CHAPTER FIVE
The Consumer Audience
People who buy or use products to satisfy their needs and wants are known as
________.
a.
consumers
b.
buyers
c.
users
d.
customers
e.
a market
(a; moderate; p. 131; LO1)
3.
144
5.
________ is(are) made up of tangible items, such as art, literature, buildings, and
music, and intangible concepts, such as knowledge, laws, morals, and customs.
a.
History
b.
Culture
c.
Reference groups
d.
Consumer behavior
e.
Values
(b; moderate; p. 132; LO2: AACSB Multicultural and Diversity)
145
10.
Culture is learned and passed on from one generation to the next, and the
boundaries each culture establishes for behavior are called ________.
a.
references
b.
values
c.
norms
d.
subculture
e.
core values
(c; moderate; p. 132; LO2: AACSB Multicultural and Diversity)
11.
________ are simply rules that we learn through social interaction that specify or
prohibit certain behaviors.
a.
Norms
b.
References
c.
Values
d.
Core values
e.
Heuristics
(a; moderate; p. 132; LO2: AACSB Multicultural and Diversity)
12.
The source of norms is our ________, which come from our immersion in a
specific culture and represent our underlying belief systems.
a.
values
b.
legal system
c.
social system
d.
social class
e.
education
(a; moderate; p. 132; LO2: AACSB Multicultural and Diversity)
13.
A sense of belonging, excitement, fun and enjoyment, warm relationships, selffulfillment, respect from others, accomplishment, security, and self-respect are all
examples of ________.
a.
norms
b.
culture
c.
core values
d.
behaviors
e.
driving forces
(c; moderate; p. 133; LO2: AACSB Multicultural and Diversity)
14.
146
15.
The position you and your family occupy within our society is known as
________ .
a.
subculture
b.
culture
c.
ethnic group
d.
reference group
e.
social class
(e; easy; p. 134; LO2: AACSB Multicultural and Diversity)
18.
147
20.
Which of the following is the most important reference group because of its
longevity and the intensity of its relationships?
a.
peers
b.
classmates
c.
family
d.
employer
e.
fellow employees
(c; moderate; p. 135; LO2)
23.
A ________ consists of two or more people who are related by blood, marriage,
or adoption, and live in the same household.
a.
subculture
b.
family
c.
household
d.
reference group
e.
normative group
(b; easy; p. 135; LO2)
24.
A ________ consists of all those who occupy a dwelling whether they are related
or not.
a.
subculture
b.
family
c.
household
d.
reference group
e.
normative group
(c; easy; p. 135; LO2)
148
25.
________ are the statistical, social, and economic characteristics used to describe
a population, including age, gender, education, income, occupation, race, and
family size.
a.
Psychographics
b.
Lifestyles
c.
Geographics
d.
Demographics
e.
Censusgraphics
(d; moderate; p. 135; LO2: AACSB Multicultural and Diversity)
26.
Age, gender, education, income, occupation, race, and family size are all
examples of ________ variables.
a.
psychographic
b.
lifestyle
c.
demographic
d.
geographic
e.
censusgraphic
(c; moderate; p. 135; LO2: AACSB Multicultural and Diversity)
27.
________ gender differences are physical traits that are inherent in males or
females, such as a womans ability to bear children.
a.
Driving
b.
Primary
c.
Secondary
d.
Obvious
e.
Fundamental
(b; moderate; p. 137; LO2: AACSB Multicultural and Diversity)
28.
________ gender traits tend to be associated with one sex more than the other; for
instance, wearing perfume and shaving legs are association with women.
a.
Driving
b.
Primary
c.
Secondary
d.
Non-obvious
e.
Nonfundamental
(c; moderate; p. 137; LO2: AACSB Multicultural and Diversity)
149
29.
________ is the amount of money available to a household after taxes and basic
necessities such as food and shelter are paid for.
a.
Income
b.
Discretionary income
c.
Available income
d.
Incremental income
e.
Spendable income
(b; moderate; p. 139; LO2)
32.
The basic driving forces that motivate us to do something are called ________.
a.
wants
b.
desires
c.
values
d.
needs
e.
attitudes
(d; moderate; p. 141; LO2; AACSB Reflective Reasoning)
150
33.
________ needs include the need for water, food, air, shelter, and sex, and
because satisfying these needs is necessary to maintaining life, they are also
called primary needs.
a.
Required
b.
Discretionary
c.
Core
d.
First
e.
Innate
(e; moderate; p. 141; LO2; AACSB Analytical Skills)
34.
________ are what we feel for more essential items, particularly the primary
needs, such as food and shelter, and ________ occur when we desire or wish for
something.
a.
Needs; wants
b.
Wants; needs
c.
Primary needs; secondary needs
d.
Innate needs; acquired needs
e.
Innate wants; acquired wants
(a; moderate; p. 141; LO2; AACSB Reflective Reasoning)
35.
________ needs are those we learn in response to our culture and environment
and may include needs for esteem, prestige, affection, power, and learning.
a.
Innate
b.
Desired
c.
Acquired
d.
Selective
e.
Higher-order
(c; moderate; p. 141; LO2; AACSB Multicultural and Diversity)
36.
Because acquired needs are not necessary to your physical survival, they are
considered ________ needs.
a.
secondary
b.
unmet
c.
unnecessary
d.
innate
e.
discounted
(a; moderate; p. 141; LO2; AACSB Analytical Skills)
37.
151
38.
Prestige, status, and accomplishments are all examples of which level of needs in
the Maslows Hierarchy of Needs?
a.
ego needs
b.
belongingness needs
c.
safety needs
d.
self-actualization needs
e.
physiological needs
(a; moderate; p. 141 [Figure 5.2]; LO2; AACSB Reflective Reasoning)
39.
needs
include
prestige,
status,
and
40.
152
43.
153
48.
What two variables are used to organize the VALS classification of consumers?
a.
resources and innovation
b.
age and self-orientation
c.
age and social class
d.
resources and psychographics
e.
social class and education
(a; difficult pp. 145-146 [Figure 5.4]; LO2; AACSB Analytical Skills)
49.
________ are trend spotters who specialize in identifying trendy fads that appeal
to young people.
a.
Cool hunters
b.
Cutting-edge spotters
c.
Trend hunters
d.
Gen Y spotters
e.
Trend setters
(a; moderate; p. 148; LO2; AACSB Analytical Skills)
52.
154
53.
Which category of the adoption process represents the small group of people (i.e.,
2.5 percent of the population) willing to try something new?
a.
innovators
b.
early adopters
c.
early majority
d.
late majority
e.
laggards
(a; easy; p. 148; LO2; AACSB Analytical Skills)
56.
________ is your view of the relationship between what you gain by trying
something new and what you have to lose if it doesnt work out.
a.
Adoption
b.
Adaptation
c.
Perceived risk
d.
Selective exposure
e.
Selective distortion
(c; moderate; p. 148; LO2; AACSB Analytical Skills)
57.
155
58.
________ is the stage where consumers compare various products and features
and reduce the list of options to a manageable number.
a.
Need recognition
b.
Information search
c.
Evaluation of alternatives
d.
Purchase decision
e.
Postpurchase behavior
(c; easy; p. 150; LO3; AACSB Analytical Skills)
60.
156
62.
________ means dividing the market into groups of people who have similar
characteristics in certain key product-related areas.
a.
Targeting
b.
Marketing
c.
Positioning
d.
Segmenting
e.
Profiling
(d; moderate; p. 151; LO3; AACSB Multicultural and Diversity)
63.
________ means identifying the group that might be the most profitable audience,
the one most likely to respond to marketing communication.
a.
Targeting
b.
Marketing
c.
Zoning
d.
Segmenting
e.
Profiling
(a; moderate; p. 151; LO3; AACSB Multicultural and Diversity)
64.
A group of people, identified and selected by the marketer, with similar needs and
characteristics who are most likely to be receptive to the marketers product and
messages is known as a ________.
a.
market segment
b.
viable segment
c.
sustainable segment
d.
viable market
e.
target market
(e; moderate; p. 152; LO3; AACSB Multicultural and Diversity)
66.
157
67.
International, national, state, city, climate, and urban/rural are all ways to segment
a market by ________.
a.
demographics
b.
geographics
c.
psychographics
d.
behavioral characteristics
e.
benefits sought
(b; easy; p. 153; LO3; AACSB Multicultural and Diversity)
70.
Subsegments of a more general market are known as ________ markets and are
defined by individuals with some distinctive trait, such as being ecologically
minded consumers.
a.
sub
b.
niche
c.
narrow
d.
generational
e.
social
(b; moderate; p. 154; LO3; AACSB Multicultural and Diversity)
GENERAL CONTENT: TRUE/FALSE QUESTIONS
71.
Consumers are people who buy or use products to satisfy their needs and wants.
(True; easy; p. 131; LO1)
72.
Purchasers and users have the same needs.
(False; moderate; p. 131; LO1)
158
73.
The social and cultural forces that impact consumer behavior include culture,
social class, personality, family, and demographics.
(False; moderate; p. 132; LO2; AACSB Multicultural and Diversity)
74.
Values are simply rules that we learn through social interaction that specify or
prohibit certain behaviors.
(False; moderate; p. 132; LO2; AACSB Multicultural and Diversity)
75.
Subculture is a term that describes how various companies operate.
(False; moderate; p. 133; LO2; Multicultural and Diversity)
76.
A household differs from a family in that it consists of all those who occupy a
dwelling whether they are related or not.
(True; moderate; p. 135; LO2; AACSB Multicultural and Diversity)
77.
Consumers with higher education prefer print media, the Internet, and selected
radio and cable stations.
(True; moderate; p. 138; LO2; AACSB Multicultural and Diversity)
79.
Ethnicity is becoming a major criterion for segmenting markets.
(True; difficult; p. 138; LO2; AACSB Multicultural and Diversity
80.
The area in which a target market lives correlates with several demographic
characteristics and is important to advertisers.
(True; easy; p. 139; LO2; AACSB Multicultural and Diversity)
81.
First-level needs include the need for water, food, air, shelter, and sex.
(False; difficult; p. 141 [Figure 5.2]; LO2; AACSB Analytical Skills)
82.
Acquired needs are those we learn in response to our culture and environment and
may include needs for esteem, prestige, affection, power, and learning.
(True; moderate; p. 141; LO2; AACSB Analytical Skills)
83.
Consumers that try a product and find it does not meet their expectations may be
dissatisfied.
(True; easy p. 141; LO2)
84.
159
85.
A need is an internal force that stimulates you to behave in a particular manner.
(False; moderate; pp. 141-142; LO2)
86.
Activities, opinions, and interests are some of the major components used to
construct psychographic profiles of consumers.
(True; moderate; p. 143; LO2; AACSB Multicultural and Diversity)
89.
In the VALS system, psychographic groups are arranged vertically by selforientation and horizontally by resources.
(False; difficult; p. 145 [Figure 5.4]; LO2; AACSB Multicultural and Diversity)
90.
The Achievers and Strivers are motivated by achievement.
(True; easy; p. 146; LO2; AACSB Multicultural and Diversity)
91.
According to the Pareto Rule, 20 percent of the users buy 80 percent of the
products.
(True; moderate; p. 146; LO2)
93.
First-timers are people with low levels of brand loyalty who are willing to leave a
brand to try another one.
(False; difficult; p. 146; LO2)
94.
The first step in the consumer decision process is information search.
(False; moderate; p. 149; LO3; AACSB Analytic Skills)
95.
Seekers are people who are driven by a need to know everything they can about a
product before making a purchase, particularly for major purchases.
(False; difficult; p. 150; LO3; AACSB Analytic Skills)
96.
160
97.
The first brands that come to mind when you think of a product category and are
considered permissible in the evaluation of alternatives is referred to as the
evoked set.
(True; moderate; p. 150; LO3; AACSB Analytic Skills)
98.
Purchase decision is the last step of the consumer decision process.
(False; moderate; p. 150; LO3; AACSB Analytic Skills)
99.
Business buyers are not influenced by social and emotional factors.
(False; difficult; p. 151; LO3; AACSB Analytic Skills)
100.
Targeting means dividing the market into groups of people who have similar
characteristics in certain key product-related areas.
(False; moderate; p. 151; LO4; AACSB Analytic Skills)
101.
After segmenting a market, the marketer identifies, evaluates, and selects a target
market.
(True; easy; p. 152; LO4; AACSB Multicultural and Diversity)
103.
Profiles are descriptions of the target audience that read like a description of
someone you know.
(True; moderate; p 155; LO4; AACSB Multicultural and Diversity)
161
Name and describe the social and cultural influences on consumer decisions and
why they are important for advertisers.
Answer:
The cultural and social forces that impact consumer behavior fall into five major
areas:
(1)
CultureMade up of tangible items and intangible concepts that together
define a group of people or a way of life. It is learned and passed on from
one generation to the next, and the boundaries each culture establishes for
behavior are called norms, which are simply rules that we learn through
social interaction that specify or prohibit certain behaviors. The source of
norms is our values, which come from our immersion in a specific culture.
Advertisers strive to understand the underlying core values that govern
peoples attitudes and refer to them when selecting an ads primary
appeals. Sometimes a culture can be further broken down into smaller
groups called subcultures, which can be defined by geographic regions or
by shared human characteristics such as age, values, language, or ethnic
background.
(2)
Social ClassThe position you and your family occupy within your
society and is determined by such factors as income, wealth, education,
occupation, family prestige, value of home, and neighborhood. Marketers
assume that people in one class buy different goods from different outlets
and for different reasons than people in other classes.
(3)
Reference GroupsA group of people we use as a guide for behavior in
specific situations. Reference groups provide information, they serve as a
means of comparison, and they offer guidance for consumers. Ads that
feature typical users in fun or pleasant surroundings as well as those that
use celebrity endorsements are using a reference group strategy.
(4)
FamilyThe most important reference group because of its longevity and
the intensity of its relationships. A family consists of two or more people
who are related by blood, marriage, or adoption, and live in the same
household. Advertisers need to understand the structure, changes, and
workings of the family in order to communicate.
(5)
DemographicsThe statistical, personal, social, and economic
characteristics used to describe a population including age, gender,
education, income, occupations, race, and family size. These
characteristics serve as the basis for most advertising strategies and
knowing them assists advertisers in message design and media selection
for the target market.
(moderate; pp. 132140; LO2; AACSB Multicultural and Diversity)
162
107.
Name and describe the psychological influences that motivate consumers and why
they are important to advertisers.
Answer:
(1)
(2)
163
(3)
164
109.
Name and describe the stages of the consumer decision process under a highinvolvement purchase decision and the role advertising plays in each. How is this
different under a low-involvement decision?
Answer:
The stages of the consumer decision process under a high-involvement purchase
decision are:
(1)
Need RecognitionOccurs when the consumer recognizes a need for a
product. The goal of advertising at this stage is to activate or stimulate this
need.
(2)
Information SearchCan be casual or formal. Advertising helps the
search process by providing information in making it easy to find and
remember.
(3)
Evaluation of AlternativesThe stage where consumers compare various
products and features and reduce the list of options to a manageable
number. Advertising is important in this process because it helps sort out
products on the basis of tangible and intangible features.
(4)
Purchase DecisionOften a two-part decision. Usually, we select the
brand first and then select the outlet from which to buy it. Sometimes we
select the outlet first, particularly with impulse purchases. In-store
promotions such as packaging, point-of-purchase displays, price
reductions, banners and signs, and coupon displays affect these choices.
(5)
Postpurchase EvaluationThe point where we begin to reconsider and
justify our purchases to ourselves. Many consumers continue to read
information even after the purchase, to justify the decision to themselves.
Advertising, such as copy on package inserts, helps reduce the dissonance
by pointing out key features, how to best use the product, or how many
product users are satisfied.
165
110.
Define segmenting and targeting, and name and describe typical approaches to
segmentation.
Answer:
Segmenting means dividing the market into groups of people who have similar
characteristics in certain key product-related areas. Targeting means identifying
the group that might be the most profitable audience, the one most likely to
respond to marketing communication. There are six approaches to segmentation:
(1)
Demographic SegmentationDivides the market using characteristics
such as gender, age, ethnicity, income, and so forth.
(2)
Life Stage Segmentation---Based on the stage in consumers' life cycle,
which includes such categories as children, young people living at home, college
students, singles living on their own, couples, families with children, empty
nesters,and senior singles living alone. Age is a characteristic of life stage, as is
living situation. Discretionary income tends to vary with life stage.
(3)
Geographic SegmentationUses location as a defining variable because
consumers needs sometimes vary depending upon where they live. The
most important variables are world or global, region, nation, state, city,
climate, population density, and urban/rural character.
(4)
Psychographic SegmentationPrimarily based on studies of how people
spend their money, their patterns of work and leisure, their interest and
opinions, and their views of themselves.
(5)
Behavioral SegmentationDivides people into groups based on product
category and brand usage.
(6)
Values and Benefits-based SegmentationBased on consumers needs or
problems. The idea is that people buy products for different benefits they
hope to derive.
(moderate; pp. 151-157; LO4; AACSB Reflective Thinking)
APPLICATION QUESTIONS: MULTIPLE-CHOICE QUESTIONS
111.
The Dove "Campaign for Beauty" punctured the obsession with stick-thin bodies
and Barbie Doll images. What type of influence on consumer decision making is
this obsession?
a.
psychological
b.
cultural
c.
family
d.
target market
e.
demographic
(b; difficult; pp. 130, 132; LO2)
166
112.
Juan was born in Mexico but moved to the United States when he was five years
old. His family is still close to relatives back in Mexico, and he lives in a
neighborhood where most people still speak Spanish, eat traditional Mexican
dishes, wear traditional Mexican clothing, and listen to Mexican music. He
remembers fondly his grandfather telling him stories of his home countrys
customs and heroes. All of these factors form the ________ that will influence
Juans consumer behavior.
a.
social class
b.
family
c.
demographics
d.
culture
e.
reference group
(d; moderate; p. 132; LO2; AACSB Multicultural and Diversity)
114.
167
116.
117.
We all have the need for water, food, air, and shelterbasic needs that are
necessary to maintaining life. What kind of needs are these known as?
a.
basic
b.
innate
c.
life-giving
d.
acquired
e.
necessary
(b; moderate; p. 141; LO2; Analytical Skills)
118.
The Dove Real Beauty campaign tried to shatter the myth that the ________ for
beauty can only be young, blond, and thin models who represent unattainable
standards for most women.
a.
reference group
b.
social class
c.
ethnic group
d.
subculture
e.
family segment
(a; moderate; p. 135; LO2)
119.
168
120.
Jean is 60 years old and very upset with the current discussion in our country
about the overhaul of the Social Security System. She thinks the system is
working just fine, and she is concerned about her benefits being cut if the system
is changed in some way. When she sees information on television or reads in the
newspaper about the benefits of changing the system, Jean modifies the
information to fit it into her own personal beliefs about the system. What
psychological influence is influencing Jeans behavior?
a.
exposure anxiety
b.
want distortion
c.
selective needs
d.
perception
e.
buyer's remorse
(d; moderate; p. 140-141; LO2; AACSB Analytic Skills)
121.
Barbara doesnt like to make major purchasing decisions, such as choosing which
car to purchase. However, she had to replace the old car she owned because it was
no longer reliable, so she purchased a new Honda Accord. Although her entire
family assisted in the purchase transaction and the salesperson was a close family
friend and practically sold the car to her at cost, she is still concerned whether she
made the right decision. Barbara is suffering from ________.
a.
postpurchase behavior
b.
selective dissonance
c.
selective distortion
d.
cognitive dissonance
e.
selective exposure
(d; moderate; p. 141-142; LO3; AACSB Reflective Thinking)
122.
169
123.
Carol is conducting research and asking respondents to name the brands that first
come to mind for certain product categories. When she asks Bob this question for
computers, he mentions IBM, Dell, Gateway, and Hewlett-Packard. These brands
represent Bobs ________.
a.
evoked set
b.
considerate set
c.
purchase set
d.
top-of-mind group
e.
evaluation set
(a; moderate; p. 150; LO3; AACSB Analytical Skills)
125.
The Toyota case at the end of the chapter describes how Toyota goes after tuners.
What are tuners?
a.
consumers that are tuned in to current trends in their age demographic
b.
older consumers who dance to their own tune, meaning they are not
influenced by others when making consumption decisions
c.
younger consumers who dance to their own tune, meaning they are not
influenced by others when making consumption decisions
d.
young car buyers who live to customize their cars
e.
opinion leaders who have an unusual influence on young car buyers
(d; moderate; p. 161; LO4; AACSB Reflective Thinking)
APPLICATION QUESTIONS: MINI-CASE MULTIPLE-CHOICE
Monique and Bob Smith are married with two young children at home and a third away
at college. They are also considering adopting another child. Monique is the primary
shopper for her family, and every week, she goes shopping to buy products that she and
her family need and want.
170
126.
Mini-Case Question. Though Monique doesnt eat them herself, she purchases
snack items for her children and is always looking for more nutritious snacks than
mere junk food. In marketing terms, Monique is considered which type of
consumer?
a.
user
b.
business
c.
customer
d.
buyer
e.
consumer
(d; moderate; p. 131; LO1; AACSB Analytical Skills)
128.
Mini-Case Question. According to the U.S. Census, Monique, Bob, and the
children are considered to be a ________.
a.
census track
b.
family
c.
household
d.
reference group
e.
subculture
(b; moderate; p. 135; LO2; AACSB Analytical Skills)
129.
Mini-Case Question. Lex, Bob and Moniques oldest son who is away at college,
lives with three other students in a house off-campus. According to the U.S.
Census, they represent a ________.
a.
census track
b.
family
c.
household
d.
reference group
e.
subculture
(c; moderate; p. 135; LO2; AACSB Analytical Skills)
171
130.
Mini-Case Question. After budgeting for the things that he has to pay for, such as
his mortgage, car payments, insurance, food, and so forth, Bob figures they have
$1,000 left each month to use for whatever way they want. This $1,000 represents
the Smiths ________ income.
a.
net
b.
gross
c.
spendable
d.
discretionary
e.
left-over
(d; moderate; p. 139; LO2; AACSB Analytical Skills)
APPLICATION QUESTIONS: SHORT-ANSWER
131.
Explain how the Dove Real Beauty campaign used advertising to increase sales of
Dove.
Answer:
The Dove Real Beauty campaign used magazine advertising because of its ability
to stop the audience and make them really look at the models and contemplate the
meaning of beauty. They ran one ad during the Super Bowl. The Dove website
reinforces the message of the campaign urging women to boost their self-esteem
by defying stereotypes. The Dove launch was concentrated in the top 10 cities
where they could get the greatest impact. Outdoor and transit ads were plastered
on billboards and buses to generate public debate. The campaign generated
massive publicity in the mass media.
(moderate; p. 130)
132.
What were the two specific ideas from research that drove the Dove Real Beauty
campaign?
Answer:
Two specific ideas from research that drove the campaign were:
(1)
2% of the respondents believed themselves to be beautiful.
(2)
68% of the respondents indicated they strongly believed that the media
and advertising set an unrealistic standard of beauty most women can't
achieve.
(difficult; p. 130)
172
133.
You have been invited to speak at a small business workshop to explain how
consumers make purchase decisions and the basic factors that influence these
decisions. Briefly describe what you would discuss being careful not to overload
them with too much information because your audience is not very marketingsavvy. Just explain the basic concepts you know about the consumer audience.
Answer:
Although students can recite basically the entire chapter to answer this question,
the goal is really to assess students understanding of the basic concepts outlined
in this chapter. Students should discuss the basic consumer decision process: (1)
need recognition, (2) information search, (3) alternative evaluation, (4) purchase
decision, and (5) postpurchase behavior. Although this process is likely to be
followed for high-involvement decisions, some of the steps, specifically
information search, may be skipped under low-involvement decisions. Students
should also discuss the broad factors that influence consumer decision making:
(1) social/cultural influences, (2) psychological influences, and (3) behavioral
influences.
(moderate; pp. 132-148 and 149)
134.
According to the U.S. Census, a family consists of two or more people who are
related by blood, marriage, or adoption, and live in the same household. A
household differs from a family in that it consists of all those who occupy a
dwelling whether they are related or not. Therefore, a family is also a household,
but a household is not necessarily a family.
(moderate; p. 135; LO2; Analytical Skills)
173
135. Explain why the Hispanic culture is of great interest to marketers in the United
States.
Answer:
Few cultures are more important to U.S. marketing than the Hispanic culture
because it is growing proportionately faster than other ethnic groups. Research
shows that Hispanics spend more per shopping trip than non-Hispanics and that
store signage and product labels in Spanish promote stronger brand loyalty.
Hispanics also believe in using cash rather than credit cards and are willing to
spend proportionately more money on their kids and their clothing than their
Anglo-Saxon counterparts. Many of them also tend to be loyal to brands they
learned to prefer while they were living in Mexico. There are also media
differences based on ethnicity, with Hispanic viewers tending to watch
commercials in their entirety compared to non-Hispanic viewers. They are more
likely to base purchase decisions on advertisements too.
(moderate; p. 138; LO2; AACSB Multicultural and Diversity)
136.
For years, the U.S. Army has used an advertising campaign stressing that you can
Be all you can be. What is the rationale behind this campaign?
Answer:
It would appear that the army is appealing to its target audiences secondary, or
acquired, needs for self-fulfillment and enriching experiences, that is, selfactualization, which represents the highest level of needs on Maslows Hierarchy
of Needs.
(moderate; p. 141 [Figure 5.2]; LO2; AACSB Reflective Thinking)
174
138.
Miriam purchased a new car last month, but she continues to look at advertising
for cars and notes how many other cars like hers are on the road. When a news
article came out the other day indicating problems with the transmission being
noted by owners of her make of car, she took that to mean that all types of cars in
that class can have those problems, not just hers. She even sought out a Consumer
Reports article that pointed out that the car she purchased was rated highly on
reliability. What is Miriam experiencing?
Answer:
Explain the resource dimension of the VALS system and compare the Survivors
and Innovators categories of the VALS system in regard to resources.
Answer:
The VALS system categorizes consumers along two major dimensions: (1)
resources and (2) innovation. Resources include income, education, selfconfidence, , and energy.
The difference between Survivors and Innovators is that Survivors have
much lower resources than the Innovators. In fact, both are at complete opposite
extremes of the resource dimension.
(moderate; pp. 145-146; LO2; Analytical Skills)
175
141.
Why do retailers put several items, such as candy, batteries, small packages of
facial tissue, coolers with individual bottles of soft drinks, and so forth right at the
checkout?
Answer:
These items are impulse items. Consumers seeing them while they are waiting to
check out may realize they need, or at least want, that item, which is the first step
of the consumer decision process. People who buy on impulse generally do so
without much thought based on some immediate need such as thirst or hunger.
Usually theres not much at stake, so the risk of making a bad decision is small.
(easy; p. 150; LO3; Analytical Skills)
142.
Kim who is an avid cyclist decided to buy a new bicycle. She searched the web
for information on bikes and visited some bike shops. What is involved in the
next step in her decision process if she follows the sequence in the text?
Answer:
Kim is ready to evaluate alternatives, the stage where Kim compares various
brands and products and reduces the list of options to a manageable number. She
needs to choose the attributes that are most important then judge the alternatives
accordingly. Advertising about bikes is important because it helps her sort out
products on the basis of tangible and intangible features.
(moderate; p. 150; LO3; Analytical Skills)
143.
Microsoft is always looking to the future to decide what new products they should
introduce, and theyre interested in general characteristics of the early adopter
category of consumers. Based on the research in "the Inside Story" what would
you tell Microsoft about this category of consumers?
Answer:
176
144.
Ron is single and not a very good cook, so he eats a lot of pizza. So much so that
he orders it sometimes five nights per week from his favorite pizza place, Pizza
Hut. Why is Ron an important customer for Pizza Hut?
Answer:
Roger has decided to purchase a personal computer for his households use, but he
doesnt know much about computers and he really doesnt want to spend more
than $1,000. Describe the process Roger is likely to go through in making the
decision regarding which computer to purchase.
Answer:
Roger will probably go through all of the stages of the high-involvement decision
process. He has already recognized a need for a computer, which is the first step
in the process. Next he will likely gather as much information as he can by
reading articles, advertising, and talking to friends and colleagues. He will then
narrow his search down to a few alternatives that he will evaluate seriously,
referred to as the evoked set. From that evaluation, he will make a purchase
decision, typically deciding first on the brand and then which outlet from which to
buy it. Finally, he will most likely experience postpurchase behavior where he
reconsiders and justifies his purchase to himself. He may even experience doubts
about his purchase, known as cognitive dissonance.
(moderate; pp, 149-150; LO3; AACSB Analytical Skills)
177
146.
178
147.
The case at the end of the chapter, Toyota Goes After Tuners, describes who
tuners are and what marketers are doing to attract this group of consumers.
Explain what tuners are and why you think tuners are so attractive to marketers,
even after accounting for their spending power.
Answer:
Tuners are young car buyers who live to customize their cars. The trend really
began among young Asian Americans, who typically bought inexpensive Asianimport cars and then spent thousands of dollars customizing them. The hobby has
spread to other young people, but Japanese brands remain the cars-of-choice
among those dedicated to creating a work of art on wheels. Marketers may be
interested in these consumers for various reasons. First, brand preferences formed
while consumers are young may hold throughout their purchasing lifetime.
Second, these tuners may be seen as early adopters and can influence other
consumers. Finally, these tuners may be considered a reference group to which
other young car purchasers aspire and can influence their choice regarding car
brands. Thus, the social influence that they may play on others purchases may
make them a desirable market segment.
(moderate; p. 161; LO4; AACSB Analytical Skills)
APPLICATION QUESTIONS: MINI-CASE SHORT ANSWER
A recent article in the Wall Street Journal described how the next Pepsi Generation
likely will be drinking diet cola. Pepsi learned that one-third of teens were diet soda
drinkers last year and that teens start drinking diet soft drinks at a very early age.
However, they also acknowledged that a substantial portion of young people dont
consider diet sodas cool, particularly men. The chief marketing officer for Pepsi-Cola
North America was quoted as saying, We are treating Diet Pepsi as the flagship brand. . .
. Its a big step for us. Indeed, this is a major break with the traditional soft-drink
marketing in which the sugar-sweetened brand still dominates in market share. However,
with concerns of rising obesity and schools cutting back on sugar-sweetened drinks in
vending machines, soft-drink manufacturers, like Pepsi, are responding with an increase
in marketing of their diet soft drinks. As part of this new change in focus, Diet Pepsi will
be marketed as a hip, cool brand for everyone, including teenagers and Baby Boomers.
Meanwhile, the article stated that Pepsi is narrowing its sales pitch for regular Pepsi-Cola
to soda drinkers younger than 25, Latinos, African-Americans, and sports fans.
179
148.
Age and ethnicity fall under demographic segmentation, and sports fans represent
an interest, which would be psychographic segmentation.
(moderate; pp. 152-153; LO4; AACSB Analytical Skills)
150.
Mini-Case Question. It was also noted in the article that a substantial portion of
young people dont consider diet sodas cool, particularly men. What is Pepsi
trying to accomplish with their increased effort to reach these consumers?
Answer:
Pepsi is trying to change their attitude toward diet sodas. Currently, a substantial
portion of young peoples attitudes toward this product are negative, and Pepsi
would like to change that attitude. Attitudes are important to advertisers because
they influence how consumers evaluate products.
(moderate; p. 142; LO4; AACSB Analytical Skills)
180