Test Bank for Consumer Behaviour Canadian Edition by Isabelle Szmigin, Maria Piacentini, Tatiana Le

Introduction to Consumer Behaviour and the History of Consumption MULTIPLE CHOICE QUESTIONS 1.

is defined as individuals or groups acquiring, using, and disposing of products, services, ideas or experiences. a) Consumer behaviour b) Marketing behaviour c) Creative behaviour d) Strategic behaviour e) Organizational behaviour

2. The four main marketing-mix strategies, also known as four Ps, do NOT include a) Price b) Perception c) Place d) Product e) Promotion

.

3. Today, marketing practitioners have adopted the , central to which is the requirement for organizations to identify consumer needs first and then find a way to satisfy those needs better than their competitors. a) marketing strategy b) marketing management c) marketing concept d) product concept e) product idea 4.

can be described as the value of a good to the consumer in terms of the usefulness it provides. a) Exchange value b) Use value c) Sign value d) Symbolic value e) Promotional value

5. The growth of trade, and more recently globalization, has been a key element in the development of consumption beyond . a) marketing b) national borders c) retailing d) subsistence

e) eating 6. Once goods are being made specifically to be bought and consumed by others, we begin to see one of the most important aspects of marketing: the relationship between production and . a) consumers b) consumption c) demand d) supply e) marketing 7. a) b) c) d) e)

has clearly been a feature of human society and culture since the earliest times.

Consumption Marketing Advertising Technology Fashion

8. An interesting aspect of early consumption was the development of , which are laws that attempt to regulate expenditure and excessive consumption in private life, usually on moral or religious grounds. a) consumption laws b) sumptuary laws c) trade laws d) moral laws e) consumption codes 9. Adam Smith’s The Wealth of Nations, published in 1776, looked into the connection between . a) developed and developing nations b) individuals and society c) arts and culture d) sales and marketing e) consumption and production 10. Adam Smith made it clear that producers had a responsibility to their a) consumers b) suppliers c) workers d) society e) advertisers 11.

.

was concerned that people did not recognize the value of the commodities they consumed. a) Maynard Keynes b) Adam Smith c) Karl Marx d) Thorstein Veblen e) John Stuart Mill

12. The first shopping arcades appeared in the late eighteenth century in a) London b) Milan c) New York d) Paris e) Athens

.

13. Thorstein Veblen introduced the idea of , that acquiring goods represented a way to display one’s power, in order to compete and gain social recognition a) conscious consumption b) responsible consumption c) over consumption d) shopping e) conspicuous consumption 14. An important aspect of Thorstein Veblen’s analysis of the leisure class was their ability to be . a) cautious and responsible b) extravagant and wasteful c) caring and sincere d) elite and powerful e) happy and carefree 15. You are very wealthy, and pay huge amounts of money for mansions, cars, and clothes. You tend to be extravagant and even wasteful in your life, buying clothes that you rarely wear and food that you do not consume. According to Thorstein Veblen, you are part of the . a) working class b) leisure class c) status class d) conspicuous class e) luxury class 16.

refers to acquiring goods as a way to display one’s power, in order to compete and gain social recognition. a) Cumulative consumption b) Common consumption c) Careless consumption d) Conspicuous consumption e) Cautious consumption

17. With a large rural population unable to get to department stores, popular in the USA at the end of the nineteenth century. a) online shopping b) strip malls c) catalogue shopping d) convenience stores e) farmers’ markets

became particularly

18. The supermarket encouraged purchasing, where customers would see an item that they had not previously been aware of or thought that they needed and put into their basket. a) responsible b) convenient c) impulse d) extravagant e) thoughtful 19. One of the most recent phenomena in retailing has been urgency among consumers because of their limited lifespan. a) pop-up shops b) shopping malls c) online stores d) department stores e) box stores 20.

, which introduce a sense of

allow the brand to surprise customers and gain from the pedestrian traffic in popular downtown locations a) Online shops b) Pop-up shops c) Box stores d) Department stores e) Grocery stores

21. Freud’s psychoanalytic research suggested that people’s behaviour is often determined by motives. a) selfish and exploitative b) generous and meaningful c) involuntary and ambivalent d) irrational and unconscious e) rational and conscious 22. Ernst Dichter used for consumers’ choices. a) motivation research b) psychoanalytic research c) neuromarketing d) leisure studies e) Keynesian economics

to help companies understand some of the more irrational motives

23. People often make choices at a rational a) discrete b) superficial c) emotional d) conscious e) subconscious

level and that choices do not always appear to be

24.

is the use of neuroscience techniques to observe and analyze unconscious consumer behaviour processes a) Neuromarketing b) Psychoanalysis c) Brain mapping d) Observation research e) Signal processing

25. You are part of a research team that is studying the brain’s reaction to a type of snack food. Your research uses MRI technology to map the different areas of the brain that are affected by taste, smell, texture, and sound of the snack food. Your team is engaging in . a) psychoanalysis b) neurological assessment c) mind marketing d) neuromarketing e) biomedical research 26. Marketers are interested in neuromarketing research because they want to access information about people’s . a) financial stability and disposable income b) hidden desires and preferences c) social activities and interests d) ability to rationalize and evaluate options e) conscious participation in purchasing decisions 27.

has been criticized for potentially serious ethical effects such as consumers’ loss of autonomy, control, and privacy. a) Psychoanalysis b) Neuromarketing c) Demographic research d) Motivation research e) Postmodern analysis

28. Categories of consumers, according to Gabriel and Lang, do NOT include a) victim b) chooser c) explorer d) activist e) enforcer 29. Dagevos’s consumer “images” do NOT include a) disconnected b) calculating c) traditional d) responsible e) unique

.

.

30. According to Gabriel and Lang’s typology of consumers, a victim . a) may be uneducated or unaware of choices b) uses products in new ways as a conscious rebellion c) fights against corporate greed d) creates and maintains personal and social identity through consumption e) uses goods to communicate 31. According to Gabriel and Lang’s typology of consumers, a rebel . a) may be uneducated or unaware of choices b) uses products in new ways as a conscious rebellion c) fights against corporate greed d) creates and maintains personal and social identity through consumption e) uses goods to communicate 32. According to Gabriel and Lang’s typology of consumers, an activist a) may be uneducated or unaware of choices b) uses products in new ways as a conscious rebellion c) fights against corporate greed d) creates and maintains personal and social identity through consumption e) uses goods to communicate

.

33. Your consumption habits reflect your creative and artistic personality, and you tend to seek pleasure in your purchases and the emotional experiences that accompany them. According to Gabriel and Lang’s typology of consumers, you are a consumer. a) explorer b) rebel c) activist d) chooser e) hedonist 34.

consumers do not seek a unified theme but want to explore different and separate identities to match the fragmenting markets and the proliferation of products. a) Postmodern b) Modern c) Post postmodern d) Hierarchical e) Segmented

35. As a consumer, you explore different identities and worry less about products’ use value and more about their symbolic value. Your self-concept is fluid and flexible, and your consumption habits depend largely on your social environment. In sociological terms, you are considered a consumer. a) modernist b) postmodernist c) traditionalist d) consequentialist e) consumerist

36. Postmodernism in marketing was seen as breaking down the divide between production and consumption, leading to what is referred to as . a) after-market production b) connectivity of markets c) construction of consumption d) collaborative marketing e) the co-creation of value 37.

is concerned with people as they live in their society and culture. When applied to consumer context, this perspective tends to focus on consumer’s behaviours and practices, looking at how rituals, myths, and symbols all contribute to understanding the meaning and significance of consumption to consumers. a) Sociology b) Biology c) Psychology d) Anthropology e) Economics

38. The perspective on consumption contributes insights into the social forces that influence individual and group consumption, including the social structural concepts of social class, ethnicity, gender, and lifestyles. a) psychological b) cultural c) global d) anthropological e) sociological 39. The ideas of personality, the self, and the individual, how we learn and perceive the world around us—ideas essential for the study of the consumer—are derived from . a) sociology b) psychology c) anthropology d) geography e) economics 40. The most influential social science in understanding consumers is of mental processes and behaviours. a) Psychology b) Sociology c) Anthropology d) Economics e) Neurobiology

, the scientific study

41. The perspective to consumer behaviour emphasizes the objectivity of science and the consumer as a rational decision-maker. a) negativist b) interpretivist c) positivist

d) subjectivist e) modernist 42. The perspective stresses the subjective meaning of the consumer’s individual experience and the idea that any behaviour is subject to multiple interpretations rather than a single explanation. a) positivist b) negativist c) objectivist d) interpretivist e) modernist 43. The interpretivist perspective recognizes that reality is a) socially constructed b) externally objective c) quantifiable d) universal e) testable

.

44. Interpretivist research is likely to use any of the following research methods EXCEPT a) narrative analysis b) experiments c) ethnography d) unstructured interviews e) participant observation

.

45. Your company strives to develop a deep understanding of your customers’ lives and behaviours.

In product development and market research, you tend to use unstructured interviews in order to probe more deeply into customers’ needs, desires, and expectations. Your company’s market research strategy is inspired by the perspective. a) interprevist b) positivist c) modernist d) functionalist e) consumptivist

TRUE OR FALSE QUESTIONS 1. Use value is necessary for exchange value, but can be above or below exchange value for an individual buyer or seller.

2. Consumption has been a feature of human society and culture since the Industrial Revolution.

3. Adam Smith recognized that consumption could help to stimulate an economy and that luxury consumption could prevent stagnation.

4. While product innovation has meant that consumers have more and better products to choose from, it has also led to what is often termed planned or built-in obsolescence, whereby a product has a limited life span and is regularly replaced with new version.

5. Department stores decreased the personal distance between the customer and the retailer.

6. Vance Packard raised serious concerns about the morality of motivation research, as promoted by Ernst Dichter.

7. People often make choices at a subconscious level and their choices are always rational.

8. According to Gabriel and Lang’s typology of consumers, “chooser” consumers create and maintain personal and social identity through consumption.

9. The merging of production and consumption is often described by the term conduction.

10. Neuromarketing is a research method that allows us to look more closely at responses to marketing stimuli.

SHORT ANSWER QUESTIONS 1. Define consumer behaviour and explain why it is important for marketers 2. Explain the development and role of sumptuary laws during early consumption.

3. Describe Thorstein Veblen’s idea of conspicuous consumption and explain why he was concerned about it.

4. Explain how the development of supermarket introduced most extreme form of personal distance between the customer and the retailer.

5. Define “neuromarketing” and explain how it helps marketers.

6. Explain why sensor technology of eye-tracking is useful for marketers.

7. Explain the early attempts to classify consumers.

8. Describe the rebel type of consumers, according to Gabriel and Lang’s typology.

9. Describe the activist type of consumers, according to Gabriel and Lang’s typology.

10. Explain the role of co-creation of value in breaking down the divide between production and consumption.

FILL IN THE BLANK QUESTIONS 1. According to Karl Marx, once goods lost the link with their nature of production and their use value, they took on a mysterious quality that he termed .

2. American economist Thorstein Veblen introduced the idea of , that acquiring goods represented a way to display one’s power, in order to compete and gain social recognition.

3.

purchasing was encouraged by the supermarket, where customers would see an item that they had not previously been aware of or thought that they needed and put it into their basket.

4.

is the use of neuroscience techniques to observe and analyze unconscious consumer behaviour processes.

5.

consumers want to explore different and separate identities to match the fragmenting markets and the proliferation of products.

ESSAY QUESTIONS 1. Explain the differences among exchange value, use value, and sign value, and include an example to explain their importance in consumer behaviour with example.

2. Describe in detail the key trends in development of shopping.

3. Describe in detail how neuromarketing is impacting research in consumer behaviour.

4. Describe in detail the classification of consumers proposed by Gabriel and Lang.

5. Describe in detail the qualities of a postmodern consumer.

Answer Key MULTIPLE CHOICE QUESTIONS 1. a (p. 3) 2. b (p. 3) 3. c (p. 3) 4. b (p. 3) 5. d (p. 5) 6. b (pp. 4–5) 7. a (p. 5) 8. b (p. 5) 9. e (p. 5) 10. a (p. 6) 11. c (p. 6) 12. d (p. 6) 13. e (p. 8) 14. b (p. 8) 15. b (p. 8)

16. d (p. 9) 17. c (p. 10) 18. c (p. 11) 19. a (p. 11) 20. b (p. 13) 21. d (p. 14) 22. a (p. 15) 23. e (p. 17) 24. a (p. 17) 25. d (p. 17) 26. b (p. 18) 27. b (p. 20) 28. e (p. 21) 29. a (p. 21) 30. a (p. 21)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

T (p. 3) F (p. 5) T (p. 6) T (p. 8)

5.

6.

7.

8.

F (p. 11) T (p. 16) F (p. 17) F (p. 21)

31. b (p. 21) 32. c (p. 21) 33. e (p. 21) 34. a (pp. 21–22) 35. b (pp. 21–22) 36. e (p. 23) 37. d (p. 24) 38. e (p. 25) 39. b (p. 25) 40. a (p. 25) 41. c (p. 25) 42. d (p. 26) 43. a (p. 26) 44. b (p. 26) 45. a (p. 26)

9. F (p. 23) 10. T (p. 25)

SHORT ANSWER QUESTIONS 1. Consumer behaviour is defined as “individuals or groups acquiring, using, and disposing of products, services, ideas or experiences.” Marketing practitioners have adopted the marketing concept, central to which is the requirement for organizations to identify consumer needs first and then find a way to satisfy those needs better than their competitors. Thus, marketers must recognize the factors that shape and influence people’s behaviour in different environments. (p. 3) 2. One of the important aspects of early consumption was the development of sumptuary laws, which are laws that attempt to regulate expenditure and excessive consumption in private life, usually on moral or religious grounds. Sumptuary laws have played a role in many countries as a way of regulating people’s expenditure and curbing conspicuous consumption. (p. 5) 3. American economist Thorstein Veblen introduced the idea of conspicuous consumption, that acquiring goods represented a way to display one’s power, in order to compete and gain social recognition. Veblen was concerned with the very wealthy and how they consumed and compared themselves with one another through their mansions, furnishings, carriages, and clothes. The possession of goods signified esteem; without them, an individual was no one. An important aspect of Veblen’s analysis of this leisure class was their ability to be extravagant and wasteful; they could pay huge amounts of money for clothes that they would rarely wear or food that they would not consume. (p. 8) 4. The most extreme form of personal distance between the customer and the retailer started after the development of supermarket in the USA in the 1930s with the introduction of self-service.

Customers were required to find what they wanted in the store and place their shopping in a cart,

which was able to carry more than the traditional basket, thus encouraging more purchasing. The aisles enticed consumers to wander, signalling that even grocery shopping no longer needed to be purely functional but could be something more akin to leisure. The presence of goods and their apparent easy availability, such that the shopper could pick them up without having to ask an assistant, was an important feature. (p. 11) 5. Neuromarketing is a new field of marketing research that uses brain-imaging techniques such as fMRI (functional magnetic unconscious imaging) to identify brain activity through changes in blood flow. Neuromarketing uses neuroscience techniques to observe and analyze unconscious consumer behaviour processes. It directly examines how the brain works and the choices it makes without requiring the consumer to participate consciously. (p. 17) 6. The sensor technology of eye-tracking traces eye movement and determines the level of focus on, for example, different parts of an ad. It is useful in the development of advertising. (p. 19) 7. Early attempts to classify consumers centred on classic demographic variables such as age, gender, occupation, nationality, and income with efforts aimed at facilitating the segmentation and targeting of products and brands to different consumer needs. Increasingly it became clear that consumers are more sophisticated in the manner in which they respond to marketing, product innovations, pricing, advertising, promotions, and offers. This, in turn, has led to a range of new attempts to classify types of consumers based on psychographics or consumer’s psychological profiles. (p. 20) 8. Rebel type of consumers are those who use products in new ways as conscious rebellion. This can include consuming differently, or less, or boycotting, and can also refer to active rebellion (joyriding, looting, taking over consumption spaces, etc.) (p. 21) 9. Activist type of consumers are the consumers involved in co-operative movement, the value-for-money movement, especially fighting against corporate greed and political activism, seeking more ethical consumption. (p. 21) 10. Postmodernism in marketing was seen as breaking down the divide between production and consumption, leading to what is referred to as the co-creation of value whereby consumers play a constructive and value-creating role not only in consumption but also in production, by creating their own products or taking a collaborative part in production through connections with the firm. (p. 23)

FILL IN THE BLANK QUESTIONS 1.

2.

3.

4.

5.

the fetishism of commodities (p. 6) conspicuous consumption (p. 8) Impulse (p. 11) Neuromarketing (p. 17) Postmodern (pp. 21–22)

ESSAY QUESTIONS 1. A good answer will include the definition or meaning of exchange value, use value, and sign value with an example for each of those concepts. (pp. 3–4) 2. Answers will include explanation on how a greater variety of shopping sites began to appear in the nineteenth century. Answers should include how new ways to shop were developed by department stores and how supermarkets introduced self-service that impacted shoppers. A good answer will include explanation on today’s diverse shopping environment, as well. (pp. 10–14) 3. The answer will include description of the field of neuromarketing and its use in analyzing unconscious consumer behaviour process. A good answer will include a description of how

functional magnetic resonance imaging (fMRI), electroencephalography (EEG), and sensor technology is being used to create a positive impact in key areas of business and marketing. (pp. 17– 20) 4. The answer will include description of the nine types of consumers defined by Gabriel and Lang.

The nine types are chooser, communicator, explorer, identity-seeker, hedonist/artist, victim, rebel, activist, and citizen. (pp. 20–21) 5. Postmodernism represents a critique of modernism and a deconstruction of its rigid hierarchies.

Answers will explain this tendency of contemporary consumers to defy rigid classifications and to explore multiple different and separate identities. A good answer will include comparison of modernist and postmodernist perspectives. (pp. 21–23)

CHAPTER 2

Contemporary Perspectives on Consumer Behaviour MULTIPLE CHOICE QUESTIONS 1. Traditionally, economists have seen consumers from a(n) perspective, which presents consumers as behaving rationally and making logical decisions about their consumption based in factors such as price and quality, in order to maximize their outcomes. a) contextual b) optimized c) emotional d) rational e) critical 2.

economics focuses on the contexts of decisions, placing emphasis on the environment within which consumption choices take place. a) Social b) Micro c) Behavioural d) Macro e) Critical

3. According to Kahneman, when in the mode, you are operating routinely with little effort and no feeling of voluntarily being in control. a) automatic b) mechanical c) neutral d) reflective e) critical 4. According to Kahneman, when in the mental activity. a) automatic b) mechanical c) critical d) neutral e) reflective

mode, a person gives effortful attention to a

5. You are walking home late at night down a dark path. It is very quiet, but suddenly you hear a loud noise. You jump and turn around quickly. When you react, you are operating in the mode. a) reflective b) automatic

c) purposeful d) predictable e) rational 6.

are gentle pushes towards a particular behaviour that do not take freedom of choice away. a) Nudges b) Prompts c) Reflections d) Hints e) Gimmicks

7. Schiphol Airport in Amsterdam etched the image of a house fly into its men’s urinals to help reduce unnecessary spillage. This is an example of . a) mental accounting b) choice architecture c) loss aversion d) priming e) behavioural economics 8. Canadians are the top collectors of loyalty points in the world and are great example of how well work. a) tricks b) gimmicks c) beliefs d) norms e) nudges 9. Canadians follow loyalty incentives, forgetting that it makes them focus less on the products. a) price b) desirability c) importance d) quality e) bundle 10. a) b) c) d) e) 11.

of

are informal rules that govern behaviour.

Gimmicks Attitudes Norms Beliefs Nudges

accounting takes place when individuals allocate funds into separate, non-transferable categories to which they may assign different levels of importance. a) Financial b) Mental c) Behavioural

d) Practical e) Critical 12. You have $100 left from your paycheque until the end of the month and you have to pay for gas, a couple of lunches, and a special gym workshop. You know that you cannot afford to buy the expensive shoes you had your eye on. By keeping track of your income and spending, you are engaging in . a) leisure spending b) fiscal responsibility c) mental accounting d) material budgeting e) careful saving 13.

refers to how we generally dislike losses more than we like gains of an equivalent amount. a) Failure avoidance b) Loss aversion c) Incentive d) Reverse incentive e) Loss effect

14. The endowment effect shows that people a) appreciate b) undervalue c) dislike d) protect e) overvalue 15. The endowment effect is a form of a) solo ownership b) collective ownership c) ownership d) mere ownership e) single ownership 16. Infants and toddlers exhibit the after holding a toy. a) single touch b) solo touch c) love touch d) mere touch e) imagining touch

things they own.

effect.

effect when they develop strong feelings of ownership

17. As consumers, we are often the losers because of our inertia, while companies gain from an understanding of . a) faults b) expectations c) needs

d) wants e) defaults 18.

is the alteration of a person’s feelings, beliefs, and behaviour when exposed to certain sights, words, sensations, or activities. a) Smiling b) Priming c) Emoting d) Acting e) Buying

19. Marketers and political leaders may use particular kind of behaviour. a) priming b) declaration c) announcement d) broadcasting e) proclamation

to try to control a population or induce a

20. A(n) reaction to a product, environment, or situation involves a general evaluation of liking, disliking, loving, or hating. a) experiential b) default c) affective d) cognitive e) rational 21.

are distinctive feeling states that are associated with particular things, events, or situations. a) Emotions b) Moods c) Beliefs d) Values e) Desires

22.

are general feeling states, usually described as good or bad, that are not often associated with a particular event. a) Emotions b) Beliefs c) Values d) Moods e) Desires

23. The theory of dimensional approach to emotions places along the dimensions of valence (pleasant or unpleasant) and level of psychological activation or arousal (high or low). a) moods b) rationalizations c) emotions

d) decisions e) behaviours 24.

looks closely at situations that give rise to emotions and how these situations are cognitively evaluated and responded to. a) Replicability theory b) Behavioural economics c) Consumer culture theory d) The dimensional approach to emotions e) Cognitive appraisal theory

25. Within cognitive appraisal theory, outcome desirability happens when . a) an experience produces joy b) a particular event is perceived as likely c) emotional reactions are seen in the context of consumer goals and whether a situation is congruent or consistent with one’s goal now or in the future d) a circumstance produces a particular result e) an event is seen as just 26. Within cognitive appraisal theory, agency happens when . a) an experience produces joy b) a particular event is perceived as likely c) emotional reactions are seen in the context of consumer goals and whether a situation is congruent or consistent with one’s goal now or in the future d) a circumstance produces a particular result e) an event is seen as just 27. Within cognitive appraisal theory, fairness happens when . a) an experience produces joy b) a particular event is perceived as likely c) emotional reactions are seen in the context of consumer goals and whether a situation is congruent or consistent with one’s goal now or in the future d) a circumstance produces a particular result e) an event is seen as just 28. Within cognitive appraisal theory, fairness happens when . a) an experience produces joy b) a particular event is perceived as likely c) emotional reactions are seen in the context of consumer goals and whether a situation is congruent or consistent with one’s goal now or in the future d) a circumstance produces a particular result e) an event is seen as just 29. As you set out on your dream vacation, you accidentally sit in the wrong seat as you board your flight and argue with another passenger about it. You quickly apologize to the passenger and remain quiet for the rest of the flight to avoid drawing attention to yourself. On your connecting flight, you ensure that you check your seat twice to avoid a similar conflict. Your actions are driven by .

a) b) c) d) e)

worry anger pride embarrassment happiness

30. Emotions are not separate from effective at orienting our responses. a) reaction b) mind c) understanding d) cognition e) memory 31. a) b) c) d) e)

; they are a form of thinking, and they can be quite

is a dark emotion of experiencing joy from someone else’s pain.

Dark joy Bad joy Schadenfreude Schadenjoy Badfreude

32. A consumer might experience a) Schadenfreude b) Sympathy c) Sadness d) Anger e) Satisfaction

when a rude server gets fired.

33. Holbrook and Hirschman sought to shift emphasis from the consumer as rational decision-maker to consumer as . a) experience-seeker b) involuntary-consumer c) aggressive-consumer d) disconnected-adopter e) avoidance-seeker 34. According to Arnould et al., the pre-consumption experience involves a) the choice process and the interaction with the service setting b) the sensation of consumption and whether we feel good about it c) ending the interaction d) reliving the past experience and classifying this experience among others e) searching for, planning, and imagining the experience

.

35. According to Arnould et al., the remembered consumption and the nostalgia experience experience involve . a) the choice process and the interaction with the service setting b) the sensation of consumption and whether we feel good about it c) ending the interaction

d) reliving the past experience and classifying this experience among others e) searching for, planning, and imagining the experience 36. Your marketing firm’s client is a new full-service gym. You know that consumers’ satisfaction at the gym is as much about their emotions and the sensation of consumption as it is about the equipment, classes, and amenities of the gym itself. In your marketing strategy for the gym, your firm should engage in marketing. a) experiential b) practical c) consumptive d) experimental e) investigational 37.

theory aims to capture an approach to the study of consumers that emphasizes the social and cultural aspects of consumption. a) Consumer behaviour b) Consumer action c) Marketing concept d) Consumer culture e) Community culture

38. Your research into food shopping behaviour focuses not just on what happens when a consumer looks at a shelf in the store, but also on the various practices around food shopping, including menu planning, list making, domestic storage availability and use, family routines and practices around shopping, and cooking arrangements, in order to develop a full account of how these various aspects of shopping come to influence the acts of purchasing food. Your research integrates theory. a) postmodernist b) consumer culture c) cognitive appraisal d) evolutionary e) attitude 39. Within consumer culture theory, the socio-historic patterning of consumption focuses on . a) how consumers seek to develop their identity through their consumption behaviour b) how the institutions and social structures in our lives influence consumption c) how consumers make sense of marketing messages and develop responses to them d) how consumers interact with the marketplace e) how consumers become influencers and producers of culture 40. Within consumer culture theory, mass-mediated marketplace ideologies focus on a) how consumers seek to develop their identity through their consumption behaviour b) how the institutions and social structures in our lives influence consumption c) how consumers make sense of marketing messages and develop responses to them d) how consumers interact with the marketplace e) how consumers become influencers and producers of culture

.

41. Within consumer culture theory, is a form of structured self-reflection, and has been used to examine a range of consumption practices. a) narrative analysis b) ethnography c) self-research d) inquiry e) introspection 42.

psychology is a theoretical lens that seeks to explain the development of the brain and psychological mechanisms as useful adaptations to environments that helped our ancestors survive. a) Social b) Evolutionary c) Consumer d) Market e) Revolutionary

43. Males of different species, including humans, engage in themselves in order to attract mates. a) peacocking b) flirting c) seduction d) teasing e) show off

—flashy presentations of

44.

are those consumers who have grown up surrounded by computers, cell phones, and digital technology. a) Digital immigrants b) Digital players c) Technology experts d) Digital natives e) Technology naturals

45.

are those who have not grown up surrounded by computers, cell phones, and digital technology. a) Digital immigrants b) Digital newcomers c) Technology learners d) Senior consumers e) Technology newcomers

TRUE OR FALSE QUESTIONS 1. Behavioural economics is the study of multiple factors of consumption decisions within the consumer environment that seeks to explain rational behaviours.

2. Nudges are gentle pushes towards a particular behaviour that take freedom of choice away.

3. Mental accounting takes place when individuals allocate funds into separate, non-transferable categories to which they may assign different levels of importance.

4. Feeling happy makes you smile, and just smiling can make you feel happier. This kind of association is a form of priming.

5. Consumers do not like products and experiences that make them feel emotions.

6. Affect and cognition are independent from each other.

7. Sports fans can feel schadenfreude when seeing a rival team lose a game.

8. Ethnography is a quantitative research method that aims to understand the cultural phenomena reflecting the knowledge and meaning systems associated with the everyday life of a cultural group.

9. The term peacocking reflects the biological roots of the flashy behaviours displayed by men in order to impress and attract mates.

10. All consumers are the same when it comes to their relationships with computers, the Internet, and social media.

SHORT ANSWER QUESTIONS 1. Explain the importance of behaviour economics in understanding how we assess the costs and benefits of our choices.

2. Define nudges. Use an example to explain how nudges help change consumer behaviour.

3. Explain mental accounting. Illustrate your understanding with an example.

4. Explain default and provide an example of how marketers gain from an understanding of defaults 5. Explain outcome desirability in the context of cognitive appraisal theory and illustrate your understanding with an example.

6. Explain schadenfreude. Illustrate your understanding with an example.

7. Describe the consumer identity projects theme within the context of consumer culture theory.

Illustrate your understanding with an example.

8. Describe the marketplace culture theme within the context of consumer culture theory. Illustrate your understanding with an example.

9. Define evolutionary psychology and explain the forces through which the evolution progresses.

10. Explain why companies have a major presence on social networking sites.

FILL IN THE BLANK QUESTIONS 1. Choice is a method of changing how choices are presented in order to influence consumer behaviour.

2. Norms can be defined as informal rules that govern 3. The endowment effect shows that people 4.

. things they own.

is a general term that encompasses feelings, moods, and emotions.

5. Digital are those consumers who have grown up surrounded by computers, cell phones, and digital technology.

ESSAY QUESTIONS 1. Describe in detail how companies try to change behaviour through use of incentives.

2. Describe in detail the four stages of consumption experience proposed by Arnould et al.

3. Explain consumer culture theory and explain at least two research methods that are favoured in this approach.

4. Explain in detail the four themes of consumer culture theory.

5. Write an essay on mobile technology and consumer behaviour.

Answer Key MULTIPLE CHOICE QUESTIONS 1. d (p. 36) 2. c (p. 36) 3. a (p. 36) 4. e (p. 37) 5. b (pp. 36–37) 6. a (p. 37) 7. b (p. 37) 8. e (p. 38) 9. d (p. 38) 10. c (p. 38) 11. b (p. 38) 12. c (pp. 39–40) 13. b (p. 40) 14. e (p. 41) 15. d (p. 41)

16. d (p. 41) 17. e (p. 41) 18. b (p. 44) 19. a (p. 44) 20. c (p. 45) 21. a (p. 46) 22. d (p. 46) 23. c (p. 46) 24. e (p. 46) 25. c (p. 46) 26. d (p. 46) 27. e (p. 47) 28. b (p. 47) 29. d (p. 47) 30. d (p. 48)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

F (p. 36) F (p. 37) T (p. 38) T (p. 44)

5.

6.

7.

8.

F (p. 46) F (p. 47) T (p. 48) F (p. 51)

31. c (p. 48) 32. a (p. 48) 33. a (p. 48) 34. e (p. 49) 35. d (p. 49) 36. a (p. 49) 37. d (p. 50) 38. b (p. 50) 39. b (p. 51) 40. c (p. 51) 41. e (p. 51) 42. b (p. 52) 43. a (p. 54) 44. d (p. 56) 45. a (p. 56)

9. T (p. 54) 10. F (p. 56)

SHORT ANSWER QUESTIONS 1. Human behaviour is more complex in terms of how we assess the cost and benefits of our choices.

Behaviour economics focuses on the contexts of decisions, placing emphasis on the environment within which consumption choices take place. The behavioural economics perspective recognizes different modes of behaving, and how these influence our behaviour in different ways. (p. 36) 2. Nudges are gentle pushes towards a particular behaviour that do not take away freedom of choice.

Instead they usually require only minor changes to the consumption environment to attract people’s attention; for example, a school cafeteria might prominently place fresh fruit and make cookies still available, but less visible to encourage children to opt for a more healthful option. A good answer will explain the relationship of nudges with choice architecture. The answer may have another similar example. (p. 37) 3. Mental accounting takes place when individuals allocate funds into separate, non-transferable categories to which they may assign different levels of importance. For example, if you have $100 left from your pay cheque until the end of the month, and you have to pay for gas, a couple of lunches, and a special gym workshop, it is unlikely that you will think that you can also afford to go on shopping spree. It is as if you run separate tabs in your mind about what the money is for.

Answer may include another similar example. (p. 40) 4. A default is a presented option without an active choice. Default behaviour relies on our inertia, i.e., it is more bothersome to have to do something than to remain with status quo. Yet consumers are often the losers because of inertia, while companies gain from an understanding of defaults.

For example, many people do not cancel subscription services after the free period, and thus begin

paying for them. Answers may include other similar example. (p. 41) 5. Outcome desirability happens when emotional reactions are seen in the context of consumer goals and whether a situation is congruent or consistent with one’s goal now or in the future. For example, you might wake up one morning and discover that it is snowing. Your emotional reaction will depend on how you evaluate this event. If snow has no relations to your plans, but you like snow and hope for a white Christmas, observing snowflakes might put you in a peaceful state. If you enjoy snowboarding, show will be consistent with your goal and you will feel elated and joyful. If you need to catch a flight that morning, your emotion could be annoyance or worry, as it might mean potential flight delays. Answer may include another similar example. (p. 46) 6. Schadenfreude is a dark emotion of experiencing joy from someone else’s pain. A consumer might experience schadenfreude when a rude server gets fired. Answers may include another similar example. (p. 48) 7. Consumer identity projects have focused on consumers seeking to develop their identity through their consumption behaviour. Identity projects relate to the idea that throughout our life we are engaged in a process of construction of a story of ourselves, and we use consumption to mark this story. A good answer will include an example similar to the example in the textbook. (p. 51) 8. Marketplace cultures focuses on how consumers interact with the marketplace, how their particular consumption needs are served by it, and how consumers become influencers and producers of culture. Nightclubs provide a good illustration of a marketplace culture—the fashions and trends in music, styles of dancing, clothes worn, and drinks and drugs consumed are influenced and shaped by both clubbers and club promoters. Answers may include another similar example. (p. 51) 9. Evolutionary psychology is a theoretical lens that seeks to explain the development of the brain and psychological mechanisms as useful adaptations to environments that helped our ancestors survive. Evolution progresses through the forces of natural selection (survival advantage of organisms through better physical and behavioural adaptations to their environment) and sexual selection (reproductive advantages based on attractiveness features, aiding survival of offspring). (p. 52) 10. Companies have a major presence on social networking sites because this allows them to interact with their current and potential consumers in ways that are different from traditional advertising.

Games, competitions, quizzes, and other interactive approaches enable an engagement with consumers that would not be possible in other media. Social networking sites have been important in terms of two-way rather than one-way conversations. (p. 56)

FILL IN THE BLANK QUESTIONS 1.

2.

3.

4.

5.

architecture (p. 37) behaviour (p. 38) overvalue (p. 41) Affect (p. 45) natives (p. 56)

ESSAY QUESTIONS 1. The answer will include description of loss aversion aspect of human behaviour and how companies try to change behaviour through the use of incentives. The answer will also include descriptions of concepts; endowment effect, mere ownership effect, and mere touch effect with explanation on their relationship with loss aversion. A good answer will include examples similar to examples in the textbook. (p. 40)

2. The answer will include description of following four stages: pre-consumption experience, purchase experience, core consumption experience, and remembered consumption and the nostalgia experience. A good answer will include an example. (p. 49) 3. Consumer culture theory aims to capture an approach to the study of consumers that emphasizes the social and cultural aspects of consumption. Answer will include explanation on how the consumer culture theory approach places consumers in a wider context. In addition, the answer will include description of at least two of the following three research methods: ethnography, introspection, and narrative analysis. (p. 50) 4. The answer will include explanation of following four consumer culture themes: consumer identity projects, marketplace cultures, the socio-historic patterning of consumption, and mass-mediated marketplace ideologies and consumer’s interpretive strategies. A good answer will include description with example similar to the description and example in the textbook. (p. 51) 5. A good answer will describe most of the following themes: the rise of mobile technology and social media, consumers communicate with one another without control by companies, companies can also create platforms for consumers to engage with, presence of companies on social media, importance of apps, opportunities for companies for two-way communication, consumers are not same when it comes to their relationship with computers, digital natives versus digital immigrants. (p. 56)

CHAPTER 3

The Perceptual Process MULTIPLE CHOICE QUESTIONS 1.

are any objects or events that are capable of eliciting a sensory or behavioural response in an organism. a) Exposures b) Incentives c) Catalysts d) Stimuli e) Tranquilizers

2. Is marketing, they say that “ a) truth is objective b) reality is true c) perception is universal d) reality is objective e) perception is reality 3. a) b) c) d) e)

.”

ensures that the stimulus is in the appropriate place for consumers to have access to it.

Memory Belief Exposure Perception Knowledge

4. Consumers can limit their own exposure to stimuli, a form of seeking and avoidance of stimuli. a) selective b) limited c) isolated d) unavoidable e) avoided

exposure that is the active

5. You are hungry, and you notice food ads everywhere. This is an example of a) selective exposure b) perceptual vigilance c) perceptual defence d) fear appeal e) rational appeal

.

6. People tend to activate in response to charity advertising, because they cannot contribute to the charity but do not want to think of themselves as unsympathetic. a) perceptual mapping

b) c) d) e)

perceptual vigilance perceptual acceptance perceptual offence perceptual defence

7.

appeal is often used to illustrate the danger of sun exposure, smoking, unprotected sex, and unsafe driving. a) Fear b) Sex c) Humour d) Envy e) Rational

8.

appeal in an ad not only provides a buffer to cut through a potential resistance to the message, but also makes viewers want to send the link to their friends, thus increasing the number of people exposed to the ad. a) Fear b) Humour c) Sex d) Rational e) Envy

9. We receive a) beliefs b) perceptions c) attitudes d) sensations e) ideas

through eyes, ears, nose, mouth, and skin.

10. Controllable sensory characteristics of a retail space, such as layout, design, lighting, smells, and sounds that are designed to influence consumer’s moods and behaviours is known as . a) directions b) atmospherics c) sensations d) perceptions e) influences 11. Levine suggests that sight, or visual attention, accounts for about a) 20 per cent b) 40 per cent c) 60 per cent d) 80 per cent e) 90 per cent

of human perception

12. There is a strong aspect to how colours are perceived, and it is important for companies operating in international contexts to be aware of this. a) political b) universal

c) cultural d) economical e) legal 13. Ads of products using appeal work well with romantic movies, which create a motivation to stand out from the crowd. a) humour b) fear c) belongingness d) uniqueness e) rational 14. Ads with appeal are effective when placed within scary movies because viewers feel the need for others. a) belongingness b) humour c) uniqueness d) rational e) fear 15. Many stores and restaurants play music because music creates a) understanding b) memory c) emotions d) knowledge e) relationship 16. Smells can elicit emotions in relation to thoughts. a) belief b) attitude c) buying d) decision e) memory

.

, and so certain smells can evoke nostalgic

17. Some Asian banks use to convey an up-market, high-quality, and warm feel for its customers, thus enhancing their experiences in the branch and ultimately developing greater brand loyalty. a) fragrances b) plants c) sound d) music e) uniforms 18.

is an important, but underrated, sense a) Sight b) Touch c) Scent

d) Sound e) Taste 19. Seeing colours when you hear music is an example of a) empathy b) intuition c) hypersensitivity d) synaesthesia e) hyperpalatability 20.

.

is a neurological perceptual condition in which the stimulation of one sense involuntarily triggers another. a) Union b) Synaesthesia c) Excitement d) Fusion e) Sensation

21. The sensory threshold is the minimum amount of stimulation that can be picked up by any of our senses. a) differential b) minimum c) universal d) absolute e) maximum 22. The visual or auditory advertising presented below the absolute threshold of perception is known as advertising. a) commercial b) product c) subliminal d) weak e) ethical 23. The sensory threshold is the point at which we notice a difference between two stimuli. a) absolute b) universal c) maximum d) minimum e) differential 24. In perceptual terms, the noticeable difference is the minimum change in a stimulus needed to be noticed by the majority of people. a) least b) just c) most d) average e) right

25.

tells us that the stronger the initial stimulus, the more difference required for the change to be noticed. a) Synaesthesia b) Zeigarnik effect c) Pareto law d) Amara’s law e) Weber’s law

26. You are a graphic designer for a popular brand of breakfast cereal. You are tasked with redesigning the packaging while maintaining the distinctiveness and familiarity of the original packaging. In order to complete this assignment, you will want to be aware of . a) the just noticeable difference b) the absolute threshold c) subliminal advertising d) the Zeigarnik effect e) selective exposure 27. a) b) c) d) e)

is the extent to which people’s awareness of a stimulus diminishes over a period of time.

Adaptation Appreciation Attention Synaesthesia Novelty

28. If you consume potato chips day after day, your taste buds gradually lose the ability to tell that the chips are “too salty.” This is an example of . a) appreciation b) novelty c) attention d) adaptation e) subliminal advertising 29. Berns et al. define as a deviation from the expected likelihood of an event on the basis of both previous information and internal estimates of conditional probabilities. a) novelty b) innovation c) newness d) creativity e) special 30. Advertisers often use a combination of sound and visually arresting images to aid a) purchase b) recall c) research d) disposal e) consumption

.

31. The use of to gain attention is perhaps the most interesting and controversial way in which advertisers gain awareness. a) shock b) politics c) fear d) creativity e) animals 32. In Gestalt psychology, the principle of closure is . a) how things that are dissimilar are perceived to be unrelated b) how things that are similar to one another are perceived to be more related than those that are dissimilar c) when things seen close together are perceived to be more related than things seen farther apart d) the tendency for people to fill in the missing elements of an incomplete picture e) the tendency to distinguish the prominent element as the figure, and the context in which it is seen as the ground 33.

is a phenomenon of superior memory for unfinished tasks that invoke some tension motivating us to complete them. a) Synaesthesia b) Zeigarnik effect c) Pareto law d) Amara’s law e) Weber’s law

34. Your company manufactures a line of facial lotions and beauty products. The company decides to extend its product line, adding a new anti-wrinkle lotion. When designing the packaging of the new lotion, your company decides to maintain the design of the existing product line so that consumers can easily categorize the new product as part of the existing brand. This decision is inspired by what is known in Gestalt psychology as the principle of . a) closure b) similarity c) proximity d) figure e) ground 35. a) b) c) d) e) 36.

is the place a brand or product occupies in consumer’s minds.

Positioning Image Value Affection Loyalty

effectively provide(s) managers with a map of how consumers view the products and brands in the market in comparison with other brands, and also in relation to how the company sees the brands and their attributes. a) Brand positioning b) Mental maps

c) Perceptual maps d) Positioning strategy e) Market research 37. Your company wants to visualize where their brand lies in the market against its competition. They may want to use a . a) connection grid b) purchase graph c) consumer grid d) perceptual map e) mental map 38. Sales of your company’s product have been falling, and the company decides that it needs to update its marketing strategy to ensure that it still hits the mark with the target audience. This is an example of . a) perceptual mapping b) repositioning c) perceived risk d) price perception e) semiotics 39. In its marketing, your toothpaste company shows the consequences that plaque may bring about, amplifying consumers’ fears and worries about the risks of tooth decay. In order to encourage customers to buy your brand of toothpaste, you are seeking to heighten the consumers’ . a) perceptual vigilance b) sensory overload c) synaesthesia d) just noticeable difference e) perception of risk 40. Physical risk is a type of perceived risk that considers the perception of a) how much time a consumer will lose on buying or learning to use a product b) how a product may impact a consumer’s self-image c) how well a product will perform its expected task d) how much harm a product or service might cause e) how a product may impact a consumer personally and socially

.

41. John Adams found that the compulsory wearing of seat belts in 18 countries resulted in some cases in an increase in road accident deaths. His conclusion is that a process known as risk occurs where consumers adjust their behaviour in response to levels of perceived risk. Drivers may become less careful when they wear a seat belt as they exaggerate the protective power of it. a) substitute b) avoidance c) compensation d) taking e) adjustment 42.

risk is the risk that reflects an individual’s perception of themselves.

a) b) c) d) e) 43.

Financial Psychological Physical Social Time

reduction may result in capture of larger share of the market, it can also change consumers’ perceptions of the brand and reduce its perceived status. a) Design b) Colour c) Function d) Quantity e) Price

44. a) b) c) d) e)

is a study of links between signs and symbols and the meanings they signify and convey.

Semiotics Atmospherics Synaesthesia Schema Alliteration

45. When you think of the colour red, you think of Christmas. When Zhang, who is from China, thinks of the colour red, he thinks of weddings. When Sarah, who is from South Africa, thinks of the colour red, she thinks of a funeral. The differences in the way you, Zhang, and Sarah interpret the colour red can be explained by the study of . a) semiotics b) atmospherics c) psychology d) conditioning e) cognition

TRUE OR FALSE QUESTIONS 1. How stimuli are perceived is vital for our understanding of consumer behaviour and integral to developing successful products and effective marketing campaigns.

2. Showing the scariest consequences is the best way to make consumers realize that they need to change their habits.

3. We have preferences for certain colours or tastes, or we may associate particular smells with happy or sad moments in our past.

4. More than ever people want to touch the things that they are going to buy, and yet online environments make it less possible.

5. Our taste preferences remain same as we grow older.

6. Although some unconscious effects of subliminal presentation are observed in scientific experiments, their magnitude is too weak to have any practical implications.

7. When we consume packaged goods and soft drinks day after day, our taste buds gradually lose the ability to tell that something is “too salty” or “too sweet,” and to make things tastier manufacturers add more and more salt and sugar.

8. Sexual appeal is always the most effective for increasing attention to an ad, even when viewers find it irrelevant to the product.

9. Positioning is an important marketing concept that allows brands to identify a good place in the marketplace, differentiate themselves from competitors, and more precisely target a selected audience.

10. Consumers do not make assumptions about the quality of product based on price.

SHORT ANSWER QUESTIONS 1. Explain the difference between sensation and perception.

2. Explain how sound helps stores and restaurants encourage customers to make a purchase.

3. Explain why consumers get concerned about subliminal advertising. Evaluate whether their concerns are valid.

4. Define Weber’s psychological law and explain its use in marketing.

5. Define adaptation. Use an example to explain how marketers make adjustments with consumer adaptation.

6. Explain the concept of positioning in the marketplace.

7. Name at least five different approaches to positioning strategy.

8. Explain the usefulness of perceptual maps for marketers.

9. Identify three situations where consumers’ perceived risk is likely to increase.

10. Explain risk compensation process. Illustrate your answer with an example.

FILL IN THE BLANK QUESTIONS 1.

is the process through which information in the form of stimuli in the environment is selected, organized, and interpreted through the sense organs.

2. The 3.

is the minimum amount of stimulation that can be picked up by any of our senses. is the extent to which people’s awareness of a stimulation diminishes over a period of

time.

4. In Gestalt psychology, the principle of states that the things we see close together are perceived to be more related than things that are seen as farther apart.

5. Risk risk.

occurs when consumers adjust their behaviour in response to levels of perceived

ESSAY QUESTIONS 1. Describe in detail the perceptual process.

2. Describe in detail how marketers stimulate our sensory receptors to their advantage.

3. Explain how marketers make sure their stimuli get noticed.

4. Describe in detail importance of positioning and perceptual maps for marketers.

5. Describe in detail the six types of most commonly recognized perceived risks that affect consumer behaviour.

Answer Key MULTIPLE CHOICE QUESTIONS 1. d (p. 69) 2. e (p. 69) 3. c (p. 69) 4. a (p. 70) 5. b (p. 70) 6. e (p. 70) 7. a (p. 71) 8. b (p. 71) 9. d (p. 71) 10. b (p. 72) 11. d (p. 72) 12. c (p. 73) 13. d (p. 75) 14. a (p. 75) 15. c (p. 76)

16. e (p. 77) 17. a (p. 78) 18. b (p. 78) 19. d (p. 78) 20. b (p. 80) 21. d (p. 81) 22. c (p. 81) 23. e (p. 81) 24. b (p. 82) 25. e (p. 82) 26. a (p. 82) 27. a (p. 83) 28. d (p. 83) 29. a (p. 85) 30. b (p. 86)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

T (pp. 68–69) F (p. 71) T (p. 72) T (p. 78)

5.

6.

7.

8.

F (p. 79) T (p. 81) T (p. 83) F (p. 87)

31. a (p. 87) 32. d (p. 88) 33. b (p. 89) 34. b (p. 90) 35. a (p. 92) 36. c (p. 92) 37. d (p. 92) 38. b (p. 93) 39. e (p. 95) 40. d (p. 96) 41. c (p. 95) 42. b (p. 97) 43. e (p. 97) 44. a (p. 98) 45. a (p. 98)

9. T (p. 92) 10. F (p. 97)

SHORT ANSWER QUESTIONS 1. We receive sensations through our sensory receptors—eyes, ears, nose, mouth, and skin. On the other hand, perception is the process by which we select, attend to, organize, and interpret sensations. Perception is most important to the marketers. (pp. 69–71) 2. A future of modern life is that we are bombarded with sound as we go about our daily lives, a key source being the music we hear in stores and restaurants. The music played in stores and restaurants is designed to enhance or change people’s moods to encourage purchase. A good answer will include an example similar to examples in the textbook. (p. 76) 3. Consumers’ concern about subliminal advertising is based on the false belief that being unaware of the stimuli makes people more vulnerable to their persuasiveness compared to the stimuli they consciously record. Their concern is not valid because although some unconscious effects of subliminal presentation are observed in scientific experiments, their magnitude is too weak to have any practical implications. (p. 81) 4. Psychologist Ernst Weber identified that the size of the just-noticeable-difference threshold appeared to be related in a law-like way to the magnitude of the initial stimulus. Weber’s law tells us that the stronger the initial stimulus, the more difference required for the change to be noticed. In marketing, Weber’s law has mostly been applied to the small changes in the design of packaging one sees over time, which are difficult for most consumers to notice individually. (p. 82) 5. Adaptation is the extent to which people’s awareness of a stimulus diminishes over a period of time.

When we consume packaged goods and soft drinks day after day, our taste buds gradually lose the ability to tell that something is “too salty” or “too sweet” and to make things tastier, manufacturers add

more and more salt and sugar. Answers may include another similar example. (p. 83) 6. Positioning is the place a brand or product occupies in consumers’ minds. In other words, it is how a product is perceived. Positioning is an important marketing concept that allows brands to identify a good place in the marketplace, differentiate themselves from competitors, and more precisely target a selected audience. (p. 92) 7. There are many approaches to positioning strategy: by competition, by product attributes, by benefits to consumers, by price–quality relationship, by use and usage occasions, by user, by product category, and by consumer culture. Answers many include any five different approaches to positioning strategy. (p. 92) 8. Perceptual maps are useful for a number of reasons. First, they are visual representation from the consumers’ rather than the company’s perspective of brands and their relations with other brands.

Secondly, they can show where there may be potential gaps in the market for new product development. Finally, by showing the company where their products lie compared with their competitors, managers can consider changes to their brand that might improve its position.

Perceptual maps can also be used for identifying usage differences among products. (p. 92) 9. Following are the situations where consumers’ perceived risk is likely to increase: (1) where there is completely new offering to the market; (2) where there is little information about the product or service; (3) where there are major differences among brands; (4) where the consumer has limited experience of the product class; and (5) where the purchaser may be judged by others for the purchase decision. (p. 95) 10. The process known as risk compensation occurs where consumers adjust their behaviour in response to levels of perceived risk. For example, drivers may become less careful when they wear a seat belt as they exaggerate the protective power of it. It was found that the compulsory wearing of seat belts in 18 countries resulted in some cases in an increase in road accident deaths. Answers may include another similar example. (p. 95)

FILL IN THE BLANK QUESTIONS 1.

2.

3.

4.

5.

Perception (p. 69) absolute threshold (p. 81) Adaptation (p. 83) proximity (p. 88) compensation (p. 95)

ESSAY QUESTIONS 1. The answer should include a description of the perceptual process based on Figure 3.1. The steps of the perceptual process include exposure, sensory receptors, attention, interpretation, and response. A good answer will include description and example for each step of the perceptual process. (p. 69) 2. The answer will include description of the five receptors—eyes, ears, nose, mouth, and skin—and the role they play in human perception, as well as how marketers place stimuli in appropriate places for consumers to have access to them. A good answer will include examples similar to the examples in the textbook. (pp. 71–81) 3. We have limits to how well our senses are able to respond to stimuli. The answer will include description of absolute threshold, differential threshold, just noticeable difference (JND), and Weber’s law. A good answer will include examples similar to the examples in the text book. (pp.

81–83) 4. The answer will include meaning and usefulness of positioning for marketers, as well as meaning

and usefulness of perceptual maps. A good answer will include examples. (pp. 92–93) 5. The six types of most commonly recognized perceived risk are financial risk, performance or functional risk, physical risk, social risk, psychological risk, and time risk. A good answer will include descriptions of each with examples similar to examples in the textbook. (pp. 96–97)

CHAPTER 4

Learning and Memory MULTIPLE CHOICE QUESTIONS 1. a) b) c) d) e)

learning is concerned with learning as a response to change in our environment.

Intentional Decisive Behavioural Rapid Cognitive

2.

learning theories focus on learning through internal mental processes and conscious thought. a) Behavioural b) Rapid c) Classical d) Cognitive e) Reflective

3.

conditioning is a form of unintentional behavioural learning that occurs through associating some stimulus with another stimulus that naturally causes some reaction. a) Responsible b) Responsive c) Natural d) Operant e) Classical

4.

behaviour is an automatic, involuntary response to a stimulus that does not require conscious thought. a) Repeated b) Responsive c) Referent d) Reflective e) Reflexive

5. The example of Pavlov’s dogs, which began to salivate in response to the sound of a bell, is known as conditioning. a) operant b) reflexive c) natural d) first-order e) higher-order 6. In first-order conditioning, a(n)

stimulus is typically a biological stimulus, such as food,

sex, or pain, that elicits a natural psychological response. a) unconditioned b) conditioned c) unintentional d) neutral e) classical 7. Classical conditioning depends on the continued pairing of the unconditioned stimulus. a) natural b) conditioned c) neutral d) known e) sensory

stimulus and the

8. You are a marketing executive for a large automobile manufacturer. In your ads, you choose to associate a beautiful woman with your company’s new model of sports car, suggesting to male viewer of your ad that driving your company’s expensive new sports car will appeal to beautiful women. Your company’s ad uses conditioning. a) higher-order b) first-order c) operant d) positive e) negative 9.

conditioning can occur when a conditioned stimulus acquires associative strength through being connected to a second conditioned stimulus. a) First-order b) Operant c) Sensory d) Higher-order e) Neutral

10. Music acts as a particularly powerful form of conditioning. The use of well-known songs in advertising has become increasingly popular and successful a) neutral b) first-order c) operant d) second-order e) higher-order 11. Stimulus occurs when a stimulus similar to a conditioned stimulus elicits a similar conditioned response. a) neutralization b) extension c) generalization d) reaction e) action

12. Brand allow companies to innovate, increase market share, and move into other markets, but they are also risky for companies in terms of consumer acceptance. a) labels b) extensions c) generalizations d) actions e) products 13.

is the marketing of a product in a way that enables it to be mistaken for another brand, and it relies on the phenomenon of stimulus generalization. a) Trading off b) Passing out c) Trading in d) Squaring off e) Passing off

14. a) b) c) d) e)

conditioning is the changing of behaviour through consequences of actions.

Neutral Operant Classical First-order Higher-order

15. Acquired learning through behaviour that has produced a positive outcome, known as a) positive reinforcement b) negative reinforcement c) punishment d) neutral reinforcement e) neutral operants

.

16. You try a new brand of socks that are softer and more durable than the brand you usually buy. As a result, you buy the new brand next time you shop. This is an example of . a) positive reinforcement b) negative reinforcement c) punishment d) neutral reinforcement e) neutral operants 17. a) b) c) d) e)

are the products that are not noticeable enough to influence behavioural change.

Strong brands Weak brands Neutral operants Special products Sample products

18. You regularly shop on a particular online store because it offers free shipping. The online store removes this feature and you have to pay full price for shipping. It is likely that will

occur and you will be less likely to shop at that online store in the future. a) reinforcement b) punishment c) discrimination d) boredom e) extinction 19. A continuous-reinforcement schedule . a) delivers consistent quality or rewards every time the product is purchased b) applies reinforcement after a specific number of responses c) provides reinforcement after a specific known period of time d) provides reinforcement on an irregular basis, after an unknown (to the person behaving) number of responses e) provides reinforcement after an unspecified period of time, at some unknown but consistent rate 20. A fixed-ratio reinforcement schedule . a) delivers consistent quality or rewards every time the product is purchased b) applies reinforcement after a specific number of responses c) provides reinforcement after a specific known period of time d) provides reinforcement on an irregular basis, after an unknown (to the person behaving) number of responses e) provides reinforcement after an unspecified period of time, at some unknown but consistent rate 21. A fixed-interval reinforcement schedule . a) delivers consistent quality or rewards every time the product is purchased b) applies reinforcement after a specific number of responses c) provides reinforcement after a specific known period of time d) provides reinforcement on an irregular basis, after an unknown (to the person behaving) number of responses e) provides reinforcement after an unspecified period of time, at some unknown but consistent rate 22. A variable-ratio reinforcement schedule . a) delivers consistent quality or rewards every time the product is purchased b) applies reinforcement after a specific number of responses c) provides reinforcement after a specific known period of time d) provides reinforcement on an irregular basis, after an unknown (to the person behaving) number of responses e) provides reinforcement after an unspecified period of time, at some unknown but consistent rate 23. A variable-interval reinforcement schedule . a) delivers consistent quality or rewards every time the product is purchased b) applies reinforcement after a specific number of responses c) provides reinforcement after a specific known period of time d) provides reinforcement on an irregular basis, after an unknown (to the person behaving)

number of responses e) provides reinforcement after an unspecified period of time, at some unknown but consistent rate 24. The department store where you work advertises that it has a sale semi-annual clearance sale. This type of reinforcement schedule is known as a schedule. a) continuous-reinforcement b) fixed-ratio c) fixed-interval d) variable-ratio e) variable-interval 25. a) b) c) d) e)

learning is concerned with internal mental processes.

Cognitive Classical Operant Reflective Behavioural

26. People provided with artificial advancement toward a goal exhibit greater commitment and effort toward reaching the goal is known as effect. a) simulated-progress b) endowed-progress c) artificial-endowment d) imitation-advancement e) consumer-motivation 27. The model explains how communications are received by the consumer and then interpreted, stored in the memory, and later retrieved in a logical and sequential fashion. a) information procession b) memory processing c) communication d) consumer decision-making e) buying process 28. In information processing, exposure involves . a) the focusing of awareness, leading to perception and categorization of stimuli b) the customer searching for and identifying meaning c) sensory detection and registration through receptor organs d) the consumer considering existing choice criteria and elaborating the message received to reach a conclusion about the information e) storing learning in the memory for future use 29. In information processing, attention involves . a) the focusing of awareness, leading to perception and categorization of stimuli b) the customer searching for and identifying meaning c) sensory detection and registration through receptor organs d) the consumer considering existing choice criteria and elaborating the message received to

reach a conclusion about the information e) storing learning in the memory for future use 30. In information processing, comprehension involves . a) the focusing of awareness, leading to perception and categorization of stimuli b) the customer searching for and identifying meaning c) sensory detection and registration through receptor organs d) the consumer considering existing choice criteria and elaborating the message received to reach a conclusion about the information e) storing learning in the memory for future use 31. In information processing, acceptance/rejection involves . a) the focusing of awareness, leading to perception and categorization of stimuli b) the customer searching for and identifying meaning c) sensory detection and registration through receptor organs d) the consumer considering existing choice criteria and elaborating the message received to reach a conclusion about the information e) storing learning in the memory for future use 32. In information processing, retention involves . a) the focusing of awareness, leading to perception and categorization of stimuli b) the customer searching for and identifying meaning c) sensory detection and registration through receptor organs d) the consumer considering existing choice criteria and elaborating the message received to reach a conclusion about the information e) storing learning in the memory for future use 33.

is a system and a process whereby information is received, sorted, organized, stored, and retrieved over time. a) Learning b) Buying c) Memory d) Decision making e) Information search

34. a) b) c) d) e)

refers to how information enters the memory.

Encoding Decoding Storage Retrieval Input

a) b) c) d) e)

is how the encoded information is retained in the memory.

Input Storage Encoding Decoding Retrieval

35.

36. When viewers develop positive feelings and attitudes toward the brand by merely by seeing it or hearing the brand name, a phenomenon known as the effect. a) mere exposure b) quick exposure c) strong exposure d) strong memory e) mere memory 37. You are walking through a busy farmers’ market. You pass many colourful sights, fascinating smells, and noisy sounds. When you get home, you have a general sense of what you experienced and one or two things have stayed with you, but you have forgotten much of what you saw. This can be explained by the fact that most of the details of your experience are processed by in memory. a) sensory b) short-term c) long-term d) procedural e) semantic 38. Procedural memory . a) refers to our memories of specific events and experiences that form our autobiographical time line b) is specifically about knowing things c) allows us to remember how to perform tasks and actions d) involves the structuring of specific records, facts, concepts, and knowledge about the world we live in e) is limited to only holding small amounts of information in mind for short periods of time 39. You always remember where you were when you learned that you passed the bar exam. This is an example of memory. a) declarative b) procedural c) semantic d) episodic e) short-term 40. You can remember who won the 1988 Heisman Trophy. This is an example of memory. a) short-term b) declarative c) procedural d) episodic e) semantic 41.

is the process whereby we remember and access our stored memories. a) Storage b) Retrieval

c) Input d) Exposure e) Encoding 42. a) b) c) d) e)

is reconstructing memory through a range of different narratives and bits of memory.

Relearning Recognition Retrieval Recollection Decoding

43. You have previously used your library’s redesigned online catalogue, but it has been some time since your last use, so you need a quick refresher to remember how to use it. The more you use the online catalogue, the easier it is to retrieve the information you need to help you manage it easily.

Here, you rely on the memory retrieval method known as . a) recollection b) recognition c) relearning d) recoding e) reframing 44. You are on vacation in a new country and want to use the buses but you are unfamiliar with the process, so you first watch what others are doing. Here, you are relying on learning. a) observational b) procedural c) exploratory d) rote e) exposure 45. Embedment of products into movies, TV shows, music videos, and video games in order to market the products is known as . a) product placement b) product advertising c) product exposure d) embedded advertising e) embedded communication

TRUE OR FALSE QUESTIONS 1. Human characteristics including personalities, motivations, perception, and attitudes are not linked with learning.

2. Private-label products often use different colours, fonts, package shapes, and so on to those of the major brands with which they are competing.

3. In classical conditioning, if a conditioned stimulus is not followed by an unconditioned stimulus,

the response will decline and hence we discriminate against that conditioned stimulus.

4. Operant conditioning is the changing of behaviour through consequences of actions.

5. Advertising has been shown to be more impactful than in-store sampling as it provides consumers with a visual experience of a product that cannot be enhanced by touch, smell, or taste.

6. An important aspect of short-term memory is that it is limited to holding large amounts of information in the mind for short periods of time.

7. Getting memories into long-term memory is achieved by encoding them through engrams.

8. The associative maps can be used by marketing managers to better understand the links that consumers make among different brands, different products, brands, and other associations and can be used for new product development and marketing communications.

9. Declarative memory involves the structuring of specific records, facts, concepts, and knowledge about the world we live in.

10. Recognition requires the memory to retrieve information by experiencing it again.

SHORT ANSWER QUESTIONS 1. Explain the difference between behavioural learning and cognitive learning.

2. Define classical conditioning.

3. Define stimulus generalization. Explain the importance of stimulus generalization in marketing.

4. Define passing off marketing.

5. Explain the difference between positive reinforcement and negative reinforcement.

6. Explain the difference between fixed-ratio reinforcement schedule and variable-ratio reinforcement schedule.

7. Explain learning history, an important element of behavioural learning.

8. Explain the importance of memory for marketing.

9. Explain the difference between episodic memory and semantic memory.

10. Explain the difference between recollection and recognition, different ways of retrieving information from our memories.

FILL IN THE BLANK QUESTIONS 1. There are two main categories of 2.

: behavioural and cognitive.

is the marketing of a product in a way that enables it to be mistaken for another brand, and it relies on the phenomenon of stimulus generalization.

3. An important aspect of memory is that it is limited to only holding small amounts of information in mind for short periods of time.

4. Getting memories into the long-term memory is achieved by encoding them through which are neural networks connecting new memories with old.

5.

memory is specifically about knowing things. It is made up of two different types of memory systems, episodic memory and semantic memory, which remember different types of events.

ESSAY QUESTIONS 1. Define operant conditioning. Describe in detail the five reinforcement schedules for operant conditioning.

2. Describe in detail the five stages of the information processing model.

3. Describe in detail how the memory works.

4. Describe in detail the organization of long-term memory.

5. Describe in detail different ways that we retrieve information from our memories.

,

Answer Key MULTIPLE CHOICE QUESTIONS 1. c (p. 108) 2. d (p. 108) 3. e (p. 109) 4. e (p. 109) 5. d (p. 110) 6. a (p. 110) 7. b (p. 110) 8. b (p. 110) 9. d (p. 113) 10. e (p. 113) 11. c (p. 114) 12. b (p. 114) 13. e (p. 115) 14. b (p. 116) 15. a (p. 117)

16. a (p. 117) 17. c (p. 117) 18. e (p. 117) 19. a (p. 119) 20. b (p. 119) 21. c (p. 119) 22. d (p. 119) 23. e (p. 119) 24. c (p. 119) 25. a (p. 120) 26. b (p. 120) 27. a (p. 121) 28. c (p. 122) 29. a (p. 122) 30. b (p. 122)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

F (p. 107) F (p. 114) T (p. 115) T (p. 116)

5.

6.

7.

8.

F (p. 118) F (p. 125) T (p. 126) T (p. 127)

31. d (p. 122) 32. e (p. 122) 33. c (p. 122) 34. a (p. 123) 35. b (p. 123) 36. a (p. 124) 37. a (p. 125) 38. c (p. 128) 39. d (p. 128) 40. e (p. 128) 41. b (p. 131) 42. d (p. 131) 43. c (p. 131) 44. a (pp. 134–135) 45. a (p. 135)

9. F (p. 128) 10. T (p. 131)

SHORT ANSWER QUESTIONS 1. Behavioural learning is concerned with learning as a response to change in our environment.

Cognitive learning theories focus on learning through internal processes and conscious thought. A good answer will include examples similar to examples in the textbook. (p. 108) 2. Classical conditioning is a form of unintentional behavioural learning that occurs through associating some stimulus with another stimulus that naturally causes some reaction. A good answer will include an example similar to an example in the textbook. (p. 109) 3. Stimulus generalization occurs when a stimulus similar to a conditioned stimulus elicits a similar conditioned response. Stimulus generalization stems from the fact that people often respond in the same way to stimuli that are alike on some dimensions. The importance of stimulus generalization to marketing is how consumers respond to brand extensions and private-label goods. (p. 114) 4. Passing off is the marketing of a product in a way that enables it to be mistaken for another brand, and it relies on the phenomenon of stimulus generalization. Passing off relies on consumers associating the benefits of a well-known brand with another brand that looks similar through stimulus generalization. Typically such copycat brands use perceptual elements, such as colour, shape, and imagery, from the brand they are imitating. (p. 115) 5. Positive reinforcement is learning to repeat a behaviour that has produced a positive outcome.

Negative reinforcement, on the other hand, is learning to repeat a behaviour that has led to avoidance of a negative outcome. A good answer will include examples similar to examples in the textbook. (p. 117)

6. A fixed-ratio schedule applies reinforcement after a specific number of responses. Variable-ratio schedules provide reinforcement on an irregular basis, after an unknown number of responses. A good answer will include examples similar to examples in the textbook. (p. 119) 7. An important element of behavioural learning is our learning history. This is developed from similar or related experiences that consumers have had before; when they encounter new settings, they call upon these experiences to guide behaviour. A good answer will include an example similar to example in the textbook. (p. 120) 8. Memory is a system and process whereby information is received, sorted, organized, stored, and retrieved over time. Memory is central to understanding how consumers make decisions.

Marketers are eager to get their brands remembered and enable retrieval from consumers’ memories during the purchase decision process. (p. 122) 9. Episodic memory refers to our memories of specific events and experiences that form our autobiographical timeline. Semantic memory involves the structuring of specific records, facts, concepts, and knowledge about the world we live in. A good answer will include examples similar to examples in the textbook. (p. 128) 10. Recollection is reconstructing memory through a range of different narratives and bits of memory.

Recognition requires the memory to retrieve information by experiencing it again. A good answer will include examples similar to the examples in the textbook. (p. 131)

FILL IN THE BLANK QUESTIONS 1.

2.

3.

4.

5.

learning (p. 108) Passing off (p. 115) short-term (p. 125) engrams (p. 126) Declarative (p. 128)

ESSAY QUESTIONS 1. Operant conditioning is the changing of behaviour through consequences of actions. An important aspect of operant conditioning relates to how and when reinforcement is applied to behaviour. Reinforcement schedules can be continuous or variable. The answer should include description of continuous-reinforcement schedule, fixed-ratio schedule, fixed-interval schedule, variable-ratio schedule, and variable-interval schedule. (p. 116) 2. Answer will include description of the five stages of information processing model: exposure, attention, comprehension, acceptance/rejection, and retention. A good answer will include an example similar to an example in the textbook. (p. 122) 3. Memory is a system and a process whereby information is received, sorted, organized, stored, and retrieved over time. Answers will include detailed descriptions of encoding, storage (sensory memory, short-term memory, and long-term memory), and retrieval. A good answer will include examples similar to examples in the textbook. (p. 122) 4. The long-term memory is subdivided into two types of memory: procedural memory and declarative memory. Declarative memory is subdivided into episodic memory and semantic memory. Answers will include descriptions of procedural memory, declarative memory, episodic memory, and semantic memory. A good answer will include examples similar to examples in the textbook and a figure similar to Figure 4.17. (p. 128) 5. Retrieval is the process whereby we remember and access our stored memories. Different ways that we retrieve information from our memories include recollection, recognition, and relearning.

Answer will include description of recollection, recognition, and relearning. A good answer will

include examples similar to examples in the textbook. (p. 131)

CHAPTER 5

Personality, Self, and Motivation MULTIPLE CHOICE QUESTIONS 1. The psychological perspective refers to as “individual differences in characteristic patterns of thinking, feeling, and behaving” that make up an individual’s distinctive character.” a) personality b) self-image c) self d) ego e) self-concept 2. In psychoanalytic theory, the id . a) ensures the interests of the individual are achieved without breaking societal norms b) represents the biological forces that drive humans and exist from birth c) serves as a person’s conscience d) is aware of the long-term consequences of impulsive behaviour e) represents a form of societal moral force 3. In psychoanalytic theory, the superego . a) ensures the interests of the individual are achieved without breaking societal norms b) represents the biological forces that drive humans and exist from birth c) serves as a person’s conscience d) is aware of the long-term consequences of impulsive behaviour e) is impulsive and seeks immediate gratification 4. In psychoanalytic theory, the ego . a) ensures the interests of the individual are achieved without breaking societal norms b) represents the biological forces that drive humans and exist from birth c) serves as a person’s conscience d) represents a form of societal moral force e) is impulsive and seeks immediate gratification 5. Carl Jung’s concept of relates to the stable characters that capture basic ideas, feelings, fantasies, and visions that seem constant and frequently re-emerge across different times and places. a) archetypes b) prototypes c) fashions d) patterns e) models 6. In marketing and advertising, are used to develop more compelling brand stories as a way of making connections with consumers.

a) b) c) d) e)

prototypes fashions patterns models archetypes

7. What kind of person are you? If you started listing characteristics such as kind, creative, cheerful, or responsible, you are listing . a) values b) personal behaviours c) personality traits d) lifestyle choices e) self-examinations 8. According to the approach to personality, personality is the sum of a set of traits that is particularly relevant to a situation. a) trait-based b) multi-trait c) single-trait d) lifestyle e) personality 9. In the approach to personality, the focus is on one personality trait that is particularly relevant to a situation. a) multi-trait approach b) single-trait approach c) trait-based approach d) lifestyle e) personality 10. The approach to personality is concerned with a number of personality traits taken together and how they combine to influence consumer behaviour. a) lifestyle b) personality c) trait-based d) single-trait e) multi-trait 11. You are active on social media, often commenting on products and services you have tried. You have many friends and followers who appreciate your extroversion and openness, and frequently like and comment on your posts about the products and services you review. You are known as a brand . a) critic b) builder c) representative d) pusher e) evangelist

12. Louis Vuitton is seen as luxurious and valuable. These character traits are associated with Louis Vuitton’s brand . a) dimension b) value c) personality d) image e) quality 13. a) b) c) d) e)

refers to the sum total of our thoughts, feelings, and imaginations as to who we are.

Personality Self-concept Motivation Lifestyle Attitude

14. Social comparison theory posits that people determine their compare to others or to social expectations. a) self-worth b) personality c) life d) ego e) personality traits

based on how they

15. Recent consumer research has moved away from the idea that identity is unitary, fixed, and stable, and instead proposes the view, which sees identity as dynamic, comprising different aspects of the self associated with the different roles and situations we occupy in our lives. a) self-uniqueness b) special self c) changing self d) variety of self e) multiplicity of self 16.

brand equity occurs when a brand name does not help product sales, suggesting that the product would likely sell better without its brand name. a) Negative b) Positive c) Neutral d) Undervalued e) Unstable

17. Your actual self is . a) the person that you believe you are in particular situations b) the way that your personal possessions are linked to you c) the person that you believe others see you as being d) the person that you would ideally like to be e) the person that you believe you actually are 18. Your ideal self is

.

a) b) c) d) e)

the person that you believe you actually are the person that you believe others see you as being the person that you would ideally like to be the way that your personal possessions are linked to you the person that you believe you are in particular situations

19. Your social self is . a) the person that you believe you actually are b) the person that you believe others see you as being c) the person that you would ideally like to be d) the way that your personal possessions are linked to you e) the person that you believe you are in particular situations 20. Your ideal social self is . a) the person that you believe you actually are b) the person that you would ideally like others to see you as being c) the person that you would ideally like to be d) the person that you believe others see you as being e) the person that you believe you are in particular situations 21. Your situational self is . a) the person that you believe you actually are b) the person that you would ideally like others to see you as being c) the person that you would ideally like to be d) the way that your personal possessions are linked to you e) the person that you believe you are in particular situations 22. Your extended self is . a) the person that you believe you actually are b) the person that you would ideally like others to see you as being c) the person that you would ideally like to be d) the way that your personal possessions are linked to you e) the person that you believe you are in particular situations 23. Your negative self is . a) the person that you believe you actually are b) the person that you would ideally like others to see you as being c) the person that you would ideally like to be d) the person you are not, or do not want to be e) the person you would like to become 24. The importance of situation and context is captured in the idea of the , which acknowledges that people will act differently according to the situation, influenced by social roles, cues, and the need for self-presentation. a) malleable self b) situational self c) social self d) ideal social self

e) possible self 25. a) b) c) d) e)

management is an effort to control how others see us.

Impression Self Personality Identity Ego

26. Symbolic consumption is the tendency of consumers to rely and focus on the attached to goods, beyond their physical properties, and provides an important means by which consumers define themselves. a) brand b) meanings c) appeal d) quality e) marketing 27. You have been set up on a blind date. Before the date, you fix your hair, choose an impressive outfit, and brush your teeth. While at the date, you want your date to think you are polite, friendly, and engaged, so you make conversation and laugh at your date’s jokes. On your blind date, you are engaging in . a) regulation of self b) identity modification c) impression management d) consumption management e) personality production 28. Self-congruity refers to the extent to which a product image matches a consumer’s a) desires b) attitude c) ego d) self-image e) needs 29.

.

are our desired end-states in life and preferred paths to achieving them, constituting the purposes and goals for which we believe human life should be lived. a) Values b) Ethics c) Beliefs d) Identities e) Statuses

30. The main technique of the means-ends analysis is a interview, which consists of a set of “why” questions to allow a consumer to discuss how a product feature is connected through a benefit to the consumer’s values. a) structured b) personal

c) in-depth d) investigative e) laddering 31. You value having comfort, happiness, and pleasure in your life. These values are known as values. a) terminal b) consumer c) instrumental d) critical e) influential 32.

is based on building a picture based on demographics, alongside activities, interests, and opinion variables. a) Ethnography b) Psychology c) Topography d) Psychographics e) Psychoanalysis

33.

is a trade-marked system that segments adults into eight distinct types based on their primary motivations and resources. a) VAMS b) VALS c) BIVA d) MALL e) CALS

34. What needs and wants are being fulfilled for people by different products and activities? Marketers want to know the answer to this question in order to understand consumer . a) values b) desires c) motivation d) perception e) tension 35. A(n) is a specific manifestation of the need. a) demand b) expectation c) tension d) motivation e) want 36. Your need to food, water, and shelter is a a) biogenic b) latent c) known d) hidden

need.

e) psychogenic 37. Your need for status, affiliation, self-esteem, and prestige is a a) biogenic b) latent c) psychogenic d) extrinsic e) intrinsic

need.

38. According to Maslow, our need for love and friendship is a(n) a) intrinsic b) extrinsic c) psychogenic d) latent e) hidden

need.

39. According to Maslow, your need for money or prestige is a(n) a) intrinsic b) psychogenic c) latent d) extrinsic e) hidden

.

40. Approach-avoidance conflicts occur when . a) a choice has both desirable and undesirable characteristics or consequences b) a choice cannot be made c) the choices available all have some apparent negative consequence d) one must choose between two or more equally attractive choices e) the consequences of a choice are unknown 41. Approach-approach conflicts occur when . a) a choice has both desirable and undesirable characteristics or consequences b) a choice cannot be made c) the choices available all have some apparent negative consequence d) one must choose between two or more equally attractive choices e) the consequences of a choice are unknown 42. Avoidance-avoidance conflicts occur when . a) a choice has both desirable and undesirable characteristics or consequences b) a choice cannot be made c) the choices available all have some apparent negative consequence d) one must choose between two or more equally attractive choices e) the consequences of a choice are unknown 43. You want to indulge in the box of chocolates that you recently received as a gift, but you feel conflicted because of the high amount of calories and sugar in the chocolates. You are experiencing conflict. a) approach-avoidance

b) c) d) e)

approach-approach avoidance-avoidance approach-anticipation anticipation-anticipation

44. You are in a restaurant and notice three items on the menu that you would like to order, but you can only order one main course. You would like to taste them all, but since you can’t, you make a choice that you hope you will be happy with. You are experiencing conflict. a) approach-avoidance b) approach-approach c) avoidance-avoidance d) approach-anticipation e) anticipation-anticipation 45. Motivation research developed from the work of a) Erving Goffman b) Abraham Maslow c) Sigmund Freud d) Carl Jung e) Ernest Dichter

.

TRUE OR FALSE QUESTIONS 1. Consumption is not related to how we think and define ourselves.

2. When social psychologists or sociologists talk about a person’s identity, self-concept, self-perception, or self-image, they do not mean how a person thinks about, defines, and describes him- or herself.

3. According to Freud, the mind is divided into conscious and unconscious. The conscious includes everything we are aware of, while the unconscious refers to the feelings, thoughts, urges, and memories that lie outside our conscious awareness. It is the unconscious that drives all human motivation.

4. Even when brands do not have a mascot that looks human, consumers still ascribe character traits to brands.

5. The ideal self is the person that I believe I actually am.

6. Consumer identity can be developed through the products and brands consumed to help us construct the “story of ourself.”

7. VALS (acronym for Values and Lifestyle) is a trade-marked system that segments adults into eight distinct types based on their primary motivations and resources: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors.

8. Need describes the processes that cause people to behave in a particular way.

9. Want is a state of tension that triggers a drive to remove this tension.

10. Latent demand is a hidden consumer demand of a product, invisible in the marketplace until a product or service that can satisfy it is offered.

SHORT ANSWER QUESTIONS 1. Describe how consumption is now central to many people’s identities.

2. Explain the difference between id and superego in Freud’s psychoanalytic theory.

3. Identify the “Big Five” personality traits, as proposed by McCrae and Costa, that can be remembered by the acronym OCEAN. 4. Describe the self-concept, according to the social interactionist perspective.

5. Describe the multiplicity of self view of identity.

6. Distinguish between the social self and the ideal social self.

7. Explain why the idea of multiple selves is important for marketers.

8. Explain the aspect of impression management.

9. Describe how psychographics help marketers build a picture of consumer behaviour.

10. Explain the difference between biogenic needs and psychogenic needs.

FILL IN THE BLANK QUESTIONS 1. Psychoanalytic theory tells us that socially responsible and ethically made products find their consumers by appealing to the .

2. In marketing and advertising, Jung’s are used to develop more compelling brand stories as a way of making connections with consumers.

3. The

refers to the sum total of our thoughts, feelings, and imaginations as to who we are

4. Buying a hamburger when you are hungry is a functional 5. The first level of Maslow’s hierarchy of needs is

for purchase. needs.

ESSAY QUESTIONS 1. Explain the division of mind into the conscious and unconscious and describe the interplay among the three elements of the psyche: the id, the superego, and the ego 2. Explain the trait-based view of personality and provide examples to illustrate its use in marketing.

3. Explain the concept of multiplicity of self and the use of this concept in marketing.

4. Distinguish between needs and wants and explain importance of each in marketing.

5. Explain the three main motivational conflicts that marketers need to be aware of and can use to their advantage.

Answer Key MULTIPLE CHOICE QUESTIONS 1. a (p. 146) 2. b (p. 146) 3. c (p. 146) 4. a (p. 147) 5. a (p. 148) 6. e (p. 149) 7. c (p. 150) 8. a (p. 150) 9. b (p. 150) 10. e (p. 150) 11. e (p. 151) 12. c (p. 152) 13. b (p. 154) 14. a (p. 154) 15. e (p. 155)

16. a (p. 155) 17. e (p. 156) 18. c (p. 156) 19. b (p. 156) 20. b (p. 156) 21. e (p. 156) 22. d (p. 156) 23. d (p. 156) 24. a (p. 156) 25. a (p. 160) 26. b (p. 160) 27. c (p. 160) 28. d (p. 161) 29. a (p. 161) 30. e (p. 161)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

F (p. 143) F (p. 144) T (p. 146) T (p. 152)

5.

6.

7.

8.

F (p. 156) T (p. 158) T (p. 163) F (p. 164)

31. a (p. 162) 32. d (p. 163) 33. b (p. 163) 34. c (p. 164) 35. e (p. 164) 36. a (p. 165) 37. c (p. 165) 38. a (p. 166) 39. d (p. 166) 40. a (p. 168) 41. d (p. 168) 42. c (p. 168) 43. a (p. 168) 44. b (p. 168) 45. e (p. 170)

9. F (p. 164) 10. T (p. 165)

SHORT ANSWER QUESTIONS 1. Consumption is central to how we think about and define ourselves. The brands we use, and how we use them, can signify to others who we are and how we see ourselves. While just a few generations ago people were mainly defined in terms of their occupation, consumption is now central to many people’s sense of identity. How we see ourselves influences how we perceive products, brands, and marketing stimuli. (p. 143) 2. The id corresponds to primary needs, avoiding pain and seeking pleasure without regard to the consequences. The superego reflects the rules, values, and norms imposed by society, and serves as a person’s conscience. A good answer will include examples. (p. 146) 3. The Big Five factor structure developed by McCrae and Costa, proposes five main personality traits that can be remembered as the acronym OCEAN: (1) openness to experience and novelty, (2) conscientiousness, (3) extroversion, (4) agreeableness, and (5) neuroticism. (p. 151) 4. The self-concept refers to the sum total of our thoughts, feelings, and imaginations as to who we are. This approach is based on the idea that people define themselves by how others judge them and how they believe that others judge them. Self-concept represents the content and structure of the beliefs that people hold about themselves. (p. 154) 5. Recent consumer research has moved away from the idea that identity is unitary, fixed, and stable, and instead proposed the multiplicity of self view. Multiplicity of self is a view that sees identity as dynamic, comprising different aspects of the self associated with the different roles and situations we occupy in our lives. Some roles are more active than others, depending on the situations we are in and how central to our sense of self they are. A good answer will include an example. (p. 155)

6. The social self is the person that I believe others see me as being, whereas the ideal social self is the person that I would ideally like others to see me as being. (p. 156) 7. The idea of multiple selves is important for marketers, especially in terms of understanding consumers’ aspirations and ideals of who they want to be, as much as their ideas of who they do not want to be. A good answer will include examples similar to examples in the textbook. (p. 156) 8. Impression management is an effort to control how others see us. Consumers navigate clashes between their actual and ideal selves through their posts, emphasizing, downplaying, or hiding their consumption of certain brands. The idea of consumers using brands to communicate various aspects of themselves has emerged in recent research as well. (p. 160) 9. Psychographics is based on building a picture based on demographics, alongside activities, interests, and opinion variables. Specifically, the picture could be built on a pattern of activities a person likes to engage in, what opinions and interests a person has, and how a person spends her or his time and money. (p. 163) 10. Biogenic needs, or innate needs, enable us to survive and include the need for food, water, and shelter, while psychogenic needs are socially acquired needs and include the need for status, affiliation, self-esteem, and prestige. (p. 165)

FILL IN THE BLANK QUESTIONS 1.

2.

3.

4.

5.

superego (p. 147) archetypes (p. 149) self-concept (p. 154) motivation (p. 164) physiological (p. 166)

ESSAY QUESTIONS 1. According to Freud, the mind is divided into the conscious and the unconscious. The conscious includes everything we are aware of, while the unconscious refers to the feelings, thoughts, urges, and memories that lie outside our conscious awareness. It is the unconscious that drives all human motivation. According to Freud, personality is made up of the interplay among three elements: the id, the superego, and the ego. The answer will include detailed explanation of id, superego, and ego.

A good answer will include examples similar to examples in the textbook. (p. 146 2. Personality traits are the distinguishing characteristics or qualities that define individuals.

According to trait-based approach, personality is the sum of a set of traits or qualities that can be used to predict or explain consumption behaviour. The answer will include good description of single-trait approach, multi-trait approach, and the Big Five factor structure of McCrae and Costa.

Examples will vary. (p. 150) 3. Multiplicity of self is a view that sees identity as dynamic and comprising different aspects of the self associated with the roles and situations we occupy. The answer will include explanation of actual self, ideal self, social self, ideal social self, situational self, extended self, possible selves, and negative selves as described in Table 5.2. The good answer will include description of malleable self as well. (p. 155) 4. The answer will define needs and wants, and biogenic needs and psychogenic needs, describing their importance to marketing. Answers may include descriptions of latent demand, as well. A good answer will include examples similar to examples in the textbook. (p. 164) 5. People are driven to avoid negative results as well as to achieve positive goals. In some cases, this may result in a conflict—for example, you may want to lose weight but are tempted to indulge in a dessert. Some people have a greater inclination to approach specific goals and therefore will have

greater sensitivity to positive outcomes, while others may be more sensitive to avoiding negative outcomes. There are three main motivational conflicts that marketers need to be aware of and can use to their advantage. The answer will includes description of approach-avoidance conflict, approach-approach conflict, and avoidance-avoidance conflict. A good answer will include examples similar to examples in the textbook. (p. 167)

CHAPTER 6

Attitude Theory and Behaviour Change MULTIPLE CHOICE QUESTIONS 1. A(n) is a learned reaction (favourable or unfavourable) to objects. a) symbol b) thought process c) attitude d) opinion e) belief 2. A(n) can be defined as the thing about which the attitude is held, and can include products, brands, services, ideas, people, and behaviours. a) attitude object b) attitude destination c) subject matter d) object e) target object 3. The model emphasizes that attitudes are formed by the combination of three components: affect, behaviour and cognitions. a) 123 model b) XYZ model c) attitude model d) behavioural model e) tri-component model 4. The ABC model emphasizes that attitudes are formed by the combination of following three components: . a) affect, behaviour, and cognitions b) attitude, behaviour, and cognitions c) attitude, belief, and cognitions d) affect, behaviour, and conditions e) attitude, belief, and conditions 5. Balance theory is useful for marketers because it explains effectiveness of a) endorsers b) advertisements c) products d) attitudes e) learning 6. The theory of cognitive dissonance is useful for marketers because it explains a) purchase behaviours

.

.

b) c) d) e)

disposing behaviours consumption behaviours effectiveness of advertising post-purchase behaviours

7. People use self-observation of their freely performed behaviour and attribute them to their own attitudes. This theory is known as . a) balance theory b) ABC model c) self-perception theory of attitude d) hierarchies of effects e) functional theory of attitudes 8. Functional theory of attitudes is useful for marketers because it helps increase a) effectiveness of retailing b) effectiveness distribution c) buying d) persuasiveness of marketing communications e) effectiveness of product strategy

.

9. In the tri-component model, the affective component . a) relies on salient beliefs to inform a consumer’s attitude in relation to a product b) relates to the emotional connection the consumer has with the target object about which the attitude is formed c) covers the “doing” aspect of the attitude d) refers to the action or behaviours associated with the attitude object e) refers to the beliefs and thoughts the individual has in relation to the target attitude object, its character, and its relations to other things 10. In the tri-component model, the behavioural component . a) relies on salient beliefs to inform a consumer’s attitude in relation to a product b) relates to the emotional connection the consumer has with the target object about which the attitude is formed c) refers to the fundamental feelings related to an attitude d) refers to the action or behaviours associated with the attitude object e) refers to the beliefs and thoughts the individual has in relation to the target attitude object, its character, and its relations to other things 11. In the tri-component model, the cognitive component . a) covers the “doing” aspect of the attitude b) relates to the emotional connection the consumer has with the target object about which the attitude is formed c) refers to the fundamental feelings related to an attitude d) refers to the action or behaviours associated with the attitude object e) refers to the beliefs and thoughts the individual has in relation to the target attitude object, its character, and its relations to other things 12.

are the most accessible or prominent beliefs of a person at the time the attitude object

is evaluated. a) Emotional beliefs b) Cultural beliefs c) Personal beliefs d) Traditional beliefs e) Salient beliefs 13. A fixed sequence of steps a consumer passes through when forming an attitude is known as . a) hierarchy of causes b) hierarchy of effects c) hierarchy of steps d) hierarchy of beliefs e) hierarchy of behaviours 14. You are shopping for a new car. You have conducted extensive research, through which you have begun to like Ford as a brand. You appreciate the brand’s reputation for making reliable, sturdy vehicles that can take you anywhere you want to go. You are also a fan of the show New Girl, and remember that the Ford Fusion was featured on the show. Your decision is guided by the hierarchy. a) high involvement b) low involvement c) behavioural d) emotional e) functional 15. The high involvement hierarchy of effects is represented by the sequence a) affect-cognitions-behaviour b) behaviour-affect-cognitions c) cognitions-behaviour-affect d) cognitions-affect-behaviour e) behaviour-cognitions-affect

.

16. The low involvement hierarchy of effects is represented by the sequence a) affect-cognitions-behaviour b) behaviour-affect-cognitions c) cognitions-behaviour-affect d) cognitions-affect-behaviour e) behaviour-cognitions-affect

.

17. The behavioral hierarchy of effects is represented by the sequence a) affect-cognitions-behaviour b) behaviour-cognitions-affect c) cognitions-behaviour-affect d) cognitions-affect-behaviour e) behaviour-affect-cognitions

.

18. The emotional hierarchy of effects is represented by the sequence

.

a) b) c) d) e)

affect-cognitions-behaviour behaviour-cognitions-affect cognitions-behaviour-affect cognitions-affect-behaviour affect-behaviour-cognitions

19. The relationship between a consumer, that consumer’s perception of an attitude object (often a brand or an idea), and that consumer’s perception of some other person or object that has connection with the brand (e.g., a celebrity endorser) is explained by . a) the ABC model b) the balance theory of attitudes c) the tri-component model d) the functional theory of attitudes e) the self-perception theory of attitudes 20. You are a fan of Beyoncé, who endorses Pepsi. As a result, you like to drink Pepsi. The alignment that you seek between yourself, the product, and the person who endorses the product can be explained by . a) the functional theory of attitudes b) the theory of planned behaviour c) the self-perception theory of attitude d) the balance theory of attitudes e) the theory of cognitive dissonance 21. a) b) c) d) e) 22.

refers to the psychological discomfort of having inconsistent beliefs and attitudes.

Psychological unease Cognitive difficulty Imbalance of mind Psychological dissonance Cognitive dissonance

suggests that people will change their beliefs, behaviour, or attitudes to reduce feelings of unease if these elements are inconsistent with one another or with some new information. a) The theory of cognitive dissonance b) Balance theory c) The tri-component model d) BBA theory e) Psychological unease

23. Salespeople often use a persuasion technique when they make a person agree with a small request and then make a larger request. a) hand-in-pocket b) foot-in-the door c) ask-for-more d) bet-and-switch e) make-them-agree 24.

is a motivational theory of attitudes that suggests that consumers form attitudes based

on their underlying motives or functions. a) The theory of functions b) The self-perception theory of attitudes c) The theory of cognitive dissonance d) The balance theory of attitudes e) The functional theory of attitudes 25. The utilitarian function of attitudes . a) stems from the idea that consumers seek maximum utility and value from their consumption b) is about defending our self-images, making us feel better about ourselves c) is concerned with the drive to express important aspects of the self and, linked to this, of the self that one aspires to be d) relates to human need to have a meaningful, stable, and organized view of the world e) is about protecting our sense of self 26. The ego-defensive function of attitudes . a) stems from the idea that consumers seek maximum utility and value from their consumption b) is about defending our self-images, making us feel better about ourselves c) is concerned with the drive to express important aspects of the self and, linked to this, of the self that one aspires to be d) relates to human need to have a meaningful, stable, and organized view of the world e) is characterized by consumers using products and brands to project, rather than hide, some aspect of themselves or of how they would like to be perceived 27. The value-expressive function of attitudes . a) stems from the idea that consumers seek maximum utility and value from their consumption b) is about defending our self-images, making us feel better about ourselves c) is concerned with the drive to express important aspects of the self and, linked to this, of the self that one aspires to be d) relates to human need to have a meaningful, stable, and organized view of the world e) is about protecting our sense of self 28. The knowledge function of attitudes . a) stems from the idea that consumers seek maximum utility and value from their consumption b) is about defending our self-images, making us feel better about ourselves c) is concerned with the drive to express important aspects of the self and, linked to this, of the self that one aspires to be d) relates to human need to have a meaningful, stable, and organized view of the world e) is characterized by consumers using products and brands to project, rather than hide, some aspect of themselves or of how they would like to be perceived 29. In the morning when you wake up, you take a shower, brush your teeth, and put on deodorant.

You hide your natural body odours in order to protect your sense of self. These behaviours can be explained by the function of attitudes. a) utilitarian b) ego-defensive c) value-expressive d) knowledge

e) ambiguous 30.

is an expectancy-value model that suggests people form attitudes toward objects based on their expectations and evaluations of the attributions that make up the brand. a) The functional theory of attitudes b) The balance model c) The self-perception theory of attitudes d) The tri-component model e) The Fishbein model

31. According to the Fishbein model, the attitude object. a) views b) attributes c) symbols d) looks e) signs

are the distinguishing characteristics or features of

32. According to the Fishbein model, important, something is to us. a) thinking b) pricing c) costing d) judgement e) evaluation

refers to the process of determining how valuable, or

33.

is/are made up of a number of beliefs and use a scoring system to derive a final score—a low score in one belief/evaluation can be compensated by a higher score in another. a) Non-compensatory models b) Compensatory models c) The tri-component model d) The uni-dimensional model e) The elaboration likelihood model

34. In a(n) , one overriding factor or attitude is dominant in the choice process, and a low score in one belief cannot be compensated by a higher score in one another. a) non-compensatory model b) compensatory model c) tri-component model d) uni-dimensional model e) elaboration likelihood model 35. You are thinking about adopting a new dog but you live in a small apartment. You assess the different appearances and breed characteristics, but in the end, you make your decision based on the size of the dog. This is an example of a non-compensatory decision rule known as the rule. a) lexicographic b) conjunctive

c) elimination-by-aspect d) disjunctive e) discretionary 36.

states that behavioural intentions can be predicted by attitudes toward the behaviour, subjective norms, and perceived behavioural control. a) The theory of cognitive dissonance b) Balance theory c) The theory of planned behaviour d) The functional theory of attitudes e) The self-perception theory of attitude

37. a) b) c) d) e)

refers to the intention to act in some way.

Plan for action Plan for buying Thinking about action Behavioural intention Behavioural planning

38. Social influences are represented by the concept, which represents perceptions of specific significant others’ preferences as to whether one should or should not engage in the behaviour. a) planned behaviour b) normative beliefs c) objective norm d) accepted norm e) subjective norm 39.

is/are the consumer’s perception about relevant or significant others’ beliefs as to whether the consumer should engage in a behaviour or not. a) Planned behaviour b) Objective norms c) Normative beliefs d) Accepted norms e) Subjective norms

40.

is a consumer’s perception of how easy or difficult it is to perform the behaviour.

Perceived buying control Perceived behavioural control Thoughtful buying Perceived action control Planned behavioural control

a) b) c) d) e) 41.

focuses on the ways that consumers respond to and get persuaded by communication messages depending on their level of involvement. a) The functional theory of attitudes b) The self-perception theory of attitude c) Balance model

d) The tri-component model e) The elaboration likelihood model 42. a) b) c) d) e)

is the amount of thought a consumer gives to an advertising message.

The elaboration continuum The time for watching The time for thinking The elaboration likelihood The attention time

43. According to the elaboration likelihood model, when consumers are motivated to pay attention to an advertising message, they consciously think about the ad and tend to take a logical to decision making. a) short route b) fast route c) peripheral route d) long route e) central route 44. According to the elaboration likelihood model, when consumers are less involved and less likely to pay attention to an advertising message, they make less effort to evaluate new information and tend to take a to decision making. a) short route b) fast route c) peripheral route d) long route e) central route 45. You are a marketing executive for a large tech company, and you are developing a marketing strategy for a new line of high-end smartphones. Your ad uses an appeal to rationality rather than an appeal to emotion, and you feature the ad in tech magazines rather than more general lifestyle publications. According to the elaboration likelihood model, you are engaging in communication. a) extreme-elaboration b) high-elaboration c) mid-elaboration d) low-elaboration e) non-elaboration

TRUE OR FALSE QUESTIONS 1. Encouraging consumers to see products and brands in positive light is an important goal for marketers.

2. Attitude is an intuitive reaction to objects.

3. According to the tri-component model, attitudes are formed by the combination of three components: affect, behaviour, and cognitions.

4. Balance theory explains effectiveness of endorsers.

5. Salient beliefs are the insignificant beliefs of a person when they evaluate an object.

6. Heider’s balance theory of attitudes considers a triad: the relationship between a consumer, that consumer’s perception of an attitude object (often a brand idea), and that consumer’s perception of some other person or object that has connection with the brand (e.g., a celebrity endorser).

7. Self-perception theory of attitude suggests that people infer their attitudes by observing the behaviours of people around them.

8. According to the functional theory of attitudes, the ego-defensive function of attitudes is concerned with the drive to express important aspects of the self.

9. According to the Fishbein model, beliefs are thoughts a consumer holds about an attitude object.

10. The theory of planned behaviour suggests that behavioural intentions can be predicted by attitudes toward the behaviour, subjective norms, and perceived behavioural control.

SHORT ANSWER QUESTIONS 1. Explain consumer attitude and its importance for marketing professionals.

2. Explain what the tri-component model suggests about attitude.

3. Describe the high involvement hierarchy of attitude formation.

4. Describe the emotional hierarchy of attitude formation.

5. Define the advertising hierarchy of effects.

6. Explain Heider’s balance theory of attitudes.

7. Explain the theory of cognitive dissonance.

8. Explain how salespeople use the foot-in-the-door persuasion technique.

9. Explain the expectancy-value model and provide an example of its importance in marketing.

10. Define the theory of planned behaviour.

FILL IN THE BLANK QUESTIONS 1. In the tri-component model, the component relates to the emotional connection the consumer has with the target object about which the attitude is formed.

2. The 3.

hierarchy of effects has the sequence cognitions (limited)-behaviour-affect. is the psychological discomfort of having inconsistent beliefs and attitudes.

4.

theory of attitudes suggests that people infer their attitudes by observing their own behaviour.

5. The ourselves.

function of attitudes is about defending our self-image, making us feel better about

6. The model suggests that people form attitudes toward objects based on their expectations and evaluations of the attributions that make up the brand.

7. In the Fishbein model, something is to us.

refers to the process of determining how valuable, or important,

8. The model provides marketers with a tool to compare attitudes not only toward their product and brands, but also toward those of their competitors.

9. The theory of includes the concept of perceived behavioural control, which is a consumer’s perception of how easy or difficult it is to perform the behaviour.

10. In the elaboration likelihood model, advertising message.

is the amount of thought a consumer gives to an

ESSAY QUESTIONS 1. Explain in detail the tri-component model of attitude formation, and describe each of the three components.

2. Describe in detail the four main types of attitude formation hierarchies that are useful for marketers.

3. Describe in detail each of the four main functions that attitude can serve.

4. Explain how the theory of planned behaviour expanded the theory of reasoned action by adding a third component: perceived behavioural control.

5. Describe in detail a duel process of elaboration likelihood model that focuses on the ways that consumers respond to and get persuaded by communication messages.

Answer Key MULTIPLE CHOICE QUESTIONS 1. c (p. 180) 2. a (p. 181) 3. e (p. 182) 4. a (p. 182) 5. a (p. 183) 6. e (p. 183) 7. c (p. 183) 8. d (p. 183) 9. b (p. 184) 10. d (p. 184) 11. e (p. 184) 12. e (p. 184) 13. b (p. 185) 14. a (p. 186) 15. d (p. 186)

16. c (p. 187) 17. b (p. 187) 18. e (p. 187) 19. b (p. 189) 20. d (p. 189) 21. e (p. 190) 22. a (p. 190) 23. b (p. 191) 24. e (p. 192) 25. a (p. 192) 26. b (p. 192) 27. c (p. 192) 28. d (p. 192) 29. b (p. 192) 30. e (p. 196)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

T (p. 179) F (p. 180) T (p. 182) T (p. 183)

5.

6.

7.

8.

F (p. 184) T (p. 189) F (p. 191) F (p. 192)

31. b (p. 197) 32. e (p. 197) 33. b (p. 200) 34. a (p. 200) 35. a (p. 200) 36. c (p. 201) 37. d (p. 201) 38. e (p. 201) 39. c (p. 201) 40. b (p. 202) 41. e (p. 204) 42. a (p. 205) 43. e (p. 205) 44. c (p. 205) 45. b (p. 205)

9. T (p. 197) 10. T (p. 201)

SHORT ANSWER QUESTIONS 1. A good answer will include the definition of attitude and an explanation by students in their own words. Consumer attitudes are important to understand for marketing professionals because of their role in influencing behaviour. Answer with an example adds value. (pp. 179–182) 2. The tri-component model suggests that attitudes are formed by the combination of three components: affect, behaviour, and cognitions. A good answer will include description of the affective component, behavioural component, and cognitive beliefs as well. (pp. 182–185) 3. A good answer includes the hierarchy cognition-affect-behaviour. The answer should also include mention of the following points: high involvement, extensive research, cognitive information processing, and rational approach. Answers with an example adds value. (pp. 186–187) 4. A good answer includes the hierarchy affect-behaviour-cognitions. The answer should also include mention of the following points: experiential aspects of the consumption setting, hedonic consumption, and experiential approach. Answers with an example adds value. (p. 187) 5. The advertising hierarchy of effects is a set of steps through which the audiences move in response to advertising messages over time: awareness, knowledge, liking, preference, conviction, purchase.

Advertising hierarchy of effects is based on the attitude formation hierarchy of effects. (p. 187) 6. Heider’s balance theory of attitudes considers a triad: the relationship between a consumer, that consumer’s perception of an attitude object (often a brand or idea), and that consumer’s perception of some other person or object that has a connection with the brand (e.g., a celebrity endorser). A good answer includes an example similar to an example of Lance Armstrong’s association with Nike. (pp. 189–190)

7. Theory of cognitive dissonance suggests that people will change their beliefs, behaviour, or attitudes to reduce feelings of unease (dissonance) if these elements are inconsistent with one another or with some new information. The answer may include an example similar to fast-food example in the textbook. (p. 190) 8. The salespeople use a foot-in-the-door persuasion technique when they make a person agree with a small request and then make a larger request. The tactic produces compliance without pressure because, while you did not have an attitude before you said “yes” the first time, you then start thinking that you must have agreed because you support the cause or really like the product, thus fabricating an attitude that motivates your later behaviour. (p. 191) 9. Expectancy-value model is the most influential multi-attribute model. It suggests that people form attitudes toward objects based on their expectations and evaluations of the attributions that make up the brand. The answer may include an example similar to the example of Microsoft Xbox in the textbook. (pp. 196–198) 10. Theory of planned behaviour suggests that behavioural intentions can be predicted by attitudes toward the behaviour, subjective norms, and perceived behavioural control. (pp. 201–202)

FILL IN THE BLANK QUESTIONS 1. affective (p. 184) 2. low-involvement (p. 187) 3. Cognitive dissonance (p. 190) 4. Self-perception (p. 191) 5. ego-defensive (p. 192) 6. expectancy-value (p. 196) 7. evaluation (p. 197) 8. multi-attribute (p. 198) 9. planned behaviour (p. 202) 10. elaboration continuum (p. 205)

ESSAY QUESTIONS 1. The tri-component model emphasizes that attitudes are formed by the combination of three components: feeling, doing, and knowledge. The model is also called the ABC model because the three components can be expressed as affect or feelings, behaviour or conations, and cognition or beliefs. A good answer will include in detail description of the three components with examples similar to the textbook. (pp. 182–185) 2. An attitude can begin forming with any of the components of the ABC model (affect, behaviour, or cognition), and different implications for marketers emerge depending on their starting points.

This is known as the attitude formation hierarchy of effects, a fixed sequence of steps a consumer passes through when forming an attitude. A good answer will have detailed description of the four possible combinations: CAB, CBA, BCA, or ABC. (pp. 186–187) 3. A motivational theory of attitudes suggests that consumers form attitudes based on their underlying motives or functions. Attitudes can serve four main functions: utilitarian, ego-defensive, value-expressive, and knowledge-based. A good answer will include explaining the four functions that attitude can serve with examples similar to the examples in textbook. (pp. 192– 194) 4. Attitude theory has evolved to represent more fully the range of influences on attitude formation and intentions to behave in a certain way. First the theory of reasoned action was proposed and then it was revised. The intended version became known as the theory of planned behaviour,

which states that behavioural intentions can be predicted by attitudes toward the behaviour, subjective norms, and perceived behavioural control. Answers will include description of the model’s components: behavioural intention, subjective norm concept, normative beliefs, motivation to comply, and the concept of perceived behavioural control. (pp. 201–202) 5. The model that is useful for considering the mechanisms of attitude change is the elaboration likelihood model (ELM), which focuses on the ways that consumers respond to and get persuaded by communication messages. The ELM details the psychological processes by which attitudes are created and changed, providing insights into how attitudes can be formed or modified. Central to this model is the elaboration continuum, which describes the amount of thought a consumer gives to an advertising message or persuasive communication. A good answer will include a description of the duel process that explains central and peripheral processing. (pp. 204–206)

CHAPTER 7

Decision-Making and Involvement MULTIPLE CHOICE QUESTIONS 1.

is a person’s perceived relevance of the object based on inherent needs, values, and interests. a) Interest b) Involvement c) Impression d) Intuition e) Image

2. In a(n) decision, a choice is made following a very active process of searching, learning, and evaluating, and some kind of evaluative criteria will be applied. a) high-involvement b) low-involvement c) moderate-involvement d) no-involvement e) occasional-involvement 3. Active learning involves . a) an absence of resistance to what is learned b) storing messages in a dormant state until stimulated by recognition of a brand c) a latent and reflexive learning experience d) extensive information search for the purpose of making a purchase e) the effortless acquisition of knowledge 4. You are shopping for a Secret Santa gift. Your only criterion is that it must be under $10. As you make your decision, you are engaging in decision-making. a) extended b) high-involvement c) limited d) low-involvement e) habitual 5. Passive learning involves . a) resistance to what is learned b) high-involvement decision-making c) a exciting and engaging learning experience d) extensive information search for the purpose of making a purchase e) the effortless acquisition of knowledge 6. The refers to all brands consumers are aware of that might meet their needs. a) desired set

b) c) d) e)

required set wanted set evoked set interesting set

a) b) c) d) e)

refers to those consumers might actually consider buying. consideration set desired set wanted set evoked set required set

7.

8. In decision-making, product involvement is . a) the pre-existing relationship between an individual and the object of concern b) the consumer’s perception of products or brands as relevant to their self-concept c) the perceived personal relevance of the product based on needs, values, or interest d) the consumer’s interest in marketing communications e) habitual or routine decision-making 9. In decision-making, message-response involvement is . a) the pre-existing relationship between an individual and the object of concern b) the consumer’s perception of products or brands as relevant to their self-concept c) the perceived personal relevance of the product based on needs, values, or interest d) the consumer’s interest in marketing communications e) habitual or routine decision-making 10. In decision-making, ego involvement is . a) the pre-existing relationship between an individual and the object of concern b) the consumer’s perception of products or brands as relevant to their self-concept c) the perceived personal relevance of the product based on needs, values, or interest d) the consumer’s interest in marketing communications e) habitual or routine decision-making 11. The state of flow is NOT characterized by a) enjoyment b) self-consciousness c) intrinsic interest d) concentration e) a sense of being in control

.

12. You recently began taking piano lessons and your music school’s annual concert is coming up.

You have chosen to perform a piece of music that you find very challenging for your skill level. In the days leading up to the concert, you experience significant anxiety and a feeling of being out of control. These feelings demonstrate a lack of that stem from the imbalance of skill and control versus challenge and arousal. a) ambition b) creativity c) flow

d) experience e) intent 13. Problem recognition, the first step in the decision-making process, is . a) identifying the outcomes of a choice b) consciously using evaluative criterial to make decisions c) the process by which we identify appropriate information to aid our choices d) the process by which identified information is used to evaluate the choices e) a realization that a difference exists between a consumer’s actual state and ideal state 14. A(n) recognition is a deterioration of the actual state from the usual balanced one. a) need b) opportunity c) ongoing d) pre-purchase e) information 15. Information search, the second step in the decision-making process, is . a) identifying the outcomes of a choice b) consciously using evaluative criterial to make decisions c) the process by which we identify appropriate information to aid our choices d) the process by which identified information is used to evaluate the choices e) a realization that a difference exists between a consumer’s actual state and ideal state 16. Hedonic needs . a) are the social and identity aspects of information search b) relate to the search for something that is new or different to the consumer c) relate to the elements of pleasurable experiences that may occur in decision-making d) are the acquisition of knowledge from one’s own experiences e) are where information is viewed as a stimulus to visual thinking 17. Aesthetic needs . a) are the social and identity aspects of information search b) relate to the search for something that is new or different to the consumer c) relate to the elements of pleasurable experiences that may occur in decision-making d) are the acquisition of knowledge from one’s own experiences e) are where information is viewed as a stimulus to visual thinking 18. Alternative evaluation, the third step in the decision-making process, is . a) identifying the outcomes of a choice b) consciously using evaluative criterial to make decisions c) the process by which we identify appropriate information to aid our choices d) the process by which identified information is used to evaluate the choices e) a realization that a difference exists between a consumer’s actual state and ideal state 19. In an information search, the a) evoked set b) consideration set

includes those brands not under consideration at all.

c) inept set d) inert set e) alternate set 20. In an active decision-making situation, we may consciously use , which are those factors that are used to compare offerings to help a consumer make a choice. a) test criteria b) samples c) information searches d) thinking strategies e) evaluative criteria 21. According to Westbrook and Black, bargain. a) basic b) social c) economic d) apathetic e) enthusiastic

shoppers are price-conscious people looking for a

22. According to Ganesh et al., enthusiastic shoppers . a) enjoy all aspects of shopping b) are indifferent to shopping c) focus on finding the right place to buy the brand or product they are after d) are motivated to find a good deal and to achieve choice optimization e) have a clear idea of what they want 23. According to Ganesh et al., basic shoppers . a) enjoy all aspects of shopping b) are indifferent to shopping c) focus on finding the right place to buy the brand or product they are after d) are motivated to find a good deal and to achieve choice optimization e) have a clear idea of what they want 24. According to Ganesh et al., bargain seeking shoppers . a) enjoy all aspects of shopping b) are indifferent to shopping c) focus on finding the right place to buy the brand or product they are after d) are motivated to find a good deal and to achieve choice optimization e) have a clear idea of what they want 25. Market are active information-seeking consumers or smart shoppers and they like to communicate, provide information to others on a broad variety of goods, and marketplace characteristics. a) mavens b) researchers c) scanners d) finders

e) managers 26. You regularly visit the shopping mall to get exercise. Your motive for shopping is a) learning about new trends b) sensory stimulation c) diversion d) physical activity e) self-gratification

.

27. You visit the shopping mall because you enjoy the sights, sounds, and smells of the mall. Your motive for shopping is . a) sensory stimulation b) physical activity c) learning about new trends d) self-gratification e) satisfaction 28. You visit the local farmers’ market every Saturday morning not only to shop, but also to interact with other regular shoppers in a fun, relaxed setting. Your motive for shopping is . a) peer group attraction b) pleasure of bargaining c) physical activity d) sensory stimulation e) social experiences 29. As a shopper, you tend to mix and match between the internet and the online stores, sometimes ordering online and collecting in store, or completing an information search in store and then making your final choice online. This is an example of shopping. a) e-shopping b) blended c) directed d) selective e) critical 30.

purchasing is described as a consumer’s sudden, powerful urge to buy a product with little regard to the consequences of the purchase. a) Rapid b) Strategic c) Reckless d) Impulse e) Compulsive

31. According to Bayley and Nancarrow, in the accelerator style of impulse shopping, . a) consumers make impulse purchases as a reward for success or as compensation for failure b) impulse purchases are often triggered by some kind of unconscious problem or issue c) impulse buys are not easily explained or rationalized by the consumer d) consumers are overwhelmed by a product and feel that they just have to have it immediately without any thought for the cost implications

e) consumers are motivated to stockpile, purchasing in advance of some future need 32. According to Bayley and Nancarrow, in the compensatory style of impulse shopping, . a) consumers make impulse purchases as a reward for success or as compensation for failure b) impulse purchases are often triggered by some kind of unconscious problem or issue c) impulse buys are not easily explained or rationalized by the consumer d) consumers are overwhelmed by a product and feel that they just have to have it immediately without any thought for the cost implications e) consumers are motivated to stockpile, purchasing in advance of some future need 33. According to Bayley and Nancarrow, in the breakthrough style of impulse shopping, . a) consumers make impulse purchases as a reward for success or as compensation for failure b) impulse purchases are often triggered by some kind of unconscious problem or issue c) impulse buys are not easily explained or rationalized by the consumer d) consumers are overwhelmed by a product and feel that they just have to have it immediately without any thought for the cost implications e) consumers are motivated to stockpile, purchasing in advance of some future need 34. According to Herbert Simon, the approach of making a “good enough” decision after considering a limited number of alternatives is referred as . a) satisficing b) compromising c) sufficing d) satisfactory e) contradictory 35. In decision-making, option. a) minimizing b) optimizing c) maximizing d) overloading e) choosing

is the approach of considering all alternatives and seeking the best

36. In decision-making, maximizing may lead to , which is when more choice leads consumers to be less happy with what they eventually choose. a) conspicuous consumption b) impulse purchasing c) choice architecture d) brand loyalty e) the paradox of choice 37. a) b) c) d) e)

are mental shortcuts or rules of thumb to help aid decision-making.

Cognitive biases Heuristics Frames Anchors Paradox of choice

38. a) b) c) d) e)

are systematic deviations from rationality in reasoning, memory, or evaluation.

Cognitive biases Paradox of choice Heuristics Frames Anchors

39. The availability heuristic refers to . a) judging something on the basis of how similar it is to something else b) placing higher value on something judged to be rare or scarce c) judging the likelihood or frequency of something happening in the future by how easy it is to remember similar events d) a feeling of obligation to return a favour e) the assumption that actions and attitudes of other people signal the correct behaviour 40. The representativeness heuristic refers to . a) judging something on the basis of how similar it is to something else b) placing higher value on something judged to be rare or scarce c) judging the likelihood or frequency of something happening in the future by how easy it is to remember similar events d) a feeling of obligation to return a favour e) the assumption that actions and attitudes of other people signal the correct behaviour 41. The scarcity heuristic refers to . a) judging something on the basis of how similar it is to something else b) placing higher value on something judged to be rare c) judging the likelihood or frequency of something happening in the future by how easy it is to remember similar events d) a feeling of obligation to return a favour e) the assumption that actions and attitudes of other people signal the correct behaviour 42. You are on vacation and looking for someplace to eat. You aren’t familiar with the local restaurants or their reputations, but when you see a busy restaurant with a lineup outside, you assume that the restaurant serves better food and you decide to eat there. In your decision, you followed the rule. a) consensus b) authority c) reciprocity d) selection e) convenience 43.

allow us to reduce the number of attributes to be considered for the possible alternative options. a) Availability heuristics b) Reciprocity heuristics c) Choice heuristics d) Scarcity heuristics

e) Representativeness heuristics 44. a) b) c) d) e)

is over-reliance on one piece of often irrelevant information to make a decision.

Anchoring judgement Choosing Framing confidence

a) b) c) d) e)

refers to how we make a decision through a context in which a choice is presented to us. framing bargaining anchoring guessing gaming

45.

TRUE OR FALSE QUESTIONS 1. Involvement is a person’s perceived relevance of the object based on inherent needs, values, and interests.

2. Enduring involvement is the perceived personal relevance of the product based on needs, values, or interest.

3. In the problem recognition stage of decision-making, a balanced no-problem state happens when actual state equals ideal state.

4. In the information search stage of decision-making, hedonic needs are where information is viewed as a stimulus to visual thinking, to imagining the product and how it looks in your life.

5. In the alternative evaluation stage of decision-making, the inept set are those brands that consumers may have come across during their search from previous experience but would not consider for this decision.

6. According to Westbrook and Black, social shoppers are price-conscious people looking for a bargain.

7. Tauber suggested that shopping can be a recreational activity, a diversion from everyday life.

8. Breakthrough impulse shopping relates to the sudden need to make a purchase, often triggered some kind of unconscious problem or issue.

9. More choice leads consumers to be more happy with what they eventually choose.

10. Anchoring may increase our resistance to purchasing.

SHORT ANSWER QUESTIONS 1. Explain consumer decision-making in low-involvement situations.

2. Explain why different people exhibit varying levels of involvement with regard to the same product.

3. Explain the following four different types of consumer involvement in purchase decision-making: product involvement, message-response involvement, enduring involvement, and ego involvement.

4. Describe the state of flow with an experience.

5. Explain the importance and use of evaluative criteria during the choice step (step 4) of consumer decision-making.

6. Who are market mavens? How they help other consumers?

7. Describe how shopping can be a diversion from everyday life for consumers.

8. Explain the four different types of groups of online grocery shoppers, identified by Rohm and Swaminathan.

9. Define blended shopping.

10. Explain the consumer’s impulse purchasing behaviour.

FILL IN THE BLANK QUESTIONS 1.

learning involves extensive information search for the purpose of making a purchase, is exciting and engaging, and may bring about more resistance.

2. The first step in the decision-making process is

.

3. In an active decision-making situation, we may consciously use criteria, which are those factors that are used to compare offerings to help a consumer make a choice.

4.

5.

paradigm is the difference between a consumer’s pre-purchase expectations of the product’s performance and his or her post-purchase experience. shoppers are the price-conscious people looking for a bargain.

6.

shoppers typically compare product features, prices, and brands before making their purchases, and actively look for promotional offers.

7.

purchasing is a consumer’s sudden, powerful urge to buy a product with little regard to

the consequences of the purchase 8.

are mental shortcuts or rules of thumb to help air decision-making.

9.

, a type of compliance heuristic, involves the apparent return of a favour.

10. Real estate agents rely on client.

when they decide in which order to show several houses to a

ESSAY QUESTIONS 1. Explain in detail the difference between consumer’s decision-making processes in low- and high-involvement situations.

2. Explain the ways in which marketers can increase consumer engagement with their messages and products and increase their relevance, thus building consumer involvement.

3. Describe in detail different types of shoppers based on their shopping behaviour.

4. Explain in detail various personal motives for shopping.

5. Explain in detail various social motives for shopping.

Answer Key MULTIPLE CHOICE QUESTIONS 1. b (p. 216) 2. a (p. 216) 3. d (p. 216) 4. c (p. 216) 5. e (p. 217) 6. d (p. 217) 7. a (p. 217) 8. c (p. 219) 9. d (p. 219) 10. b (p. 219) 11. b (p. 223) 12. c (p. 223) 13. e (p. 225) 14. a (p. 225) 15. c (p. 226)

16. c (p. 226) 17. e (p. 226) 18. d (p. 226) 19. d (p. 227) 20. e (p. 227) 21. c (p. 231) 22. a (p. 232) 23. e (p. 232) 24. d (p. 232) 25. a (p. 232) 26. d (p. 233) 27. a (p. 233) 28. e (p. 234) 29. b (p. 236) 30. d (p. 237)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

T (p. 216) F (p. 219) T (p. 225) F (p. 226)

5.

6.

7.

8.

T (p. 227) F (p. 231) T (p. 232) T (p. 237)

31. e (p. 237) 32. a (p. 237) 33. b (p. 237) 34. a (p. 238) 35. c (p. 239) 36. e (p. 239) 37. b (p. 239) 38. a (p. 239) 39. c (p. 240) 40. a (p. 240) 41. b (p. 240) 42. a (p. 240) 43. c (p. 241) 44. a (p. 242) 45. a (p. 242)

9. F (p. 239) 10. T (p. 242)

SHORT ANSWER QUESTIONS 1. In a low-involvement decision, the consumer uses beliefs formed from passive learning to make his or her choice. Passive learning is the effortless acquisition of knowledge unrelated to immediate goals. An important aspect of passive learning is an absence of resistance to what is learned. Thus, even under low consumer interest and low-involvement conditions, advertising could produce behaviour resulting in a purchase. (p. 217) 2. Consumers’ levels of involvement depend on how relevant the purchasing decision is to them.

Different people exhibit varying levels of involvement with regard to the same product because of differences in personality, socio-economic factors, demographic factors, previous experience, and the product’s relevance. (p. 219) 3. (1) Product involvement is the perceived personal relevance of the product. (2) Message-response involvement reflects the consumer’s interest in marketing communications. (3) Enduring involvement is the pre-existing relationship between an individual and the object. (4) Ego involvement is consumer’s perception of products or brands as relevant to their ego. (p. 219) 4. The state of flow is the deepest involvement with an experience and is characterized by enjoyment, concentration, focused attention, intrinsic interest, sense of being in control, and loss of self-consciousness (p. 223) 5. In an active decision making situation, consumer may consciously use evaluation criteria, which are those factors that are used to compare offerings to help a consumer make a choice. A good answer may include an example similar to a choice of perfume, provided in the textbook. (p. 228) 6. The consumers who are very involved with the shopping experience and who have a deep

understanding of what is happening in the marketplace are known as market mavens. Market mavens are active information-seeking consumers or smart shoppers, and they like to communicate, providing information to others on a broad variety of goods, services, and marketplace characteristics. (p. 232) 7. Shopping can be a recreational activity, a diversion from everyday life. The development of shopping malls, where many shopping, entertainment, and catering resources are commonly in one place protected from the weather, shows how marketing has responded to this. Similarly, online window-shopping may act as diversion at any time of the day within their own homes. (p.

232) 8. Following are the four different types of groups of online grocery shoppers, identified by Rohm and Swaminathan: (1) The convenience shoppers are the shoppers motivated by the convenience of online shopping. (2) The variety seekers seek variety while still motivated by the convenience of online shopping. (3) The balanced buyers are the more impulsive online shoppers. (4) Store-oriented shoppers prefer physical stores and are the least interested in online shopping. (p.

236) 9. A shopping practice of consumers where they mix and match between the internet and the online stores, sometimes ordering online and collecting in store, or completing an information search in store and then making their final choice online is referred as blended shopping. (p. 236) 10. Impulse purchasing is a sudden, powerful urge to buy a product with little regard to the consequences of that buying decision. The decision can involve low-value item such as a bar of chocolate or much higher value goods such as clothes or even a car. (p. 237)

FILL IN THE BLANK QUESTIONS 1. Active (p. 216) 2. problem recognition (p. 223) 3. evaluative (p. 227) 4. Disconfirmation (p. 228) 5. Economic (p. 231) 6. Comparison (p. 236) 7. Impulse (p. 237) 8. Heuristics (p. 239) 9. Reciprocity (p. 241) 10. anchoring (p. 242)

ESSAY QUESTIONS 1. Involvement is a person’s perceived relevance of the object based on inherent needs, values, and interests. Some decision-making has important consequences, as it affects many aspects of our lives. There are many potential risks that make a poor choice costly and thus require more factors to be considered. We refer to these as high-involvement decisions. High-involvement decisions require active learning. In a low-involvement decision, the consumer uses beliefs formed from passive learning to make their choices. A good answer will explain these concepts with decision making steps for both types of decisions. (pp. 216–218) 2. A good answer will include description of following ways to increase message involvement: link the brand to hedonic needs, use distinctive or novel ways of communicating about your product, use celebrities, tell a story, build a relationship, and get the consumer to participate. (pp. 221–223) 3. A good answer will include description of following types of shoppers based on their shopping behaviour: apathetic, enthusiasts, destination shoppers, basic shoppers, and bargain shoppers. (pp.

231–232) 4. A good answer will include description of following personal motives for shopping: role playing, diversion, self-gratification, learning about new trends, physical activity, and sensory stimulation. (pp. 232–233) 5. A good answer will include description of following various social motives for shopping: social experiences, communicating with others who have similar interests, peer group attraction, status and authority, and pleasure of bargaining. (p. 234)

CHAPTER 8

Social Networks and Processes MULTIPLE CHOICE QUESTIONS 1. A(n) network is a group of individuals connected by interpersonal relationships and interactions. a) individual b) professional c) personal d) organizational e) social 2.

groups are used as a basis for comparison and guidance when forming beliefs, attitudes, and behaviours. a) Social b) Family c) Professional d) Reference e) Personal

3. A disclaimant group is . a) a group of people that a consumer does not belong to but can identify with, admire, and aspire to be like b) a group a person is not a member of , has negative feelings towards, and avoids being associated with c) a group a person belongs to, or belonged to in the past, but no longer wants to associate with d) a group a person belongs to and interacts with regularly e) a group that is used as a basis for comparison and guidance when forming beliefs, attitudes, and behaviours 4. An aspirational group is . a) a group of people that a consumer does not belong to but can identify with, admire, and aspire to be like b) a group a person is not a member of , has negative feelings towards, and avoids being associated with c) a group a person belongs to, or belonged to in the past, but no longer wants to associate with d) a group a person belongs to and interacts with regularly e) a group that is used as a basis for comparison and guidance when forming beliefs, attitudes, and behaviours 5. A dissociative group is . a) a group of people that a consumer does not belong to but can identify with, admire, and aspire to be like b) a group a person is not a member of , has negative feelings towards, and avoids being

associated with c) a group a person belongs to, or belonged to in the past, but no longer wants to associate with d) a group a person belongs to and interacts with regularly e) a group that is used as a basis for comparison and guidance when forming beliefs, attitudes, and behaviours 6. You enjoy spending time with a group of students. You get together at the campus pub for a few drinks after class and occasionally go out together to a nightclub. But when you discover that members of this group use cocaine, you decide not to stop going out with them. The group is an example of a(n) group. a) contractual b) disclaimant c) aspirational d) dissociative e) formal 7. A(n) group is one that is usually formed by some kind of outside structure and is likely to have a formalized constitution and rules of conduct for members. a) aspirational b) social c) contractual d) formal e) informal 8. A(n) group is a group whose members have some commonalty but no formal connection to one another. a) informal b) formal c) contractual d) social e) aspirational 9. Friends, Facebook interest groups, online communities are the examples of group a) disclaimant b) aspirational c) formal d) social e) informal

reference

10. The importance of groups for marketing is the influence that they can bring to bear on others, in particular in terms of which products or brands are bought and how different groups consume them. a) sub b) consumer c) reference d) formal e) informal

11. Informational group influence describes . a) people being influenced in their choice of brand by the reference of those with whom they socialize b) people actively seeking out information from opinion leaders c) people buying a particular brand to enhance their image and because they admire characteristics of people who use the brand d) the idea that we want to be like others whom we admire or respect e) the wish to satisfy a certain norm or expectation others have 12. Utilitarian reference group influence describes . a) people being influenced in their choice of brand by the reference of those with whom they socialize b) people actively seeking out information from opinion leaders c) people buying a particular brand to enhance their image and because they admire characteristics of people who use the brand d) the idea that we want to be like others whom we admire or respect e) benefits attributed to a product through its association with expert groups 13. Value-expressive influence describes . a) people being influenced in their choice of brand by the reference of those with whom they socialize b) people actively seeking out information from opinion leaders c) people buying a particular brand to enhance their image and because they admire characteristics of people who use the brand d) benefits attributed to a product through its association with expert groups e) the wish to satisfy a certain norm or expectation others have 14. Your child will only eat a certain brand of yoghurt, so you buy that brand instead of the one you prefer. This is an example of influence. a) informational group b) utilitarian reference group c) value-expressive d) preferential e) random-assignment 15.

can be defined as adoption of behaviour resulting from real or perceived pressure to comply with a person or group. a) Reference b) Reactance c) Coercion d) Compliance e) Conformity

16. Normative conformity applies when . a) a person actively looks for guidance from a group when they lack knowledge b) a person wants to fit in with a group or is afraid of being rejected by a group c) a person internally accepts a group’s view

d) a person publicly changes his or her behaviour to fit in with a group but privately disagreeing e) a person experiences both an attitudinal and behavioural change in favour of the group 17. Informational conformity applies when . a) a person actively looks for guidance from a group when they lack knowledge b) a person wants to fit in with a group or is afraid of being rejected by a group c) a person experiences a behavioural shift without an attitudinal one d) a person publicly changes his or her behaviour to fit in with a group but privately disagreeing e) a person experiences both an attitudinal and behavioural change in favour of the group 18. Compliance applies when . a) a person actively looks for guidance from a group when they lack knowledge b) a person wants to fit in with a group or is afraid of being rejected by a group c) a person internally accepts a group’s view d) a person publicly changes his or her behaviour to fit in with a group but privately disagreeing e) a person experiences both an attitudinal and behavioural change in favour of the group 19. Internalization applies when . a) a person actively looks for guidance from a group when they lack knowledge b) a person wants to fit in with a group or is afraid of being rejected by a group c) a person experiences a behavioural shift without an attitudinal one d) a person publicly changes his or her behaviour to fit in with a group but privately disagreeing e) a person experiences both an attitudinal and behavioural change in favour of the group 20.

is a motivational state that acts as a counter force to threats to a person’s freedom, and can be a powerful force if groups of people feel that their free will is compromised. a) Compliance b) Conformity c) Reactance d) Resistance e) Coercion

21. Reward power may be present when . a) a person behaves to avoid the threat of punishment b) a person is influenced to behave in a certain way around someone who has particular expertise c) a person responds in a particular way to authority figures d) a person admires the qualities of a person and tries to imitate those qualities e) a person behaves to get rewarded in some way 22. Coercive power may be present when . a) a person behaves to avoid the threat of punishment b) a person is influenced to behave in a certain way around someone who has particular expertise c) a person responds in a particular way to authority figures d) a person admires the qualities of a person and tries to imitate those qualities e) a person behaves to get rewarded in some way 23. Legitimate power may be present when . a) a person behaves to avoid the threat of punishment

b) c) d) e)

a person is influenced to behave in a certain way around someone who has particular expertise a person responds in a particular way to authority figures a person admires the qualities of a person and tries to imitate those qualities a person behaves to get rewarded in some way

24. Expert power may be present when . a) a person behaves to avoid the threat of punishment b) a person is influenced to behave in a certain way around someone who has particular expertise c) a person responds in a particular way to authority figures d) a person admires the qualities of a person and tries to imitate those qualities e) a person behaves to get rewarded in some way 25. You go to the doctor when you are sick. The doctor explains the source of your illness, how to treat it, and how long symptoms may persist. In your visit to the doctor, you are appealing to power. a) coercive b) legitimate c) referent d) expert e) informational 26. Rogers and Cartano described on the decision of others. a) industry leaders b) opinion leaders c) CEOs d) marketing professionals e) consumer behaviour experts

as individuals who exert an unequal amount of influence

27. According to Lazarsfeld et al. and the two-step flow of communication, . a) the public can get information from many difference sources b) opinion leaders have direct influence on the public without interference from the media c) opinion leaders create influence that is passed through the media to the broader public d) influence flows from the media to opinion leaders who then passed on information to the broader public e) the media has direct influence on the public 28. According to Gladwell’s “Law of the Few,” connectors are . a) people who seek opinions and information to help their purchase decision b) people who have inside knowledge about what is going on in the marketplace c) collectors and brokers of information that they use to start discussions or respond to requests d) people who tend to know lots of other people, not necessarily very well but enough to help information flow within the network e) the arch persuaders, who will not accept no for an answer and are always looking for an opportunity to get their message across to someone else 29. According to Gladwell’s “Law of the Few,” salespeople are . a) people who seek opinions and information to help their purchase decision

b) people who have inside knowledge about what is going on in the marketplace c) collectors and brokers of information that they use to start discussions or respond to requests d) people who tend to know lots of other people, not necessarily very well but enough to help information flow within the network e) the arch persuaders, who will not accept no for an answer and are always looking for an opportunity to get their message across to someone else 30. a) b) c) d) e)

are people who seek opinions and information to help their purchase decision Opinion seekers Expert influencers Purchase managers Supply chain professionals Opinion leaders

31. According to Watts, a large number of ordinary people known as and influence other people for spreading the message about a brand. a) expert influentials b) opinion leaders c) accidental influentials d) influencers e) salespeople 32. a) b) c) d) e)

are people who have real power to influence the marketplace.

Opinion leaders Accidental influentials Salespeople Expert influentials CEOs

33. Urban pioneers, trend setters, and alpha consumers are followed by identify what will become cool. a) all consumers b) coolhunters c) bargain hunters d) opinion leaders e) marketing professionals 34.

are useful to reach out

for seeking to

is informal communication, either positive or negative, about goods, services, and sellers. a) Word of mouth b) Conversation c) Consumer opinion d) Product placement e) Face-to-face

35. Endogenous WOM is associated with , which is considered the most authentic form of brand communication as it tends to be bottom up, emerging through consumer-to-consumer interactions around the brand.

a) b) c) d) e)

integrated communications advertisement promotion hype buzz

36. You are a marketing executive of a tech start-up. In order to get people talking about the new product line you are releasing, you try to create hype about the products. Your approach relies on world of mouth. a) exogenous b) endogenous c) formal d) informal e) organic 37. Exogenous WOM occurs as a direct result of the firm’s marketing, it is associated with marketer-created and thus seen as less authentic. a) buzz b) integrated communications c) advertisement d) hype e) promotion 38.

is defined as any positive or negative statement made by potential, actual or former customers about a product or company, which is made available to a multitude of people and institutions via the internet. a) eWOM b) Buzz c) Hype d) Promotion e) Face-to-face communication

39. A number of people help to provide a solution partly by building on one another’s ideas is known as . a) crowdsourcing b) crowdfunding c) crowdbuilding d) user-generated content e) crowdhelping 40. Much user-generated content has arisen through the growth of a) celebrity blogs b) social media c) online advertisements d) opinion polls e) digital journalism 41.

.

shapes consumption behaviour through informational, utilitarian, and value-expressive

influence. a) Community b) School c) University d) Family e) Reference group 42. There are very tight regulations regarding what companies can and cannot do in marketing to . a) new immigrants b) seniors c) children d) opinion leaders e) consumers 43. When a parent is influenced by a child’s request and “surrenders,” it is parental a) yielding b) power c) surrender d) love e) role

.

44. The idea of describes parents acquiring consumers skills from their children. a) parental learning b) backward socialization c) parental yielding d) forward socialization e) reverse socialization 45. You are playing video games with your nephew, and you are having trouble learning to play the game. Your nephew shows you how to use the controller, how to navigate the game, and how to win the game. You and your nephew are engaging in socialization. a) popular b) expert c) controlled d) internal e) reverse

TRUE OR FALSE QUESTIONS 1. Social networks can have different configurations, and they influence of people within networks depends on where they are in the network (closer to the centre or near the edges), how many ties they have, the strength of ties, and the density of connections around them.

2. Dissociative or avoidance groups are groups we are members of but have negative feelings towards and whom we avoid being associated with.

3. People are influenced in their choice of brand by the preferences of those with whom they socialize.

4. It is possible that a person wants to fit in with a group or is afraid of being rejected by a group and will publicly accept the group’s view even if privately he does not agree, simply because standing out from the crowd can be uncomfortable.

5. Opinion leaders exert equal amount of influence on the decision of others.

6. Ordinary people can also use the power of mass communication to influence public opinion dramatically.

7. WOM occurs in both face-to-face contexts and in electronic contexts.

8. Exogenous WOM is considered the most authentic form of brand communication.

9. Crowdsourcing can lead to cheaper solutions for consumers.

10. Research shows that the involvement of children in consumption decisions is much less where children live with a single parent.

SHORT ANSWER QUESTIONS 1. Explain the concept of social network.

2. Describe the difference between formal groups and informal groups.

3. Explain utilitarian reference group influence and illustrate your answer with an example.

4. Define conformity and illustrate your answer with an example.

5. Explain the difference between compliance and internalization.

6. Define referent power.

7. Explain why endogenous WOM is considered the most authentic form of brand communication.

8. Explain why exogenous WOM is considered less authentic form of brand communication.

9. Explain the concept of crowdsourcing.

10. Explain the idea of reverse socialization and illustrate your answer with an example.

FILL IN THE BLANK QUESTIONS

1. We define 2.

as individuals connected by interpersonal relationships and interactions.

groups are groups that people use as a basis for comparison and guidance when forming their beliefs, attitudes, and behaviours.

3. A(n) reference group is one that we currently belong to, or perhaps belonged to in the past, but no longer want to associate ourselves with.

4.

group influence describes people actively seeking out information from opinion leaders or expert group.

5. Mann identified four types of internalization.

6.

: normative, informational, compliance, and

is a motivational state that acts as a counter force to threats to a person’s freedom, and can be a powerful force if groups of people feel that their free will is compromised.

7. The idea that a small group of influential people can accelerate or stop the adoption of a product has become central to our idea of what a(n) is.

8.

follow influential groups to identify what will become cool.

9. Endogenous WOM is associated with , which is considered the most authentic form of brand communication as it tends to be bottom up, emerging through consumer-to-consumer interactions around the brand.

10. Exogenous WOM is associated with marketer-created

and thus seen as less authentic.

ESSAY QUESTIONS 1. Describe in detail different types of reference groups with at least one example each.

2. Describe in detail the four types of conformity.

3. Describe in detail the social power framework explaining how power influences people.

4. Explain the difference between endogenous WOM and exogenous WOM. 5. Describe in detail the influence of family structure and roles on family’s consumption behaviour.

Answer Key MULTIPLE CHOICE QUESTIONS 1. e (p. 251) 2. d (p. 256) 3. c (p. 257) 4. a (p. 257) 5. b (p. 257) 6. b (p. 257) 7. d (p. 258) 8. a (p. 258) 9. e (p. 259) 10. c (p. 259) 11. b (p. 259) 12. a (p. 260) 13. c (p. 260) 14. b (p. 260) 15. e (p. 262)

16. b (p. 262) 17. a (p. 262) 18. d (p. 263) 19. e (p. 263) 20. c (p. 263) 21. e (p. 264) 22. a (p. 264) 23. c (p. 264) 24. b (p. 264) 25. d (p. 264) 26. b (p. 265) 27. d (p. 265) 28. d (p. 265) 29. e (p. 266) 30. a (p. 266)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

T (p. 253) F (p. 257) T (p. 260) T (p. 262)

5.

6.

7.

8.

F (p. 265) T (p. 268) T (p. 269) F (p. 269)

31. c (p. 267) 32. d (p. 267) 33. b (p. 269) 34. a (p. 269) 35. e (p. 269) 36. a (p. 269) 37. d (pp. 269–270) 38. a (p. 271) 39. a (p. 272) 40. b (p. 272) 41. d (p. 275) 42. c (p. 275) 43. a (p. 276) 44. e (p. 276) 45. e (p. 276)

9. T (p. 272) 10. F (p. 277)

SHORT ANSWER QUESTIONS 1. Social network refers to a group of individuals connected by interpersonal relationships and interactions. Families, friends, groups of co-workers or commercial partners, political groups, neighborhoods, and communities are all forms of social networks. Some of them overlap and some do not. (p. 251) 2. A formal group is usually formed by some kind of outside structure and is likely to have a formalized constitution and rules of conduct for members. Whereas an informal group is formed by individuals who have some sort of commonality but no formal connection to one another. (p.

258) 3. Utilitarian reference group influence describes people being influenced in their choice of brand by the preferences of those with whom they socialize it is related to receiving rewards and avoiding punishments. The decision to purchase a brand is influenced by the wish to satisfy a certain norm or expectation others have. For example, parents of picky eaters know that their children respond to certain brands; thus, they will continue buying those brands to please their children even if it would not be their own first choice. (p. 260) 4. Conformity is an adoption of behaviour resulting from real or perceived pressure to comply with a person or group. If you are with a group of friends and they all want to watch a football match, but you would prefer to go shopping, you may conform to their decision because their friendship is more important to you than going shopping. (p. 262) 5. Compliance refers to publicly changing behaviour to fit with a group but privately disagreeing, i.e., a behavioural shift without an attitudinal one. On the other hand, internalization involves both an

attitudinal and behavioural change in favour of the group. (p. 263) 6. Referent power is a type of power present when a person tries to imitate qualities and behaviour of an admired person, often evident in the way we consider celebrities. (p. 264) 7. Endogenous WOM occurs when conversations happen among consumers as part of their natural communication and when they are just passing on information about their experiences with a product or brand. Endogenous WOM is associated with buzz, which is considered the most authentic form of brand communication as it tends to be bottom up, emerging through consumer-to-consumer interactions around the brand. (p. 269) 8. Exogenous WOM occurs as a direct result of the firm’s marketing; it is associated with marketer-created hype and thus seen as less authentic form of brand communication. (pp. 269– 270) 9. Crowdsourcing is described as the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call. For example, many consumer online forums and Wikipedia are forms of crowdsourcing. (p. 272) 10. Reverse socialization refers to parents acquiring consumer skills from their children. This is evident in the area of technology (e.g., using the internet). Children also influence parents in relation to fashion, celebrity and popular culture, environmental issues, and ethical issues. (p. 276)

FILL IN THE BLANK QUESTIONS 1. social network (p. 251) 2. Reference (p. 256) 3. disclaimant (p. 257) 4. Informational (p. 259) 5. conformity (p. 262) 6. Reactance (p. 263) 7. opinion leader (p. 265) 8. Coolhunters (p. 269) 9. buzz (p. 269) 10. hype (pp. 269–270)

ESSAY QUESTIONS 1. A good answer will include description of following reference groups: contractual (identificational, associative), disclaimant, aspirational, dissociative or avoidance, formal, and informal. The description should include at least one example similar to examples in the textbook. (pp. 256–259) 2. Conformity can be defined as adoption of behaviour resulting from real or perceived pressure to comply with a person or group. Mann (1969) identified four types of conformity. A good answer will describe the four types of conformity: normative, informational, compliance, and internalization. (pp. 262–263) 3. A good answer will include description of the six bases of social power: reward, coercive, legitimate, expert, referent, and informational. (pp. 264–265) 4. A good answer will include definition or meaning of endogenous WOM and exogenous WOM with an example similar to the examples in the textbook. (pp. 269–270) 5. A good answer will include description of following with examples similar to examples in the textbook: family structure, family decision-making process, different buying roles in family, parental yielding, and reverse socialization. (pp. 275–279)

CHAPTER 9

Culture

MULTIPLE CHOICE QUESTIONS 1.

is the sum total of learned ideas, beliefs, values, norms, knowledge, practices, and customs that regulate the behaviour of members of a particular society. a) Attitude b) Culture c) Perception d) Symbol e) Custom

2. Enculturation refers to . a) how an individual learns his/her culture b) the learning of a new culture c) a separation of cultural needs d) abandoning one’s native culture in favour of the new host culture e) an individual fully embracing both native and host cultures 3. Acculturation refers to . a) how an individual learns his/her culture b) the learning of a new culture c) a separation of cultural needs d) abandoning one’s native culture in favour of the new host culture e) an individual fully embracing both native and host cultures 4. Peñaloza defines as the process of movement and adaptation to the consumer cultural environment in one country by those from another. a) consumer enculturation b) consumer deculturation c) consumer acculturation d) consumer segregation e) neo-culturation 5. According to Peñaloza, assimilation of culture is observed where the consumer a) abandons his/her native culture in favour of the new host culture b) embraces some aspects of both native and host cultures c) privileges his/her native culture over the new host culture d) engages in a separation of cultural needs e) fully embraces both native and host cultures 6.

are the thoughts an individual holds about an object, idea, or person. a) Attitudes b) Beliefs

.

c) Values d) Norms e) Symbols 7.

are the deep-rooted and enduring beliefs or ideals about what is good and desirable and what is not. a) Symbols b) Norms c) Attitudes d) Values e) Beliefs

8.

refers to the familiarity with people or things, which can include understandings, facts, information, and descriptions gained through experience and education. a) Values b) Customs c) Attitudes d) Symbols e) Knowledge

9. a) b) c) d) e)

are the norms of behaviour that are passed from generation to generation Customs Attitudes Symbols Thought process Ethics

10. You are having dinner at a restaurant with your friend Yuki, who has recently moved to Canada from Japan. Yuki offers to pay, but does not leave a tip, which you find embarrassing. You and Yuki are experiencing a difference in between your cultures. a) knowledge b) beliefs c) values d) customs e) ethics 11. a) b) c) d) e)

tells us about the way that orderly social life is maintained in a culture.

Social club Social ecology Social structure Social health Social activity

12. An important aspect of the cultural system relates to , which reflects the mental characteristics of a people, building on the assumption that members of a society possess the same worldview, ethos, ideas, and principles. a) ideology b) psychology

c) sociology d) neurology e) analogy 13. More than acting as a form of musical expression, hip-hop music is an important way for young men and women around the world to express their of social consciousness, truth-telling, transformation, and reconciliation a) psychology b) ideology c) analogy d) sociology e) neurology 14. In marketing, the trend of branding has been taken up by many companies who “take action to promote social harmony and repair the bonds of our shared humanity.” a) psychological b) responsible c) social d) reconciliation e) ethical 15. According to Hofstede’s dimensions of culture, individualism refers to . a) the ways in which individual goals are balanced against collective or group goals b) the relations between people and the ways that interpersonal relationships form when power differences exist c) motives that are classified as either achievement-oriented or consensus-oriented d) how a cultural group feels about ambiguity e) the time orientation of the culture and its perspectives on time and tradition 16. According to Hofstede’s dimensions of culture, power distance refers to . a) the ways in which individual goals are balanced against collective or group goals b) the relations between people and the ways that interpersonal relationships form when power differences exist c) motives that are classified as either achievement-oriented or consensus-oriented d) how a cultural group feels about ambiguity e) the time orientation of the culture and its perspectives on time and tradition 17. According to Hofstede’s dimensions of culture, uncertainty avoidance refers to . a) the ways in which individual goals are balanced against collective or group goals b) the relations between people and the ways that interpersonal relationships form when power differences exist c) motives that are classified as either achievement-oriented or consensus-oriented d) how a cultural group feels about ambiguity e) the time orientation of the culture and its perspectives on time and tradition 18. According to Hofstede’s dimensions of culture, long-term orientation refers to . a) the ways in which individual goals are balanced against collective or group goals b) the relations between people and the ways that interpersonal relationships form when power

differences exist c) motives that are classified as either achievement-oriented or consensus-oriented d) how a cultural group feels about ambiguity e) the time orientation of the culture and its perspectives on time and tradition 19. a) b) c) d) e)

are particular forms of custom and have a strong moral overtone.

Beliefs Attitudes Mores Values Norms

a) b) c) d) e)

are a specific form of custom, and relate to the norms for the conduct of everyday life.

Symbols Attitudes Beliefs Norms Conventions

20.

21.

are stories that contain symbolic elements that express shared emotions and ideals of a culture. a) Myths b) Symbols c) Rituals d) Narratives e) Mores

22.

are symbolic and expressive activities, often comprising a sequence of behaviours that are repeated over time. a) Myths b) Rituals c) Attitudes d) Norms e) Beliefs

23. Grooming rituals are . a) private behaviours that consumers undertake to aid the transition from private to public self and back again b) rituals that mark a change in a person’s social status c) the rituals associated with transforming mass-produced products from the marketplace into more personal products for the home or workplace d) the rituals associated with vacations and culturally bound holiday seasons e) the rituals surrounding giving presents to others 24. Possession rituals are . a) private behaviours that consumers undertake to aid the transition from private to public self and back again b) rituals that mark a change in a person’s social status

c) the rituals associated with transforming mass-produced products from the marketplace into more personal products for the home or workplace d) the rituals associated with vacations and culturally bound holiday seasons e) the rituals surrounding giving presents to others 25. Gift-giving rituals are . a) private behaviours that consumers undertake to aid the transition from private to public self and back again b) rituals that mark a change in a person’s social status c) the rituals associated with transforming mass-produced products from the marketplace into more personal products for the home or workplace d) the rituals associated with vacations and culturally bound holiday seasons e) the rituals surrounding giving presents to others 26. Holiday rituals are . a) private behaviours that consumers undertake to aid the transition from private to public self and back again b) rituals that mark a change in a person’s social status c) the rituals associated with transforming mass-produced products from the marketplace into more personal products for the home or workplace d) the rituals associated with vacations and culturally bound holiday seasons e) the rituals surrounding giving presents to others 27. Rites-of-passage rituals are . a) private behaviours that consumers undertake to aid the transition from private to public self and back again b) rituals that mark a change in a person’s social status c) the rituals associated with transforming mass-produced products from the marketplace into more personal products for the home or workplace d) the rituals associated with vacations and culturally bound holiday seasons e) the rituals surrounding giving presents to others 28. You are finally graduating from your post-secondary program! Congratulations! You cross the stage at your convocation ceremony, accept your diploma from your institution’s chancellor, and move your tassel from the right side of your cap to the left. You are experiencing a ritual. a) rite of passage b) grooming c) possession d) holiday e) gift-giving 29. A ritual script is . a) a guide to the use of ritual artefact—which artefacts to use, by whom, the sequence of use, and the types of comments that accompanies the ritual b) a specific symbolic message that gives meaning to behaviours understood by ritual participants c) the roles occupied by people involved in the ritual as they perform d) the people who witness or are involved in a rituals in some way beyond those involved in the

particular performance roles e) the objects and products that accompany or are consumed in a ritual setting 30. A ritual audience is . a) a guide to the use of ritual artefact—which artefacts to use, by whom, the sequence of use, and the types of comments that accompanies the ritual b) a specific symbolic message that gives meaning to behaviours understood by ritual participants c) the roles occupied by people involved in the ritual as they perform d) the people who witness or are involved in a rituals in some way beyond those involved in the particular performance roles e) the objects and products that accompany or are consumed in a ritual setting 31. You attend a decadent afternoon high tea at the Windsor Arms Hotel with several friends. You experience a highly choreographed service where even the tiniest details are perfected. At the high tea service, the teapot, sandwiches, macarons, and, of course, the tea are known as ritual . a) fossils b) objects c) artefacts d) articles e) relics 32. In the consumer context, consumption is used to refer to objects and events that are “set apart” from normal activities and are treated with some degree of respect or awe. a) extra b) sacred c) special d) faithful e) profane 33. In the consumer context, consumption is the term used to capture those consumer objects and events that do not share the “specialness” of sacred ones. a) extra b) everyday c) profane d) occasional e) dark 34. Sacralization is when . a) sacred qualities are attributed to mundane items b) objects associated with sacred events or people become sacred in their own rights c) special status is given to objects d) a sacred item or symbol is removed from its special place e) an iconic object is mass produced 35. Contamination is when . a) sacred qualities are attributed to mundane items b) objects associated with sacred events or people become sacred in their own rights

c) special status is given to objects d) a sacred item or symbol is removed from its special place e) an iconic object is mass produced 36. You work on a marketing team that is designing a line of memorabilia that celebrates popular Toronto landmarks. You design a special-edition T-shirt that celebrates the Skydome, the baseball stadium whose name gained almost-legendary status after the stadium was renamed the Rogers Centre in 2005. Your creation of such memorabilia is known as . a) dedication b) contamination c) objectification d) sacralization e) desacralization 37. Desacralization is when . a) sacred qualities are attributed to mundane items b) objects associated with sacred events or people become sacred in their own rights c) special status is given to objects d) a sacred item or symbol is removed from its special place e) objects and events are treated with respect or awe 38. A cultural group within a larger culture that shares demographic characteristics or consumption interests is known as . a) brand communities b) subcultures c) consumer tribes d) consumption groups e) conscious consumers 39.

relate(s) to society’s expectations about the appropriate attitude, values, and behaviour of men and women. a) Professional conduct b) Consumer behaviour c) Gender equality d) Gender discrimination e) Gender roles

40. A of consumption is defined as a group of consumers connected through a “shared commitment to a particular product class, brand or consumption activity.” a) community b) society c) subculture d) tribe e) culture 41.

is a similar concept to subculture, but the focus is very much on the shared admiration of a brand. a) Brand management

b) c) d) e)

Business community Product community Brand community Brand network

a) b) c) d) e)

is NOT an aspect of brand community.

Anti-brand community Moral responsibility Consciousness of kind Ritual and tradition Geographic boundaries

42.

43. A consumer is a group of people emotionally connected by similar consumption values and usage, who use the social “linking value” of products and services to create community and express identity. a) community b) tribe c) society d) club e) subculture 44. In tribal consumption, the a) playful b) commitment c) responsibility d) permanent e) rigid

aspect is emphasized.

45. You enjoy playing golf, and you enjoy talking to other golfers about new products on the market– clubs, shoes, bags, accessories, etc. While you enjoy golf and making connections through the game, it does not dominate your life and you have many other hobbies and activities that you also enjoy. Through golf, you are part of a . a) subculture b) brand community c) anti-brand community d) consumer tribe e) loyalty program

TRUE OR FALSE QUESTIONS 1. Culture is the shared understandings, meanings, and customs that together act as a blueprint to guide behaviour and to help people live and function in ways that are appropriate and acceptable to others within that same culture.

2. Newcomers’ maintenance of culture happens where there is a separation of cultural needs, and newcomers live and shop in the areas geographically or otherwise separated from dominant

consumers.

3. The role of marketers as social institutions is to steer ethnic engagement away from public spaces of town halls into private spaces of supermarkets and consumption of brands, foods, fashions, and styles.

4. Masculinity refers to motives that are more consensus-oriented, where the emphasis is on cooperation, modesty, caring, and quality of life.

5. Uncertainty avoidance relates to the time orientation of the culture and its perspectives on time and tradition.

6. Myths serve the function of emphasizing how things in a culture are interconnected; they maintain social order by authorizing a social code.

7. Grooming rituals are private behaviours that consumers undertake to aid the transition from private to public self and back again.

8. Profane consumption is used to refer to objects and events that are “set apart” from normal activities and are treated with some degree of respect or awe.

9. Subcultures share different values and tastes, and in many ways exhibit different qualities and characteristics of a culture.

10. Religion represents one of the central institutions shaping consumer culture. It provides a point of affiliation for subcultures within a national culture, and these subcultures are based around the consumption of certain products that are symbolically and ritualistically associated with the celebration of religious ceremonies and holidays.

SHORT ANSWER QUESTIONS 1. Explain the relevance and impact of culture on marketing.

2. Explain customs and describe how customs control basic behaviour of people. Illustrate your answer with an example.

3. Explain the cultural dimension of uncertainty avoidance.

4. Explain consumers’ grooming rituals.

5. Explain how rites of passage are a natural aspect of a consumer’s life course.

6. Distinguish between sacred consumption and profane consumption.

7. Explain why subcultures are important to marketing.

8. Identify the main characteristics of the age-based subculture generation Z. 9. Describe a subculture of consumption. Illustrate your answer with an example.

10. Describe the concept of consumer tribes.

FILL IN THE BLANK QUESTIONS 1. We refer to as the sum total of learned ideas, beliefs, values, norms, knowledge, practices, and customs that regulate the behaviour of members of a particular society.

2. In marketing, the trend of branding has been taken up by many companies who “take action to promote social harmony and repair the bonds of our shared humanity.”

3. The of a culture.

4.

is a story that contains symbolic elements that express shared emotions and ideas

exist within a larger culture and can be defined in terms of shared demographic characteristics (e.g., age regionality, ethnicity) or in terms of shared consumption interests.

5. Brand brand.

is a community based on a structured set of social relations among admirers of a

ESSAY QUESTIONS 1. Define consumer acculturation and describe the four different types of consumer acculturation.

2. Describe the three main elements of a cultural system.

3. Describe in detail Geert Hofstede’s dimensions of culture.

4. Define “ritual” and describe the six main types of consumer rituals.

5. Describe in detail the characteristics of key age-based subcultures relevant for marketing.

Answer Key MULTIPLE CHOICE QUESTIONS 1. b (p. 289) 2. a (p. 289) 3. b (p. 289) 4. c (p. 289) 5. a (p. 289) 6. b (p. 290) 7. d (p. 290) 8. e (p. 291) 9. a (p. 291) 10. d (p. 291) 11. c (p. 294) 12. a (p. 295) 13. b (p. 295) 14. d (p. 295) 15. a (p. 298)

16. b (p. 298) 17. d (p. 299) 18. e (p. 299) 19. c (p. 301) 20. e (p. 302) 21. a (p. 302) 22. b (p. 303) 23. a (p. 303) 24. c (p. 303) 25. e (p. 303) 26. d (p. 303) 27. b (p. 304) 28. a (p. 304) 29. a (p. 305) 30. d (p. 305)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

T (p. 288) F (p. 289) T (p. 290) F (p. 298)

5.

6.

7.

8.

F (p. 299) T (p. 302) T (p. 303) F (p. 306)

31. c (p. 305) 32. b (p. 306) 33. c (p. 306) 34. c (p. 309) 35. b (p. 309) 36. d (p. 309) 37. d (p. 310) 38. b (p. 310) 39. e (p. 313) 40. c (p. 315) 41. d (p. 315) 42. e (p. 315) 43. b (p. 316) 44. a (p. 316) 45. d (p. 316)

9. F (p. 310) 10. T (p. 314)

SHORT ANSWER QUESTIONS 1. Culture is often considered an important influence on how people behave. When we talk about culture, we are really talking about all the aspects of a society that distinguish members of that society, or group, from those of another. Culture is the shared understandings, meanings, and customs that together act as a blueprint to guide behaviour and to help people live and function in ways that are appropriate and acceptable to others within that same culture. Culture shapes and guides everyday consumption behaviours and how to celebrate special events. Certain aspects of culture are stable and resistant to change, while others are malleable. Hence, understanding culture is very necessary for marketing practice. (p. 288) 2. Customs are the norms of behaviour that are passed from generation to generation. These serve to control basic behaviour within a culture around the core facets of life, such as the division of labour within the home or how to celebrate rites of passage. It is customary in many cultures to leave a tip in service encounters—a gratuity for a service performed. However, local tipping customs vary, and what is expected in one culture can be offensive in another. A good answer will include an example in the textbook or similar. (p. 291) 3. Uncertainty avoidance relates to how a cultural group feels about ambiguity, and the extent to which its members avoid or embrace uncertainty and risk. It refers to the degree of anxiety members of the society feel when in uncertain or unknown situations. High uncertainty avoidance cultures avoid ambiguous situations whenever possible, whereas low uncertainty avoidance cultures enjoy novel events and value differences. A good answer will include examples similar to examples in the textbook. (p. 299)

4. Grooming rituals are private behaviours that consumers undertake to aid the transition from private to public self (and back again). Rituals associated with getting ready for a night out (showering, putting on make-up, choosing an outfit) prepares consumers as they move from their private space to a more public and social space. (p. 303) 5. Rites-of-passage rituals are those rituals that mark a change in a person’s social status. These rites can relate to changes that are a natural aspect of a consumer’s life course, for example moving from the world of the child to the world of the adult: a child’s first day at school, becoming a teenager, graduation, getting a first job, moving out of the family home, or getting married. (p. 304) 6. In the consumer context, sacred consumption is used to refer to objects and events that are “set apart” from normal activities and treated with some degree of respect or awe. In contrast, profane consumption is the term used to capture those consumer objects and events that do not share the “specialness” of sacred ones. A good answer will include an example similar to example in the textbook. (p. 306) 7. Within any culture, there exist subcultures (sometimes referred to as microcultures) that are important to marketing since these often capture meaningful links and connections between groups in society. Subcultures share similar values and tastes, and in many ways exhibit the same qualities and characteristics of a culture. The main distinction is that they are smaller in size.

Subcultures exist within a larger culture and can be defined in terms of shared demographic characteristics (e.g., age, regionality, ethnicity) or in terms of shared consumption interests. (p. 310) 8. The main characteristics of the age based subculture generation Z are as follows: fast technology is taken for granted, short attention spans, good at multi-screening, innovative, global, value flexibility, individuality, diversity, social responsibility, grow more slowly, less likely to start working at school, drive less, fewer vices (alcohol, tobacco, drugs), and they expect loyalty from marketers. (p. 311) 9. A subculture of consumption is defined as a group of consumers connected through a shared commitment to a particular product class, brand or consumption activity. The Harley-Davidson community is the classic example of a subculture of consumption. The defining characteristics of subcultures of consumption are an identifiable ethos underpinning the subculture, core values, that are accepted to varying degrees by all adherents, and expression of these values in certain products and their usage (p. 315) 10. A consumer tribe is a group of people emotionally connected by similar consumption values and usage, who use the social “linking value” of products and services to create a community and express identity. Consumer tribes are similar to subcultures of consumption and brand communities in the sense that the collective is connected through their shared passion for a brand or consumption practice. The difference, however, is that consumer tribes recognize the multiple nature of consumption collectives and that consumers may belong to several collectives, or tribes, at the same time. Just as an individual has different aspects of their self, through membership in multiple tribes, consumers can express different aspects of their identity. (p. 316)

FILL IN THE BLANK QUESTIONS 1.

2.

3.

4.

5.

culture (p. 289) reconciliation (p. 295) myth (p. 302) Subcultures (p. 310) community (p. 315)

ESSAY QUESTIONS 1. Consumer acculturation is the general process of movement and adaptation to the consumer cultural environment in one country by those from others. The four different types of consumer acculturation are assimilation, maintenance, resistance, and segregation. A good answer will include description of the four types of consumer acculturation similar to the descriptions in the textbook. (p. 289) 2. A cultural system is comprised of three main elements, which together help to understand culture: ecology, social structure, and ideology. A good answer will include description of the three elements with examples similar to examples in the textbook. (p. 294) 3. Core societal values are important in understanding cultures and underpin the various dimensions of culture, which help us to understand how different people act and behave around the world. Geert Hofstede’s dimensions of culture provide some useful insights for understanding consumption in different cultures. They are individualism, masculinity, power distance, uncertainty avoidance, and long-term orientation. A good answer will include description of dimensions of culture with example, similar to the description and examples in the textbook. (p. 298) 4. Rituals are very important in the transfer of meaning within cultures. The term “ritual” refers to a symbolic and expressive activity, often comprising a sequence of behaviours that are repeated over time. Within marketing, rituals have been applied to understand consumption. There are six main types of consumer ritual: grooming rituals, possession rituals, gift-giving rituals, self-gifts, holiday rituals, and rites-of-passage rituals. Answer will include detailed description of all the six types of consumer rituals with example similar to description and examples in the textbook. (p. 303) 5. The key age-based subcultures relevant for marketing are: baby boomers, generation X, generation Y or millennials, and generation Z or post-millennials. Answers will include detailed descriptions of characteristics of these age-based subcultures, described in Table 9.1. (p. 311)

CHAPTER 10

Patterns of Buyer Behaviour MULTIPLE CHOICE QUESTIONS 1.

are researchers who look for law-like patterns in data that could be applied to any product and consumer market. a) Empirical generalizationalists b) Symbolic interactionists c) Practical consumerists d) Technological determinists e) Postmodernists

2. Empirical research does not tell us a) which people buy b) where people buy c) what people buy d) how people buy e) why people buy

.

3. If we want to examine how people repeat buy, we can use , which records people’s purchasing over extended periods (often over a year or longer) so that we can see what brands are bought repeatedly by the same consumer and how often the consumer chooses alternative brands. a) store data b) observation research c) security cameras d) consumer panel data e) store panel data 4. Although not as comprehensive as consumer panels, amounts of information about consumer purchases a) credit card statements b) loyalty programs c) debit card transactions d) observation research e) surveillance cameras 5.

allow retailers to collect large

is a mental list of brands that a consumer feels would be acceptable to satisfy his or her current needs from which a final choice is made, whereas reflects actual past purchasing behaviour. a) Market penetration; market share b) Market share; market penetration c) A repertoire of brands; a consideration set d) A consideration set; a repertoire of brands e) A repertoire of brand; a stockpile

6. a) b) c) d) e)

means to buy a product when it is not immediately needed.

Run out Pre-purchase Purchase Stockpile Advance booking

7. The analysis of repeat-buying data is managed by considering the a) time of purchase b) store of purchase c) frequency of purchase d) limit of purchase e) customer acceptance

.

8. Market is the percentage of consumers (out of the total number of potential customers) who buy an item at least once in a given time period. a) coverage b) capture c) acceptance d) reach e) penetration 9. Purchase a) duration b) frequency c) power d) action e) need

is the average number of times consumers buy an item in a given time period.

10. The penetration of brands in the same product category may differ a lot, but the average purchase of any brand tend to be similar. a) frequency b) quality c) location d) size e) packaging 11.

is the percentage of total sales in a category or industry (measured by value or by volume) earned by a particular company or brand. a) Market share b) Market value c) Penetration d) Profit share e) Brand share

12.

markets are established mature markets that appear stable over a period of several months or a year.

a) b) c) d) e) 13.

14.

Variable Exchange Stock Near-stationary Segmented

is the phenomenon whereby brands with smaller market share have fewer buyers and those fewer buyers buy the brand less often. a) Negative brand equity b) Double jeopardy c) Market saturation d) Market dissonance e) Negative reinforcement in the market happens when a consumer fails to buy a brand in the subsequent purchase. a) Jeopardy b) Backsliding c) Defection d) Disloyalty e) Apostasy

15. The is used to see what kind of consumer loyalty could be realistically expected based on brand size. a) Dirichlet theoretical model b) network model c) consumer culture theory d) product comparison theory e) consumer retention model 16. Your company’s brand of athletic socks differs significantly from its competitors in terms of market share and market penetration, but the average purchase frequencies of your brand and your competitors’ brands is very similar at around 1.6 units per buyer. This indicates to you that, whether you are a small brand or a big brand, in order to succeed in the market, you need to reach . a) the highest market share b) the highest market penetration c) the average purchase rate d) majority control of the market e) total control of the market 17.

is a situation when larger brands that fare better offline than smaller brands, online suffer more than smaller brands from receiving negative attention. a) Criminal consumption b) Negative brand equity c) Negative consumption d) Negative double jeopardy e) Double jeopardy

18. According to Ehrenberg, when shopping for frequently bought and low-priced goods where we encounter little risk, we to simplify the repetitive choice-situation. a) make careful decisions b) develop habits c) choose randomly d) try something new e) consult influencers 19.

is defined as any tendency for people to buy the same brand again, whilst usually also buying other brands. a) Brand shifting b) Brand positioning c) Alternate purchasing d) Purchase predictability e) Brand loyalty

20.

consumers shop from a repertoire of brands, all of which are acceptable to them, and from these they choose different brands at different times. a) Monogamous b) Promiscuous c) Polygamous d) Serial monogamous e) Social monogamous

21. You like both Crest and Colgate toothpastes, and your choice of which to buy depends on what is available at the store and which is on sale. Either brand is acceptable to you, so you don’t worry too much about which you buy. In this case, you are known as a consumer. a) monogamous b) promiscuous c) polygamous d) serial monogamous e) social monogamous 22. Sharp and Romaniuk argue that trying to increase brand loyalty is a) important in all retail sectors b) important for the slow-moving creative goods sector c) important in the fast-moving consumer goods sector d) important in the durable goods sector e) a waste of time

.

23. You own and operate a small local housekeeping service. One of your long-time customers moves to another area and will no longer be able to use your services. Your business takes a significant hit because your market share is very small. This can be explained by the concept of . a) double negative b) double jeopardy c) negative brand equity d) negative reinforcement

e) brand boycott 24. Market is a situation when there is no new demand in the current market as most of the potential buyers already use a product or service. a) saturation b) blockage c) stagnation d) flow e) over-supply 25. Advertising to heavy buyers may not be beneficial as this target market may have reached a point in terms of how much they can consume. a) stagnation b) blockage c) flow d) saturation e) end 26. You are the marketing manager for a frozen pizza manufacturer. Your research finds that 20 per cent of sales volume comes from just 5 per cent of people who buy your pizzas once a week. In order to increase sales, you want to target . a) heavy buyers b) light buyers c) non-buyers d) infrequent buyers e) conflicted buyers 27. The Pareto law suggests that . a) all of your sales come from loyal repeat customers b) 20 per cent of your sales come from 80 per cent of your customers c) 50 per cent of your sales come from loyal repeat customers d) 80 per cent of your sales come from 20 per cent of your customers e) only a small percentage of your sales come from loyal repeat customers 28. Contrary to what is implied by the Pareto law, a company’s heaviest customers may actually account for around of sales in a year. a) 10 per cent b) 25 per cent c) 50 per cent d) 75 per cent e) 90 per cent 29. The law of is the tendency for light buyers to become heavier and heavy buyers to become lighter. a) buyer modification b) buyer motivation c) buyer moderation d) customer reduction

e) customer relaxation 30.

of purchase analysis can help a marketing manager see which other brands are also bought by their customers and whether the brand has a particularly close competitor. a) Simplification b) Duplication c) Classification d) Triplication e) Justification

31. Brands of chocolate marketed at women often communicate communicate . a) sensuality; energy b) athleticism; flexibility c) defiance; submission d) responsibility; laziness e) neatness; messiness 32.

and those for men

tax is an example of gender-based price discrimination in which a unisex product is priced higher when marketed to women. a) Red b) Blue c) White d) Yellow e) Pink

33. Research indicates that customers . a) buy whatever is cheapest and most easily accessible, without considering brand loyalty b) make decisions about everyday purchases following careful research into their options c) are always loyal to a particular brand for very obvious reasons d) require noticeable differentiation between brands in order to purchase one or the other e) do not require differentiation in their brand to purchase it 34.

is the number of people in a given period who are exposed to a marketing message. a) b) c) d) e)

Depth Reach Audience Spread Breadth

35. It is important that marketing managers . a) seek to eliminate competitors’ products from consumers’ repertoires b) encourage consumers to constantly re-evaluate all the potential brands available c) avoid being in the consumer’s repertoire d) expect total loyalty from customers e) recognize that they need to be in the consumer’s repertoire but not to expect total loyalty from them

36. For a company, every non-buyer is a a) waste of resources b) enemy c) potential buyer d) non-buyer e) friend

.

37. Sales of ice cream, soup, and pie tend to be a) consistent b) frequent c) seasonal d) unpredictable e) extraordinary

.

38. A 100 per cent loyal customer . a) is an important goal for marketing managers b) may not be worthwhile in terms of how much that customer actually buys c) is impossible to achieve, especially for large brands d) is likely a heavy user of a product or brand, purchasing more items than others e) is indispensable to the brand 39. According to Anschuetz, it is important that a brand’s message a) reaches its target audience through exclusive media channels b) is directed at brand influencers c) appeals to a narrow cross-section of potential users d) connects inclusively across all types of users e) is exclusive to a specific audience 40. The best predictor of what customers will do in the future is a) whether the product was recommended by another customer b) what the product is for c) whether there is a sale or promotion d) what they did in the past e) why they are buying the product

.

.

41. The perceived need to has led to product innovation, which is a good thing for consumers, but brands rarely remain innovators for long. a) comply b) differentiate c) integrate d) preserve e) associate 42. Above all, a brand needs to be a) traditional b) standard c) common d) expensive

.

e) distinctive 43. You previously purchased Gillette disposable razors. When you go to the store, you notice that, in addition to Gillette, there are two very similar brands of disposable razors: Schick and BIC. When faced with these three choices, best predictor of what you will buy is . a) store availability b) appearance c) past behaviour d) online rating e) recommendation 44. When companies choose their distinctiveness they need to stick with it and ensure that consumers can see it everywhere so that it acts as a in their memories to identify the brand. a) symbol b) trigger c) sign d) surprise e) switch 45. According to Sharp, loyalty programs . a) provide fewer incentives for heavier brand users to sign up b) provide good incentives for lighter brand buyers to sign up c) are skewed toward lighter, less loyal brand buyers d) generate significant shifts in market share e) generate small or no shifts in market share

TRUE OR FALSE QUESTIONS 1. Although not as comprehensive as consumer panels, loyalty programs such as Canadian Air Miles, Canadian Tire Rewards, and HBC Rewards allow retailers to collect large amounts of information about consumer purchases.

2. Stockpile means to buy a product at least once in a given time period.

3. Double jeopardy is the phenomenon whereby brands with larger market share have several buyers who buy the brand more often.

4. Fast-moving consumer goods are high-risk purchases.

5. Ehrenberg defined brand loyalty as any tendency for people to buy the same brand again, whilst usually also buying other brands.

6. Market saturation is a situation when there is no new demand in the current market as most of the potential buyers already use a product or service.

7. The law of buyer moderation is the tendency for light buyers to become heavier and heavy buyers

to become lighter.

8. Pink tax is an example in which a unisex product is priced higher when marketed to men.

9. Growing a brand’s distribution into more stores or a previously unrepresented area is an important strategy because it reaches potential buyers who have not readily been able to gain access to the brand.

10. An important message for companies advertising their brand to experienced consumers of the product class is that you can rarely imbue attributes that will differentiate it greatly from its competitors.

SHORT ANSWER QUESTIONS 1. Explain how consumer panel data helps marketers with understanding their purchase behaviour.

Identify the consumer panelists.

2. Explain the repertoire of brands purchasing pattern and explain how it differs from a consumer consideration set.

3. Distinguish between market penetration and purchase frequency and explain how these two variables are useful in calculating sales for a brand.

4. Explain the phenomenon of double jeopardy.

5. Explain the relationship between brand loyalty and polygamous consumers.

6. Define market saturation and assess whether advertising will help increase sales in a saturated market.

7. Explain the patterns of product differentiation in different countries 8. Explain the usefulness of 100 per cent loyal consumers to a brand.

9. Identify the reasons for growing a brand’s distribution into more stores.

10. Explain the importance of effectively publicizing a brand.

FILL IN THE BLANK QUESTIONS 1. We often see that consumers buy from a of brands, which means they buy a number of brands in a product category over a period of time.

2. A(n)

market is an established market that appears stable over several months or a year.

3.

consumers are the consumers who consistently buy from a repertoire of brands, all of which are acceptable to them, choosing different brands at different times.

4. The law of buyer become lighter.

5.

is the tendency for light buyers to become heavier and heavy buyers to

is an example of gender-based price discrimination in which a unisex product is priced higher when marketed to women.

ESSAY QUESTIONS 1. Describe in detail purchasing patterns of consumers.

2. Describe in detail what repeat purchasing tells us about brand loyalty.

3. Identify who—light or heavy buyers—matters most for marketers and explain why.

4. Describe what really matters to consumers in the context of brand loyalty.

5. Explain whether or not a brand needs to be distinctive.

Answer Key MULTIPLE CHOICE QUESTIONS 1. a (p. 326) 2. e (p. 327) 3. d (p. 327) 4. b (p. 328) 5. d (p. 328) 6. d (p. 329) 7. c (p. 329) 8. e (p. 329) 9. b (p. 329) 10. a (p. 330) 11. a (p. 330) 12. d (p. 331) 13. b (p. 331) 14. c (p. 331) 15. a (p. 331)

16. c (p. 331) 17. d (p. 332) 18. b (p. 333) 19. e (p. 334) 20. c (p. 334) 21. c (p. 334) 22. e (p. 334) 23. b (p. 334) 24. a (p. 335) 25. d (p. 335) 26. a (p. 335) 27. d (p. 335) 28. c (p. 335) 29. c (p. 337) 30. b (p. 337)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

T (p. 328) F (p. 329) F (p. 331) F (p. 333)

5.

6.

7.

8.

T (p. 334) T (p. 335) T (p. 337) F (p. 339)

31. a (p. 339) 32. e (p. 339) 33. e (p. 340) 34. b (p. 340) 35. e (p. 341) 36. c (p. 341) 37. c (p. 342) 38. b (p. 342) 39. d (p. 343) 40. d (p. 344) 41. b (p. 344) 42. e (p. 344) 43. c (p. 344) 44. b (p. 345) 45. e (p. 346)

9. T (p. 343) 10. T (p. 345)

SHORT ANSWER QUESTIONS 1. If marketers want to examine how people repeat buy, marketers can use consumer panel data, which records people’s purchasing over extended periods (often over a year or longer) so that they can see what brands are bought repeatedly by the same consumer and how often the consumer chooses alternative brands. Typically, panelists (who are rewarded for their participation) are selected to be large representative samples of a target group or the general population; they stay on panel as long as they meet the criteria. (p. 327) 2. We see that consumers often buy from a repertoire of brands, which means they buy a number of brands in a product category over a period of time. A repertoire of brands resembles a consumer consideration set, but there is a difference: while a consideration set is a mental list of brands that a consumer feels would be acceptable to satisfy their current needs from which a final choice is made, a repertoire of brands reflects actual past purchasing behaviour. (p. 328) 3. Market penetration is the percentage of consumers (out of the total number of potential customers) who buy an item at least once in a given time period. Purchase frequency is the average number of times consumers buy an item in a given period. This means that we can calculate sales for a brand by multiplying penetration (the number of buyers) by purchase frequency (how often they buy the brand). (p. 329) 4. As market share declines, average purchase frequencies tend to go down. This is referred to as double jeopardy, which is the phenomenon whereby brands with smaller market share have fewer buyers and those fewer buyers buy the brand less often. This can act as a warning signal to brand owners: smaller brands suffer twice, and there are real advantages in being a bigger brand as you

tend to have more buyers buying more often. (p. 331) 5. Ehrenberg defined brand loyalty as any tendency for people to buy the same brand again, whilst usually also buying other brands. Consumers could be described as polygamous or having split loyalties, rather than being promiscuous and switching from brand to brand without any apparent reason. Polygamous consumers shop from repertoire of brands, all of which are acceptable to them, and from these they choose different brands at different times. (p. 334) 6. Market saturation is a situation when there is no new demand in the current market as most of the potential buyers already use a product or service. Advertising to the heavy buyers may not be beneficial as this target market may have reached a saturation point in terms of how much product they can consume. A good answer will include an example similar to example in the textbook. (p.

335) 7. Studies across products and services in different countries and using different methods reveal consistent patterns: (1) Buyers of a brand perceive very weak differentiation—yet this does not stop them loyally buying a particular brand; (2) A brand’s level of perceived differentiation is very similar to their rivals’. Similar patterns are found across different product categories, unless there are exceptional functional differences. (p. 340) 8. The goal of 100 per cent loyal customer is not only unlikely, but also not necessarily worthwhile in terms of how much that customer actually buys. A large brand may have a relatively high number of 100 per cent loyal customers, although for a small brand this will be much less, but 100 per cent loyal users are generally light users of the category, purchasing fewer items than others, and so effectively they do not have much chance of being disloyal. As such, they may not be that useful to the brand. (p. 342) 9. Growing a brand’s distribution into more stores or a previously unrepresented area is an important strategy because it reaches potential buyers who have not readily been able to gain access to the brand. Not only are light or non-buyers given access to the brand, but heavy buyers also have improved availability. A good answer will include an example similar to example in the textbook. (p. 343) 10. If a brand is publicized effectively, more people will be aware of it, interested in it, feel it may be worth trying, and so bring it into their consideration set. This includes advertising that is aimed at informing the public, such as price cut, a special promotion, or a new flavour, size, or package type.

Most of the time, however, marketers need to remind people that their brand is there. (p. 345)

FILL IN THE BLANK QUESTIONS 1.

2.

3.

4.

5.

repertoire (p. 328) near-stationary (p. 331) Polygamous (p. 334) moderation (p. 337) Pink tax (p. 339)

ESSAY QUESTIONS 1. The answer will include following three purchasing patterns: (1) Repeat buying over time: includes explanation of repertoire of brands, consumer consideration set and stockpile; (2) Purchase frequency: includes explanation of market penetration, purchase frequency, and market share; and (3) Near-stationary markets: includes explanation of near-stationary market, double jeopardy, defection, and negative double jeopardy. (p. 328) 2. Understanding how consumers actually purchase over repeated occasions allows us to consider what brand loyalty really means—multiple definitions are possible. The answer will include

analysis of several aspects of brand loyalty and a definition by Ehrenberg. The answer will also include explanation on polygamous consumers. A good answer will include examples similar to examples in the textbook. (p. 334) 3. The answer will include detailed consumption analysis of light buyers and heavy buyers. The answer will also include explanation on market saturation, the Pareto law, and the law of buyer moderation. A good answer will include examples similar to examples in the textbook. (p. 335) 4. Brands continually try to catch the consumers’ attention. Branding helps consumers to remain loyal, while creative advertising reminds them about new and different brands. Brand image impacts consumer’s choice of brand, but even the leading brands in a market with strong brand image will, for most people, be just one brand in their repertoire. Therefore, media strategies need to maximize reach. Answers will include detailed analysis of the fact that the loyalty is just a feature of habit, dependent on what is readily available, familiarity, and even lack of really caring in some cases, and does not reflect a deeper kind of connection. The answer will also include a discussion of brand communities and their strong feelings about their chosen brand. A good answer will include examples similar to examples in the textbook. (p. 340) 5. Differentiation does not appear to be important to consumers; rather, their past purchasing history (their behaviour) seems to be a better indicator of which brands they will choose in the future. However, a brand needs to be distinctive; above all, customers need to be able to spot it and recognize it. To succeed in distinctiveness, the brand has to have something that is both unique and ubiquitous. This inevitably means a lot of investment in communicating to the consumer over time. The answer will also include explanation on communicating with experienced consumers and with new consumers. A good answer will include examples similar to examples in the textbook. (p. 344)

CHAPTER 11

Social Responsibility and Ethics: Dark and Bright Behaviours in the Marketplace MULTIPLE CHOICE QUESTIONS 1.

build an online relationship with people and eventually ask for money for an emergency (medical, work, etc.), promising to pay it back as soon as possible—but then disappearing once they’ve received it. a) Scammers b) Partners c) Friends d) Marketers e) Fake police

2. Given the scope of business activities, moral rules affect multiple groups of parties that either affect or are affected by what organizations do. a) shareholders b) consumers c) suppliers d) stakeholders e) public participants 3. a) b) c) d) e)

, which are

principles are general rules guiding moral actions and decisions in ethical dilemmas.

Local Social Business Spiritual Ethical

4. Among the eight ethical principles that organizations around the globe follow, reliability refers to . a) treating like cases alike b) safeguarding tangible and intangible elements c) making reasonable promises and fidelity to commitments d) respecting other people e) respecting the law and natural environment 5. Among the eight ethical principles that organizations around the globe follow, dignity refers to . a) treating like cases alike b) safeguarding tangible and intangible elements c) making reasonable promises and fidelity to commitments d) respecting other people

e) respecting the law and natural environment 6. Consumer is commonly related to suspicion, mistrust, skepticism, and distrust of an agent’s or organization’s motives and can lead to reactions such as dissatisfaction, alienation, resistance, and hostility towards the organization. a) criticism b) depression c) cynicism d) awareness e) dissatisfaction 7. a) b) c) d) e) 8.

is NOT one of the 4P strategies that marketers strive to deliver to consumers.

Place Product Practicality Price Promotion

is defined as any activities, efforts, or vigorous campaigns that draw attention to an issue in order to achieve a positive change in society. a) Collectivism b) Socialism c) Cooperation d) Activism e) Mechanism

9. Consumer a) sovereignty b) motivation c) perception d) attitude e) opinion

is the exercise of freedom that people could have through consumption.

10. You are planning a trip and on the airline’s website, you notice a great deal. However, when you book the flight, that low price becomes “unavailable.” Here, the airline has violated the ethical principles of . a) transparency and fairness b) dignity and reliability c) transparency and citizenship d) dignity and fairness e) citizenship and reliability 11. a) b) c) d) e)

is when people passively participate in activism by showing small token of support.

Activism Passivism Slacktivism Youthquake Attitude–behaviour gap

12.

effect occurs when people feel good about themselves after making a moral choice and this feeling can carry-over to subsequent immoral choices. a) Immoral licensing b) Moral licensing c) Attitude-behaviour gap d) Slacktivism e) Youthquake

13. A(n) gap occurs when consumers express one attitude about an activity or product but behave in the opposite way a) attitude–behaviour b) perception–behaviour c) value–behaviour d) expectation–behaviour e) demand–behaviour 14. Self-regulation in business is . a) involuntary b) imposed by the government c) imposed by the corporation itself d) imposed by market forces e) forced by outside organizations 15. According to Eckhardt, Belk, and Devinney, consumers give one of several excuses for failing to consume ethically. is the excuse that an ethical product is more expensive and less affordable. a) Developmental realism b) Economic realism c) Governmental rationalism d) Governmental dependency e) Economic rationalism 16. To avoid dark behaviours, organizations at a company level by establishing code of ethics, credos, and mission statements that all employees must follow or use as guidance for ethical decision-making. a) punish b) discipline c) self-regulate d) treat e) discuss 17. Consumer misbehaviour is . a) behavioural acts that cannot be solved with self-control b) behavioural acts that do damage first and foremost to the consumers themselves c) engagement in compulsive behaviours d) overreliance on or overuse of certain products e) behavioural acts that violate the generally accepted norms of conduct in consumption

situations and thus disrupt the consumption order 18. Consumer problem behaviour is . a) behavioural acts that violate the generally accepted norms of conduct in consumption situations and thus disrupt the consumption order b) behavioural acts that can be solved with self-control c) self-indulgent, self-interested, and carried out without concern for others d) an overreliance on or overuse of certain products, or an engagement in compulsive behaviours e) based on the assumption that consumers either misjudge a situation or choose not to follow the rules 19. Shoplifting is classified as . a) an illegal misbehaviour b) aggressive behaviour c) compulsive shopping behaviour d) addictive behaviour e) dysfunctional behaviour 20. Alcoholism is a(n) a) problem behaviour b) illegal misbehaviour c) aggressive behaviour d) responsible behaviour e) self-control behaviour

.

21. The term refers to consumer misbehaviour and problem behaviours in acquiring goods. a) illegal behaviour b) deviant acquisition behaviour c) problem behaviour d) misbehaviour e) addictive behaviour 22. You suffer from kleptomania, a compulsion that you can’t seem to control no matter how hard you try. You steal things, knowing that you are harming yourself, your loved ones, and the stores and people you steal from. Your kleptomania is a(n) . a) legal misbehaviour b) illegal misbehaviour c) problem behaviour d) deviant behaviour e) dysfunctional behaviour 23. Black Friday and Boxing Day events create a) availability b) typical c) scarcity d) abundance e) customary

conditions that can lead to aggression.

24. Organized gangs of shoplifters called are often connected to an underground economy stealing large quantities of goods at a time, costing Canadian retailers about $5 billion a year. a) filchers b) pilfers c) swipers d) boosters e) lifters 25. Consumer a) shopping b) theft c) decision d) aggression e) self-control 26. a) b) c) d) e)

is stealing as a way of acquiring goods.

is NOT a common factor in shoplifting behaviour.

Age Compulsion Poverty Addiction Gender

27. The recent rise in more middle-class shoplifters has been explained in terms of their stealing goods to , rather than to sell them on to make money. a) show off b) give as gifts c) maintain a standard of living d) pass the time e) have an adventure 28. The most popular items for consumer theft can be remembered by the acronym a) BRAVE b) COOL c) HAPPY d) DESIRED e) CRAVED

.

29. While may not sound serious, those caught are treated as criminals by facing fines and jail time. a) alcohol consumption b) impulsive buying c) shoplifting d) compulsive buying e) smoking 30. Compulsive shopping is . a) an unusual obsession with shopping that significantly affects the person afflicted b) making an unplanned purchase in the spur of the moment

c) an acute problem behaviour d) a controlled, overt preoccupation with shopping e) making conscious, careful purchase choices 31. Impulsive shopping is . a) an unusual obsession with shopping that significantly affects the person afflicted b) a chronic problem behaviour c) making an unplanned purchase in the spur of the moment d) an uncontrolled preoccupation with shopping e) characterized by shopping in secret in hiding how much is spent 32. Those with are particularly vulnerable to becoming compulsive buyers. a) satisfaction with their identity b) low income c) high income d) high self-esteem e) low self-esteem 33. a) b) c) d) e)

may provoke sports fans to behave in aggressive and uncivil ways at a stadium.

Shoplifting Impulsive buying Compulsive buying Deindividuation Individuation

34. The term has been used to describe the role of environmental factors in influencing food consumption and reduced activity levels. a) obesogenic environment b) dietary environment c) heavyweight environment d) health degrading environment e) fatty environment 35. You live a busy lifestyle and often look for the quickest and most convenient food options. You have always been a healthy weight, so you don’t think too much about your poor food choices.

Now you have started to gain weight. The environmental factors that are contributing to your weight gain are known as . a) genetic obesity b) the obesogenic environment c) the glycemic environment d) the calorific environment e) chronic obesity 36. Irresponsible consumption of a) CRAVED items b) vitamins and supplements c) antidepressants d) fatty foods

can lead to conflict, traffic accidents, injuries, and STIs.

e) alcohol 37. Obesity and alcohol overconsumption at the societal level are classified as a) personal b) social c) wicked d) complex e) illegal

problems.

38. Commentators say that a misunderstanding of the complexity of wicked problems can lead to , when the sufferers are criticized for their personality and character and for behaving in a way that brings a problem onto themselves. a) victim blaming b) dark behaviours c) unethical decisions d) compulsive shoplifting e) fat shaming 39. Your company has pledged to behave ethically and to correct their predecessors’ wrongs and establish “bright” initiatives. Through this pledge, your company is better manage its resources, apply its core competencies, differentiate itself from competitors, communicate its values, carve out a niche, and attract like-minded consumers. These initiatives are known as . a) corporate philanthropy b) government corporate policy c) responsible consumption d) corporate social responsibility e) environmental sustainability 40.

allows a company to better manage its resources, apply its core competencies, differentiate itself from competitors, communicate its resources, carve out a niche, and attract like-minded consumers. a) Customer relationship management b) Brand management c) Segmentation d) Corporate social responsibility e) Supply chain management

41. The general meaning of word a) renewability b) endurability c) viability d) sustainability e) continuity

is the ability to be maintained at a given level indefinitely.

42. The three factors of triple bottom line (3BL) accounting are a) predict, purchase, and profit b) profit, people, and planet c) product, purchase, and planet

.

d) prevention, promotion, and prediction e) purchase, people, and product 43. Climate change is an example of problem, which, in addition to being complex (a wicked problem), also has other characteristics: it gets worse as time progresses, those who are in the best position to solve it are also causing it, and there is no one body of authority capable of solving it. a) super wicked b) hyped c) critical d) personal e) industrial 44. Voluntary refers to a lifestyle choice where people opt to limit material consumption and free up resources, such as time and money, which they believe will raise the quality of their life. a) complexity b) difficulty c) clarity d) simplicity e) accessibility 45. You are a very environmentally-conscious consumer. You fully embrace the ideas around reducing consumption, driven by ethical concerns to own and use fewer goods. When you do make purchases, you make an effort to choose the most sustainable options you can find. You are engaging in . a) voluntary simplicity b) economic simplicity c) conscious consumerism d) conscientious consumerism e) practical environmentalism

TRUE OR FALSE QUESTIONS 1. Most scams are possible because unscrupulous perpetrators take advantage of the common vulnerabilities of people who are too busy to check all the details, who are too trusting in their wishful thinking, and who find themselves in tough financial situations or want to avoid any problems with the government.

2. Sometimes ethical behaviour can be a result of immoral leadership, miscalculation of risks, loss of touch with reality, or a heavy focus on immediate returns versus long-term consequences.

3. Banks and telecommunications companies in Canada use exploitative sales techniques, taking advantage of seniors and less-educated consumers is an unethical targeting of potential consumers.

4. Though, Canadian environmentalist David Suzuki is vocal on many environmental and scientific issues, he does not raise concerns about issues such as globalization, world population growth;

technological developments, use of GMOs in agriculture, climate change, loss of biodiversity, and ocean acidification.

5. Consumers now have access to large amounts of information that allow them to make better and informed choices. A quick internet search will reveal not only price-comparison websites bit also whether companies have been involved in dubious or unethical practices.

6. Developmental realism is the excuse that the inequality and exploitation of workers in developing countries is natural and ethics is secondary for the poor, who have to cover their basic needs first.

7. The recent increase in middle-class shoplifters has been explained in terms of their stealing goods to maintain a standard of living, rather than to sell them on to make money.

8. Obesity and alcohol consumption at the societal level are not classified as wicked problems.

9. Individual consumers do not have choices to contribute to environmental sustainability.

10. Many products are made with planned (built-in) obsolescence, meaning that they are either designed to stop working after a period of time or that they will be replaced by new, more fashionable versions.

SHORT ANSWER QUESTIONS 1. Explain business ethics and identify which parties either affect or are affected by what organizations do.

2. Consumers continue to purchase cheaper unethical products. Explain the three major excuses consumers give for their choice to purchase cheaper unethical products.

3. Distinguish between consumer misbehaviour and consumer problem behaviour.

4. Define compulsive buying and explain how it affects the person afflicted.

5. Define wicked problems and explain marketers’ responsibility in resolving wicked problems.

6. Define sustainability and identify the triple bottom line accounting.

7. Define the super wicked problem and explain why climate change is a super wicked problem.

8. Explain how people are engaging in voluntary simplicity.

9. Explain how to practice ethical disposal and how planned (built-in) obsolescence works against ethical disposal.

10. Explain the negative effects of use of marketers’ use of plastic packaging.

FILL IN THE BLANK QUESTIONS 1. Consumer is commonly related to suspicion, mistrust, skepticism, and distrust of an agent’s or organization’s motives and can lead to reactions such as dissatisfaction, alienation, resistance, and hostility towards the organization.

2. Consumer is defined as behavioural acts by consumers that violate the generally accepted norms of conduct in consumption situations and thus disrupt the consumption order.

3.

buying is an unusual obsession with shopping that significantly affects the person afflicted.

4. Voluntary up resources.

is a lifestyle choice where people opt to limit material consumption and free

5. Many products are made with planned , meaning that they are either designed to stop working after a period of time or that they will be replaced by new, more fashionable versions.

ESSAY QUESTIONS 1. Explain how business ethics affect multiple groups of stakeholders, and describe the eight ethical principles that the organizations around the globe follow.

2. Describe in detail the dark behaviours of marketers.

3. Describe in detail consumer aggression, consumer theft, and compulsive buying.

4. Describe in detail how individual consumers can contribute to environmental sustainability too by making environmentally-conscious decisions.

5. Describe the methods of disposing of things with regard to returning the costs and making a smaller environmental footprint.

Answer Key MULTIPLE CHOICE QUESTIONS 1. a (p. 355) 2. d (p. 356) 3. e (p. 356) 4. c (p. 356) 5. d (p. 356) 6. c (p. 357) 7. c (p. 358) 8. d (p. 359) 9. a (p. 359) 10. a (p. 359) 11. c (p. 361) 12. b (p. 361) 13. a (p. 361) 14. c (p. 362) 15. e (p. 362)

16. c (p. 363) 17. e (p. 366) 18. d (p. 366) 19. a (p. 367) 20. a (p. 367) 21. b (p. 367) 22. c (p. 367) 23. c (p. 368) 24. d (p. 369) 25. b (p. 369) 26. e (p. 370) 27. c (p. 370) 28. e (p. 370) 29. c (p. 371) 30. a (p. 371)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

T (p. 355) F (p. 357) T (p. 359) F (p. 360)

5.

6.

7.

8.

T (p. 361) T (p. 362) T (p. 370) F (p. 378)

31. c (p. 371) 32. e (p. 371) 33. d (p. 371) 34. a (p. 373) 35. b (p. 373) 36. e (p. 375) 37. c (p. 378) 38. a (p. 378) 39. d (p. 378) 40. d (p. 379) 41. d (p. 379) 42. b (p. 379) 43. a (p. 380) 44. d (p. 382) 45. a (p. 382)

9. F (p. 380) 10. T (p. 384)

SHORT ANSWER QUESTIONS 1. Business ethics studies morality existing in business practices and values. Given the scope of business activities, moral rules affect multiple groups of stakeholders, which are parties that either affect or are affected by what organizations do: consumers, employees, investors and shareholders, vendors and suppliers, local community, larger society, government, other companies, and other countries. (p. 356) 2. The following are the three major excuses consumers give for their choice to purchase cheaper unethical products. (1) Economic rationalism is the excuse that an ethical product is more expensive and less affordable; thus, saving costs by buying an unethical product is a rational way to behave. (2) Government dependency is the excuse that it is not the consumer’s ability or personal responsibility to fix unethical behaviour and government should fix it instead. (3) Development realism is the excuse that the inequality and exploitation of workers in developing countries is natural and ethics is secondary for the poor, who have to cover their basic needs first. (p. 362) 3. Consumer misbehaviour is defined as behavioural acts by consumers that violate the generally accepted norms of conduct in consumption situations and thus disrupt the consumption order.

Examples include shoplifting and filing claims. Consumer misbehaviour is self-indulgent, self-interested, and carried out without concern for others. Consumer problem behaviour is usually expressed as an overreliance on or overuse of certain products (e.g., alcohol or drugs), or an engagement in compulsive behaviours (e.g., compulsive shopping, eating, or gaming). The most damage done is first and foremost to the consumers themselves, but their relationships and families in the long run also suffer, and some behaviour can also be harmful to bystanders (e.g.,

alcohol abuse might lead to aggressive and dangerous conduct; second-hand smoke). (p. 366) 4. Compulsive buying is an unusual obsession with shopping that significantly affects the person afflicted. Compulsive shopping is a chronic problem behaviour. Compulsive shoppers have a preoccupation with shopping, often characterized as uncontrolled; they tend to shop in secret and hide how much they spent. Compulsive shopping controls you rather than you controlling the shopping. It has significant negative consequences; most often they are financial, but there can also be serious psychological and personal consequences, such as stress, regret, shame, and broken relationships. Compulsive buyers are driven by the experience of shopping and its accompanying emotions. (p. 371) 5. Wicked problems are complex social issues that have many possible explanations, aspects, and dimensions. Obesity and alcohol overconsumption at the societal level are classified as wicked problems. Wicked problems are extraordinarily difficult to resolve. The approaches to solve wicked problems need to involve stakeholders on multiple levels: producers, distributors, governments, other regulatory bodies, public health systems, health practitioners, schools, education establishments, workplaces, families, and individuals themselves. Without stakeholders working together, wicked problems are unlikely to be reversed. As a result, marketers have a responsibility to understand how they might be contributing to a problem (e.g., providing unhealthy options, concealing information) at every level of product development or distribution. (p. 378) 6. The general meaning of the word sustainability is the ability to be maintained at a given level indefinitely. Thus any type of sustainability implies a concern for the endurance of a practice. For example, overfishing can lead to the extinction of fish, putting the future of the fishing industry in jeopardy. Three types of sustainability are usually discussed in business: economic, social and environmental. In business these three factors are often understood as triple bottom line accounting: profit, people, and planet. (p. 379) 7. A super wicked problem is a wicked problem that gets worse in time, is caused by those who can best solve it, and has no single body of authority capable of solving it. Climate change is an example of a super wicked problem, which in addition to being complex (a wicked problem), also has other characteristics: it gets worse as time progresses, those who are in the best position to solve it are also causing it, and there is no one body authority capable of solving it. (p. 380) 8. Voluntary simplicity refers to a lifestyle choice where people opt to limit material consumption and free up resources, such as time and money, which they believe will raise the quality of their life.

Voluntary simplicity involves a wide spectrum and variety of practices and values. This spectrum ranges from consumers who fully embrace the ideas around reducing consumption, driven by ethical concerns to own and use fewer goods, through to those consumers who simply refine their consumption towards ethical standards (e.g., buying fair-trade coffee in their grocery stores), enabling them to continue to have similar levels of consumption, but to consume differently and in line with their ethical concerns. (p. 382) 9. When it comes to ethical disposal, a major message that is used across continents is “Reduce, Reuse, Recycle.” The idea is that before we think about recycling, we must also consider whether we can reduce our consumption or if those products could be reused. For example, someone might choose to mend a clothing item with a tear instead of throwing it away. Of course there are forces that work against this approach, such as increased availability of cheap clothes and the fact that many products are made with planned (built-in) obsolescence, meaning that they are either designed to stop working after a period of time or that they will be replaced by new, more fashionable versions (fast fashion). (p. 383) 10. Although packaging is an important element of marketing products, it is also a big contributor of waste. One of the worst by-products of modern society is plastics. Every minute, one million

plastic bottles are bought around the world, and this number is growing. Every year, eight million tons of plastic finds its way into our oceans. Unless drastic measures are taken, the amount of plastic waste in our oceans will outweigh the fish in just 30 years. Studies have shown that how fish ingests tons of plastic, leading to humans then consuming that plastic when they eat seafood. (p.

385)

FILL IN THE BLANK QUESTIONS 1.

2.

3.

4.

5.

cynicism (p. 357) misbehaviour (p. 366) Compulsive (p. 371) simplicity (p. 382) obsolescence (p. 384)

ESSAY QUESTIONS 1. Business ethics studies morality existing in business practices and values. Given the scope of business activities, moral rules affect multiple groups of stakeholders, which are parties that either affect or are affected by what organizations do: consumers, employees, investors and shareholders, vendors and suppliers, local community, larger society, government, other companies, and other countries. The eight ethical principles that the organizations around the globe follow are fiduciary, property, Reliability, transparency, dignity, fairness, citizenship, and responsiveness. A good answer will include description of the eight ethical principles. (p. 356) 2. The dark behaviours of marketers include the following: unsafe or harmful products, misleading or predatory pricing tactics, price fixing, planned (built-in) obsolescence, exploitative sales techniques, false advertising, bait-and-switch advertising, green washing (false claims of environmental friendliness) targeting and taking advantage of vulnerable populations (children, seniors, illiterate, poor), consumer privacy violations, and mishandling of private data. A good answer will include description with example of dark behaviours of marketers, listed in Table 11.1. (p. 357) 3. The answer will include detailed description (meaning, reasons and effects) with examples of consumer aggression, consumer theft, and compulsive buying. (p. 367) 4. The answer will include following examples of how individual consumers can contribute to environmental sustainability too by making environmentally conscious decisions: making better housing, clothing and food choices, buying less, getting more out of the things they already own, consuming less energy, including cutting back on air and car travel, and more mindful ways of disposal. A good answer will provide description and good examples of environmentally conscious decisions. (p. 380) 5. We dispose of things in numerous ways. Consumers might find some methods more attractive than others in terms of returning the costs and making a smaller environmental footprint. Some methods of disposal are as follows: give unwanted items to friends and family, give away unwanted items through specialized sites such as Freecycle, donate to charity, dispose directly in garbage, dispose in a recycling bin or by using a recycling facility (often for refund), exchange unwanted item for another item, sell unwanted item using garage sales, private advertisements, and online marketplace websites such as VarageSale, Used.ca, or Letgo. A good answer will provide good description with examples. (p. 384)

CHAPTER 12

Innovation and Technological Trends MULTIPLE CHOICE QUESTIONS 1.

is changing the infrastructure of business and markets, and it also dramatically alters the social fabric of consumer lives. a) Sociology b) Government c) Technology d) Culture e) Transportation

2. Technological is the development of technology itself as the main driver of social change and people as its captives. a) determinism b) advancement c) research d) control e) context 3. The development of the smart phone is an example of a) technological determinism b) social constructionism c) grass-roots development d) holistic constructionism e) sustainable development 4.

.

is an idea, practice, or object that is perceived as a new by an individual, group, or organization and that presents a new alternative for solving a problem. a) Answer b) Solution c) Service d) Consumer decision e) Innovation

5. Continuous innovation involves . a) the creation of a technologically new product or the modification of an existing one that creates some change in behavioural patterns b) a modestly modified product rather than a totally new one and tends to create little or no change in behavioural patterns c) revolutionary products that require the establishment of new behavioural patterns d) innovations that are so new that we have never known anything like them before e) evolutionary rather than revolutionary innovations

6. Dynamic continuous innovation involves . a) the creation of a technologically new product or the modification of an existing one that creates some change in behavioural patterns b) a modestly modified product rather than a totally new one and tends to create little or no change in behavioural patterns c) revolutionary products that require the establishment of new behavioural patterns d) innovations that are so new that we have never known anything like them before e) learning that is quickly absorbed into consumers’ usual behaviour 7. Discontinuous (or disruptive) innovation involves . a) the creation of a technologically new product or the modification of an existing one that creates some change in behavioural patterns b) a modestly modified product rather than a totally new one and tends to create little or no change in behavioural patterns c) revolutionary products that require the establishment of new behavioural patterns d) evolutionary rather than revolutionary innovations e) learning that is quickly absorbed into consumers’ usual behaviour 8. Examples of innovations include the introduction of a new version of software or minor improvements to existing equipment. a) continuous b) discontinuous c) dynamically continuous d) normal e) unacceptable 9. Examples of innovations are digital cameras, a technologically different way of taking and storing photos. a) continuous b) discontinuous c) dynamically continuous d) normal e) unacceptable 10. Examples of innovations include the internet and email—innovations that radically changed how people accessed information, worked, and communicated with one another. a) continuous b) discontinuous c) dynamically continuous d) normal e) unacceptable 11. You are an executive for a major automobile manufacturer. You decide to release an electric model of car. You acknowledge that this will require a change in how drivers plan their trips, how they drive, and how they charge their cars. Your electric car is an example of innovation. a) continuous b) dynamically continuous c) discontinuous

d) disruptive e) modest 12.

of innovations is essentially a social process by which an innovation is communicated through certain channels over time among the members of a social system. a) Diffusion b) Confusion c) Exclusion d) Fusion e) Conclusion

13. According to Rogers’ diffusion of innovations model, innovators . a) are venturesome technology enthusiasts who appreciate technology b) genuinely enjoy the process of discovering new technologies and talking to others about it c) tend to look for innovations offering incremental predictable improvements on existing technology d) are cautious of new products and progress, preferring and relying on tradition e) only invest in technology when no other or no better alternatives exist 14. According to Rogers’ diffusion of innovations model, the early majority . a) are venturesome technology enthusiasts who appreciate technology b) genuinely enjoy the process of discovering new technologies and talking to others about it c) tend to look for innovations offering incremental predictable improvements on existing technology d) are cautious of new products and progress, preferring and relying on tradition e) only invest in technology when no other or no better alternatives exist 15. According to Rogers’ diffusion of innovations model, laggards . a) are venturesome technology enthusiasts who appreciate technology b) genuinely enjoy the process of discovering new technologies and talking to others about it c) tend to look for innovations offering incremental predictable improvements on existing technology d) are cautious of new products and progress, preferring and relying on tradition e) only invest in technology when no other or no better alternatives exist 16. You are a venturesome technology enthusiast who appreciates technology for its own sake. You are not afraid of taking a risk in your purchases and you want to be the first to get new technological products. According to Rogers, you are a(n) . a) innovator b) early adopter c) early majority adopter d) late majority adopter e) laggard 17. According to Rogers, relative advantage is the degree to which a) the benefits of an innovation are visible b) an innovation is perceived to be superior to current practice c) an innovation is difficult to use or understand

.

d) an innovation can be experienced on a limited basis e) an innovation is perceived to be consistent with values, ideas, perceived needs, lifestyle, and existing infrastructure 18. According to Rogers, observability is the degree to which . a) the benefits of an innovation are visible b) an innovation is perceived to be superior to current practice c) an innovation is difficult to use or understand d) an innovation can be experienced on a limited basis e) an innovation is perceived to be consistent with values, ideas, perceived needs, lifestyle, and existing infrastructure 19. According to Rogers, compatibility is the degree to which . a) the benefits of an innovation are visible b) an innovation is perceived to be superior to current practice c) an innovation is difficult to use or understand d) an innovation can be experienced on a limited basis e) an innovation is perceived to be consistent with values, ideas, perceived needs, lifestyle, and existing infrastructure 20. According to Rogers, trialability is the degree to which . a) the benefits of an innovation are visible b) an innovation is perceived to be superior to current practice c) an innovation is difficult to use or understand d) an innovation can be experienced on a limited basis e) an innovation is perceived to be consistent with values, ideas, perceived needs, lifestyle, and existing infrastructure 21. According to Rogers, complexity is the degree to which . a) the benefits of an innovation are visible b) an innovation is perceived to be superior to current practice c) an innovation is difficult to use or understand d) an innovation can be experienced on a limited basis e) an innovation is perceived to be consistent with values, ideas, perceived needs, lifestyle, and existing infrastructure 22. The self is the belief that tracking metrics can lead to self-improvement. a) quantified b) valued c) visible d) informed e) perceived 23. a) b) c) d)

is the use of information and communication technology for health.

Health+ WebMD Smart living eHealth

e) Doctor Google 24. The Fitbit wristband is an example of a) self-control b) self-monitoring c) self-made d) consumer control e) support 25.

technology

technology can be used for educational purposes, by demonstrating to patients how some conditions impede eyesight, or how radiation therapy works, for example. a) Augmented reality b) Virtual reality c) Fictional reality d) Fabricated reality e) Extreme reality

26. A very important part of the doctor–patient relationship is patient are important in achieving a healthy outcome. a) value addition b) giver and receiver c) two-way d) seller and buyer e) value co-creation

where both doctor and

27. Marketing activities and campaigns are sometimes facilitated by the use of codes, which are optical machine-readable barcodes that record and store information related to items. a) quick response b) coupon c) product d) store e) manufacturer’s 28. a) b) c) d) e) 29.

offer a method of effectively adding a URL to real-world messages, objects, or locations Machine codes Bar codes Product codes Quick response codes Manufacturer’s codes

are the networks that keep machines connected and allow them to exchange data without human intervention. a) Social media b) The internet of things c) Web 3.0 d) Augmented reality e) Artificial intelligence

30. General Electric uses big innovation. a) crowdsourcing b) crowdfunding c) outsourcing d) connectedness e) cloistering

when it runs public engineering contests for designing the next

31. The term has been used to describe the behaviour of young people who are part of a growing trend towards storing and streaming music and documents digitally in a move away from physically owning books, music, magazines, and TVs a) asset-heavy generation b) generation Z c) asset-light generation d) generation Y e) e-generation 32. A new form of business has emerged with the rise of technology that allows companies like Uber and Airbnb to have no assets while using to create great value for consumers. a) multiple asset-owners b) multiple corporations c) single businesses d) multiple industries e) a single corporation 33.

allows companies to use their technological savvy and marketing competencies to control a network of peers and serve as brokers by allowing buyers and sellers to meet a) Asset-sharing business b) e-Business c) Social media d) Strategic alliance e) Uberization

34. The Uberization of society and proliferation of on-demand services signifies a shift to a economy, an economic activity that reflects consumer preference to have temporary access to goods rather than own them. a) new b) changing c) sharing d) modern e) service 35. You are a post-secondary student who stores and streams music and documents digitally. You own fewer books, CDs, magazines, and TVs than your parents did. You are part of . a) generation X b) the asset-light generation c) the disposable generation d) the Me generation

e) generation Y 36. Sharing economy also changes traditional banking with such trends as crowdfunding and microfinancing, allowing lending. a) bank-to-bank b) peer-to-peer c) business-to-business d) bank-to-business e) business-to-consumer 37. News about a possible recession influences consumer a) retention b) loyalty c) habits d) interest e) confidence

.

38. You are an entrepreneur who has designed a new line of organic cloth diapers. You want to get your product into mainstream stores, but first, you need money for manufacturing and start-up costs. You start a Kickstarter campaign to seek financial backing from multiple donors and, in exchange, you promise to send a diaper “starter package” to each donor. Your Kickstarter campaign takes advantage of the economy. a) traditional b) throwaway c) circular d) sharing e) macro 39. A recent trend in the retail sector has been the increasing popularity of recessionary pressures on consumers. a) product promotions b) food stamps c) coupons d) digital discount vouchers e) mail-in rebates

in response to

40. Of the identified types of reactions to the 2008 recession in the UK, most people fell into the category. a) strong reactor b) soft reactor c) undetermined d) planner e) unaffected 41. Of the identified types of reactions to the 2008 recession in the UK, the almost 50 per cent of people . a) claimed to be unaffected but made small changes b) made changes to household spending but the changes were small

c) were making major changes, moving between stores for the best prices d) were not affected yet but were making changes in case e) did no know what to do 42. Loblaw offers in its stores a basic No Name line of products in simple black and yellow packaging along with its premium President’s Choice line. The aim is to give a cheaper offering without compromising on the overall quality reputation, as the company does not want to alienate customers who might be suspicious of “down-market” offerings. a) wealthy b) low-income c) loyal d) middle-class e) smart 43. As part of its strategy, Loblaw operates deep-discount supermarkets under the banner No Frills. Its promotion is focused on communicating to consumers that they are paying smartly for what they really need, not the unnecessary decorations, extravagances, and extra frills. a) segmentation b) communication c) pricing d) distribution e) product 44. Variety seeking for a consumer, who feels stuck, is a form of regain a sense of well-being. a) complimentary b) compensatory c) compulsive d) usual e) adventure

consumption behaviour to

45. You own a chain of grocery stores. You notice changes in the economy and consumer behaviour, so you introduce cheaper private-brand alternatives in addition to popular brand-name products and open several deep-discount stores. These changes are part of your store’s strategy. a) segmentation b) attachment c) unification d) consolidation e) elaboration

TRUE OR FALSE QUESTIONS 1. Technology is changing the infrastructure of business and markets; however, it does not alter the social fabric of consumer lives.

2. Motor power vehicles were a disruptive innovation. When early automobiles replaced

horse-drawn carts in the early 1900s, they revolutionized how (and where) people in North America lived, as they no longer had to live by railroads.

3. Amara’s law states that we underestimate the effect of a technology in the short run and overestimate the effect in the long run.

4. Everett Rogers proposed that an innovation must reach a critical mass in order to sustain itself and suggested that there are five main categories for adopters based on their readiness and desire to adopt innovations and new ideas.

5. Dealers are happy to let you test drive a new car, kitchen appliances have demos in shopping malls, and food or cosmetics manufacturers provide smaller samples of their product to give consumers a test run. These are examples of trialability of products.

6. Planet MTL is a 3-D interactive model of Montreal on display until December 2019 at the Biosphere Environment Museum. The urban ecosystem model immerses visitors into 360-degree views and invites them to become mayor of Montreal and try to manage city challenges such as traffic jams, snowstorms, tourists, and the protection of biodiversity.

7. Tracking of consumer online activity and other technology collect immense amounts of data.

However, these consumer data are never shared with other devices or companies.

8. In order to survive and prosper, it is not necessary for businesses to keep pace with technological change.

9. The sharing economy reflects consumer preference to have temporary access to goods rather than own them.

10. During a recession, anything to do with the home entertainment usually declines, as people spend more time outdoors.

SHORT ANSWER QUESTIONS 1. Define technological determinism and illustrate your answer with an example.

2. Distinguish between continuous innovation and dynamically continuous innovation.

3. Describe the discontinuous or disruptive type of innovation and illustrate your answer with an example.

4. Identify the major characteristics of early adopters of an innovation.

5. Distinguish between observability and trialability, the characteristics that might speed up innovation adoption.

6. Describe the growing trend of the quantified self.

7. Explain possible change in responsibility of health in Canada due to a well-connected digital health-care system.

8. Describe the new form of business that has become known as “Uberization.”

9. Describe the sharing economy and explain how the sharing economy changes traditional banking.

10. Explain the impact of recession on leisure activities both outside and inside the home.

FILL IN THE BLANK QUESTIONS 1. Technological is the development of technology itself as the main driver of social change and people as its captives.

2. Examples of innovations include the internet and email—innovations that radically changed how people accessed information, worked, and communicated with one another.

3.

is the degree to which an innovation is perceived to be superior to current practice.

4.

self is the belief that tracking metrics can lead to self-improvement.

5.

economy is the economic activity that reflects consumer preference to have temporary access to goods rather than own them.

ESSAY QUESTIONS 1. Describe in detail the types of technological innovations.

2. Explain Everett Roger’s diffusion of innovation model and describe the categories of adopters.

3. Describe in detail the five characteristics that might speed up or hinder innovation adoption identified by Everett Rogers.

4. Describe with examples how consumers value experience over ownership and its impact on businesses.

5. Describe in detail how consumption patterns change during a recession.

Answer Key MULTIPLE CHOICE QUESTIONS 1. c (p. 398) 2. a (p. 398) 3. a (p. 398) 4. e (p. 399) 5. b (p. 399) 6. a (p. 399) 7. c (p. 400) 8. a (p. 399) 9. c (p. 399) 10. b (p. 400) 11. b (p. 400) 12. a (p. 403) 13. a (p. 404) 14. c (p. 404) 15. e (p. 404)

16. a (p. 404) 17. b (p. 405) 18. a (p. 405) 19. e (p. 405) 20. d (p. 406) 21. c (p. 406) 22. a (p. 408) 23. d (p. 408) 24. b (p. 408) 25. a (p. 409) 26. e (p. 409) 27. a (p. 410) 28. d (p. 410) 29. b (p. 413) 30. a (p. 414)

TRUE OR FALSE QUESTIONS 1.

2.

3.

4.

F (p. 398) T (p. 400) F (p. 402) T (p. 403)

5.

6.

7.

8.

T (p. 406) T (p. 412) F (p. 413) F (p. 414)

31. c (p. 415) 32. a (p. 415) 33. e (p. 415) 34. c (p. 415) 35. b (p. 415) 36. b (p. 416) 37. e (p. 416) 38. d (p. 416) 39. d (p. 417) 40. b (p. 417) 41. b (p. 417) 42. c (p. 418) 43. a (p. 418) 44. b (p. 418) 45. a (p. 418)

9. T (p. 415) 10. F (p. 416)

SHORT ANSWER QUESTIONS 1. Technological determinism is the development of technology itself as the main driver of social change and people as its captives. Adherents to technological determinism see the development of the technology itself as the main driver of social change and people as its captives. A good illustration of this is the smartphone, whose emergence around 2001 fuelled a major shift in cell phone practices and behaviour, influencing consumption in ways previously unimaginable. As consumers interacted with their phones as mobile computing devices, the result was new set of consumption behaviours involving online media, the purchase of dedicated software, and a high level of downloading. (p. 398) 2. Continuous innovation generally involves a modestly modified product rather than a totally new one and tends to create little or no change in behavioural patterns. Dynamically continuous innovation involves the creation of a technologically new product or the modification of an existing one that creates some change in behavioural patterns. This innovation is best thought of as evolutionary rather than revolutionary; the magnitude of change is not very great. A good answer will include examples similar to examples in the textbook. (p. 399) 3. Discontinuous or disruptive innovation is characterized as revolutionary and requires the establishment of new behavioural patterns. Such innovations are very likely to be technology based, and they are so new that we have never known anything like them before. Examples of discontinuous innovations include the internet and email—innovations that radically changed how people accessed information, worked, and communicated with one another. (p. 400) 4. Early adopters genuinely enjoy the process of discovering new technologies and talking to others

about it. They are motivated by the desire to be trendsetter, opinion leaders, and role models. Early adopters are ready to pay higher prices and they are likely to embrace new social technologies before most others. (p. 404) 5. Observability is the degree to which the benefits of the innovation are visible. Trialability is the degree to which an innovation can be experienced on a limited basis. Answers will also include examples similar to examples in the text book. (p. 406) 6. Due in part to advances in wearable technology, in the coming years there is likely to be an increase in popularity for products, apps, and services that work for consumers by reminding them to behave better. This trend has been labelled the quantified self, and refers to the belief that tracking metrics can lead to self-improvement. A good answer will include an example similar to examples in the textbook. (p. 408) 7. A well-connected digital health-care system is expected to be a vital part of Canada’s future.

Change in available technology for information access and record keeping, along with new trends in consumer behaviour, may lead to revolutionary changes in the health industry. Responsibility for health may soon devolve more towards the individual and less towards the state as these new systems, techniques, and technologies enable people to monitor their own health performance. (p.

409) 8. A new form of business has emerged with the rise of technology that allows companies like Uber and Airbnb to have no assets while using multiple asset-owners to create great value for consumers. What has become known as Uberization allows these companies to use their technological savvy and marketing competencies to control a network of peers and serve as brokers by allowing buyers and sellers to meet. Unlike a taxi company, Uber does not own a fleet of cars, as the vehicles come from existing car owners who want to make some money in their free time. Unlike a hotel, Airbnb does not own its properties, as existing property owners rent out their houses and apartments using Airbnb’s services. (p. 415) 9. Sharing economy is an economic activity that reflects consumer preference to have temporary access to goods rather than own them. The sharing economy changes traditional banking with such trends as crowdfunding and microfinancing, allowing peer-to-peer lending. A good answer will include examples similar to examples in the textbook. (p. 415) 10. A recession has an impact on leisure activities outside the home. Eating out and going to the cinema tend to decline during a recession. Anything to do with home entertainment usually does well, as people spend more time indoors and cheer themselves up through greater expenditure on broadband and satellite TV packages. In terms of more essential purchases, such as food and energy, consumers spending patterns show less variation, mainly because there is less scope to cut down on these items. (p. 416)

FILL IN THE BLANK QUESTIONS 1.

2.

3.

4.

5.

determinism (p. 398) discontinuous or disruptive (p. 400) Relative advantage (p. 405) Quantified (p. 408) Sharing (p. 415)

ESSAY QUESTIONS 1. The answer will include description of continuous innovation, dynamically continuous innovation, and discontinuous or disruptive innovation. Answer will include example of each of the types of technological innovations similar to examples in the textbook. (p. 399)

2. Everett Rogers proposed that an innovation must reach a critical mass in order to sustain itself and suggested that there are five main categories for adopters based on their readiness and desire to adopt innovations and new ideas: innovators, early adopters, early majority, late majority, and laggards. The answer will include description of diffusion of innovation model with characteristics of each category of adopters mentioned in Table 12.1. (p. 403) 3. Rogers identified five characteristics that might speed up or hinder innovation adoption: relative advantage, observability, compatibility, trialability, and complexity. The answer will include description of the five characteristics with examples similar to examples in the textbook. (p. 405) 4. As the importance of connectedness, currency, flexibility, and responsiveness grows, ownership is becoming less valued. For many consumers, the experiences and solutions are valued and required; goods and services are just means of achieving these experiences and ownership of goods becomes less critical. Consumers still want goods, but their practices are shifting in relation to ownership, with people considering what they can live without and alternative ways of accessing goods and services, like paying for access, renting, or sharing ownership. The term asset-light generation has been used to describe the behaviour of young people who are part of a growing trend towards storing and streaming music and documents digitally in a move away from physically owning books, music, magazines and TVs. Answers will include examples on impact on businesses similar to examples in the textbook. A good answer will include explanation of Uberization, as well. (p.

414) 5. The answer will include description of how consumers change their behaviour in response to the constraints on their economic budgets. Consumer volatility is a characteristic of recession—people re-assess their expenditures. Consumers avoid taking on debt, more expensive categories tend to do badly, and eating out and going to cinema tend to decline during a recession.

However, anything to do with home entertainment usually does well, as people spend more time indoors and cheer themselves up through greater expenditure on broadband and satellite TV packages. At times of recession, consumer savviness tends to go up. A good answer will include detailed description of consumption changes with examples similar to examples in the textbook. (p. 416)