Deck 4: Analyzing Consumer Behavior

Question 1

Which of the following analyses aims to group customers that differ from one another but show considerable similarity within the group?

A)product segmentation
B)SWOT analysis
C)market segmentation
D)perceptual map

Answer 1

C

Question 2

Which of the following types of variables characterizes the differences between people in terms of income,age,occupation,education,and race?

A)geographic
B)demographic
C)psychographic
D)behavioral

Answer 2

B

Question 3

Which of the following terms is used to refer to one-to-one marketing?

A)value marketing
B)benefit segmentation
C)mass customization
D)sales orientation

Answer 3

C

Question 4

________ is a currently popular age-related type of segmentation used to develop profiles of each generation.

A)Factor analysis
B)Cohort analysis
C)SWOT analysis
D)Regression analysis

Question 5

In a customer analysis,understanding how to expand the market and achieve sales closer to market potential is most likely to be achieved by analyzing:

A)competitors' customers.
B)former customers.
C)people who have never purchased the product.
D)current customers.

Question 6

Which of the following is a demographic variable?

A)generation
B)personality
C)fensity
D)nationality

Question 7

Treating each customer separately and giving the perception that he or she is being treated as a unique segment by sending individualized communications is known as:

A)positioning.
B)mass marketing.
C)one-on-one marketing.
D)selective marketing.

Question 8

Which of the following is an example of a psychographic variable?

A)religion
B)lifestyle
C)social class
D)density

Question 9

A segmentation approach to the market is more efficient than a mass marketing approach because:

A)money is spent only on those whom the manager has determined are potential customers.
B)it creates entry-barriers.
C)customers are homogeneous.
D)production costs for standardized products are minimal in comparison to customized products.

Question 10

A marketing manager's task is to identify variables that describe customers in terms of their own particular characteristics.These variables are called:

A)enhancers.
B)identifiers.
C)descriptors.
D)encryptors.

Question 11

Identify the most popular behavioral variables that are used to form segments.

A)benefits and usage rate
B)occasions and loyalty status
C)user status and loyalty status
D)buyer readiness stage and attitude toward product

Question 12

Why is the concept of segmentation important?

A)It assumes that customers are swayed by targeted marketing.
B)It underscores the importance of production orientation.
C)It helps companies offer standardized products to the entire market.
D)It implies an understanding that customers are heterogeneous.

Question 13

Treating each customer seperately and giving the perception that he or she is being treated as a unique segment by delivering personalized products and services is known as:

A)selective marketing.
B)mass marketing.
C)sales orientation.
D)mass customization.

Question 14

Which of the following statements about the market segmentation approach is correct?

A)This approach would imply the production of standardized products.
B)With this approach,less money is wasted on customers who have low probability of buying the product.
C)It is the act of choosing which segment or segments to pursue actively.
D)With this approach,none of the segments would necessarily be satisfied because the typical consumer in each would not feel that the product was right for him or her.

Question 15

Which of the following is an example of a geographic variable?

A)lifestyle
B)race
C)religion
D)climate

Question 16

Which of the following variables is an example of a behavioral variable?

A)personality
B)social class
C)occasions
D)occupation

Question 17

Which of the following types of variables characterizes the differences between people in terms of lifestyles,personalities,and social class?

A)geographic
B)demographic
C)psychographic
D)behavioral

Question 18

Craig is the CMO of Speedoconnect,an Internet Services Provider that has been consistently losing market share for the past three quarters.Craig conducts a customer analysis to understand the weaknesses in the company's service operations.Which of the following groups is most critical in this customer analysis?

A)competitors' customers
B)former customers
C)potential customers
D)current customers

Question 19

When marketing managers select a market segment to pursue,it is called:

A)segmenting the market.
B)selecting the target market.
C)selecting the right product.
D)selective distribution.

Question 20

Which of the following refers to the decision about which customer groups a company will pursue for a particular brand or product line?

A)product segmentation
B)perpetual map
C)target marketing
D)market segmentation

Question 21

Which of the following is a multivariate statistical procedure to reduce a set of variable to a smaller set that retains most of the information of the original set?

A)cohort analysis
B)regression analysis
C)cluster analysis
D)factor analysis

Question 22

Which of the following analyses is more useful for trend-spotting than for developing segments for individual brands?

A)cohort analysis
B)regression analysis
C)factor analysis
D)SWOT analysis

Question 23

Which of the following generational cohorts are the grandparents of the Millenials?

A)Silent Generation
B)Generation X
C)GI Generation
D)Generation Y

Question 24

Which of the following tech customers are the biggest spenders,and the early adopters of new technology for home,office,and personal use?

A)Fast Forwards
B)Techno-Strivers
C)Gadget-Grabbers
D)Media Junkies

Question 25

Which of the following best describes a major source of secondary information on market segments?

A)primary data
B)behavioral data
C)syndicated data
D)focus group data

Question 26

In technology-based markets,the marketing manager must understand who are the different customers that will purchase the product at the introductory stage of the product life cycle and who will purchase the product as it matures.Which of the following types of customers will be the last to buy the product?

A)late majority
B)early majority
C)innovators
D)laggards

Question 27

In technology-based markets,the marketing manager must understand who the different customers that will purchase the product at the introductory stage of the product life cycle and who will purchase the product as it matures.According to Everett Rogers,which of the following types of customers will be the first to buy the product?

A)early adopters
B)early majority
C)innovators
D)laggards

Question 28

According to the VALS system developed by SRI International,________ are poor,ill-educated,low-skilled,and elderly,with concerns about their security and safety.

A)strivers
B)survivors
C)believers
D)thinkers

Question 29

Which of the following tech customers seek entertainment but cannot find it on-line,and therefore prefer TV and other older media?

A)Digital Hopefuls
B)Techno-Strivers
C)Hand-Shakers
D)Media Junkies

Question 30

Which of the following generational cohorts were born between 1901-1924?

A)Baby boomers
B)Silent generation
C)Generation X
D)GI Generation

Question 31

Which of the following best describes conservative,conventional people whose beliefs revolve around family,church,community,and their country?

A)believers
B)strivers
C)makers
D)survivors

Question 32

Which of the following best describes the group consisting of practical people who have constructive skills and value self-sufficiency?

A)believers
B)strivers
C)makers
D)achievers

Question 33

Which of the following is the first step in the customer behavior model?

A)search for alternatives
B)evaluation of alternatives
C)need recognition
D)cognitive dissonance

Question 34

According to the VALS system developed by SRI International,________ are both unsure about themselves and low in socioeconomic status.

A)strivers
B)survivors
C)makers
D)thinkers

Question 35

A kind of syndicated data links together census data and purchasing data to form ________ segments.An example of this is Nielsen's PRIZM NE system.

A)psychographic-like
B)geographic-like
C)demographic-like
D)behavioral-like

Question 36

According to the VALS system developed by SRI International,________ are successful,sophisticated,and active people with high self-esteem and significant resources.

A)achievers
B)believers
C)makers
D)innovators

Question 37

According to the VALS system developed by SRI International,________ are avid customers and spend much of their money on clothing,fast food,music,movies,and video.

A)innovators
B)experiencers
C)believers
D)thinkers

Question 38

According to the VALS system developed by SRI International,________ are mature,satisfied comfortable people who value order,knowledge and responsibility.

A)strivers
B)innovators
C)thinkers
D)believers

Question 39

According to Everett Rogers,which of the following types of customers are generally not interested in technology for its own sake,but are good at detecting the value of a new product and how it will enhance their lives?

A)innovators
B)early adopters
C)early majority
D)late majority

Question 40

Marketing managers are interested in variables such as usage rate and degree of loyalty.Which category of descriptor variable do these fall under?

A)geographic
B)demographic
C)psychographic
D)behavioral

Question 41

Economic theory suggests that rational customers will collect information only to the point at which:

A)the marginal benefit of obtaining the information in terms of incremental value to making a choice equals the marginal cost.
B)the total benefit of obtaining the information equals the total cost after purchasing the product.
C)they can no longer pay for syndicated information.
D)the marginal benefit of obtaining the information in terms of incremental value to making a choice is less than the marginal cost.

Question 42

Which of the following terms best describes the set of products that the customer has no intention of buying?

A)evoked set
B)inert set
C)purchase set
D)latent set

Question 43

According to the needs hierarchy theory,________ need is achieving one's own potential and self-fulfillment.

A)physiological
B)safety
C)ego
D)self-actualization

Question 44

Which of the following is not a key question raised in using the multiattribute model?

A)Which attributes do customers use to define a product?
B)How is the importance of weights determined?
C)How is it determined how much of each attribute a brand possesses?
D)What is the gross profit margin of the product?

Question 45

As a result of the search for alternatives through internal and external information sources,customers form three different sets of options.The ________ set is the set of products from which the customer will choose to purchase.

A)evoked
B)purchase
C)inert
D)prioritized

Question 46

The ________ model is a popular model of decision making that requires information about how useful or important each attribute is to the customer making a brand choice and how customers perceive the brands in the evoked set in terms of their attributes.

A)attribution
B)compensatory
C)cluster
D)multiattribute

Question 47

According to the needs hierarchy theory,basic human needs such as food,sleep,and water are examples of ________ needs.

A)physiological
B)safety
C)ego
D)social

Question 48

________ sources of information are those that are retrieved from memory.

A)Internal
B)Permanent
C)Extrinsic
D)Adscititious

Question 49

Which of the following is one of the three sets of options that result from using internal and external information sources when seeking purchase alternatives?

A)prioritized set
B)alternative set
C)recognition set
D)consideration set

Question 50

The ________ model is any model in which a low score on one attribute can be offset by a higher score on another.

A)cluster
B)segmentation
C)compensatory
D)attribution

Question 51

Which external source of information provided by the marketing manager is considered to be the most credible?

A)sales presentations
B)advertisements
C)sales orientation
D)word-of-mouth

Question 52

As a result of the search for alternatives through internal and external information sources,customers form three different sets of options.The ________ set is the set of products the customer has actually chosen within a specified period of time.

A)consideration
B)inert
C)evoked
D)purchase

Question 53

According to the needs hierarchy theory,success,self-esteem and prestige are examples of ________ needs.

A)physiological
B)safety
C)ego
D)self-actualization

Question 54

For frequently purchased products,scanner panel data provide information about:

A)consideration set.
B)inert set.
C)evoked set.
D)purchase set.

Question 55

Which of the following is an example of an internal source of information?

A)advertisements
B)past experiences with products
C)recommendations of an opinion leader
D)advice from an expert

Question 56

According to the needs hierarchy theory,friendship,affection,acceptance by reference groups are examples of ________ needs.

A)physiological
B)social
C)ego
D)self-actualization

Question 57

Pure awareness research that uses ________ recall gives the respondents a list from which to choose brands.

A)unaided
B)aided
C)image evaluation
D)price

Question 58

According to the needs hierarchy theory,________ needs are based on job security and financial security.

A)physiological
B)safety
C)ego
D)social

Question 59

For frequently purchased products,________ is critical to success because there are not enough new,untapped buyers to sustain a low-priced product for long.

A)test marketing
B)volume discounts
C)repeat buying
D)market penetration

Question 60

While evaluating options in a consideration set,the marketing manager must determine the set of attributes customers use in making purchase decisions.Which of the following methods is not recommended because of the bias introduced?

A)managerial judgement
B)focus groups
C)systematic survey research
D)UPC code analysis

Question 61

Which of the following stages of the family life cycle best describes young married couples with younger children under age 6?

A)empty nest I
B)full nest III
C)full nest I
D)newly married couples

Question 62

The task facing the marketing manager is to identify variables that describe customers in terms of their inherent characteristics,called descriptors,and to link those variables to customer behavior toward the product or service.

Question 63

According to Everett Rogers,the first buyers of a new product are the early adopters.

Question 64

Psychographics divide the total market in a geographic area into segments based on activities,interests,values,opinions,personality characteristics and attitudes using statistical procedures.

Question 65

If you are in an industrial products business,it is not important for you to understand your consumers.

Question 66

Market segmentation breaks mass markets into segments that have different buying habits.

Question 67

Cycles defined in years as an evaluation is most related to these categories of business.

A)fast food,utilities,long-distance telephone service
B)retail shopping,movies
C)ice cream,soft drinks and cold remedies
D)durable goods' replacement cycles

Question 68

The concept of segmentation is important because it implies an understanding that customers are homogeneous.

Question 69

The stages of the family life cycle include all of the following except:

A)teens.
B)bachelors.
C)full nests.
D)empty nests.

Question 70

Which of the following stages of the family life cycle best describes older married couples with dependent children?

A)Full nest II
B)Empty nest I
C)Empty nest II
D)Full nest III

Question 71

Socioeconomic status (SES)is often highly correlated with:

A)religion.
B)occupation.
C)gender.
D)personality.

Question 72

Which of the following stages of the family life cycle best describes older married couples whose children do not live with them,and the head(s)have retired?

A)Full nest I
B)Full nest II
C)Empty nest I
D)Empty nest II

Question 73

Day of week is an evaluation that is most related to these categories of business.

A)fast food,utilities,long-distance telephone service
B)retail shopping,movies
C)ice cream,soft drinks and cold remedies
D)durable goods' replacement cycles

Question 74

________ is the person who actually authorizes payment for the product.

A)The influencer
B)The initiator
C)The purchaser
D)The decider

Question 75

Which of the following terms best explains the ability of potential users of a new product to use it on a limited basis before adoption?

A)reliability
B)trialability
C)observability
D)accountability

Question 76

For many products and services,the value of owning them increases as the number of owners increases.This is the concept of:

A)trialability.
B)relative advantage.
C)observability.
D)network externalities.

Question 77

According to the VALS system developed by SRI International,survivors are cautious customers.

Question 78

A customer analysis is one of the key building blocks on which the marketing strategy rests.

Question 79

In regard to the adoption of new technologies,the extent to which customers are uncertain about the consequences of an action is termed as:

A)systemic risk.
B)pure risk.
C)perceived risk.
D)speculative risk.

Question 80

________ is the concept that a customer will adopt an innovation only if he or she considers it to be an improvement over the current product being used to satisfy the same need.

A)Observability
B)Planned obsolesence
C)Relative advantage
D)Need recognition