Marketing 10th Canadian Edition By Frederick Crane – Test Bank

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Description Marketing 10th Canadian Edition By Frederick Crane – Test Bank Sample Questions Instant Download With Answers Chapter 03 Scanning the Marketing Environment

Multiple Choice Questions 1.

With more individuals wanting tools for obtaining information, offering opinions, and interacting with friends, Facebook was influenced by which major force?

A.social B. technological C. economic D. competitive (Chapter Opening Example) Social forces changed as people became increasingly interested in the social aspects of the Internet. They wanted tools for obtaining information, offering opinions, and interacting with friends.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-01 Is “Connecting the World” an Ambitious Vision? Not If You Are Facebook!

2.

As the cost of wireless connectivity, Internet service, and smartphones declined, social networking became affordable for consumers around the world. Facebook has leveraged this __________ force.

A.social B. technological C. economic D. competitive (Chapter Opening Example) Economic forces also influenced the demand for Facebook as the cost of wireless connectivity, Internet service, and smartphones rapidly declined and made social networking affordable for consumers around the world.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-02 Facebook in the Future

3.

Facebook has faced significant scrutiny from many privacy regulators since its creation, including from Canada’s Privacy Commissioner, which forced Facebook to undergo numerous account changes to make controlling your privacy settings easier.

Facebook was influenced by which force?

A.regulatory and legal B. economic C. technological D. social (Chapter Opening Example) Legal and regulatory forces also affected Facebook. The company obtained rights to the name, developed privacy guidelines, and settled a claim that some of the ideas behind Facebook had come from other students.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-01 Is “Connecting the World” an Ambitious Vision? Not If You Are Facebook!

4.

Bell Canada frequently commissions numerous studies of the market to gather information on events outside the organization and learn and interpret any trends.

Bell is engaging in which activity?

A.Outsourcing B. Competitive intelligence gathering C. Company protection D. Environmental scanning Trends typically arise from five sources included in an environmental scan: social, economic, technological, competitive, and regulatory forces.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-03 The Importance of Environmental Scanning

5.

A company engaged in environmental scanning is: A.taking into account the effect its marketing activities can have on plants and animals in our environment.

B. continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

C. maintaining a time constant horizon in its strategic planning process.

D. maintaining retail customer databases.

Environmental scanning is the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

Blooms: Remember Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-03 The Importance of Environmental Scanning 6.

Changes in the marketing environment are a source of _______ and _______ to be managed.

A.strengths; weaknesses B. opportunities; threats C. competitive advantage; competition D. income; growth Changes in the marketing environment are a source of opportunities and threats to be managed.

Blooms: Remember Difficulty: Easy Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-03 The Importance of Environmental Scanning 7.

A company that experiences truncated future growth when launching a new product, may have failed to initially engage in: A.Environmental scanning B. Competitive intelligence gathering C. Company protection D. Business modeling Companies that fail to engage in environmental scanning do so at their peril and perhaps truncate their future growth.

Blooms: Remember Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-04 Tracking Environmental Trends

8.

A marketing manager for Foster Parent’s Plan of Canada reads in Macleans that despite the Internet and television, Canadians are actively engaged in their communities. Over fifty percent have performed volunteer work and almost 80 percent have donated money to charities. She asks research and development personnel to identify possible new ad campaigns that will encourage this high levels of community-connectedness to continue. This ad campaign change is the result of

the managerial activity: A.ecological/technological forecasting.

B. environmental scanning.

C. macroeconomic analysis.

D. strategic planning.

The process of continually acquiring information on events outside the organization in order to identify and interpret potential trends is called environmental scanning.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada 9.

A marketing manager for United Way reads in a business journal that despite the Internet and television, North Americans are actively engaged in their communities.

54 percent have performed volunteer work and 78 percent have donated money to charities. She asks research and development personnel to identify possible new ad campaigns that will encourage this high levels of community-connectedness to continue. This ad campaign change is the result of the managerial activity: A.ecological/technological forecasting.

B. environmental scanning.

C. macroeconomic analysis.

D. strategic planning.

The process of continually acquiring information on events outside the organization in order to identify and interpret potential trends is called environmental scanning.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada

10.

Statistics Canada revealed that out-of-home coffee consumption in Canada has been decreasing by 3% each year. The rise of single-brew machines in homes, such as Tassimo and Keurig are blamed. This type of information is the result of: A.ecological/technological forecasting.

B. environmental scanning.

C. macroeconomic analysis.

D. strategic planning.

The process of continually acquiring information on events occurring outside the organization in order to identify and interpret potential trends is called environmental scanning.

Blooms: Apply Difficulty: Medium

Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-04 Tracking Environmental Trends 11.

Statistics Canada revealed that tea consumption in Canada has been rising in recent years and is now at 10 billion cups or 83 litres per person per year. But soft drink consumption actually declined. This type of information is the result of: A.ecological/technological forecasting.

B. environmental scanning.

C. macroeconomic analysis.

D. strategic planning.

The process of continually acquiring information on events occurring outside the organization in order to identify and interpret potential trends is called environmental scanning.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-04 Tracking Environmental Trends

12.

Which of the following statements regarding environmental scanning is most accurate?

A.Environmental scanning changes the marketing environment.

B. Environmental scanning identifies and interprets potential trends.

C. Environmental scanning should be done at least every five years.

D. Environmental scanning focuses primarily on geographical factors.

Environmental scanning is the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

Blooms: Remember Difficulty: Easy Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada 13.

You are the Director of Marketing for Starbucks. You are doing an environmental scan to help you create a three-year marketing plan for the Canadian market. Which of the following environmental trends should you consider the MOST important?

A.Coffee consumption in Canada has fallen by 3% annually in recent times.

B. Video bloggers are growing in popularity and influence.

C. The largest cities in Canada have all seen a rise in dual-income couples who bring with them larger disposable incomes.

D. By the year 2019, robotics will play a major role in North American society.

Statistics Canada revealed that coffee consumption in Canada is declining at a rate of 3% per year.

Beer, wine, and bottled water all saw increases in consumption as well. Tea consumption is increasing annually while soft drink consumption actually declined. Clearly, many players in the Canadian beverage industry are affected by these trends. Obviously, coffee manufacturers, coffee shops, and supermarkets would be affected negatively and would benefit from this trend.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-04 Tracking Environmental Trends

14.

Boston Consulting Group is giving a presentation to one of their clients and highlights different trends that are affecting the business environment. They conclude that all of the following are environmental trends that typically arise from each of the following sources except: A.economic forces B. technological forces C. competitive forces D. managerial forces Environmental trends typically arise from five sources: social, economic, technological, competitive, and regulatory forces.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada 15.

You are in charge of the marketing program for a consumer electronics company.

You have been asked to think about developing a plan that will allow the firm to grow sales by at least 10 percent each year for the next five years. Prior to developing these plans you should engage in which of the following processes?

A.ecological/technological forecasting.

B. macroeconomic analysis.

C. environmental scanning D. strategic planning.

The process of acquiring information on events occurring outside the organization to identify and interpret potential trends is a necessary precursor to engaging in strategic planning.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada

16.

As a consultant with Accenture, you frequently engage in environmental scanning on behalf of your clients. Which of the following statements about environmental scanning best describes what actually happens?

A.Environmental scanning changes the marketing environment.

B. Environmental scanning focuses primarily on geographical and meteorological factors.

C. Environmental scanning is an annual event.

D. Environmental scanning identifies and explains potential trends.

Environmental scanning is the process of acquiring information to identify and interpret potential trends.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada 17.

According to one of the world’s largest publishers, it was unprepared for recent increases in the demand for books about security. To prepare for the shift in demand, the publisher should have engaged in: A.tracking environmental trends as a part of its ongoing operation B. noticing changing demographics C. noticing changes in ethnic composition D. shifting funds from its product development department If it had determined through previous experiences and research that concerns about security were increasing, then it would have prepared for increased demand.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada

18.

A manufacturer of major appliances uses environmental scanning and identifies various trends. Which of the following trends might be more relevant to this manufacturer’s success in terms of product development?

A.the growth in electronic commerce.

B. advances in biotechnology, cosmetic surgery, and cancer drugs.

C. new legislation related to digital copyright, intellectual property protection, and consumer privacy.

D. eco-consciousness.

See Figure 3-2. A trend towards Canadians being more eco-conscious might influence how an appliance manufacturer considers energy consumption in the design of its products.

Blooms: Apply Difficulty: Hard Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada

19.

Responding to the movement towards reducing our carbon footprint, the federal government recently made financial incentives available to Canadians who made their homes more energy-efficient. According to an environmental scan of Canada, this growth in eco-consciousness reflects a change in _____ forces.

A.economic B. competitive C. technological D. social See Figure 3-2. This might be mistaken for a regulatory trend since the example involves government, but the actual relevant environmental trend is the social trend of being more ecoconscious.

Blooms: Apply Difficulty: Hard Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada

20.

Use of Facebook for purchases has grown over the last couple of years as Internet and smartphone connectivity has increased as well in these countries. This rising trend is an example of _____ forces.

A.economic B. competitive C. technological D. social See Figure 3-2. Facebook is a social media platform made possible by the Internet. Environmental trends include inventions or innovations from applied science or engineering research.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada 21.

Sir Galahad’s is a high-fashion boutique selling top-of-the-line men’s clothing and accessories. The keys to Sir Galahad’s success include knowing men’s changing fashion tastes and providing something different from other clothing retailers. In addition, because of the high value of the merchandise, Sir Galahad’s management is searching for information on available computerized inventory controls and sales order processing. From this description, one can infer that the environmental category of least importance to Sir Galahad’s is: A.regulatory.

B. economic.

C. technological.

D. social.

Only regulatory issues are not mentioned in the question.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-05 An Environmental Scan of Canada

22.

Shoppers Drug Mart has been opening an increasing number of stores in areas where the ‘baby boomer’ generation makes up a large proportion of the population.

Which force is likely playing a factor in these decisions?

A.ecology.

B. macroeconomic conditions.

C. regulatory forces.

D. social forces.

Figure 3-1.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-04 Tracking Environmental Trends 23.

You are the Director of Marketing for Starbucks. You are doing an environmental scan to help you create a three-year marketing plan for increasing your presence in Canadian post-secondary institutions. Which of the following environmental trends should you consider the MOST important?

A.Consumption of hot brewed coffee by millennials rose over 6% the last year.

B. Baby boomers, who make up 37% of the hot brewed coffee drinkers, rank the highest consumers of coffee in Canada.

C. The largest cities in Canada have all seen a rise in dual-income couples who bring with them larger disposable incomes.

D. Coffee consumption in Canada has been declining in recent years at a rate of 3% annually.

Despite option D being a relevant trend, specific to the plan to target more Canadian colleges and universities, the modest increase in consumption of coffee by 18- to 24-year-olds would appear to be the most important trend.

Blooms: Apply Difficulty: Hard Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-04 Tracking Environmental Trends

24.

The local City Hall is assessing the need to build an additional community centre in the town. To be successful, they need to understand demographic shifts in the

population and various cultural changes in their community. The City will be most concerned with which force?

A.ecology.

B. macroeconomic conditions.

C. regulatory forces.

D. social forces.

Figure 3-1.

Blooms: Apply Difficulty: Medium Learning Objective: 03-01 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Topic: 03-04 Tracking Environmental Trends 25.

Changes in social forces can have a dramatic impact on a marketing strategy, some of these social forces in the environment include the demographic characteristics of the population, and it’s _____.

A.living standards B. social class C. values D. dialect Social forces are those forces of the environment that include the demographic characteristics of the population and its values.

Blooms: Understand Difficulty: Easy Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics

26.

A magazine that appeals to single parents has noticed an increase in monthly subscription sales over the last several years. After completing their environmental scan, they attribute this increase to a change in which force in the marketing environment?

A.economic B. competitive C. technology D. social Social forces include changing demographics – in this case an increasing single parent population.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income,

affect marketing.

Topic: 03-06 Demographics 27.

More magazine is a new publication designed to appeal to women over the age of 40. Demand for such magazines is an example of how changing _____ characteristics impact the marketing environment.

A.cultural B. behavioural C. occupational D. demographic Age and gender are demographic characteristics.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics

28.

The Canadian population is over 35 million; by 2050, it is expected to be 44 million and even more ethnically diverse. This demographic information is part of which environmental factor?

A.social B. technological C. regulatory D. economic The social forces of the environment include the demographic characteristics of the population and its values.

Blooms: Remember Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics 29.

The United Way of Canada is constantly monitoring different social forces in the marketing environment. Which statement below most accurately relates to social forces?

A.empower workers to improve their performances.

B. usually have little impact on marketing strategy.

C. include reduced emphasis on trade regulation.

D. include demographics and values.

Demographics are measurable characteristics. Values and attitudes cannot be measured; age and ethnicity can be.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics 30.

Per capita income ranges from $102,000 in Norway, to $52,000 in Canada, to under $500 in Ethiopia. Per capita income is a component of which environmental category?

A.cultural B. behavioural C. occupational D. demographic Demographics is the study of the characteristics of a human population. These characteristics include population size, growth rate, gender, marital status, ethnicity, income, and so forth.

Blooms: Remember Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics

31.

The fastest growing population segment in Canada was born between 1946 and 1964. This segment is known as: A.generation X B. baby boomers C. generation Y D. mid-millenials A major reason for the greying of Canada is that the baby boomers -the generation of those born between 1946 and 1964-are growing older.

Blooms: Understand Difficulty: Easy Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics 32.

Michael is recently divorced and has two children. He moves in with Leanne, also a recent divorcee who has one child. How is this new family structure classified?

A.Brady Bunches B. Blended families C. Merged families D. Hallmark families A blended family is a family formed by the merging into a single family of two previously separated units.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics 33.

Over 50 percent of the Canadian population is located in just the top 10 CMAs in the country, which include such cities as Toronto, Montreal, Vancouver, Ottawa, Calgary, and Edmonton. In this instance, CMAs stands for: A.Canadian metropolitan areas B. Census metropolitan areas C. Certified metropolitan areas D. Canadian market areas Census metropolitan areas (CMAs) are geographic labour markets having a population of 100,000 persons or more.

Blooms: Remember Difficulty: Easy Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics

34.

Walmart decides to run two different ads in Toronto, Ontario. One, in a predominant Chinese market, is written in Chinese; the other, in a large Italian area, is written in Italian. Walmart is engaging in what type of marketing?

A.discriminatory marketing B. micromarketing marketing C. social marketing D. ethnic marketing Ethnic marketing is the combinations of the marketing mix that reflect the unique attitudes, race or ancestry, communication preferences, and lifestyles of ethnic Canadians; sometimes called multicultural marketing.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics 35.

In many Inuit communities in Northern Canada, elders pass on values, ideas, and attitudes through stories and songs to members of their generational family. These items that are learned and shared among members of a group are collectively known as:

A.culture B. ethnicity C. pychographics D. ethnographics Culture is the set of values, ideas, and attitudes that are learned and shared among the members of a group.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-07 Culture

36.

A day care conducted a survey and found that 60 percent of Canadian women work outside the home and are no longer home to watch children that are too young for school. The day care offers a special that says: “Heading back to work after maternity leave? Leave the kid watching up to us!” The day care is taking advantage of which trend?

A.competitive trend B. family trend C. regulatory trend D. cultural trend A noteworthy cultural trend in Canada is that 60 percent of Canadian women work outside the home and in fact, women now make up close to half of the Canadian labour force.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-07 Culture 37.

Kraft Canada launched a specific microsite for new Canadians who recently arrived from South Asia, called Kraft Ka Khana. As a multicultural marketer, Kraft can do many of the following examples of things to engage with a diverse audience, except ________.

A.start to customize, not generalize B. build a relationship with your ethnic Canadian customers. Acknowledge them as Canadians while respecting them for being different in their culture and value systems C. build stereotypes D. spend your resources in gaining knowledge of these ethnic markets, including good field research MARKETING MATTERS – Engaging Canada’s Ethnic Groups Using Social Media: A Marketing Imperative.

Blooms: Understand Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-07 Culture

TB Figure 1

38.

According to TB Figure 1 above, by the year 2050, which age group is projected to account for most of the world’s population?

A.0-14 B. 15-59 C. 60-69 D. 70-79 By the year 2050, the world population age group 15-59 will have the most members as shown by the red dotted line at the top of the chart.

Blooms: Apply Difficulty: Hard Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics 39.

According to TB Figure 1 above, in 2005 the approximate size of the world population of those aged 0-14 was A.5.5 billion B. 4 billion C. 1.5 billion D. 1 billion In 2005 (shown in the middle of the horizontal axis) the population of the 0-14 age group (shown by the middle turquoise line) was approximately 1.5 billion.

Blooms: Apply Difficulty: Hard Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income,

affect marketing.

Topic: 03-06 Demographics

40.

According to TB Figure 1 above, in what year will the population totals for people under 14 and people over 60 be relatively the same?

A.Sometime in the 1950s B. Sometime in the 1990s C. In the year 2008 D. Sometime in the 2040s At some point in the years 2040 to 2050 the population under 14 year olds begins to decline and the population of people over 60 continues to grow. The lines on the graph indicate that they cross at some point in the 2040s.

Blooms: Apply Difficulty: Hard Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics 41.

Last year, Samsung used a print ad showing their latest smartphone as an item for sale in a vending machine. Which generational cohort is Samsung most likely trying to reach?

A.Generation X B. Baby boomers C. Generation Y D. The baby bust generation Generation Y exerts influence on music, sports, computers, video games, and especially cell phones. Generation Y views wireless communication as a lifeline to friends and family and was the first to use Web-enabled mobile phones to stream video, send and receive text messages, play games, and access e-mail.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics

42.

The generation of children born to baby boomers, a period of increasing births, is sometimes referred to as a(n): A.baby boomer B. baby buster C. boomerang D. echo-boom

Generation Y includes those born between 1977 and 1994. This was a period of increasing births, which resulted from baby boomers having children, and it is sometimes referred to as the echoboom or baby boomlet.

Blooms: Remember Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics 43.

HSBC Bank International Ltd. (Europe’s largest bank) selected its advertising agency because that agency was “always sensitive to the possibility that something might not translate well or may offend superstitions about colours or numbers.” Its advertising agency was responsive to A.psychographic differences.

B. population shifts.

C. racial and ethnic diversity.

D. a value consciousness.

Many companies are developing multicultural marketing programs, which are combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics

44.

Anya has been instructed to prepare a short paper on her ancestry. She has asked some friends to explain the topic to her. Which of the following statements offers the BEST explanation?

A.She is supposed to write about her family’s customs.

B. She is supposed to describe the personalities in her family.

C. She is supposed to write about the ethnic composition of her family.

D. She is supposed to write about any geographical shifts her family has made and how it changed them.

Demographics is the study of the characteristics of a human population. These characteristics include population size, growth rate, gender, marital status, ethnicity, income, and so forth.

Blooms: Apply Difficulty: Hard Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income,

affect marketing.

Topic: 03-06 Demographics 45.

When assessing the viability for a new store location, Starbucks will review the population distribution, income, and occupation of those residents that inhabit each area. Which item below is Starbucks most concerned with?

A.cultural census B. psychographics C. social audit D. demographics Demographics is the study of the characteristics of a human population. These characteristics include population size, growth rate, gender, marital status, ethnicity, income, and so forth.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics

46.

Environmental scans have shown that the population of Canada is undergoing dramatic change. For example, the number of people in this country who are between the ages of 20 and 34 has declined since 1990. On the other hand, the number of people who are 65 years of age or older has increased. These changes in the Canadian population are examples of _____ changes to which marketers must respond.

A.cyclical population B. psychographic C. demographic D. situational segment The fastest growing age segment in Canada consists of the consumers who are over 50 years of age. The study of the characteristics of a population’s age, sex, income, occupation, and ethnic background are all examples of demographics.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics 47.

A new travel company decides to launch a ‘concierge-style’ travel service that organizes everything from pick-up at home, transport to the airport, and all the little aspects of the subsequent trip, such as transportation and meals. Further, they have selected all of the hotels to be wheelchair- and walker- friendly. Who is the likely target market for this travel company?

A.infants.

B. people over 50 years of age.

C. children of baby boomers.

D. teens.

In Canada, by 2011, almost 15 percent of the population will be over the age of 65.

Blooms: Apply Difficulty: Medium Learning Objective: 03-02 Describe how social forces, such as demographics, and cultural and economic forces, such as macroeconomic conditions and consumer income, affect marketing.

Topic: 03-06 Demographics Chapter 05 Consumer Behaviour

Multiple Choice Questions 1.

Which of the following statements about how women buy cars today is NOT true?

A.Women prefer minimal maintenance.

B. Most women approach car buying in a deliberate manner, gathering information before they go to a dealership.

C. Most women enjoy the challenge of negotiating price.

D. 55 percent of all vehicle purchases in Canada are by women.

(Chapter Opening Example) Research has indicated that women dread car price negotiations.

Blooms: Understand Difficulty: Easy Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-02 Enlightened Carmakers Know What Custom(h)ers Value 2.

Many automakers have changed how they conduct business because of female consumers. All of the following are true except: A.vehicles are designed for easy entry and exit.

B. women purchase the majority of cars sold in Canada.

C. design and marketing are still mostly done by males because they understand the female driver.

D. dealerships are now more “female friendly.”

(Chapter Opening Example) Enlightened carmakers have hired women designers, engineers, and marketing executives to better understand and serve this valuable automobile consum(h)er and influenc(h)er of purchase decisions.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision

process.

Topic: 05-02 Enlightened Carmakers Know What Custom(h)ers Value

3.

Which of the following statements is true?

A.For men, styling is more about a car’s exterior lines and accents. Women are more interested in interior design and finishes.

B. Men purchase the majority of new cars sold in Canada.

C. Design and marketing are still mostly done by males because they understand the female driver.

D. Men approach the car shopping experience as an intelligence gathering expedition. They actively seek information and postpone a purchase decision until all options have been evaluated.

(Chapter Opening Example) For men, styling is more about a car’s exterior lines and accents.

Women are more interested in interior design and finishes.

Blooms: Remember Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-02 Enlightened Carmakers Know What Custom(h)ers Value 4.

When considering buying the latest smartphone, you talk to various friends, research extensively online, and demo several products in store. What are you undertaking?

A.Marketing B. Consumer behaviour C. Market research D. Consumer management The actions that a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-02 Enlightened Carmakers Know What Custom(h)ers Value

5.

After buying your new smartphone, you proceed through several stages that may include the feeling of post-purchase anxiety. This end-to-end process is referred as: A.situational analysis sequence.

B. VALS inventory.

C. hierarchy of learning.

D. purchase decision process.

The stages a buyer passes through in making choices about which products and services to buy.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-03 Consumer Purchase Decision Process 6.

Following on the 25th anniversary of the “Back to the Future” franchise, Nike has developed a new automatic lacing system for a range of high-top basketball shoes.

Nike believes this new characteristic – promoted as quicktie – will make the new shoe a superior product. Due to increased costs of materials and production, the price will be about $150. Based on responses of people who have tried the new product, Nike is confident consumers will have a relatively favourable evaluation of the shoe. To have a favourable evaluation, consumers must first: A.experience problem recognition.

B. consult a public source of information.

C. consult a personal source of information.

D. make a purchase decision.

A buyer passes through five stages of the purchase decision process when making choices about which products and services to buy. The initial step in the process is problem recognition.

Blooms: Apply Difficulty: Hard Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-04 Problem Recognition

7.

As an aspiring athlete you train hard several times during the week. Your coach asks you to train in a specific ‘heart rate zone,’ however, you do not possess the required equipment to accurately measure your heart rate during training. You know to improve your training you must fix this issue, what have you experienced?

A.problem recognition B. alternative evaluation C. cognitive dissonance D. routine response behaviour Problem recognition, the initial step in the purchase decision, is perceiving a difference between a person’s ideal and actual situations that is big enough to trigger a decision.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-04 Problem Recognition 8.

One of your classmates consistently showed up to class late, finally your Professor, Stephen, asked the student what the issue was. When the marketing student said, “It’s really hard for me to get to class on time without a car,” she was entering which stage of the consumer decision process?

A.purchase decision

B. alternative evaluation C. information search D. problem recognition During the purchase decision process, an individual at the problem recognition will perceive differences between his or her ideal and actual situations big enough to trigger a decision. The student would be unable to get to class without a car.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-04 Problem Recognition

9.

When the marketing student who has recently moved out of residence and now shares a house with 4 others, where it is the responsibility of the tenants to mow the large lawn said, “It’s really hard for me to mow such a large lawn without a power mower,” he was entering which stage of the consumer decision process?

A.problem recognition B. alternative evaluation C. information search D. purchase decision During the purchase decision process, an individual at the problem recognition will perceive differences between his or her ideal and actual situations big enough to trigger a decision. The student would be unable to mow the large lawn without a power mower.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-04 Problem Recognition 10.

When Marty attended his first new product development class, he realized that he ought to have an AutoCAD type software program to enable him to do proper designs or else he would be unable to do his assignments. In which stage of the consumer purchase decision process was Marty when he made this realization?

A.information search B. problem recognition C. purchase behaviour D. alternative evaluation During the purchase decision process, an individual at the problem recognition will perceive differences between his or her ideal and actual situations big enough to trigger a decision. Marty realized that he was unable to pass statistics without the right tools.

Blooms: Apply Difficulty: Medium

Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-04 Problem Recognition

11.

At what stage in the consumer purchase decision process might you review the report: “Canada’s Most Trusted Brands: Hockey Equipment?”

A.problem recognition B. information search C. alternative evaluation D. purchase decision Once a need is recognized the consumer enters the information search stage.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 12.

The question “How long is the warranty for this smartphone?” would be asked during the _____ stage in the consumer purchase decision process.

A.problem recognition B. information search C. alternative evaluation D. purchase decision The information search stage clarifies the problem for the consumer by suggesting criteria to use for the purchase, yields brand names that might meet the criteria, and develops consumer value perceptions.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 13.

Jo is considering purchasing a new cat, but is unsure of which ones shed, which ones are indoor or outdoor, and which ones are most friendly around children. She decides to ask several friends, who already have cats, to list out the reasons they used when they purchased their own cats. In which stage of the consumer purchase decision process is Jo? A.problem recognition B. information search C. alternative evaluation D. purchase decision The information search stage clarifies the problem for the consumer by suggesting criteria to use for the purchase, yields brand names that might meet the criteria, and develops consumer value perceptions.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search

14.

Kirk, an avid Ultimate Fighting Champion (UFC) fan, is glued to the television screen at his local sports bar every Saturday evening as he watches his favourite fighters. He thinks pay-per-view matches would be more enjoyable at home if he had a high-definition big screen television. Kirk has begun talking with his friends to learn more about the various brands of high-definition big screen televisions available. In which step of the purchase decision making process is Kirk engaged?

A.problem recognition B. evaluation of alternatives C. purchase decision D. information search After a consumer has recognized a problem, the next step in the decision making process is to search for information. When past experience or personal knowledge does not provide adequate information upon which a consumer can make a decision, the consumer may seek information from external sources. Primary external sources of information for many consumers are family and friends.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 15.

When the elementary teacher needed to buy poster board for her class, she remembered that she had found some poster boards at her local 99 Cents Only store, at Walmart, and at her Family Dollar Store. What term best describes the information search method used by the teacher?

A.personal external source B. public external source C. market-dominated external source D. internal search When you scan your memory for previous purchase experiences, you are engaged in an internal search.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search

16.

Sid’s friend Jerry turns 40 next week and will have a party. Sid decided to purchase some vintage wine as a present. Because they like the wines Sid scanned his memory for various wine options. This is an example of what part of the consumer purchase decision process?

A.memorization B. external search C. evaluative criteria D. internal search The stage in the consumer decision process when consumers scan their memory for previous experiences with products or a brand is called internal search.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 17.

In the consumer purchase decision process when consumers scan their memory for previous experiences with products or brands, this is referred to as a(n).

A.problem recognition B. internal search C. external search D. purchase task The stage in the consumer decision process when consumers scan their memory for previous experiences with products or a brand is called internal search.

Blooms: Remember Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 18.

An owner of two new kittens would most likely use an internal search or prior experiences when purchasing: A.a gift for a best friend.

B. a Blu-Ray player.

C. cat litter.

D. perfume.

A consumer would typically find an internal search or previous experiences provide enough purchase information for frequently purchased products such as cat litter.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search

19.

Fred is an avid comic book reader and has decided to purchase a comic book for his best friend. Since the two friends enjoy the same types of comics, Fred will know exactly which comic his friend would like. When Fred was scanning his memory for various comic book options, he was engaged in: A.problem recognition.

B. an internal search.

C. an external search.

D. a purchase task.

The stage in the consumer decision process when consumers scan their memory for previous experiences with products or a brand is called internal search.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 20.

When considering purchasing a new computer, you investigate several social media sites to gather information on products, services, and brands. Which of the following statements is correct?

A.social media does not play a major role in the purchasing decision B. brands are paying very close attention to what others are saying about them on social media C. social media often contains incorrect information D. brands are not concerned about social media reviews As you have already learned from previous chapters, more and more often, consumers are relying on social media for information on products, services, and brands, and paying very close attention to what others are saying about various brands on these social media sites.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search

21.

Using Internet for an external search for product information satisfies which requirement?

A.The cost of gathering information is low.

B. Review of past experience provides adequate information.

C. The risk of making a wrong purchase decision is low.

D. The item is frequently purchased.

An external search for information is especially needed when past experience is insufficient, the risk of making a wrong decision is high, and the cost of gathering information is low.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 22.

Sarah wants to purchase a new iPad. She is unsure about what peripherals she will need. As a result, she has begun asking for advice from friends and relatives. In addition, she has talked to several consumer electronics salespeople and has looked at the Apple website. Sarah is engaging in: A.problem recognition.

B. an internal search.

C. an external search.

D. a purchase task.

Sarah is externally searching for information about iPads. An external search is especially important when the cost of gathering information is low, when past experience is insufficient and when the risk of making a wrong decision is high.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 23.

Examples of public sources of information for an external information search include: A.advertising.

B. Consumer Reports magazine.

C. sales personnel.

D. friends and relatives.

Public sources include various product-rating organizations such as Consumer Reports, government agencies, and radio and TV “consumer programs.”

Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search

24.

An example of a marketer-dominated source of information for an external information search is: A.point-of-purchase displays.

B. Consumer Reports magazine.

C. consumer programs on talk radio stations.

D. friends and relatives.

Marketer-dominated sources of information originate with the sellers of products and services, and include advertising, salespeople, and point-of-purchase displays in stores.

Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 25.

You recently searched a brand’s website to find information about purchasing a new netbook. This is an example of: A.marketer-dominated source B. brand website source C. social media source D. internal search Marketer-dominated sources of information originate with the sellers of products and services, and include company websites, advertising, salespeople, and point-of-purchase displays in stores.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 26.

All of the following statements are correct about visiting a travel agent to search for information, except: A.a travel agent is like a salesperson B. a travel agent is an example of a marketer-dominated source C. a travel agent is part of an internal search D. a travel agent should provide unbiased answers Marketer-dominated sources of information originate with the sellers of products and services, and include company websites, advertising, salespeople, and point-of-purchase displays in stores.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search

27.

Kip was thirsty, but he couldn’t decide what he wanted to drink. When Kip saw the television ad for Mountain Dew, he knew exactly what he wanted. Kip’s information search was shorted by the appearance of a _____ source.

A.private information B. consumer-controlled C. public information D. marketer-dominated Marketer-dominated sources of information originate with the sellers of products and services, and include advertising, salespeople, and point-of-purchase displays in stores.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-05 Information Search 28.

Ruby is buying a new watch appropriate to her role as the newest vice president at her company. She was overheard telling a co-worker, “The Rolex has a great reputation, but the Tag just looks nicer.” In which stage of the purchase decision process is Ruby?

A.problem recognition B. information search C. alternative evaluation D. purchase decision The problem recognition stage prompted the need for a new classier piece of ‘jewelry’, the information stage clarified the problem for the consumer by suggesting methods of satisfying the need by means of an watch, earrings, necklace, etc. The alternative evaluation stage provides evaluative criteria by which to make a decision from an evoked set. In this case the purchase will be a specific watch, but is it more important to image or preferred look?

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation

29.

The objective and subjective attributes of a brand that consumers use to compare different products are called: A.temporal states.

B. antecedent states.

C. information sources.

D. evaluative criteria.

Factors that represent both the objective attributes of a brand (such as display screen) and the subjective ones (such as brand prestige) you use to compare different products and brands.

Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation 30.

When you set out to buy a Blu-ray player for yourself, factors you might consider before purchase, which represent both the objective attributes of a brand and the subjective ones you use to compare different products and brands, are called A.hot buttons B. informational alternatives C. evaluative criteria D. buying decision-makers

Factors that represent both the objective attributes of a brand (such as display screen) and the subjective ones (such as brand prestige) you use to compare different products and brands.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation 31.

When Rita decided to buy a radio as a wedding present, she wanted to buy a brand name radio that was waterproof, looked nice, and was designed to be mounted in a shower. What did Rita use during the alternative evaluation stage of the purchase decision process?

A.hot buttons B. informational alternatives C. evaluative criteria D. buying decision-makers Evaluative criteria represent both the objective attributes of a brand and the subjective ones you use to compare different products and brands.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation

32.

When looking for a luxury car, you only consider Lexus, Mercedes, and BMW as acceptable brands to purchase from. These brands are known as your: A.evaluative set.

B. evoked set.

C. aspiration group.

D. alternative selection group.

The group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation 33.

You want to buy some instant rice, and you are in the mood for wild rice. The store you go to has two brands of instant rice: Uncle Bens and Minute Rice.

Collectively, what is this group of instant rice brands called?

A.a value group B. a consideration set

C. an evaluative criterion D. an impulse set The group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation

34.

BMW StreetCarver is a skateboard that features BMW’s technology in its wheel suspension, which stabilizes the board’s sleek design and allows for greater control around sharp curves. BMW is concerned with making sure its skateboard is in the evoked set of potential skateboard buyers. In this case, it most likely should focus on: A.reducing the post-purchase dissatisfaction that may result from purchasing its product.

B. making sure its advertisements get on the air during sporting events such as exhibition skateboarding.

C. making appeals directed towards motivational ego needs.

D. trying to determine the most important evaluative criteria skateboarders use when judging the product.

The key influence in determining the products in the evoked set is to have a set of important attributes, which matches the evaluative criteria employed by consumers. The most important evaluative criteria establish the brands in consumers’ evoked set. Therefore, by identifying the most important attributes, a firm can design a product which matches consumers’ interests.

Blooms: Apply Difficulty: Hard Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation 35.

The brands that you learn of during your information search become part of your: A.consideration set B. awareness set C. thinking set D. inert set The group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision

process.

Topic: 05-06 Alternative Evaluation 36.

Consideration set is a term that means the same as: A.contemplation set B. awareness set C. evoked set D. inert set The group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware.

Blooms: Remember Difficulty: Easy Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation

37.

Raul overheard one of his co-workers in a phone conversation say, “Thank you for taking my call so quickly. I’d like to order number 1284H, the All-Canadian Mary Hanks doll. Can I use the easy pay plan?” The co-worker was in which stage in the consumer purchase decision process?

A.problem recognition B. alternative evaluation C. information search D. purchase decision Having examined the alternatives of the evoked set, the consumer makes a purchase decision.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-07 Purchase Decision 38.

Which of the following statements about the purchase stage of the consumer purchase decision process is NOT true?

A.The purchase stage requires choosing from whom to buy.

B. The purchase stage includes deciding when to buy.

C. The purchase stage follows the alternative evaluation stage in the consumer purchase decision process.

D. The purchase stage involves gathering last minute information to aid in the decision about what to buy.

The stages a buyer passes through in making choices about which products and services to buy.

Blooms: Understand Difficulty: Easy Learning Objective: 05-01 Describe the stages in the consumer purchase decision

process.

Topic: 05-07 Purchase Decision

39.

Factors, such as the store atmosphere, pleasantness of the shopping experience, salesperson persuasiveness, time pressure, and financial circumstances tend to have the biggest influence on which stage of the consumer purchase decision process?

A.Whether a purchase decision is made or postponed.

B. The search for information.

C. The recognition of a need.

D. Post-purchase assessment of any purchase anxiety.

The stages a buyer passes through in making choices about which products and services to buy.

Blooms: Understand Difficulty: Hard Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-07 Purchase Decision 40.

Maria has just told her supervisor, “I’m so glad I bought the Apple iPhone 5 phone rather than those other models I was looking at. I have really enjoyed the fact that its iTunes service gives me an always-on music connection. I haven’t seen another phone with that feature.” Which stage of the consumer purchase decision process is demonstrated by Maria’s conversation?

A.problem recognition B. information search C. post-purchase behaviour D. purchase decision After buying a product, a consumer compares it with his or her expectations and is either satisfied or dissatisfied. The consumer may attempt to reduce cognitive dissonance by reinforcing the belief that he or she made the right choice. This occurs at the post-purchase stage.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-08 Post-purchase Behaviour

41.

Providing toll-free telephone numbers, offering liberalized return and refund policies, and engaging in staff training to handle complaints, answer questions, and record suggestions are examples of what firms do to address which stage of the consumer purchase decision process?: A.The purchase decision.

B. The search for information.

C. The recognition of a need.

D. Post-purchase behaviour.

Firms such as General Electric (GE), Johnson & Johnson, Coca-Cola, and British Airways focus attention on post-purchase behaviour to maximize customer satisfaction and retention. These firms, among many others, provide toll-free telephone numbers, offer liberalized return and refund policies, and engage in staff training to handle complaints, answer questions, and record suggestions.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-08 Post-purchase Behaviour 42.

Consumer behaviour is an important focus for marketers because: A.marketing research is an inexpensive process.

B. companies use this knowledge to provide value to consumers.

C. customer value is a non-quantifiable statistic.

D. attracting new customers is easier than keeping old ones.

Various marketers have calculated the value of customer retention over time and found it to be very profitable. Customers continue to buy from a specific marketer because that marketer provided them with value.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-07 Purchase Decision

43.

More and more firms are monitoring social media sites to understand what is being said about their brands as a way to gauge what?

A.Customer satisfaction.

B. Warranty reviews.

C. Recommendations for new products.

D. Viral comments.

After buying a product, the consumer compares it with his or her expectations and is either satisfied or dissatisfied. If the consumer is dissatisfied, marketers must decide whether the product was deficient or consumer expectations were too high.

Blooms: Understand Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-08 Post-purchase Behaviour 44.

Rackspace is a web hosting company. That means that if you want to have a site on the web, you could buy not only Internet space from them, but also technical support, and design services. When its ad tells you that its users consider Rackspace “the risk-free host because it offers dedicated and helpful support any time day or

night,” you know that Rackspace is trying to: A.downgrade the competition.

B. reduce new buyers’ cognitive dissonance.

C. increase new buyers’ cognitive dissonance.

D. produce an evoked set.

Firms often use ads at the post-purchase stage to reduce cognitive dissonance by convincing consumers that they made the correct purchase decision.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-08 Post-purchase Behaviour

45.

You have just purchased a Samsung S5 smartphone, after learning how to use it, you tweet out to the Samsung handle, that “S5 best phone ever! Great screen & battery life! Thx!” Brands who monitor their social media attempt to understand different levels of customer ____________.

A.indecisiveness B. cognitive dissonance C. post-purchase stress D. satisfaction More and more firms are monitoring social media for customer satisfaction.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-08 Post-purchase Behaviour 46.

How might consumers who purchased a new innovative type of running shoe try to reduce any cognitive dissonance they might feel?

A.Use only an internal information search.

B. Have little or no problem-solving involvement.

C. Read ads for running shoes even after the purchase has been made.

D. Use routine problem solving.

To alleviate cognitive dissonance, consumers attempt to applaud themselves for making the right choice. One way to seek information to confirm a choice is by reading ads about the product.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-08 Post-purchase Behaviour

47.

You have just purchased a suit to wear to an important job interview. As you head home from the store, you agonize in your mind about whether your choice of dark gray was right, or whether you should have chosen dark blue. This is an example of: A.cognitive dissonance.

B. marketer anxiety.

C. purchasing angst.

D. panic reaction.

The feeling of post-purchase psychological tension or anxiety is called cognitive dissonance.

Blooms: Apply Difficulty: Easy Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-08 Post-purchase Behaviour

48.

You have just purchased an expensive piece of jewelry for your girlfriend without really knowing her specific likes and dislikes. As you head home from the jewelry store, you agonize in your mind about whether your choice of a ruby necklace was right, or whether you should have chosen pearl earrings. This is an example of: A.cognitive dissonance.

B. marketer anxiety.

C. purchasing angst.

D. panic reaction.

The feeling of post-purchase psychological tension or anxiety is called cognitive dissonance.

Blooms: Apply Difficulty: Easy Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-08 Post-purchase Behaviour 49.

Nick was happy with his newly purchased ultrabook computer. It had all the features he wanted, including wider screen, lightweight design, and a high-end graphics chip for playing games, and the $1200 price tag was reasonable. As he was taking the ultrabook out of the box, Nick noticed an advertisement in the local paper showing a similar ultrabook configuration for only $1100. Suddenly, Nick began to doubt his purchase decision – maybe he hadn’t gotten such a good deal. He was experiencing: A.buyer’s uncertainty.

B. cognitive dissonance.

C. selective discord.

D. product dissonance.

Consumers are often faced with the dilemma of choosing between two or more comparable alternatives. After making a purchase, consumers may question the purchase decision and wonder whether or not they selected the best alternative.

Blooms: Apply Difficulty: Easy Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-08 Post-purchase Behaviour

50.

Sometimes consumers skip one or more of the purchase-decision process stages because of their level of ___________.

A.involvement B. aspiration C. acculturative response D. motivation The personal, social, and economic significance of the purchase to the consumer.

Blooms: Understand Difficulty: Medium Learning Objective: 05-02 Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving.

Topic: 05-09 Situational Influences

TB Figure 1 Make

Model

Price

Quality of Smartphone Features

Camera

Screen

Battery

Storage

Wa

Apple

iPhone 7

$1200

Very Good

Very

Samsung

Galaxy S7

$900

Excellent

Exc

Sony

Xperia X

$700

Excellent

Poo

HTC

10

$900

Poor

Goo

LG

G5

$750

Good

Exc

BlackBerry

Passport

$750

Good

Goo

Nexus

6P

$500

Fair

Fair

51.

In TB Figure 1, a number of factors are listed such as camera quality, screen quality, and battery life. These are typical __________ for smartphones.

A.considerations B. evaluative criteria C. information bits D. quality considerations Factors that represent both the objective attributes of a brand (such as display screen) and the subjective ones (such as brand prestige) you use to compare different products and brands.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation 52.

According to the information in TB Figure 1, which of the following brands would be the best choice if the consideration set for a smartphone included the following criteria: (1) camera, (2) waterproof, and (3) storage?

A.Apple B. BlackBerry C. HTC D. Nexus A consideration set is the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. The evaluative criteria given in the question result in Apple as the best choice.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation 53.

According to the information in TB Figure 1, which smartphone offers the best storage?

A.Apple B. HTC C. Blackberry D. Samsung A consideration set is the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.

Blooms: Apply Difficulty: Medium Learning Objective: 05-01 Describe the stages in the consumer purchase decision process.

Topic: 05-06 Alternative Evaluation

54.

Which problem solving variation would normally be used to purchase such items as toothpaste, soda, or chewing gum?

A.routine problem solving B. limited problem solving C. extended problem solving D. simulated selection For these types of products, consumers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives. These behaviours are characteristics of routine problem solving.

Blooms: Understand Difficulty: Medium Learning Objective: 05-02 Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving.

Topic: 05-09 Situational Influences