IMC EXAM 2

Consumer behavior can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.

TRUE

At the age of 55, Ron feels lonely and wishes he had more friends. Ron is experiencing a need at which level of the hierarchy of needs?

social need

Which of the following statements about the psychoanalytical theory is true?

It is used to determine the consumer's purchase motivations.

Behavioral learning theories are based on internal psychological processes such as motivation and thinking.

FALSE

Laith follows an Olympic mountain biker on Instagram. The Olympian has been riding the same brand of mountain bike for many years. Every time Laith reviews his research on this big purchase, he pushes aside the research for brands other than the bike he sees posted on Instagram. Laith is demonstrating behavior following

an affect-referral decision rule.

According to classical conditioning, which of the following factors is considered important for learning to occur through the associative process?

repetition

Which of the following statements is true of the consideration set?

It is the exact number of the evoked set.

Plum, a manufacturer of baby products, came up with an attractive jingle for its advertisement. The jingle gained popularity among its audience due to its catchy tune and simple lyrics. Which of the following helps viewers remember and recognize Plum's ad?

mnemonics

Gilbert is dissatisfied with his phone because it has a very short battery life. He realizes that he needs a phone that has a longer battery life. Gilbert is in the ________ stage of the consumer decision-making process.

problem recognition

According to the family decision-making process, a mother who decides that she needs a new car is referred to as the

initiator.

In the selective perception process, which stage occurs after selective attention?

selective comprehension

Laith has been looking at all the options for purchasing a new or used mountain bike. Now he cannot remember all the information he has read, seen, and reviewed, although he understood it clearly. What stage is Laith experiencing in the selective perception process?

selective retention

Dissonance is less likely to occur in important decisions where the consumer must choose among close alternatives.

FALSE

Laura had a new baby and is shopping for a minivan to accommodate her larger family. Which of the following sources of problem recognition is Laura experiencing?

new needs/wants

Operant conditioning is also called

instrumental conditioning.

Behavioral learning theories are based on the stimulus-response orientation.

TRUE

Innovation Marketers is helping Blueberry Designs launch a new line into a different consumer market. They will use techniques including gathering information on the social, cultural, and environmental influences on consumer behavior. Information collection using individual interviews is a

qualitative methodology.

A consumer always makes his or her purchase decisions in isolation. No external factor influences a consumer's decision-making process.

FALSE

Laith is an avid mountain biker. Lately he's had trouble with his bike's gear shift and brakes, which he has had repaired several times over the years—perhaps it is time to start looking for a new bike. Laith is in what stage of the consumer decision-making process?

problem recognition

Bliss Automobiles is a Texas-based luxury car manufacturer. Typically, it is never affected by economic downturns because its customers are highly image conscious. Which level of the hierarchy of needs are Bliss's customers illustrating?

esteem

Daphne cannot find the laundry detergent to which she is loyal, which disrupted her routine purchase behavior. Which source of problem recognition is Daphne experiencing?

out of stock

Differences in dialects spoken in a country can be a major barrier to effective communication of an advertiser's message.

TRUE

The source of a communication is the person or organization that has information to share with another person or group of people.

TRUE

Nonpersonal channels are generally referred to as the mass media.

TRUE

In the standard learning hierarchy, a consumer is viewed as a passive participant in a communication process.

FALSE

When they are in a "passive" shopping mode, the information and advice consumers need to make a purchase comes to them unsolicited, such as a comment on a social media site; an ad seen on a TV show, in a magazine, or on a website; or by observing someone using a product or service.

TRUE

A celebrity associated with a brand makes a misstep that is broadcast across the media, creating an untrustworthy image. This event causes a

source derogation.

Which demographic factor is creating extensive challenges for domestic marketers in the United States in communicating their advertising messages?

Growth of multicultural ethnic markets

In a television ad for Teeny Toddler baby powder, a celebrity informs the audiences that the product helps keep a baby's skin dry and soft. In this scenario, the celebrity is the ________ of the communication process.

source

A major advantage of personal channels of communication is that

a message or presentation can be tailored to an individual or audience.

Which of the following is an example of broadcast media?

Radio

After watching a commercial on television, Rebecca dialed a toll-free number to order a kitchen appliance featured in the ad. This call is which element of the communication process?

responding

Genex Inc., a new company, has come up with pasteurized goat milk for consumers who are allergic to cow milk, which is an extremely small group. This kind of small consumer group can be referred to as a

market niche.

Which stage of the AIDA involves getting the consumer to make a purchase commitment and closing the sale?

action stage

Lily saw a newspaper ad for a microwave oven and subsequently visited the company's website to get more details about the microwave. According to the traditional response hierarchy model, Lily is currently in which of the following stages?

affective stage

Jim bought a new car after evaluating several alternatives. Despite being happy with the performance, he experienced a certain degree of anxiety and doubt about the car. In this scenario, Jim is experiencing

postpurchase dissonance.

According to a major study commissioned by the Advertising Research Foundation (ARF), the information and advice consumers need to make a purchase comes to them unsolicited when they are in a(n) ________ shopping mode.

passive

Angelina is not in the market for new shoes, but she notices a luxury shoe brand featured on her favorite television show and sees her friend wearing them in a photo on social media. Angelina is in a(n) ________ shopping mode.

passive

After viewing an automobile ad that claims, "the car's highway mileage is 60 miles per gallon," Ryan states, "That's impossible." Ryan's statement is an example of a

counterargument.

Gertie sees an ad for Ultra Tide and thinks, "Ultra Tide looks like a really good product—I think I'll try it." This statement is an example of a

support argument.

According to the persuasion matrix, which of the following is a dependent variable in consumers' response process?

attention

Marketers use the company president or chief executive officer as spokesperson in the firm's advertising in order to increase

source credibility

Alice knew that her boss was a huge fan of Sharon Styles, a professional tennis player. Alice also noticed that her colleagues who were fond of Styles shared a good rapport with her boss. In order to impress her boss, Alice gave her a perfume endorsed by Styles as a birthday present. She also bought magazines featuring Styles in order to project that she, too, was fond of Sharon Styles. In this case, the influence process occurs through a process known as

compliance

An Acura ILX advertisement focuses on the positive attributes and benefits associated with the car. This is an example of a

one- sided message

A celebrity endorser of a car states in the ad, "I can tell you that there is a strong likelihood that our product will cost more than our competitors' products. Our costs are high because we ensure that our parts are of the highest quality and this guarantees a superior driving experience." This is an example of a

two- sided message

During a recent survey, Greg found that people remembered information presented at the beginning of an advertising message better than information presented in the middle. This finding could be explained by the

primacy effect.

Anne, a student, purchases most products endorsed by Reese Perry, a popular celebrity. She had also adopted the way Reese dresses and styles her own image after Reese. However, Anne developed a negative feeling toward Reese after learning that she has been involved in an insurance scam. Subsequently, she also stopped purchasing any products endorsed by Reese. Which of the following persuasion processes is indicative of Anne's behavior?

identification

The sleeper effect states that the persuasiveness of a message decreases with the passage of time.

False

Jane was asked to survey 10,000 people in Chicago in order to find out how many of them liked Dwayne Carter's performance in the movie Fatal Upheaval. After the study, she concluded that only 33 percent of the people knew who Dwayne Carter was. Here, the 33 percent indicates the

familiarity score

Pacifix Inc., a cell phone manufacturer, has launched a new smartphone. The company wants to communicate detailed information about the smartphone's specifications to its target audience. It also wishes to enable the audience to process the ad information at their own rate. Which of the following media should Pacifix use to convey the desired information?

magazines

When Domino's Pizza conceded to shortcomings of its product and explained what it was doing about them, it used a two-sided message.

True

An ad campaign for road safety showed a coconut being crushed severely after being struck by a hammer. It aims to emphasize the importance of wearing a helmet while riding a motorcycle. Which of the following was used in the ad in order to evoke a favorable response?

fear appeal

After watching an ad in which Dean Douglas, a popular movie actor, endorses Scandium laptops, Leslie, a big fan, believes that Dean endorse only reliable products. She immediately purchases a Scandium laptop and is confident that Scandium is the world's number one laptop manufacturer, as Dean had claimed in the ad. Her purchase is the result of a process known as

internalization

One-sided messages work better when the target audience is highly educated.

false

Placing the strongest arguments in an advertising message at the beginning takes advantage of the

primacy effect.

When airlines, destination resorts, and travel-related services advertise in publications such as Travel + Leisure because the articles, pictures, and other ads help excite readers about travel, they are taking advantage of the ________ effect.

qualitative media

Which of the following is an example of an independent variable in the persuasion matrix?

channel

Dependent variables of the persuasion matrix are the controllable components of the communication process.

False

An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured.

True

To be effective, marketing objectives must be quantifiable, realistic, and attainable.

True

In the business world, the only marketing-mix variable that impacts sales results is promotion.

False

Advertising can always make consumers buy a particular brand, even if it is priced higher than a competing brand.

False

Direct-response advertising is one type of advertising that evaluates its effectiveness on the basis of sales.

True

One of the foundational methods for setting objectives Innovation Marketers often uses is the DAGMAR approach. Working with Sum Company to measure advertising effectiveness, they are using this approach to guide Sum Company, focusing their attention on

communications-based rather than sales-based objectives

Innovation Marketers is helping Sum Company in their planning process by establishing communication objectives. Sum Company wants to make sure the budget limitations are also included, showing ________ between the communication analysis and determining the budget.

two-way interaction

A budgeting technique used by Sum Company is profits equal gross margin minus advertising expenditures. This method is known as

marginal analysis.

Sum Company's new board realized that the purpose of their advertising and promotion has been ignored for a period of time. Innovation Marketers was hired to conduct an analysis and concluded there is a lack of systematic planning to create communication objectives tied to the budget. Sum Company has been practicing

arbitrary allocation

Jason gained responsibility for advertising at his firm. For which element of the marketing mix is he responsible?

promotion

One of the objectives set by Halo, a manufacturer of food products, was "to introduce our new flavored milk, Milkola, and capture 10 percent of the total demand within one year." This is an example of a ________ objective.

marketing

Which of the following statements is true of marketing goals that are defined in terms of sales, profit, or market share increases?

They are usually not appropriate promotional objectives.

Which of the following statements is true of sales objectives?

Sales are a function of many factors, not just advertising and promotion

Under the DAGMAR approach, an advertising goal involves a ________ task that is specific and measurable.

communications

Which of the following statements is a correct conclusion based on research on advertising during a recession?

There is strong evidence that cutting back on advertising can hurt sales during and after a recession.

According to the concept of marginal analysis,

as advertising expenses increase, sales and gross margins also increase to a point, but then they level off.

The marginal analysis method is most suitable as a basis of budgeting for

direct-response advertising.

Timber-On, a furniture-manufacturing company, has a total budget of $3 million for all its expenses in the current year. It has determined from the previous years that it will require about $2.5 million for production and operational purposes. The balance of $0.5 million has been allocated for advertising and promotion. Which of the following budgeting approaches is the firm following?

affordable method

One of the main disadvantages of the percentage-of-sales method of promotional budgeting is that it

treats advertising as an expense.

Doodle Corporation, a manufacturer of safety pins, decided that the company had to increase the awareness of its glow-in-the-dark pins among children and mothers. It also wished to increase the sales of its basic steel pins by 10% in the current financial year. It was convinced that, in order to attain these goals, it had to spend $1.5 million, so it allocated this amount for promotional expenditure. Which of the following promotional budgeting methods was used by Doodle Corporation?

Objective and task method