Deck 3: Retail Customers

Question 1

Walmart's Supercenters that serve wealthier shoppers who love deals belong to which of the following general market segments?

A) Conscientious objectors
B) Value-price shoppers
C) Trendy quality seekers
D) One-stop shoppers
E) Price-sensitive affluents

Answer 1

E

Question 2

_____ include(s)the activities the retailer performs that influence (1)the ease with which a potential customer can shop or learn about the store's offering,(2)the ease with which a transaction can be completed once the customer attempts to make a purchase,and (3)the customer's satisfaction with the purchase.

A) Customer services
B) Customer satisfaction
C) Segmentation analysis
D) Transaction verification
E) Posttransaction satisfaction

Answer 2

A

Question 3

Retail experts are finding that it is difficult to sell to older Americans because this segment:

A) is shrinking as a percentage of the total population.
B) is skeptical and uninterested in shopping.
C) barely has enough money to support its current standard of living.
D) is too busy paying off mortgages and car loans.
E) is behaving just like its parents did 20 years before.

Answer 3

B

Question 4

Which age group,by its very nature,is acquisition oriented?

A) Young children
B) Young adults
C) Middle-aged adults
D) Older adults
E) Adolescents

Question 5

The easiest way for a retailer to differentiate itself in the eyes of consumers is to:

A) satisfy the customer's needs and wants better than the competition.
B) use a unique name.
C) use market segmentation to break up America's homogeneous markets into more heterogeneous population bases.
D) offer no "transaction" services.
E) sell below cost.

Question 6

Consumers who are between the age of 8 to 14 are known as:

A) Gen Xers
B) Boomers.
C) Gen Yers.
D) Teen- agers.
E) Tweeners

Question 7

Customer satisfaction is important to retailers for the following reason:

A) Customer satisfaction is an integral part of the retailers mission statement and must be constantly assessed.
B) It costs the average retailer five times as much money to get a new customer into the store as it does to make a sale to current customers.
C) Customer satisfaction has a direct impact on customer segments.
D) Population, social and economic trends are crucial to a customers overall shopping experience.
E) Satisfied customers will positively affect market segmentation.

Question 8

An important characteristic of the "millennium generation" that retailers need to remember is:

A) they have an annual spending power of nearly $500 billion.
B) they were born between 1965 and 1977 and thus are called the "Children of the '80s."
C) they number less than 50 million.
D) they tend to be more traditional and have a conservative lifestyle.
E) they are a relatively homogeneous group.

Question 9

Which of the following statements regarding current U.S.population trends is correct?

A) The average age of the U.S. population is decreasing.
B) The nation's overall growth rate has been decreasing over the past three decades.
C) Americans life expectancy is decreasing.
D) The majority of population growth in the U.S. is projected to come from the baby boomers.
E) The overall population is decreasing.

Question 10

Shoppers who like low prices and cannot afford much more belong to which general market segment as classified by Walmart?

A) Conscientious objectors
B) Price-sensitive affluents
C) Brand aspirationals
D) Value-price shoppers
E) One-stop shoppers

Question 11

Which of the following statements regarding current U.S.population trends is correct?

A) The baby boomers are now moving into their 30s and 40s.
B) The country's total population is expected to grow at a faster rate in the next 10 years than in the previous 20 years.
C) Americans change their residences about a four times in their lifetime.
D) Most of the U.S. population resides in secondary markets, areas with populations less than 50,000.
E) Between 2000 and 2007 the eight fastest-growing states were all in the West and the South.

Question 12

Gen Y consumers were born between the years:

A) 1922-1945.
B) 1946-1964.
C) 1965-1977.
D) 1978-1994.
E) 1995-2002.

Question 13

Identify the correct statement about "echo boomers."

A) They tend to rely on others for their success.
B) They want a family and home but place a higher priority on their professional career.
C) This age group is a declining percentage of the population.
D) Their behavior is the result of their growing up during the years leading up to and following the end of the Cold War.
E) They were the first to grow up with the Internet in its developed form.

Question 14

_____ include(s)age distributions,geographic trends,and ethnic makeup.

A) Population variables
B) Demographics
C) Target marketing
D) Micromarketing
E) Grey marketing

Question 15

Retailers should remember that Baby Busters:

A) have an annual spending power of over $800 billion.
B) generally have similar buying behavior as boomers.
C) feel alienated and angry at the baby boomers' culture and lifestyle which they believe has placed the economy in such poor shape.
D) have buying behavior patterns that make it easy for retailers to reach them.
E) usually behave as the boomers did 20 years ago.

Question 16

Walmart's Supercenters that serve people with low incomes who are obsessed with names such as KitchenAid,belong to which general market segment?

A) Price-sensitive affluents
B) Brand aspirationals
C) Value-price shoppers
D) One-stop shoppers
E) Conscientious objectors

Question 17

Baby busters were born between the years:

A) 1922-1945.
B) 1946-1964.
C) 1965-1977.
D) 1978-1994.
E) 1995-2002.

Question 18

_____ is the dividing of a heterogeneous consumer population into smaller,more homogeneous groups based on their characteristics.

A) Target marketing
B) Customer satisfaction
C) Market segmentation
D) Customer services
E) Operations management

Question 19

Which of the following statements about Gen Yers is false?

A) They are concerned with how the product makes them appear and less concerned about the shopping process.
B) These antifashion and antiestablishment consumers do not want entertainment or events when they shop.
C) Gen Yers seem to be turned off by promotions that do not take them seriously.
D) Some banks have lured Gen Yers with online user friendliness whereby they can drag money from one account to another all on the same screen.
E) Realizing the Yers' interests, many banks are allowing their customers to set their own rules for transferring funds into savings accounts.

Question 20

As a rule,most retailers do not try to serve all possible customer types.With one possible exception,retailers seek to segment the total market into smaller,more homogeneous segments.What type of retailer is this possible exception?

A) Discounters
B) Convenience stores
C) Supermarkets
D) High fashion apparel stores
E) Fast-food restaurants

Question 21

Which of the following statements about the implications for retailers of urban centers is false?

A) During the past decade, retail activity has grown rapidly in secondary markets.
B) Recent shifts in consumer population patterns have resulted in an increase for downtown retail activity.
C) Secondary markets are attractive because of the low level of retail competition.
D) Sales increases in freestanding suburban locations have more than offset any decline in retail activity.
E) As MSAs have begun to stabilize, secondary markets have become more attractive.

Question 22

_____ refers to American households that are made up of married couples,with each partner earning an income,and who do not have children.

A) Yuppies
B) Minks
C) Dinks
D) Mingles
E) Yawns

Question 23

Which of the following statements about divorce is FALSE?

A) Retail purchases may be stimulated as a new household is created.
B) Time may become an even more critical factor in shopping decisions for the individuals involved.
C) Since 1960, the divorce rate in the U.S. has increased by 250 percent.
D) As women's wages rose, it became more profitable for them to enter the labor force; as a result, spouses have become less dependent on each other, and the divorce rate has increased.
E) Divorce, while creating new households, does not actually stimulate any new retail purchasing.

Question 24

Which of the following is the single most reliable indicator of a person's income potential,attitudes,and spending habits?

A) Race
B) Location
C) Educational attainment
D) One's own efforts and abilities
E) Family status

Question 25

Which of the following statements applies to members of the college-educated market?

A) They are especially watchful of price, quality, and advertised claims.
B) The size of this group is expected to undergo a substantial decrease in the next decade.
C) They are less sophisticated, discriminating and more dependent than other consumers of their age and income level, when making retail purchases.
D) With the advent of the Internet, they will have no need for in-store salespeople.
E) Their buying behaviors do not differ from those of other consumers of their same age who are not college educated.

Question 26

The "wealth effect" claims that for every $100 of additional wealth generated in an individual's stock market holdings,the individual will spend:

A) $4.
B) $8.
C) $10.
D) $12.
E) $15.

Question 27

The trend of people living alone,which has increased by 35 percent between 1990 and 2007,is due to all of the following EXCEPT:

A) an increased desire for privacy.
B) an increase in young adults delaying marriage.
C) an increase in never marrieds.
D) an increase in the number of dinks.
E) a large increase in the number of people who live alone after the death of a spouse.

Question 28

Which of the following statements about the mobility of U.S.consumers is true?

A) As a rule, consumers are born, raised, married, widowed, and die in the same city or immediate geographic area.
B) Consumers change their residence 2-4 times in a lifetime.
C) American consumers' rate of mobility is more than that of the British or French.
D) A major factor for consumers' heightened mobility is the country's marriage rate.
E) Retailers should plan on the fact that the country's mobility will begin to decrease.

Question 29

_____ involves tailoring merchandise in each store to the preferences of its neighborhood.

A) Neighborhood targeting
B) Micromarketing
C) Target marketing
D) Benefit analysis
E) Customer targeting

Question 30

The disposable income minus the money needed for necessities to sustain life,such as minimal housing,minimal food,and minimal clothing is:

A) discretionary income.
B) comprehensive income.
C) aggregate income.
D) passive income.
E) basic income.

Question 31

Disposable income is:

A) all personal income after taxes and retirement savings.
B) all personal income after savings.
C) all personal income minus the money needed for necessities food, clothing, housing, etc.
D) all personal income after taxes minus the money needed for necessities.
E) all personal income after taxes.

Question 32

Which of the following statements about the changing nature of work impacting retailers is false?

A) For entry-level personnel in retailing, turnover approaches 75 percent or more per year.
B) One major opportunity for retailers is employing home-based workers.
C) Because people are finding more meaning in their work, they are more loyal to their employers.
D) Disabled workers may represent a previously untapped pool of talent for the retailer.
E) Retailers need to find ways to enrich job experiences and lower turnover.

Question 33

Unmarried couples are also referred to as:

A) home-aloners.
B) mingles.
C) singles.
D) dinks.
E) empty nesters.

Question 34

The _____ is a relatively new phenomenon that describes the recent trend of children returning to live with their parents after having already moved out for what they thought was a permanent move.

A) nesting effect
B) return effect
C) multi generational effect
D) sandwich generational effect
E) boomerang effect

Question 35

Which of the following statements about the makeup of the American household is FALSE?

A) Household growth and consumer demand go together.
B) The number of households without children has decreased in recent years.
C) The retailer, like the social scientist, has little knowledge of how joint decision making occurs or does not occur in households of unmarried adults.
D) The number of unmarried couples has increased in recent years.
E) Seventy-five percent of American households are not directly concerned about back-to-school sales and other family-oriented retail activities.

Question 36

Which of the following categories,who were between ages 30 and 42 in 2007,has been the most educated generation ever?

A) Baby Boomers
B) The Millennium Generation
C) Gen Xers
D) The Silent Generation
E) Gen Yers

Question 37

Which of the following statements about metropolitan statistical areas (MSAs)is true?

A) In the past, the migration to MSAs was directed more toward central city areas than suburban areas.
B) They are urban areas based around a core city with a population of 10,000 to 49,999.
C) The proportion of the population residing in these cities has increased dramatically, from 54 percent in 1950 to 90 percent today.
D) They are freestanding urban areas with populations in excess of 50,000.
E) The urban or metropolitan population does not vary considerably by state.

Question 38

Mobile consumers,after moving:

A) must locate new sources for food, clothing, household goods, and recreation.
B) are not an attractive market opportunity for retailers since they move every few years.
C) tend to continue to make major purchases at their old location.
D) generally have moved outside of their current county but within their state.
E) have little impact on local retail conditions.

Question 39

When all three generations (parents,grandparents,and children)of a family are under the same roof,it is often referred to as a:

A) sandwich generational family.
B) nuclear family.
C) bigenerational family.
D) intentional community family.
E) grandfamily.

Question 40

Secondary markets can be described as:

A) metropolitan areas with a population of 50,000 or more.
B) concentrated ethnic population spots in urban areas.
C) communities with populations of less than 50,000.
D) bedroom communities outside of major cities.
E) inner-city areas with populations between 30,000 and 70,000.

Question 41

The set of _____ refer to the characteristics of the store and its products and services.

A) attributes
B) cues
C) drives
D) needs
E) wants

Question 42

A _____ refers to a cue that is external to the individual or a drive that is internal to the individual.

A) demand
B) need
C) stimulus
D) want
E) necessity

Question 43

Post-purchase resentment:

A) usually only has short-term negative consequences for the retailer.
B) cannot be fixed.
C) is easily detected.
D) is often transferred from the product to the retailer where it was purchased.
E) only occurs after the evaluation stage.

Question 44

The easiest way for a retailer to differentiate itself in the eyes of consumers is to use market segmentation to break up America's homogeneous markets into more heterogeneous population bases.

Question 45

Regarding women in the labor force,retailers should:

A) realize that full-time, working women tend to do more in-home shopping than any other group.
B) remember that special services are more important than price in capturing the time-pressed shopper's store loyalty.
C) realize that price is the most important factor in determining store selection.
D) remember that this segment works hard during the week and wants to enjoy the weekend; thus, retailers should avoid having weekend sales.
E) realize that household incomes for dual wage earner-couples are falling in comparison to other households; thus, retailers should ignore this market.

Question 46

If the customer's total shopping experience has met or exceeded their expectations,the customer is said to be satisfied.

Question 47

The consumer shopping/purchasing model presented in the text:

A) always begins with active information gathering.
B) ends with the buying decision.
C) suggests that consumer behavior is a process, with a series of stages occurring against a backdrop of factors.
D) always begins with passive information gathering.
E) usually begins with a buy trigger event.

Question 48

The physiologically-based stimulus to stay warm in the cold is an example of a:

A) cue.
B) drive.
C) goal.
D) want.
E) demand.

Question 49

Common services provided by retailers,such as alterations,free delivery,bridal registries,check cashing,credit,short check-out lines,and gift wrapping,are not actually the merchandise or service offered for sale.

Question 50

When a consumer has a strong retailer preference and strong brand preference,he/she will engage in:

A) decelerated problem solving.
B) habitual problem solving.
C) limited problem solving.
D) extended problem solving.
E) tertiary problem solving.

Question 51

Identify the correct statement about extended problem solving.

A) It occurs when the consumer recognizes that a problem exists yet does not have a strong preference for either the brand or the store.
B) The consumer has a strong preference for the brand to buy and the retailer from which to purchase it.
C) It typically involves infrequently purchased expensive products of high risk.
D) The consumer may not have a store choice in mind but may have a strong preference for the brand to purchase.
E) The consumer relies on past experience and learning to convert the problem into a situation requiring less thought.

Question 52

Customer satisfaction leads to repeat business and increased purchases.

Question 53

It costs the average retailer two times as much money to get a new customer into its store as it does to retain a current customer.

Question 54

A _____ is any object or phenomenon in the environment that is capable of eliciting a response.

A) stimulus
B) drive
C) cue
D) need
E) want

Question 55

As long as there is a lack of spending power,the ability of ACSI alone to predict consumer spending will be limited.

Question 56

Identify the correct statement about habitual problem solving.

A) It typically involves frequently purchased expensive products of low risk.
B) The consumer has a strong preference for the brand to buy and the retailer from which to purchase it.
C) It occurs when the consumer has a strong preference for either the brand or the store, but not both.
D) The consumer may not have a store choice in mind but may have a strong preference for the brand to purchase.
E) It occurs when the consumer relies on past experience and learning to convert the problem into a situation requiring less thought.

Question 57

Which stage of the consumer shopping and purchasing model is often seen by retailers as an opportunity to use suggestion selling to sell add-on or related purchases,and impulse merchandise?

A) Stimulus
B) Purchase
C) Problem recognition
D) Search
E) Evaluation of alternatives

Question 58

While driving across town,you notice that your car's gas tank is almost empty.The situation in which your desired state departs sufficiently from your actual state is termed:

A) need recognition.
B) problem recognition.
C) habitual problem solving.
D) want.
E) extended problem solving.

Question 59

When a consumer has a strong preference for either the brand or the store but not both he/she will engage in:

A) decelerated problem solving.
B) habitual problem solving.
C) limited problem solving.
D) extended problem solving.
E) tertiary problem solving.

Question 60

The transaction services offered by a retailer influence the ease with which a transaction can be completed once the customer attempts to make a purchase.

Question 61

U.S.families today are having more children than they have had historically.

Question 62

Generation Xers is a term used to refer to those born between 1965 and 1977.

Question 63

Although older consumers tend to be more skeptical and less interested in shopping,retailers who ignore boomers are limiting their success.

Question 64

Gen Yers are sometimes also called "Generation P."

Question 65

The fact that seniors are the most homogeneous group in the marketplace makes targeting stores and retail services to them easier.

Question 66

The "graying of America" phenomenon refers to the fact that consumers' ethnicities are becoming blurred as immigration to the United States continues to increase.

Question 67

Second-generation Hispanic Americans,who have been immersed in American culture,are very similar in their shopping behavior to foreign-born Hispanics.

Question 68

In addition to altering the types of products offered to these aging segments of the population,retailers will also need to shift the types of services provided if they are to gain the consumers' dollar.

Question 69

The term "minority" (minority population)is likely to have a very different meaning in the next few decades.

Question 70

Brand aspirationals are wealthier shoppers who love deals.

Question 71

A useful way for retailers to categorize seniors is in terms of their wealth and health.

Question 72

Generation Yers were the first to grow up with the Internet in its developed form.

Question 73

In terms of their attitudes,baby boomers tend to be more pessimistic,while Gen Xers tend to be more optimistic,and Gen Yers more realistic.

Question 74

Gen Y consumers,who are also called echo boomers,are those born between the years 1978-1994.

Question 75

Gen Xers and Gen Yers are different in age but significantly similar in their buying behavior.

Question 76

The majority of the U.S.population growth is expected to be the result of immigration.

Question 77

With annual spending of $40 billion and influence on another $450 billion,tweeners (consumers aged 8 to 14)should not be overlooked by retailers.

Question 78

The age distribution of the U.S.population is changing.

Question 79

Retailers find it useful to group consumers according to population variables because such data is often linked to marketplace needs.

Question 80

The process of dividing the total market into smaller,more heterogeneous segments is called market segmentation.