1.
E c
2.
Those buying goods and services purchased for further production, usage in
operating an organization, or resale to other consumers are
a. large businesses.
c. organizational consumers.
b. small businesses.
d. final consumers.
E b
3.
D a
4.
E c
5.
E b
6.
E a
7.
E c
8.
The United States accounts for about what percent of the worlds population?
a. Less than 1
c. 5
b. 2
d. 10
E b
9.
The current life expectancy for newborn U.S. females is about ___ years.
a. 68
c. 85
b. 80
d. 88
139
10.
E a
11.
The smallest amount of residence changes in the United States involves moves
a. to a different region.
c. within the same county.
b. within the same region.
d. within the same state.
E c
12.
Recently, the greatest population growth in the United States has been in which
geographic region?
a. Central Southeast
c. Mountain
b. Northeast
d. Middle Atlantic
D d
13.
E b
14.
The total amount consumers annually pay for goods and services is known as the
a. consumer price index.
c. index of buying power.
b. cost of living.
d. gross domestic product.
E c
15.
Over the past 20 years, which sector within the United States has had the largest
cost increases?
a. Apparel
c. Medical care
b. Telephone services
d. Household furnishings
E c
16.
D d
17.
140
18.
D c
19.
E d
20.
The U.S. labor force is continuing its steady movement away from
a. managerial and administrative professions.
b. service-based occupations.
c. sales occupations.
d. nonskilled workers.
E c
21.
In the United States, approximately what proportion of adults age 25 and older
have graduated from high school?
a. 50 percent
c. 88 percent
b. 75 percent
d. 95 percent
E c
22.
Which of the following countries has the highest percent of 4-year college
graduates?
a. Canada
c. United States
b. Italy
d. Great Britain
E c
23.
A family is defined as
a. all persons who occupy a housing unit together.
b. a husband, wife, and children.
c. two or more persons residing together who are related by blood, marriage, or
adoption.
d. married individuals living together or apart.
E a
24.
A household is defined as
a. a person or group of persons who occupy a housing unit, whether related or
unrelated.
b. a husband, wife, and children.
c. two or more persons residing together who are related by blood, marriage, or
adoption.
d. a married couple living together or apart.
141
25.
D c
26.
D c
27.
E b
28.
D d
29.
D d
30.
E b
31.
142
32.
Opinion leaders
a. are the first to purchase a new product.
b. are a company-sponsored source of information.
c. communicate with others through face-to-face communication.
d. have an impact over a wide range of products.
D a
33.
E c
34.
Which family life-cycle stage most closely corresponds to the oldest age group?
a. Full nest III
c. Sole survivor II
b. Sole survivor I
d. Empty nest II
E b
35.
The sum total of a persons enduring psychological traits that make that person
unique is his or her
a. social class.
c. psychological profile.
b. personality.
d. lifestyle.
D c
36.
E d
37.
D c
38.
E d
39.
Which lifestyle is most closely compatible with a concern for ecological issues?
a. Blurring of gender roles
c. Me generation
b. Component life-style
d. Voluntary simplicity
143
40.
D a
41.
The increase in working women, the long distances between home and work,
and the rise in people working at second jobs have led to an increase in which
consumer lifestyle?
a. Poverty of time
c. Voluntary simplicity
b. Blurring gender roles
d. Me generation
D d
42.
D a
43.
E d
44.
A consumer lists alternatives that will solve a problem at hand and determines the
characteristics of them in which stage in the decision process?
a. Problem awareness
c. Stimulus
b. Evaluation of alternatives
d. Information search
D d
45.
E a
46.
Which type of decision making process is most likely to occur when a consumer
has little or no experience in buying a particular product and considers this
purchase to be quite important?
a. Extended decision making
c. Routine decision making
b. Limited decision making
d. Brand loyalty
144
47.
Which type of decision process has the LOWEST degree of perceived risk?
a. Extended consumer decision making
b. Low-involvement purchasing
c. Limited decision making
d. Cognitive decision making
D a
48.
E b
49.
E a
50.
51.
D b
52.
145
53.
D d
54.
D a
55.
E d
56.
Which of these statements about the mobility of the U.S. population is correct?
a. The greatest growth in the United States from 1990 to 2000 was in the
Middle Atlantic region.
b. Most of the moves within the United States are outside a persons current
region.
c. The mobility of the U.S population is the same in all regions of the United
States.
d. About 14 percent of the U.S. population moves annually.
E c
57.
146
58.
D b
59.
The consumer price index for apparel was 100 in a given year; five years later it
was 131. This means that an article of clothing that initially sold for $30 would
cost ___ five years later.
a. $24
c. $61
b. $39
d. $69
D b
60.
D b
61.
D b
62.
E c
63.
147
64.
D d
65.
E c
66.
D c
67.
Eighty-three percent of the readers of a popular business magazine are male. Its
readers average household income is $85,800, and over 97 percent work in a
professional/managerial capacity. These data describe the magazines consumer
a. buying power index.
c. demographic profile.
b. life-style profile.
d. sociographic profile.
D a
68.
148
69.
D d
70.
D d
71.
E c
72.
D c
73.
D a
74.
149
75.
D a
76.
Which of these types of perceived risk is most likely to be high for outer-directed
persons?
a. Social
c. Time
b. Psychological
d. Financial
D a
77.
78.
D d
79.
D d
80.
Which strategy is most appropriate for a retailer that seeks to appeal to the
poverty-of-time lifestyle?
a. Display of working models in each store
b. Overordering inventory to limit stockouts
c. Appeal to male shoppers by using additional male employees
d. Catalog-based sales and home delivery
150
would best
explain the
81.
Which lifestyle model suggests that consumer behavior is hard to classify and is
largely situational?
a. The me generation
c. A component lifestyle
b. Blurring gender roles
d. The poverty of time
E c
82.
E b
83.
In opening his suitcase, a vacationer suddenly realizes that he forgot his razor.
Which stage of the final consumers decision process is the traveler at?
a. Stimulus
c. Information search
b. Problem awareness
d. Purchase
Questions 84, 85, and 86 are linked to this scenario: Bill James, a recent college graduate, is
considering the purchase of a new car.
E c
84.
Bill James has been told by two mechanics that his 9-year-old car requires a new
transmission. Both mechanics also noted that the repair was costly in relation to
the cars value and overall condition. Which stage of the final consumers
decision process is Bill James at?
a. Stimulus
c. Problem awareness
b. Information search
d. Purchase
D b
85.
After searching for a new car, Bill James needs to decide if he would rather
purchase a new car or a dealer demo with 8,000 miles. Bill James is in what
stage of the consumers decision process?
a. Purchase
c. Information search
b. Evaluation of alternatives
d. Cognitive dissonance
D d
86.
After evaluating three models of new cars, Bill decides to drive his car for
another year. The car he really wants to buy costs about $20,000. Bill realizes
that this is too costly for him. At what point in the consumers decision process is
Bill James?
a. Evaluation of alternatives
c. Post-purchase
b. Problem awareness
d. Purchase
151
87.
E a
88.
A college student is looking to buy his first laser computer printer. In the past, he
owned an ink jet printer. The printer represents an important purchase to the
student: it costs about $600, the student plans to use it for the next five years,
and the student plans to use graphics extensively. With what type of decision
making is he likely to be involved?
a. Extended
c. Routine
b. Limited
d. Low-involvement
D a
89.
D a
90.
Which form of consumer behavior most likely occurs with routine consumer
decision making?
a. Brand loyalty
c. Price bargaining
b. High information search
d. Comparison shopping
True-False - Terminology/Concept
E T
91.
The scope of consumer analysis includes who buys, what they buy, why they buy,
how they buy, when they buy, where they buy, and how often they buy.
152
True-False - Terminology/Concept
D F
92.
E F
93.
The population of the United States is forecast to grow at 3 percent per year
between 2010 and the year 2020.
E F
94.
In the United States, the majority of residence changes involve moves to a new
region or abroad.
D T
95.
D F
96.
D T
97.
The GDP per capita or median personal income measure does not take into
account the purchasing power in a foreign country.
D T
98.
E T
99.
About 60 percent of adult women are currently in the U.S. labor force.
D F
100.
E T
101.
E F
102.
The U.S. Bureau of the Census defines Hispanic as a major racial group.
E T
103.
E T
104.
E F
105.
E T
106.
Culture, social performance, reference groups, and opinion leadership are all
social aspects of lifestyle.
E T
107.
153
True-False - Terminology/Concept
E F
108.
D T
109.
E T
110.
E T
111.
The traditional family life cycle does not include single parent households and
couples who marry but choose not to have children.
D T
112.
The household life cycle corrects many of the deficiencies in the family life cycle.
E F
113.
D T
114.
D T
115.
D T
116.
The component lifestyle suggests that, for many people, lifestyles may not fit into
clear-cut classifications.
E F
117.
E T
118.
Routine decision making is used when perceived risk is low and time pressure is
high.
D F
119.
Consumers use low-involvement purchasing for goods and services that are
viewed as important.
D T
120.
154
True-False - Applied/Comprehensive/Integrative
D F
121.
E T
122.
Lifestyle data such as social class membership and social group influences are
generally less reliable than demographic data.
E T
123.
Because census data are gathered only once every ten years, they must be
supplemented by statistics from such sources as chambers of commerce, public
utilities, and building departments.
D F
124.
The target market for a pharmaceutical manufacturer is people over 75 years old.
The firms marketing strategy should be heavily oriented toward males.
D T
125.
D F
126.
A consumers real income automatically falls when his or her cost of living rises,
regardless of any increase in earnings.
D F
127.
If the consumer price index goes up by 10 percent and a consumers income rises
by 10 percent, his or her real income increases by 20 percent.
D F
128.
D F
129.
D T
130.
The increase in working women in the U.S. labor force has created opportunities
for time-saving appliances, day care centers, and mail-order retailers.
D F
131.
D T
132.
The primary difference between families and households is based upon whether
occupants of a housing unit are related to each other.
D F
133.
D T
134.
155
True-False - Applied/Comprehensive/Integrative
D T
135.
D T
136.
D T
137.
A person who attains a high level of social performance will be able to move up
the social class system.
D F
138.
E T
139.
Unlike the family life cycle, the household life cycle includes both family and
nonfamily households.
E F
140.
D T
141.
D T
142.
D F
143.
D F
144.
A consumer can skip steps in the consumer decision process in limited consumer
decision making.
E F
145.
Social and noncommercial cues are less believable than commercial cues.
D F
146.
There are narrow differences in information search among routine, limited, and
extended consumer decision making.
E T
147.
D T
148.
156
True-False - Applied/Comprehensive/Integrative
D F
149.
D F
150.
151.
152.
153.
154.
155.
a. Show how a financial planning firm can use the traditional family life cycle in
planning a marketing strategy.
b. Outline a marketing strategy for the following groups: newly married, full
nest II, and empty nest I.
156.
157.
a. Apply the concept of perceived risk to the purchase of a fine 35mm camera.
Be sure to identify each element of perceived risk.
b. How can a camera manufacturer reduce the level of perceived risk?
Essay
157
Essay
158.
159.
a. Explain the steps in the final consumers decision process for the rental of a
new town house.
b. Under what circumstances would this decision involve extended consumer
decision making? ...limited consumer decision making?
160.
a. What is low-involvement purchasing? How may a firm convert a highinvolvement purchase to a low-involvement one?
b. Brand loyalty can occur for complex items such as computers, as well as for
simple items such as chewing gum. Why?
158