Deck 9: Consumer Knowledge

Question 1

Consumer knowledge is the information stored in memory relevant to the purchase, consumption, and disposal of goods and services.

Answer 1

True

Question 2

A "purchase pal"is someone seen as a shopping partner.

Answer 2

False

Question 3

Consumer knowledge may affect how a purchase decision is made, but not the final decision itself.

Answer 3

False

Question 4

Brand associations are the linkages in memory between the brand and other concepts.

Question 5

Although far from being unimportant, consumer knowledge is rather limited in its influence on consumer behavior.

Question 6

Product knowledge consist of two main types of knowledge: product category knowledge and brand knowledge.

Question 7

Product novices are those that possess vast amounts of product category knowledge.

Question 8

The most fundamental aspect of brand knowledge involves whether or not consumers are aware of the brand's existence.

Question 9

Unlike new products, established products need not worry about trying to create product awareness.

Question 10

The two basic approaches for assessing consumers' brand awareness are brand recall and brand recognition.

Question 11

Top-of-the-mind awareness refers to how easily consumers can remember the various brands in a product category.

Question 12

Brand image refers to the entire array of associations that are activated from memory when consumers think about the brand.

Question 13

Brand association analysis involves examining the current set of brand associations that exist in the marketplace.

Question 14

Fortunately, all brand associations are equally linked to the brand, a fact which greatly simplifies analyzing the brand's image.

Question 15

Since the inception of the reputation quotient (RQ) procedure, Johnson & Johnson has received the highest ratings for its corporate reputation of any of the companies examined.

Question 16

According to the reputation quotient (RQ) procedure, Wal-Mart has been the most successful US company in fostering its corporate image abroad.

Question 17

Perceptual mapping is one approach to assessing consumers' top-of-the-mind awareness.

Question 18

The various pieces of information consumers possess about buying products are called purchase knowledge.

Question 19

It is much more important for a company to understand what consumers know about the prices charged by the company for its products and services than to understand consumers' relative price knowledge.

Question 20

Managers' pricing decisions may depend on their perceptions of how well informed consumers are about prices.

Question 21

Consumers' beliefs about when to buy is a component of usage knowledge.

Question 22

There has been a dramatic shift in where consumers buy prescription drugs from traditional channels to the Internet.

Question 23

Knowledge about where a product is located within the store may affect purchase behavior.

Question 24

Consumption and usage knowledge encompasses the information in memory about how a product should be purchased.

Question 25

Inadequate consumption knowledge is a problem because it may represent a barrier to purchase and, even if purchase occurs, it may have detrimental effects on consumers' satisfaction with the product.

Question 26

Persuasion knowledge refers to what advertisers know about how to persuade consumers.

Question 27

Persuasion knowledge adversely affects consumers' perceptions of a salesperson's sincerity.

Question 28

Self-knowledge represents a person's understanding of her or his mental processes.

Question 29

Consumer knowledge is essentially acquired from two basic sources: experience and one's family.

Question 30

The relative influence of different knowledge sources depends on the type of information being conveyed.

Question 31

In one survey college students indicated that word-of-mouth was their preferred way of earning about products and services.

Question 32

One reason why it is important for companies to understand consumers' sources of knowledge is that it helps them in developing their strategies for making contact with consumers.

Question 33

The Delahaye Index is a well-known indicator of a brand's image.

Question 34

Desired image is the image consumers would ideally like a product to possess.

Question 35

Knowledge gaps refer to an absence of information in consumers' memory.

Question 36

One example of a knowledge gap is when consumers incorrectly perceive the price of a product relative to its competitors' prices.

Question 37

When consumers hold inaccurate knowledge, misperception is said to occur

Question 38

Correcting consumers' misperceptions requires changing the product.

Question 39

An assessment of consumer knowledge regarding competitors is useful for gauging competitive threats to one's business.

Question 40

From a public policy perspective, consumer knowledge needs to be examined to see if there are deficiencies in consumers' knowledge that impair their ability to operate in the marketplace.

Question 41

Recent research indicates that while Americans' health literacy needs improvement, their financial literacy is more than adequate.

Question 42

The information stored in memory that is relevant to the purchase, consumption, and disposal of goods and services is called:

A) consumer knowledge
B) consumer experience
C) buyer information
D) consumer perception
E) None of the above.

Question 43

Someone seen as being able to evaluate purchase alternatives and willing to provide the necessary assistance is called a:

A) shopping pal
B) purchase pal
C) consumer advisor
D) consumer consultant
E) None of the above.

Question 44

Consumer knowledge can:

A) affect how consumers make their purchase decisions
B) determine what is actually chosen
C) affect how consumers respond to a product's price
D) A and B
E) A, B, and C

Question 45

Which of the following is not a type of consumer knowledge discussed in Chapter 9?

A) Self-knowledge
B) Purchase knowledge
C) Persuasion knowledge
D) Retail knowledge
E) All of the above are discussed in Chapter 9.

Question 46

Product knowledge consists of:

A) product category knowledge
B) brand knowledge
C) persuasion knowledge
D) A and B
E) A, B, and C

Question 47

____ are consumers that possess very simple levels of product category knowledge whereas ____ are those that possess the amounts of product category knowledge

A) Product experts; product novices
B) Product novices; product experts
C) Trial purchasers; repeat purchasers
D) Repeat purchasers; trial purchasers
E) None of the above.

Question 48

Which of the following statements about creating awareness is incorrect?

A) One of the challenges facing new products is creating awareness of their existence in the marketplace.
B) Even established brands and companies often find themselves needing to create awareness.
C) Familiar brands that move into new markets will need to create awareness.
D) Creating awareness is a challenge for local retailers seeking to develop their business on the Internet.
E) None of the above are incorrect.

Question 49

The percentage of people that name a given brand first is known as:

A) top-of-the-mind awareness.
B) top-brand awareness.
C) memory dominance.
D) brand salience.
E) None of the above.

Question 50

The entire array of associations that are activated from memory when consumers think about a brand is known as:

A) an associative network
B) brand image
C) brand association activation
D) brand memory
E) None of the above.

Question 51

Examining the current set of brand associations that exist in the marketplace requires conducting a/an:

A) product analysis.
B) image analysis.
C) association analysis.
D) attribute analysis.
E) None of the above.

Question 52

The first step of a brand image analysis is to:

A) assess brand awareness.
B) determine the consideration set.
C) identify the brand's associations.
D) look for knowledge gaps.
E) None of the above.

Question 53

Since the inception of the reputation quotient (RQ) procedure, which company has received the highest ratings for its corporate reputation of any of the companies examined?

A) Johnson & Johnson
B) Wal-Mart
C) Microsoft
D) McDonald's
E) None of the above

Question 54

The importance of a company's reputation is reflected by a fact that:

A) it enhances the odds of consumers buying its products and services
B) it makes consumers more likely to recommend the company to other people
C) it enhances the odds of consumers buying the company's stock
D) A and B
E) A, B, and C

Question 55

Which of the following statements about using perceptual mapping for image analysis is correct?

A) It does not require identifying the particular set of important product attributes that determine consumers' brand image.
B) It is attractive for its ability to suggest new products.
C) It is useful for assessing consumers' price sensitivity.
D) A and B
E) A, B, and C

Question 56

Purchase knowledge includes knowledge about:

A) product price.
B) when to buy.
C) where to buy.
D) B and C
E) A, B, and C

Question 57

Managers are motivated to hold prices down when they believe that consumers have:

A) high levels of price knowledge.
B) low levels of price knowledge.
C) high levels of usage knowledge.
D) low levels of usage knowledge.
E) None of the above.

Question 58

The information in memory about how a product can be consumed and what is required to actually use the product is called:

A) utilization knowledge.
B) consumption and usage knowledge.
C) acquisition knowledge.
D) purchase knowledge.
E) None of the above.

Question 59

What consumers know about the goals and tactics of those trying to persuade them is known as:

A) advertiser knowledge.
B) purchase knowledge.
C) persuasion knowledge.
D) influence knowledge.
E) None of the above.

Question 60

Consumers' understanding of their own mental processes is known as:

A) mental knowledge
B) internal knowledge
C) self-knowledge
D) process knowledge
E) None of the above.

Question 61

Which of the following is not a source of consumer knowledge?

A) Opinions of others
B) Magazines
C) The Internet
D) Advertising
E) All of the above are sources of consumer knowledge.

Question 62

Which of the following types of knowledge sources usually has the greatest impact on consumers?

A) Personal, business-controlled
B) Personal, non-business-controlled
C) Impersonal, business-controlled
D) Impersonal, non-business-controlled
E) None of the above.

Question 63

When consumer knowledge is based on direct experience, consumers are:

A) usually more confident in their knowledge.
B) more likely to undertake external search.
C) less resistant to changing their opinions.
D) A and C
E) A, B, and C

Question 64

Which of the following is a reason why businesses need to understand consumers' knowledge sources?

A) Companies need to know what is being said about the company by these sources.
B) It helps companies develop their strategies for making contact with consumers.
C) It enables companies to charge higher prices for their product's.
D) A and B
E) A, B, and C

Question 65

Which of the following is not a benefit companies receive from understanding consumer knowledge?

A) It allows them to gauge whether the positioning intended for their products actually exists in the consumer's mind.
B) It allows them to identify purchase barriers.
C) It helps them discover new product uses which in turn can stimulate sales.
D) It helps them gauge the potential threat posed by competitors to their existing customer base.
E) All of the above are benefits companies derived from an understanding of consumer knowledge.

Question 66

A company's success in achieving the positioning it seeks for its product is reflected by:

A) top-of-the-mind awareness.
B) the number of brand associations.
C) the difference between the product's actual image and the desired image.
D) the absence of knowledge gaps.
E) None of the above.

Question 67

Which of the following represents a potential barrier to purchase?

A) Knowledge gaps
B) Undesirable associations
C) Undesirable misperceptions
D) B and C
E) A, B, and C

Question 68

Which of the following is not an example of a knowledge gap?

A) Being unaware of a product's existence.
B) Not knowing which product charges the lowest price.
C) Not knowing where a retailer is located.
D) Thinking that an inferior product has the best quality.
E) All of the above are examples of knowledge gaps.

Question 69

Misperception refers to:

A) inaccurate knowledge.
B) knowledge gaps.
C) complete knowledge.
D) consumption knowledge.
E) None of the above.

Question 70

According to Chapter 9, those interested in public policy believe that many Americans need help with their knowledge about:

A) health
B) personal finance
C) the federal government
D) A and B
E) A, B, and C

Question 71

There are five types of consumer knowledge. List and discuss these five types.

Question 72

People acquire their consumer knowledge from a variety of sources. Please discuss some of these.

Question 73

What are "knowledge gaps"
and why are they important?

Question 74

How can customer recruitment activities be enhanced through understanding consumer knowledge?