful.

Question 4

It is of little use for marketing managers to use a survey designed in-house to better understand the customer base.

Accepted Answer

In-house surveys can be highly useful for marketing managers to better understand their customer base, as they allow for tailored questions that directly address specific areas of interest or concern related to the company's products or services.

Question 5

Forrester Research Inc.,a well-known technology consultant,divided consumers into 10 groups through the use of what they call Technographics.List and describe these groups.

Accepted Answer

The answer of Forrester Research Inc.,a well-known technology consultant,divided consumers...

Question 6

Economic theory predicts that rational customers will collect information only to the point at which the marginal benefit of obtaining the information in terms of incremental value to making a choice equals the marginal cost.

Accepted Answer

This statement accurately reflects the basic principle of rational decision-making and information gathering in economics, where individuals seek to maximize their benefits while minimizing their costs. When the marginal cost of obtaining more information outweighs the potential marginal benefit, customers are less likely to pursue additional information and may instead make a decision based on the information they have already collected.

Question 7

One of the jobs of the marketing manager is to translate characteristics into product benefits.This can be done using managerial judgment or marketing research.

Accepted Answer

It is one of the key responsibilities of a marketing manager to identify and communicate the benefits of a product or service to the target audience. This involves converting the features or characteristics of the product into customer-centric benefits that will resonate with the target market. This can be achieved through a combination of managerial judgment, market research, and customer feedback.

Question 8

According to Abraham Maslow,physiological needs are basic human needs.

Accepted Answer

According to Maslow's hierarchy of needs, physiological needs such as food, water, and shelter are the most basic human needs that must be met before other higher-level needs can be pursued.

Question 9

Perception,not reality,drives purchasing behavior.

Accepted Answer

Purchasing behavior is often driven by consumers' perceptions of a product, brand, or company, rather than objective reality. Consumers make purchasing decisions based on their beliefs, attitudes, preferences, and emotions, which are shaped by various factors such as marketing messages, social influences, personal experiences, and cognitive biases. It is therefore important for businesses to understand and manage consumers' perceptions of their offerings in order to influence their purchasing behavior.

Question 10

List and briefly describe the three major categories of segmentation variables.

Accepted Answer

The answer of List and briefly describe the three major...

Question 11

For frequently purchased products,repeat buying is critical to success.

Accepted Answer

Repeat buying is critical to success for frequently purchased products because it ensures a steady revenue stream and builds customer loyalty. Customers who repeatedly buy a product are more likely to become brand advocates and recommend the product to others, leading to increased sales and market share.

Question 12

List and briefly describe the five ordered levels of human needs according to Abraham Maslow.

Accepted Answer

The answer of List and briefly describe the five ordered...

Question 13

FMCG products need more extensive information search than durable goods.

Accepted Answer

FMCG (Fast Moving Consumer Goods) products are typically low-cost items that are bought frequently and with minimal deliberation, unlike durable goods which are higher in value, bought less frequently, and often require more extensive information search due to their complexity and higher investment.

Question 14

List and briefly describe the major groups developed by SRI International's VALS system.

Accepted Answer

The answer of List and briefly describe the major groups...

Question 15

List and briefly describe the three different sets of options formed by customers in the search for alternatives through internal and external information sources.

Accepted Answer

The answer of List and briefly describe the three different...

Question 16

From the customer's perspective,the unique problems associated with the marketing of technology based products are concentrated largely in the late growth or maturity stage of the product life cycle.

Accepted Answer

The unique problems associated with the marketing of technology-based products often arise in the early stages of the product life cycle, such as the introduction and growth stages, where customer awareness, understanding, and adoption are critical challenges.

Question 17

In considering the purchase of technology-based products,a customer will adopt an innovation only if she or he considers it to be an improvement over the current product being used to satisfy the same need.

Accepted Answer

This statement is consistent with the theory of Diffusion of Innovations, which states that for a technology-based product to be adopted, the customer must perceive it as providing a relative advantage over the current product.

Question 18

Claritas's PRIZM system links together census data and purchasing data to form psychographic-like segments.

Accepted Answer

Claritas's PRIZM system does indeed link census data and purchasing data to form psychographic-like segments.

Question 19

While syndicated research can show only what has happened in the past,using extrapolation,an accurate potential of a particular segment can be obtained.

Accepted Answer

The answer of While syndicated research can show only what...

Question 20

Factor analysis is a multiple regression statistical procedure.

Accepted Answer

Factor analysis is not a multiple regression statistical procedure. Rather, it is a dimensionality reduction technique used to identify underlying factors that explain the interrelationships among a set of observed variables.

Quiz 4: Analyzing Consumer Behavior