Consumer Behavior
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Course Introduction
Consumer Behavior explores the psychological, social, and cultural factors that influence how individuals and groups select, purchase, use, and dispose of products, services, and ideas. The course examines key theories of motivation, perception, learning, attitude formation, and decision-making processes, as well as the impact of family, social class, and culture on consumer choices. Students will analyze consumer trends and behaviors using both qualitative and quantitative research methods and learn how organizations can use these insights to develop effective marketing strategies, enhance customer satisfaction, and build brand loyalty in diverse markets.
Recommended Textbook Marketing Management 4th Edition by
Russ Winer
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Chapter 1: Marketing and the Job of the Marketing Manager
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Q1) Which of the following media were traditionally used by consumer products companies?
A)TV advertising
B)podcasts advertisements
C)Internet advertisements
D)interactive advertisements
Answer: A
Q2) The overall purpose of the marketing plan is to enable the marketing manager to stay in touch with the three key parts of the business environment crucial to his or her success: customers,competitors,and factors outside the control of both customers and competitors.
A)True
B)False
Answer: True
Q3) Marketing driven organizations use push-the-catalogue approach to marketing.
A)True
B)False
Answer: False
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Chapter 2: A Strategic Marketing Framework
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Q1) The purpose of a penetration pricing strategy during the introduction stage of the product life cycle is to:
A)maximize profits.
B)build market share and a broader market.
C)build customer loyalty.
D)enhance the brand image.
Answer: B
Q2) The ________ is the criterion by which the success or failure of the strategy is measured.
A)customer targets
B)competitor targets
C)objective
D)marketing mix
Answer: C
Q3) The basic component of the core strategy is the value proposition.
A)True
B)False
Answer: True
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Chapter 3: Marketing Research
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Q1) Which of the following approaches to collecting data is the most flexible?
A)personal interviews
B)telephone interviews
C)mail
D)Internet
Answer: A
Q2) Regression analysis is an example of a:
A)counting method.
B)causal method.
C)time-series method.
D)judgment method.
Answer: B
Q3) Market testing is an example of this type of sales forecasting method.
A)judgement method
B)time-series method
C)counting method
D)causal method
Answer: C
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Chapter 4: Analyzing Consumer Behavior
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Q1) Which of the following best describes the group consisting of practical people who have constructive skills and value self-sufficiency?
A)believers
B)strivers
C)makers
D)achievers
Q2) According to the VALS system developed by SRI International,________ are avid customers and spend much of their money on clothing,fast food,music,movies,and video.
A)innovators
B)experiencers
C)believers
D)thinkers
Q3) List and briefly describe the three major categories of segmentation variables.
Q4) The set of products that the customer has no intention of buying or has no information about is known as evoked set.
A)True
B)False
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Chapter 5: Organizational Buying Behavior
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Q1) At the ________ stage of the buying process,a sale can be made or lost so it is crucial to understand the needs of the different people involved with making the purchase decision.
A)determining the characteristics
B)establishing specifications
C)search for and qualify potential suppliers
D)request proposals
Q2) List and briefly discuss individuals involved in an organizational purchase decision.
Q3) Situational factors used for industrial market segmentation include the customer's delivery speed needs and order size needs.
A)True
B)False
Q4) Which of the following influences the decision about which supplier is chosen?
A)the initiator
B)the influencer
C)the decider
D)the purchaser
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Chapter 6: Market Structure and Competitor Analysis
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Q1) ________ is a list of strategies,one for each player,with the property that no manager wants to unilaterally change his or her strategy.
A)Nash equilibrium
B)Budget equilibrium
C)Generic equilibrium
D)Cooperative equilibrium
Q2) If a brand pursues a profit objective at the expense of share loss,the objective is usually called a ________ if the ultimate intention is to drop the product.
A)growth objective
B)investment objective
C)market share objective
D)harvest objective
Q3) Which of the following types of industries tend to be good application areas for game theory and strategic thinking?
A)industries subject to strong competition
B)monopolies
C)industries whose costs are largely variable
D)industries which are highly regulated by the government
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Chapter 7: Product Decisions
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Q1) Research has found that,similar to human relationships,people find comfort and satisfaction with brands to which they are loyal.
A)True
B)False
Q2) Identify the consumer segment that are highly interested in global brands and are less concerned about the companies' social responsibility.
A)global dreamers
B)global citizens
C)antiglobals
D)global agnostics
Q3) Identify the consumer segment who judge all products by the same criteria and do not give the global dimension any additional weight beyond other characteristics.
A)global dreamers
B)global citizens
C)antiglobals
D)global agnostics
Q4) Discuss briefly why customers value brands.
Q5) Define brand equity and list the assets and liabilities underlying brand value.
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Chapter 8: New Product Development
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Q1) Concept evaluation tests are used to:
A)reduce the concepts under consideration to a manageable number.
B)generate new product ideas.
C)refine the concept statements.
D)quantitatively assess demand for the concept.
Q2) Which of the following challenges is typically associated with target costing?
A)developing a superior product with unique product benefits
B)closing of the gap between the target and expected costs
C)incorporating market orientation in the development process
D)reducing the time it takes from concept generation to launch
Q3) Which of the following is a very popular marketing research method that enables the marketer to determine how customers value different levels of product attributes?
A)cohort analysis
B)conjoint analysis
C)segmentation analysis
D)market analysis
Q4) Unlike trial which is nondecreasing,repeat rates tend to decrease.
A)True
B)False
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Chapter 9: Pricing
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Sample Questions
Q1) Identify the concept related to the psychological aspects of price.
A)skimming price
B)reference price
C)prestige price
D)penetration price
Q2) Which of the following statements is true regarding the first-degree of price discrimination?
A)It is changing the price of a product due to inflation.
B)It occurs when competitors charge different prices for similar products in the same market segment.
C)It involves charging different prices to segments of the market according to their price elasticity or sensitivity.
D)It refers to the strategy of charging a higher price for a product at the time of introduction and then gradually decreasing its price.
Q3) Costs such as the corporate jet and the president's salary are examples of:
A)development costs.
B)variable costs.
C)direct fixed costs.
D)overhead costs.
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Chapter 10: Communications and Advertising Strategy
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Q1) List and briefly describe the general types of informational appeals.
Q2) If a commercial is shown four times on a show reaching 20 percent of the target audience,calculate the GRP (gross rating point).
A)80 GRP
B)5 GRP
C)40 GRP
D)24 GRP
Q3) Inquiry tests are used for print ads.
A)True
B)False
Q4) Which of the following tests is the most widely used method for posttesting print ads?
A)consumer jury
B)recognition test
C)theatre test
D)recall test
Q5) A large portion of marketing communication is focused on personal channels of communication.
A)True
B)False
Page 12
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Chapter 11: Sales Promotion
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Q1) Identify the correct statement about coupons.
A)They are used for product-oriented promotion.
B)Coupons delivered in the old-fashioned way have much higher redemption rate than virtual coupons.
C)They are ineffective in targeting price-sensitive households.
D)The largest distribution channel for coupons is by far free-standing inserts (FSIs).
Q2) Payments made to store chains for placing a product on a shelf are known as:
A)off-invoice allowances.
B)slotting allowances.
C)rebates.
D)stocking allowances.
Q3) Rebates are rarely used in auto industry.
A)True
B)False
Q4) ________ compensate retailers for prominently displaying and promoting goods.
A)Display allowances
B)Off-invoice allowances
C)Stocking allowances
D)Rebates
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Chapter 12: Channels of Distribution
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Q1) Walmart used its investments in information technology to create direct links between its own warehouses and manufacturers,thereby eliminating the need for independent wholesalers in its system.This is an example of:
A)reintermediation.
B)disintermediation.
C)hybrid system.
D)channel conflict.
Q2) A modification of the multiple-channel system is the ________ system.
A)direct channel
B)indirect channel
C)hybrid
D)vertical
Q3) In supermarket retailing there is an increased need to control costs and operate efficiently to compete with category killers.This need to be efficient has created:
A)mass marketing.
B)market segmentation.
C)efficient consumer response.
D)a hybrid system.
Q4) List and briefly describe the four major sources of channel conflict.
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Chapter 13: Direct Channels of Distribution: Personal Selling and Direct
Marketing
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Q1) Which of the following types of selling includes order taking,but also entails responsibilities such as making sure the stock is adequately displayed on shelves,setting up displays,providing demos,and other merchandising activities?
A)response selling
B)trade selling
C)missionary selling
D)technical selling
Q2) Which of the following is the basic form of compensation?
A)salary plus commission
B)spiff
C)bonus
D)benefits
Q3) Which of the following is likely to occur if a company has an insufficient number of territories?
A)A salesperson would spend too much time traveling and not enough time selling.
B)It would lower a salesperson's income.
C)Salespeople would fight over the geographic boundaries.
D)Territories would overlap.
Q4) List and briefly describe any three different kinds of sales quotas.
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Chapter 14: Customer Relationship Management
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Q1) The percentage of customers in group that were obtained at the same time who are still customers is known as the:
A)survival rate.
B)acquisition rate.
C)lifetime duration.
D)win-back rate.
Q2) There are many types of analyses that can be performed on a CIF once it has been assembled.The general name given to such analysis is data mining.
A)True
B)False
Q3) Mass customization is also referred to as:
A)one-on-one marketing.
B)niche marketing.
C)demographic marketing.
D)direct marketing.
Q4) There is a positive relationship between satisfaction,loyalty,and profitability.
A)True
B)False
Q5) Summarize the problems associated with frequency or loyalty programs.
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Chapter 15: Special Topic: Strategies for Service Markets
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Q1) Credence attributes refers to the characteristics where the quality cannot be determined even after consumption.
A)True
B)False
Q2) Negative gaps in perceived service quality can be remedied by:
A)lowering customer expectations.
B)creating zero-value products.
C)increasing the price.
D)reducing the service quality.
Q3) List and briefly describe the five dimensions of service quality.
Q4) Electronic channels are associated with:
A)high cost and narrow distribution.
B)high cost and difficulty in accessing.
C)low cost and ease of access.
D)low cost and narrow distribution.
Q5) Customers generally talk more about positive experiences than negative experiences.
A)True
B)False
Q6) List and briefly describe the major approaches to service distribution.
Page 17
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