Question 1

How is product categorization related to the notion of forming a positioning strategy? Give an example.

Accepted Answer

The success of a positioning strategy often hinges on the marketer's ability to convince the consumer that his or her product should be considered within a given category.For example,the orange juice industry tried to reposition orange juice as a drink that could be enjoyed all day long ("It's not just for breakfast anymore").On the other hand,soft drink companies are now attempting to do the opposite by portraying their beverages as suitable for breakfast consumption.They are trying to make their way into consumers' "breakfast drink" category,along with orange juice,grapefruit juice,and coffee.Indeed,this categorization already exists for many consumers in the southern United States,who routinely guzzle a soft drink with their breakfast! Of course,this strategy can backfire,as Pepsi discovered when it introduced Pepsi A.M.and positioned it as a coffee substitute.The company did such a good job of categorizing the drink as a morning beverage that customers wouldn't drink it at any other time.The product failed.

Question 2

Define problem recognition.Show how problems can arise.Give a brief example to illustrate the problem recognition process.

Accepted Answer

Problem recognition occurs at "the upper funnel" when we experience a significant difference between our current state of affairs and some state we desire.We realize that to get from here to there we need to solve a problem,which may be small or large,simple or complex.A person who unexpectedly runs out of gas on the highway has a problem,as does the person who becomes dissatisfied with the image of his car,even though there is nothing mechanically wrong with it.Although the quality of Richard's TV had not changed,he altered his standard of comparison,and as a result he had a new problem to solve-how to improve his TV experience.
Problem arises in one of two ways.The person who runs out of gas experiences a decline in the quality of his actual state- need recognition.In contrast,the person who craves a newer,flashier car moves his ideal state-opportunity recognition; there is a gulf between the actual state and the ideal state.Richard perceived a problem due to opportunity recognition-he moved his ideal state upward in terms of the quality of TV reception he craved.

Question 3

When shopping at the supermarket,Russ always unconsciously grabs a carton of milk.This is an example of an automatic purchase.

Accepted Answer

A) True 
 B)False  True

Question 4

Jonesy will buy only the lowest-priced spark plug when he goes shopping for auto supplies.Because his car is very old,he really doesn't care about any other qualities.Jonesy is using the noncompensatory decision-making rule format.

Accepted Answer

A) True 
 B)False

Question 5

When consumers use an experiential approach to making decisions,what are they doing? Give an example of a product category where consumers commonly use the experiential approach.

Accepted Answer

The answer of When consumers use an experiential approach to...

Question 6

What is the similarity and the distinction between intelligent agents and electronic recommendation agents?

Accepted Answer

The answer of What is the similarity and the distinction...

Question 7

If a consumer considers using the simple additive decision rule,a drawback might be that some of the positive attributes of the chosen brand may not be very important.

Accepted Answer

A) True 
 B)False

Question 8

When consumers anticipate having to use a product in from of other consumers,they tend to prefer:

Accepted Answer

A)   feature-rich products.
B)   feature-poor products.
C)   highly visible products.
D)   symbolic products.

Question 9

Jill's purchase of the Miracle Diet pills was most sensitive to which kind of perceived purchase risk?

Accepted Answer

A)   functional
B)   physical
C)   social
D)   physiological

Question 10

When Jacob first thought of buying a new vehicle,he could name at least eight SUV models.His friend Emily could think of only four.Jacob spent several weeks researching SUVs and rejected five of the models.His evoked set is now smaller than Emily's.Why?

Accepted Answer

A)   The evoked set contains only the products that can be remembered at any given time.
B)   The evoked set is gender specific in that women remember products better than men.
C)   A product is not likely to be in the evoked set once it has been considered and then rejected.
D)   Functional risk creates a cognitive dissonance that makes certain products difficult to consciously remember.

Question 11

Craig had heard stories about toaster disasters from his friends.This brand blew up,that one shorted out,another had not lasted even a year,and so on.He knew he should not consider those brands.They were Craig's:

Accepted Answer

A)   retrieval set.
B)   evoked set.
C)   expanded set.
D)   inept set.

Question 12

What is an evoked set? Create an example to illustrate the term.

Accepted Answer

The answer of What is an evoked set? Create an...

Question 13

Directories and portals,Web site evaluators,forums,fan clubs,and user groups are all forms of which of the following?

Accepted Answer

A)   cybercash
B)   design groups
C)   cybermediaries
D)   focus groups

Question 14

A small company,Graig Inventions,produced a pill that had the nutrient value of a healthy breakfast.They put it on the market as a substitute for breakfast for busy people.The product failed.Graig Inventions then marketed the pill as a diet product and it became very successful.What does the example best demonstrate?

Accepted Answer

A)   The company did not position the product well. It was difficult to convince consumers that a pill was a breakfast on the superordinate level, but it did appear to fit within the category of diet pills.
B)   The company confused a subordinate level with a basic level of categorization.
C)   The company confused a normal level with a basic level of categorization.
D)   The determinant attributes between diet pills and breakfast was not sufficiently strong.

Question 15

What is problem recognition?

Accepted Answer

The answer of What is problem recognition?...

Question 16

Kent is a loyal Coca-Cola drinker.As a college student,he averages about six Cokes a day.He even prefers Coke to water.However,today when he passes a vending machine in his dorm,he buys a new flavour of soft drink called Big Red.Which of the following most appropriately explains his behaviour,given the facts about Kent's previous behaviour?

Accepted Answer

A)   Kent is variety seeking.
B)   Kent is creating brand parity.
C)   Kent is influenced by advertising.
D)   Kent is influenced by vending machine atmospherics.

Question 17

When purchase decisions are made under conditions of low involvement,often the consumer's decision results from cues in the shopping environment,such as surprise sales,the way products are displayed,etc.This view of what affects consumer decisions is known as the:

Accepted Answer

A)   rational perspective.
B)   experiential perspective.
C)   behavioural influence perspective.
D)   interpretivist perspective.

Question 18

Both Coke and Pepsi have recently been in test markets,portraying their colas as suitable for breakfast consumption.Coke was testing an advertising campaign whereas Pepsi had created a product called Pepsi AM.What are the strategic implications of what they were doing?

Accepted Answer

The answer of Both Coke and Pepsi have recently been...

Question 19

Elena is in the toothpaste section of the grocery store,and picks up a box of $0.99 Colgate as she quickly passes through.This is an example of ________ decision making.

Accepted Answer

A)   habitual
B)   uncluttered
C)   associative
D)   peripheral

Question 20

When a consumer bases a purchase decision on the ________ rule,s/he takes into account the relative importance of positively-rated attributes; that is,"brand ratings" on each attribute are intuitively multiplied by their importance weights.

Accepted Answer

A)   noncompensatory rule
B)   weighted additive rule
C)   attribute preference rule
D)   simple additive rule

Exam 9: Individual Decision Making