Question 1

An organisation using online data freely available from the Australian Business Statistics (ABN) website for their consumer research, is considered an example of primary data.

Accepted Answer

Using online data freely available from the Australian Business Statistics (ABN) website is an example of secondary data as it has already been collected and is publicly accessible. Primary data refers to data that is collected by the organisation themselves for a specific purpose.

Question 2

The key assumption underlying the marketing concept is that, to be successful, a company must determine the needs and wants of specific target markets and deliver goods or services better than the competition.

Accepted Answer

The marketing concept is all about customer satisfaction and meeting their needs and wants. It involves targeting specific markets and delivering superior value to customers compared to competitors. Therefore, the key assumption of the marketing concept is that a company must determine the needs and wants of specific target markets and deliver goods or services better than competition to be successful.

Question 3

The use of focus groups and in-depth interviews with subjects are examples of quantitative research.

Accepted Answer

Focus groups and in-depth interviews are examples of qualitative research, not quantitative. Quantitative research involves the collection and analysis of numerical data, while qualitative research focuses on non-numerical data such as opinions, attitudes, and experiences.

Question 4

The selling concept is typically utilised by marketers of unsought goods such as life insurance.

Accepted Answer

The selling concept is most commonly used for unsought goods, which are goods that the customer does not know about or does not actively seek out. Examples of such goods include life insurance, pre-need funeral services, and emergency medical services.

Question 5

A marketer 'in love' with his or her product is typical of the selling concept.

Accepted Answer

The selling concept typically involves aggressive sales techniques, focusing on making sales rather than on the needs and wants of the buyer. A marketer 'in love' with their product is more aligned with the product concept, which assumes consumers will favor products that offer the most quality, performance, or innovative features.

Question 6

The disciplines of psychology, sociology and archaeology have strongly influenced developments in the field of consumer research.

Accepted Answer

The answer of The disciplines of psychology, sociology and archaeology...

Question 7

The concept of customer satisfaction is a function of customer expectations.

Accepted Answer

Customer satisfaction is determined by whether or not the product or service meets or exceeds customer expectations. If the product or service falls short of expectations, the customer will likely be dissatisfied. Therefore, customer expectations are a vital factor in determining customer satisfaction.

Question 8

The societal marketing concept calls on marketers to fulfil the needs of the target audience in ways that improve society without regard to the objectives of the company.

Accepted Answer

The societal marketing concept emphasizes fulfilling the needs of the target audience in ways that improve society, but it also considers the objectives of the company, aiming for a balance between company profits, consumer wants, and societal welfare.

Question 9

Studies have shown that small reductions in customer defection produce increased profits because loyal customers are more price-sensitive than new customers.

Accepted Answer

Loyal customers are generally less price-sensitive than new customers because they value the relationship and trust they have built with a brand, leading to increased profits when customer defection is reduced.

Question 10

The term consumer research represents the process and tools used to study consumer behaviour.

Accepted Answer

Consumer research indeed refers to the systematic and scientific investigation of consumer behaviour and the factors that influence it. It involves various methods and techniques to collect and analyze data about consumers, such as surveys, focus groups, experiments, and observation. The insights obtained through consumer research are critical for companies to understand their target audience, identify their needs and preferences, and develop effective marketing strategies to meet their demands.

Question 11

In the simplified model of consumer decision making, the process stage of the model focuses on the external sociological influences on the consumer.

Accepted Answer

The process stage of the simplified model of consumer decision making focuses on the internal psychological processes of the consumer, including the problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. The external sociological influences on the consumer are considered in the environmental factors stage of the model.

Question 12

Recent developments in technology indicate that the TV and the computer will merge into a single device that will provide households with interactive capabilities with broadcasters and high-speed wireless access to the Web.

Accepted Answer

The answer of Recent developments in technology indicate that the...

Question 13

The product concept assumes that consumers will buy the product that offers them the highest quality, the best performance and the most features.

Accepted Answer

The product concept is a marketing philosophy that assumes consumers will favor products that offer the most quality, performance, and features; therefore, organizations should focus on making continuous product improvements.

Question 14

The selling concept focuses on selling products that the target market demands.

Accepted Answer

The selling concept typically focuses on creating sales transactions rather than on understanding and meeting the needs or demands of the target market. It emphasizes aggressive sales techniques to push products, regardless of consumer demand.

Question 15

According to customer satisfaction research, one type of customer, the mercenary, is a very satisfied consumer who has no real loyalty to the company.

Accepted Answer

According to customer satisfaction research, mercenary customers are satisfied but have no real loyalty to the company.

Question 16

According to the 'customer pyramid' model, the 'lead' tier of customers includes heavy users who are not price-sensitive.

Accepted Answer

The 'lead' tier typically consists of customers who are either not profitable or minimally profitable, often including those who are highly price-sensitive or irregular users, not the heavy users who are not price-sensitive.

Question 17

The Australian Securities and Investments Commission monitors business and industry practices, advertising and pricing practices at the federal level.

Accepted Answer

The Australian Securities and Investments Commission (ASIC) primarily regulates financial markets, securities, and financial services, not general business and industry practices, advertising, or pricing.

Question 18

The production concept assumes that consumers are mostly interested in product availability at low prices.

Accepted Answer

The production concept focuses on producing and distributing products at a low cost and in large quantities, assuming that consumers will prioritize availability and affordability over other factors such as quality or unique features.

Question 19

As with traditional advertising, the digital revolution allows for two-way interactive exchanges between customers and marketers.

Accepted Answer

The answer of As with traditional advertising, the digital revolution...

Question 20

Whenever supply exceeds demand, the production concept can work.

Accepted Answer

The production concept holds that consumers will favor products that are available and highly affordable, but when supply exceeds demand, simply producing more does not guarantee success without considering other factors like quality, consumer preferences, and competition.

Quiz 1: The foundations of consumer behaviour