Marketing EXAM 2

What is the main purpose of market segmentation?

Identify and satisfy different customer needs.

Which of the following is NOT a common basis for market segmentation?

Technological.

What is an example of geographic segmentation?

Selling winter coats in colder climates.

Baby Boomers are individuals born between:

1946 - 1964.

Which ethnic group has the highest household income level in the U.S.?

Asian-Americans.

Engel’s Law states that as income increases, the percentage spent on ______ decreases.

Food.

What is the 80/20 principle in market segmentation?

80% of a company’s sales come from 20% of its customers.

A company that creates different versions of a product to target specific groups is practicing:

Differentiated marketing.

Which of the following is an example of positioning based on application?

Selling baking soda as a cleaning agent.

Transaction-based marketing focuses on:

One-time exchanges of goods and services.

A loyalty program that rewards customers with discounts is an example of:

Financial bonding.

Frequency marketing is designed to:

Encourage repeat purchases.

Affinity marketing is used to:

Create a sense of belonging among customers.

A “Flaunter” in money attitude is likely to:

Spend money to show off.

Why do impoverished people tend to have a present-focused mindset?

Limited financial resources.

A major reason for obesity in impoverished communities is:

Limited access to fresh fruits and vegetables.

What happens during economic inflation?

Prices rise.

Consumer behavior is influenced by:

Social and psychological factors.

A subculture is best described as:

A smaller group within a larger culture with distinct values.

The Asch phenomenon demonstrates:

How people conform to group norms.

Maslow’s hierarchy of needs includes all EXCEPT:

Financial independence.

Cognitive dissonance occurs when:

A consumer regrets a purchase.

The evoked set refers to:

The brands a consumer considers during decision-making.

An example of variety-seeking buying behavior is:

Trying different cereal brands.

Which adopter category is most likely to take risks with new products?

Innovators.

Business-to-business marketing involves selling to:

Government agencies.

Derived demand means that demand for a business product depends on:

The demand for consumer products.

Joint demand occurs when:

Two products are used together.

Outsourcing is a business strategy that involves:

Hiring external companies to provide goods or services.

A new-task buying situation occurs when:

A company purchases a product for the first time.

What is the consumer formula, CB = f(I,P)?

It explains consumer behavior as a function of interpersonal and psychological/personal factors.

What is culture?

Values, beliefs, preferences, and tastes handed down from one generation to the next.

What are the core values in U.S. culture?

Work ethic and desire to accumulate wealth.

What does the variation in consumption preferences among Mexicans, Puerto Ricans, and Dominicans illustrate?

The presence of subcultures.

What is the tendency to view your own culture as the norm called?

Ethnocentrism.

What is the definition of status?

The relative position of any member in a group.

What are norms?

When groups establish values and behaviors they deem appropriate for their members.

What phenomenon occurs when you conform to group pressure despite personal reservations?

Asch phenomenon.

What type of consumption is associated with buying luxury brands like Lexus?

Conspicuous consumption.

What is a membership reference group?

The group a person is a member of.

What does WASP stand for?

White Anglo-Saxon Protestants.

Which class is described as the social elite who live on inherited wealth?

Upper-upper class.

Which class is characterized by new money earned within a generation?

Lower-upper class.

What describes professionals with advanced education?

Upper-middle class.

How does the middle class typically send their children to school?

Send children to good public schools in good school districts.

What is a characteristic of the working class?

Rely on relatives for economic and emotional support.

Which group is often depicted negatively in mainstream pop culture?

Working poor and chronic welfare.

What are opinion leaders known for?

Trendsetters who are likely to purchase new products before others in the group and share their opinions.

In a syncratic role, how do partners make decisions?

Both partners jointly make decisions.

What need category is satisfied by purchasing life insurance for children?

Safety needs.

What is perception in consumer behavior?

Meaning that a person attributes incoming stimuli gathered through their five senses.

How do marketers effectively capture attention through advertisements?

Using big, colorful ads.

What is the definition of attitude?

Enduring favorable or unfavorable evaluations, emotions, or actionable tendencies toward some object.

What are the three components of attitude?

Cognitive, affective, and behavioral components.

What does NOT help in changing attitude according to the Fishbein Model?

Change the formula to loglinear function.

What does rewarding customers with coupons exemplify?

Learning.

What is extended self?

One's children and pets.

What is the first step of the integrated model of the consumer decision process?

Need recognition.

How do internal and external search differ?

Internal: knowledge and experience; External: internet and interpersonal sources.

What is the evoked set?

The number of brands that a consumer actually considers.

What does post-purchase evaluation involve?

Evaluating the product after purchase to determine satisfaction level.

How do marketers improve post-purchase evaluation?

Offering post-sale technical support for any product-related problems.

What is the formula for satisfaction?

Performance/quality - expectations.

What increases the likelihood of cognitive dissonance after a purchase?

Increase in the dollar value of the purchase.

What type of buying behavior involves thorough analysis of brands?

Complex buying behavior.

What buying behavior requires the least effort from consumers?

Habitual buying behavior.