Professional Documents
Culture Documents
Solomon01 Tif
Solomon01 Tif
CONSUMERS RULE
Multiple Choice
1. A lot of product information as well as recommendations to use or avoid particular
brands is transmitted by conversations among real people. Which of the following
scenarios most accurately describes how the typical teenager/college student would
probably receive his or her product information about acquiring a new Palm Pilot
personal communication device?
a. Ask his or her parents.
b. Read an ad in a newspaper.
c. Visit a consumption community online.
d. Ask his or her college professor or career counselor.
Answer: (c) Difficulty: (M) Application Page: 5-6
2. If a consumer researcher were to study consumers from the perspective of a persons
lifestyle and personality, the researcher would be studying a category called:
a. demographics.
b. psychographics.
c. dualism.
d. character.
Answer: (b) Difficulty: (M) Fact Page: 6
3. Sam Newman is an avid fisherman and outdoorsman. When Sam chooses to
investigate the newest happenings in fishing and hunting via Outdoor Worlds Web
site, he is making a ____________.
a. lifestyle statement.
b. demographic statement.
c. age statement.
d. generation statement.
Answer: (a) Difficulty: (E) Application Page: 7
4. _________________ is the study of the processes involved when individuals or
groups select, purchase, use, or dispose of products, services, ideas, or experiences
to satisfy needs and desires.
a. Market research
b. Cultural dynamics
c. Role theory
d. Consumer behavior
segmentation variables did Crest use to construct its introduction strategy for this
product?
a. Gender.
b. Age.
c. Race and ethnicity.
d. Social class and income.
Answer: (a) Difficulty: (M) Fact and Application Page: 12
15. Researchers have found that consumers within __________________ are
approximately equal in terms of their incomes and social standing in the community.
a. the same culture
b. the same neighborhood
c. the same reference group
d. the same social class
Answer: (d) Difficulty: (H) Fact Page: 12
16. Many marketers have realized that a key to success is building relationships between
brands and consumers that will last a lifetime. This form of marketing interaction
with consumers is called:
a. database marketing.
b. success marketing.
c. partnership marketing.
d. relationship marketing.
Answer: (d) Difficulty: (E) Fact Page: 13
17. _________________ involves tracking consumers buying habits very closely and
crafting products and messages tailored precisely to peoples wants and needs based
on this information.
a. Database marketing
b. Psychographic marketing
c. Relationship marketing
d. Partnership marketing
Answer: (a) Difficulty: (M) Fact Page: 13
18. Which of the following is the BEST illustration of the use of database marketing?
a. Budweiser Beer featuring an athlete competing in a wheelchair marathon.
b. Microsoft targeting teenagers with their newest Windows 2000 software product.
c. Ritz-Carlton hotels recording a guests preferences on one visit (such as a desire
for decaf coffee) so room service will be prepared to honor the preference when the
guest next visits any Ritz-Carlton hotel.
d. A local dinner theater advertising coming attractions in the local newspaper and
online.
23. Consumption may be viewed as a process that can be described as any of four
distinct types of activities. Which of the following consumption
activities would BEST MATCH a situation where learning and manipulating
consumption objects are used to express certain aspects of self or society?
a. Consuming as experience.
b. Consuming as integration.
c. Consuming as classification.
d. Consuming as play.
Answer: (b) Difficulty: (H) Fact and Application Page: 15
24. Fred Samuels and Tim Ryan love going to Chicago Cubs games. Part of the reason
for their enjoyment is the real feeling of family that they get while sitting in Wrigley
Field. From talking with other fans to participating in a wave to cheer the team on
or just feeling that one is really a part of the Cubs team, both Fred and Tim get the
chance once a week to really lose themselves in the pure pleasure and fun of being
Cubbies. Which of the following consumption activities would BEST MATCH the
situation being experienced by Fred and Tim?
a. Consuming as experience.
b. Consuming as integration.
c. Consuming as classification.
d. Consuming as play.
Answer: (d) Difficulty: (H) Application Page: 15
25. The Internet has had a profound impact on the way consumers shop and process
information. In 2001, __________ of Americans had access to the Internet.
a. 58 percent
b. 74 percent
c. 83 percent
d. 96 percent
Answer: (a) Difficulty: (M) Fact Page: 18
26. Electronic marketing has increased convenience by breaking down many of the
barriers caused by:
a. cost and availability.
b. time and location.
c. desire and style.
d. supply and demand.
Answer: (b) Difficulty: (M) Fact Page: 18
27. James Washington loves R&B and Soul music. One of his true pleasures in life is to
go online several times a week and discuss music trends with new friends that he has
met via the Internet. Motown Records sponsors an online meeting space for
collectors and enthusiasts just like James. Which of the following would best describe
where James Washington goes several times a week to discuss his passion?
a. A general chat room.
b. A consumer network.
c. A virtual brand community.
d. An extranet.
Answer: (c) Difficulty: (M) Application Page: 18
28. What has been the impact of the World Wide Web on consumers? According to a
recent study, more than one-third of respondents who have access to the Internet
reported that they were online at least __________ per week.
a. 5 hours
b. 8 hours
c. 10 hours
d. more than 15 hours
Answer: (a) Difficulty: (H) Fact Page: 19
29. Business ethics are:
a. standards applied to Fortune 500 companies.
b. diminishing in importance as we move to a wired world where personal contact
is being reduced.
c. rules of conduct that guide actions in the marketplace.
d. rules of conduct enforced by the Bureau of Ethical and Consumer Affairs.
Answer: (c) Difficulty: (E) Fact Page: 21
30. A Conference Board survey of U.S. consumers found that the most important
criterion when forming opinions about corporations is:
a. social responsibility.
b. promotion and advertising.
c. history of the organization.
d. who is the CEO.
Answer: (a) Difficulty: (E) Fact Page: 21
31. ____________ essentially are rules of conduct that guide actions in the marketplace.
a. Business etiquette
b. Business policies
c. Business law
d. Business ethics
Answer: (d) Difficulty: (E) Fact Page: 21
32. According to the material provided in the chapter, one of the most common and
d. compulsive consumption.
Answer: (c) Difficulty: (E) Fact Page: 30, 31
41. Trigon Products is considering adding a new product to its line of candies for
teenagers. The new product will be Nico Mints. These nicotine-laced mints will give
the person consuming the mint about the same amount of nicotine found in a lite
cigarette. If Trigon Products goes through with its plans, then it will be orienting its
marketing and production strategies to which of the following consumption practices?
a. Consumer terrorism.
b. Addictive consumption.
c. Lifestyle consumption.
d. Compulsive consumption.
Answer: (b) Difficulty: (M) Application Page: 30
42. When asked, a buyer confessed that I seemed possessed when I went into a store. I
didnt care what I bought. I loved the attention I received while I was buying. Buying
made me feel important. This form of behavior would be an example of which of the
following?
a. Advertising-related behavior.
b. Consumer manipulation.
c. Compulsive consumption.
d. Addictive credit card use.
Answer: (c) Difficulty: (E) Application Page: 31
43. All of the following are considered to be elements of negative or destructive
consumer behavior EXCEPT:
a. the behavior is not done by choice.
b. the gratification derived from the behavior is short lived.
c. the person experiences strong feelings of regret or guilt afterwards.
d. the person seeks to punish others with their behavior.
Answer: (d) Difficulty: (H) Fact Page: 31
44. People who are used or exploited, willingly or not, for commercial gain in the
marketplace are called:
a. consumed consumers.
b. disadvantaged consumers.
c. compulsive consumers.
d. fringe consumers.
Answer: (a) Difficulty: (M) Fact Page: 31
45. ________________ is the industry term for inventory and cash losses due to
10
11
50. The perspective that what should be stressed in attempting to understand human
behavior is to focus on the importance of symbolic, subjective experience, and the
idea that meaning is in the mind of the personthat is, we each construct our own
meanings, based on our unique and shared cultural experiences, so there is no single
right or wrong answers is called:
a. fundamentalism.
b. interpretivism.
c. positivism.
d. modernism.
Answer: (b) Difficulty: (H) Fact Page: 36, 37
True/False
51. Consumer behavior is the study of the processes involved when individuals or groups
select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy
needs and desires.
Answer: (True) Difficulty: (E) Fact Page: 7
52. Role theory is the study of the processes involved when individuals or groups
select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy
needs and desires.
Answer: (False) Difficulty: (M) Fact Page: 7
53. If a transaction occurs between two or more organizations or people who give and
receive something of value, an exchange has taken place.
Answer: (True) Difficulty: (E) Fact Page: 8
54. We normally think of a consumer who eats, drinks, or wears a product.
Answer: (False) Difficulty: (M) Fact and Application Page: 8
55. How consumer attitudes toward products are formed and/or changed is a question
asked from a marketing perspective in the pre-purchase phase of the consumption
process.
Answer: (True) Difficulty: (M) Fact Page: 8, Figure 1.1
56. The process of demographics identifies groups of consumers who are similar to one
another in one or more ways, then devises marketing strategies that appeal to
one or more groups.
12
13
society.
Answer: (False) Difficulty: (H) Fact and Application Page: 15
65. Christina Chiang has decided to order a weeks worth of groceries from
HomeGrocer.com. She places her order and is pleasantly surprised when she
receives her order at her doorstep six hours after the order was placed. This
transaction would be a good example of the exchange that takes place in a virtual
brand community.
Answer: (False) Difficulty: (H) Application Page: 18
66. Business ethics essentially are rules of conduct that guide actions in the
marketplace.
Answer: (True) Difficulty: (E) Fact Page: 21
67. According to a Conference Board survey of U.S. consumers, the most important
criterion when forming opinions about corporations is whether they charge high
prices or not.
Answer: (False) Difficulty: (M) Fact Page: 21
68. Marketspace is really the same concept as a newer term called consumerspace.
Answer: (False) Difficulty: (E) Fact Page: 22
69. Culture jamming occurs when two different ethnic groups merge their music, art,
or other cultural symbols together.
Answer: (False) Difficulty: (M) Fact Page: 25
70. Many firms choose to protect or enhance the natural environment as they go about
their business activities. This is called social marketing.
Answer: (False) Difficulty: (E) Fact Page: 28
71. A radical social group has threatened to interject mad cow contaminated feed
into several herds of Texas and Kansas cattle. Such a threat could be called
bioterrorism.
Answer: (True) Difficulty: (E) Fact Page: 30
72. A good illustration of consumption addiction is going to shopping malls.
Answer: (False) Difficulty: (M) Fact and Application Page: 30, 31
14
73. According to the text, examples of consumed consumers are organ, blood, and hair
donors.
Answer: (True) Difficulty: (M) Fact Page: 31
74. If a consumer believed that science could fix or find a cure for anything, he or she
would be following interpretivism.
Answer: (False) Difficulty: (H) Fact Page: 36
75. Link James is arguing with his friend Ali. Link is arguing that one of the reasons the
country is in sorry shape is that there is too much emphasis on science and technology
in our society; this ordered, rational view of behavior denies the complex social
and cultural world in which we live. Whether he realizes it or not, Link is presenting
an interpretivism or post-modernism view to his friend.
Answer: (True) Difficulty: (H) Application Page: 36
Essay Questions
76. According to the text, there are different issues that arise in the consumption process
depending on whether a consumers or a marketers perspective is followed. Using either
the pre-purchase or purchase issue category, cite the questions that might be asked from
both the consumers and marketers perspective. The questions must be specific.
Answer:
Pre-purchase issue phase:
Consumers perspectiveHow does a consumer decide that he/she needs a product?
What are the best sources of information to learn more about
alternative choices?
Marketers perspectiveHow are attitudes toward products formed and/or changed?
What cues do consumers use to infer which products are
superior to others?
Purchase issue phase:
Consumers perspectiveIs acquiring a product a stressful or pleasant experience?
What does the purchase say about the consumer?
Marketers perspectiveHow do situational factors, such as time pressure or store
displays, affect the consumers purchase decision?
15
16
however, all examples should demonstrate how a company takes a database and uses the
information to better reach or serve customers. The chapter cites examples concerning
Ritz-Carlton, American Express, General Motors, and Kraft/General Foods.
Difficulty: (M) Fact and Application Page: 13
80. The text proposes four distinct types of consumption activities. List the four distinct
types and a brief explanation of each.
Answer:
(a) Consuming as experiencean emotional or aesthetic reaction to consumption
objects.
(b) Consuming as integrationlearning and manipulating consumption objects to
express aspects of the self or society.
(c) Consuming as classificationthe activities that consumers engage in to communicate
their association with objects, both to self and to others.
(d) Consuming as playconsumers use objects to participate in a mutual experience and
merge their identities with that of a group.
For examples see the sports analogy used in the chapter.
Difficulty: (M) Fact and Application Page: 15, 16
81. Describe a virtual brand community. Create an example that demonstrates the
concept.
Answer:
The example used in the text is The Hollywood Stock Exchange where a simulated
entertainment stock market is found. Traders try to predict the four-week box office take
from films. Major studios and actors cannot afford to ignore this customer community
when making their real development and marketing decisions. Student examples
should reveal how their proposed virtual brand community interacts, who the members
might be, and what makes the interaction among customers special. This extension of the
chat room is a special research opportunity for the marketer and consumer behavior
specialist.
The instructor can provide more structure to this question by designating the type of
virtual brand community, such as one for cars, motorcycles, Beanie Babies, software, et
cetera.
Difficulty: (M) Application Page: 18-20
82. Considering the information presented in the text, take a positiondo marketers
manipulate consumers? Support your position with information from the text that
demonstrates an understanding of the question and responses provided by the text in
regard to this issue. Be specific in your statements.
17
Answer:
The text deals with this issue by addressing three question areas. Students should explore
each of these questions (and the associated text responses) to formulate their positions.
Question #1Do marketers create artificial needs? Notice the text response addresses
exactly what needs are. The role of the marketer is to address awareness that needs exist
and not create them.
Question #2Are advertising and marketing necessary? Evidence is presented that
social critics doubt the necessity of the advertising and marketing function. The text
response indicates that, according to the economics of information, advertising plays a
vital role in commerce. In fact, most consumers are willing to admit that advertising
provides useful information and saves them time and energy in purchasing.
Question #3Do marketers promise miracles? Many consumers believe they do.
However, the text indicates that advertising and marketing offer solutions to problems.
Promising miracles only agitates and disappoints consumers and is not a long-term
strategy that has any merit.
Difficulty: (H) Fact and Application Page: 22-25
83. Define and provide examples of the following terms: addictive consumption,
compulsive consumption, and consumed consumers.
Answer:
a). Addictive consumptionconsumer addiction is a physiological and/or psychological
dependency on products or services. Example: Chap Stick addict.
b). Compulsive consumptionrefers to repetitive shopping, often excessive, as an
antidote to tension, anxiety, depression, or boredom. Example: Gambling.
c). Consumed consumerssituations in which the consumer themselves become
commodities. Example: Prostitutes.
Difficulty: (M) Fact and Application Page: 30-32
84. Compare and contrast the paradigms of positivism and interpretivism. Be specific in
your comments and explanations.
Answer:
Positivism (sometimes called modernism): Dominant at this point in time, it is a view
which has significantly influenced Western art and science since the late 16th century. It
emphasizes that human reason is supreme and there is a single, objective truth that can be
discovered by science. Positivism encourages us to stress the function of objects, to
celebrate technology, and to regard the world as a rational, ordered place with a clearly
defined past, present, and future. A goal of positivism is to be able to predict consumer
18
behavior. Some of its critics feel that positivism overemphasizes material well being and
that its logical outlook is dominated by an ideology that stresses the homogeneous views
of a culture dominated by white males.
Interpretivism (sometimes referred to as postmodernism): Proponents of this view argue
that there is an overemphasis on science and technology in our society and that this
ordered, rational view of consumers denies the complex social and cultural world in
which we live. Interpretivists stress the importance of symbolic, subjective experience
and the idea that meaning is in the mind of the person. That is, we each construct our own
meanings based on our unique and shared cultural experiences; there are no single right
or wrong answers. The value placed on products because they help us to create order in
our lives is replaced by an appreciation of consumption as a set of diverse experiences. A
goal of Interpretivists is to understand consumers and consumer behavior, rather than try
to predict them.
Difficulty: (H) Fact and Application Page: 36, 37, Table 1.3
19