Consumer Behavior and Marketing Concepts

These flashcards review key concepts related to consumer behavior, marketing strategies, and market research, essential for understanding how various factors influence consumer decisions and marketing effectiveness.

Which statement is true of demographic characteristics?

A) They are strongly related to consumer buying behavior in the marketplace.
B) They are primarily independent of lifestyle choices.
C) They are only relevant for B2B markets.
D) They focus exclusively on psychological factors.

A) They are strongly related to consumer buying behavior in the marketplace.

What describes how people make purchase decisions and how they use and dispose of goods and services?

A) Consumer behavior.
B) Market research.
C) Product life cycle.
D) Brand positioning.

A) Consumer behavior.

What are nonmarketing-controlled information sources?

A) They include Internet forums and other forms of public sources of information.
B) They are advertisements and sales promotions.
C) They are company websites and brochures.
D) They are internal sales reports.

A) They include Internet forums and other forms of public sources of information.

In an internal information search, what does a person rely on?

A) Information stored in the memory.
B) Advice from friends and family.
C) Online product reviews.
D) Marketing campaigns.

A) Information stored in the memory.

Unlike hedonic value, what can utilitarian value be viewed as?

A) A means to an end.
B) A provider of pleasure and excitement.
C) Strictly emotional satisfaction.
D) A luxury good.

A) A means to an end.

What strongly influences consumer decision making?

A) Underlying cultural, social, individual, and psychological factors.
B) Only marketing-controlled information.
C) Exclusive focus on price and availability.
D) Government regulations.

A) Underlying cultural, social, individual, and psychological factors.

What social factors affect the consumer decision journey?

A) Reference groups, opinion leaders, and family.
B) Brand loyalty and personal preferences.
C) Price sensitivity and product features.
D) Economic trends and technological advancements.

A) Reference groups, opinion leaders, and family.

What is a social class?

A) A group of people considered nearly equal in status, who regularly socialize and share behavioral norms.
B) A demographic segment based solely on income.
C) A formal organization with elected leaders.
D) A group defined by shared hobbies, regardless of status.

A) A group of people considered nearly equal in status, who regularly socialize and share behavioral norms.

Who are opinion leaders?

A) Individuals who influence consumer buying decisions and are often the most informed members of society.
B) Government officials who regulate marketing.
C) Random spokespersons in advertisements.
D) Employees of a company's marketing department.

A) Individuals who influence consumer buying decisions and are often the most informed members of society.

What should marketers be aware of regarding nontraditional life cycles?

A) They provide insights into the needs and wants of divorced parents, lifelong singles, and childless couples.
B) They are less important than traditional family life cycles.
C) They only represent a small, insignificant market segment.
D) They primarily influence luxury good purchases.

A) They provide insights into the needs and wants of divorced parents, lifelong singles, and childless couples.

What did Stanley base his purchase of the fountain pen on?

A) Perceived value.
B) The recommendations of his friends.
C) A sudden impulse.
D) An aggressive sales pitch.

A) Perceived value.

How can an advertisement influence the consumer decision journey?

A) By prompting a consumer to research multiple products or services.
B) By directly forcing a purchase decision.
C) By discouraging any further information search.
D) By exclusively focusing on competitors' weaknesses.

A) By prompting a consumer to research multiple products or services.

What reflects a person's traits, attitudes, and habits in psychographic segmentation?

A) Personality.
B) Income.
C) Age.
D) Geographic location.

A) Personality.

What does usage-rate segmentation divide a market by?

A) The amount of product bought or consumed.
B) Geographic region.
C) Consumer age.
D) Brand preference.

A) The amount of product bought or consumed.

How can marketing managers help reduce cognitive dissonance among consumers?

A) By sending post purchase letters and providing guarantees on products.
B) By increasing the product's price after purchase.
C) By ignoring customer feedback.
D) By making the return process difficult.

A) By sending post purchase letters and providing guarantees on products.

North Face segments the market based on market size, density, and climate. What type of segmentation are they using?

A) Geographically.
B) Psychographically.
C) Demographically.
D) Behaviorally.

A) Geographically.

What kind of strategy does Trower Inc. use by launching two versions of a smartphone with similar design?

A) Income segmentation.
B) Geographic segmentation.
C) Usage-rate segmentation.
D) Benefit segmentation.

A) Income segmentation.

What targeting strategy does Laelle use by applying the same promotions for all consumers?

A) Undifferentiated targeting strategy.
B) Concentrated targeting strategy.
C) Multisegment targeting strategy.
D) Niche targeting strategy.

A) Undifferentiated targeting strategy.

What is a disadvantage of a multisegment targeting strategy?

A) It can result in cannibalization.
B) It prevents economies of scale.
C) It limits market reach.
D) It requires minimal resources.

A) It can result in cannibalization.

What advantage does a multisegment targeting strategy provide?

A) Economies of scale in manufacturing and marketing.
B) Reduced marketing costs.
C) Simpler product development.
D) Higher individual customer loyalty across all segments.

A) Economies of scale in manufacturing and marketing.

What is a disadvantage of undifferentiated targeting?

A) It makes a company more susceptible to competitive inroads.
B) It requires extensive market research.
C) It results in higher production costs.
D) It usually leads to brand overspecialization.

A) It makes a company more susceptible to competitive inroads.

What is market segmentation?

A) The process of dividing a market into meaningful, identifiable groups.
B) The process of selling products to a mass market.
C) The strategy of advertising to all consumers.
D) The method of setting product prices.

A) The process of dividing a market into meaningful, identifiable groups.

What influences product positioning?

A) It is a process influencing potential customers' overall perception of a brand and product line.
B) It is solely determined by the product's price.
C) It refers to the physical placement of a product in stores.
D) It is controlled exclusively by government regulations.

A) It is a process influencing potential customers' overall perception of a brand and product line.

What exemplifies cannibalization in product sales?

A) A new product leading to a significant decline in sales of existing products from the same company.
B) A company acquiring a competitor's product line.
C) A product gaining market share from a rival brand.
D) An increase in overall market demand for a product category.

A) A new product leading to a significant decline in sales of existing products from the same company.

What strategy did Mott's use to reposition applesauce?

A) Product repositioning.
B) Market expansion.
C) Price reduction.
D) Brand extension.

A) Product repositioning.

What is referred to as a perceptual map in marketing?

A) A means of graphing the location of products or brands in the minds of consumers.
B) A diagram showing a company's organizational structure.
C) A geographic representation of sales territories.
D) A flowchart of the supply chain.

A) A means of graphing the location of products or brands in the minds of consumers.

How does marketing research help managers?

A) By improving the quality of decision making.
B) By eliminating the need for judgment.
C) By guaranteeing market success.
D) By reducing all business risks.

A) By improving the quality of decision making.

What does the research design in marketing specify?

A) Which research questions must be answered.
B) The exact budget for the project.
C) The final conclusions of the study.
D) Who will conduct the research.

A) Which research questions must be answered.

When should market research be conducted?

A) When the expected value of the information is greater than the cost of obtaining it.
B) Only when a product is failing.
C) Regardless of cost, for all decisions.
D) Only for large, multinational corporations.

A) When the expected value of the information is greater than the cost of obtaining it.

What do cross-tabulations allow analysts to do?

A) Look at responses to one question in relation to responses to other questions.
B) Create complex statistical models.
C) Conduct in-depth interviews.
D) Forecast future market trends with certainty.

A) Look at responses to one question in relation to responses to other questions.