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Chapter 8: Final Consumers

Multiple Choice - Terminology/Concept


E b

1.

Final consumers purchase goods and services for


a. personal use.
b. personal, family, or household use.
c. family use.
d. household use.

E c

2.

Those buying goods and services purchased for further production, usage in
operating an organization, or resale to other consumers are
a. large businesses.
c. organizational consumers.
b. small businesses.
d. final consumers.

E b

3.

The objective and quantifiable population characteristics of consumers are


known as
a. sociographics.
c. census data.
b. demographics.
d. psychographics.

D a

4.

Which of these is NOT a consumer demographics variable?


a. Status consciousness
c. Marital status
b. Mobility
d. Education

E c

5.

As of 2010, the world population was about ___ people.


a. 500 million
c. 7 billion
b. 900 million
d. 10 billion

E b

6.

As of 2010, the U.S. population was about ___ people.


a. 240 million
c. 350 million
b. 310 million
d. 425 million

E a

7.

The U.S. population is growing at ___ percent per year.


a. less than 1
c. 3
b. 2
d. 4

E c

8.

The United States accounts for about what percent of the worlds population?
a. Less than 1
c. 5
b. 2
d. 10

E b

9.

The current life expectancy for newborn U.S. females is about ___ years.
a. 68
c. 85
b. 80
d. 88

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Chapter 8: Final Consumers

Multiple Choice - Terminology/Concept


D c

10.

Compared with U.S. males, U.S. females are expected to live


a. to about the same age.
c. six years longer.
b. three years longer.
d. twelve years longer.

E a

11.

The smallest amount of residence changes in the United States involves moves
a. to a different region.
c. within the same county.
b. within the same region.
d. within the same state.

E c

12.

Recently, the greatest population growth in the United States has been in which
geographic region?
a. Central Southeast
c. Mountain
b. Northeast
d. Middle Atlantic

D d

13.

A measure of a regions wealth that is less affected by very high incomes of a


small segment of the population than GDP per capita is
a. mean discretionary income.
c. the Buying Power Index.
b. mean disposable income.
d. median income.

E b

14.

The total amount consumers annually pay for goods and services is known as the
a. consumer price index.
c. index of buying power.
b. cost of living.
d. gross domestic product.

E c

15.

Over the past 20 years, which sector within the United States has had the largest
cost increases?
a. Apparel
c. Medical care
b. Telephone services
d. Household furnishings

E c

16.

Changes in the cost of living are monitored through the


a. index of buying power.
c. consumer price index.
b. cost of living index.
d. index of retail saturation.

D d

17.

Disposable income is defined as the


a. actual income a consumer has to spend.
b. income left for luxuries, after necessities are bought.
c. real income a consumer has to spend.
d. after-tax income to be used for spending and/or savings.

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Chapter 8: Final Consumers

Multiple Choice - Terminology/Concept


D b

18.

Discretionary income is defined as the


a. income to be used for spending and/or savings.
b. income available for luxuries, after necessities are bought.
c. real income a consumer has to spend.
d. actual income a consumer has to spend.

D c

19.

A marketing manager is seeking to forecast sales of a luxury product in the


United States. What income measure should the manager use?
a. GDP per capita
c. Discretionary income
b. Disposable income
d. Per-capita income

E d

20.

The U.S. labor force is continuing its steady movement away from
a. managerial and administrative professions.
b. service-based occupations.
c. sales occupations.
d. nonskilled workers.

E c

21.

In the United States, approximately what proportion of adults age 25 and older
have graduated from high school?
a. 50 percent
c. 88 percent
b. 75 percent
d. 95 percent

E c

22.

Which of the following countries has the highest percent of 4-year college
graduates?
a. Canada
c. United States
b. Italy
d. Great Britain

E c

23.

A family is defined as
a. all persons who occupy a housing unit together.
b. a husband, wife, and children.
c. two or more persons residing together who are related by blood, marriage, or
adoption.
d. married individuals living together or apart.

E a

24.

A household is defined as
a. a person or group of persons who occupy a housing unit, whether related or
unrelated.
b. a husband, wife, and children.
c. two or more persons residing together who are related by blood, marriage, or
adoption.
d. a married couple living together or apart.

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Chapter 8: Final Consumers

Multiple Choice - Terminology/Concept


E c

25.

A composite description of a consumer group which is based upon such factors


as age, income, and education is a
a. lifestyle profile.
c. consumer demographic profile.
b. buying power profile.
d. socioeconomic profile.

D c

26.

Demographic data can answer which one of these questions?


a. Why are some consumers innovators?
b. What is the impact of perceived risk on consumer decision making?
c. What are the differences between purchases in single- and multiple-person
households?
d. Why do some consumers become brand loyal?

D c

27.

Which of the following characteristics illustrate a cultural component of a


consumers social characteristics?
a. Aspirational, membership, and dissociative
b. Vice-president, social, and married
c. Achievement and success, youthfulness, and fitness
d. Income, education, and dwelling type

E b

28.

The social class system classifies individuals on the basis of


a. income, education, and marital status.
b. income, occupation, education, and dwelling type.
c. age, education, and family position.
d. social performance and reference group structure.

D d

29.

In contrast to social class structure in less-developed and developing nations,


a. social performance is easier to measure in industrialized countries.
b. social classes are more rigidly defined in industrialized countries.
c. the middle class is smaller in industrialized countries.
d. social class mobility is greater in industrialized countries.

D d

30.

Which social class group consists of business leaders and professionals?


a. Upper-lower
c. Upper-upper
b. Upper-middle
d. Lower-upper

E b

31.

Social performance focuses on


a. a persons role as an opinion leader.
b. how a person carries out his or her roles as a worker, family member, citizen,
and friend.
c. how innovative a person is in making purchases.
d. the reference groups a person uses in reaching decisions.

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Chapter 8: Final Consumers

Multiple Choice - Terminology/Concept


E c

32.

Opinion leaders
a. are the first to purchase a new product.
b. are a company-sponsored source of information.
c. communicate with others through face-to-face communication.
d. have an impact over a wide range of products.

D a

33.

Which of these is NOT included in the traditional family life-cycle concept?


a. Divorced individuals who remarry
c. Newly-married couples
b. Bachelors
d. Sole survivors

E c

34.

Which family life-cycle stage most closely corresponds to the oldest age group?
a. Full nest III
c. Sole survivor II
b. Sole survivor I
d. Empty nest II

E b

35.

The sum total of a persons enduring psychological traits that make that person
unique is his or her
a. social class.
c. psychological profile.
b. personality.
d. lifestyle.

D c

36.

Which of these behaviors is most appropriate for an inner-directed person?


a. Seeking products with high social visibility
b. Seeking products that are prestigious
c. Relying upon ones judgment
d. Seeking approval by face-to-face groups

E d

37.

A person who seeks approval by reference groups is an


a. opinion follower.
c. inner-directed person.
b. opinion leader.
d. outer-directed person.

D c

38.

A consumers overall perceived risk can be reduced by


a. introducing a constant stream of new products.
b. conforming to Underwriters Laboratory tests for electrical safety.
c. offering money-back guarantees if customers are not satisfied for any reason
whatsoever.
d. using components that are made in the United States.

E d

39.

Which lifestyle is most closely compatible with a concern for ecological issues?
a. Blurring of gender roles
c. Me generation
b. Component life-style
d. Voluntary simplicity

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Chapter 8: Final Consumers

Multiple Choice - Terminology/Concept


E c

40.

Which lifestyle places less emphasis on responsibilities and loyalties?


a. Blurring of gender roles
c. Me generation
b. Component life-style
d. Voluntary simplicity

D a

41.

The increase in working women, the long distances between home and work,
and the rise in people working at second jobs have led to an increase in which
consumer lifestyle?
a. Poverty of time
c. Voluntary simplicity
b. Blurring gender roles
d. Me generation

D d

42.

Which stimulus directly affects a consumers physical senses?


a. Commercial cue
c. Social cue
b. Noncommerical cue
d. Physical drive

D a

43.

At the problem awareness stage, a consumer


a. recognizes that a good, service, organization, person, place, or idea under
consideration may solve a problem of shortage or unfullfilled desire.
b. decides a shortage or unfulfilled desire is worthy of consideration.
c. selects an alternative from a variety of choices.
d. evaluates alternatives before making a decision.

E d

44.

A consumer lists alternatives that will solve a problem at hand and determines the
characteristics of them in which stage in the decision process?
a. Problem awareness
c. Stimulus
b. Evaluation of alternatives
d. Information search

D d

45.

A retailer can best reduce cognitive dissonance through


a. determining customer satisfaction through consumer surveys.
b. charging low prices through providing low levels of customer service.
c. lowering purchase costs through mail order sales.
d. providing aftercare to consumers.

E a

46.

Which type of decision making process is most likely to occur when a consumer
has little or no experience in buying a particular product and considers this
purchase to be quite important?
a. Extended decision making
c. Routine decision making
b. Limited decision making
d. Brand loyalty

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Chapter 8: Final Consumers

Multiple Choice - Terminology/Concept


E b

47.

Which type of decision process has the LOWEST degree of perceived risk?
a. Extended consumer decision making
b. Low-involvement purchasing
c. Limited decision making
d. Cognitive decision making

D a

48.

For products perceived to be socially and/or psychologically unimportant,


consumers utilize
a. low-involvement purchasing.
c. brand loyalty.
b. cognitive decision making.
d. limited decision making.

E b

49.

Brand loyalty involves


a. passive information seeking and evaluating products after (rather than
before) purchases are made.
b. the consistent repurchase and preference toward a particular brand.
c. brand preference toward several brands.
d. only low-involvement purchasing situations.

E a

50.

A major limitation of the consumers decision process is that


a. many elements in the process are unexpressed.
b. social factors are not considered.
c. personality is not considered.
d. demographic factors are not considered.

Multiple Choice - Applied/Comprehensive/Integrative


E d

51.

In contrast to social and psychological characteristics about consumers,


demographic data
a. are more helpful in specifying a target market.
b. can be better used in understanding consumer behavior.
c. can be used to develop consumer profiles.
d. are easier to collect and measure.

D b

52.

By establishing consumer demographic profiles, a firm can


a. see the interaction of lifestyles and demographics.
b. better focus on a firms target market.
c. determine the effect of price on consumer buying behavior.
d. measure opportunities in less-developed and developing countries.

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Multiple Choice - Applied/Comprehensive/Integrative


D c

53.

The major advantage of the Survey of Buying Power in comparison to the


Census of Population is its
a. smaller geographic unit of aggregation.
b. not being subject to copyright laws.
c. being more up-to-date.
d. being available in small units called blocks and tracts.

D d

54.

Which statement about the quality of worldwide demographic data is correct?


a. Less-developed and developing countries have considerable experience
collecting and analyzing demographic data.
b. Demographic data is likely to be systematically collected in developing and
less-developed nations due to concern for an areas progress.
c. No major secondary source exists which regularly publishes worldwide
demographic data.
d. Demographic data is generally more accurate and more current for
industrialized countries than for developing and less-developed countries.

D a

55.

A maker of low-salt food items is considering distributing its products in regions


with high concentrations of senior citizens (defined by the company as over 70
years old). In developing its advertising strategy, the firm should keep in mind
that these regions are most likely to have
a. more females than males.
b. high proportions of married persons (with both spouses alive).
c. high disposable incomes.
d. large proportions of professionals.

E d

56.

Which of these statements about the mobility of the U.S. population is correct?
a. The greatest growth in the United States from 1990 to 2000 was in the
Middle Atlantic region.
b. Most of the moves within the United States are outside a persons current
region.
c. The mobility of the U.S population is the same in all regions of the United
States.
d. About 14 percent of the U.S. population moves annually.

E c

57.

The most appropriate measure of personal income in a country is


a. GDP per capita.
b. GNP per capita.
c. median income.
d. the number of people classified as being absolute poor.

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Chapter 8: Final Consumers

Multiple Choice - Applied/Comprehensive/Integrative


D d

58.

The consumer price index is used


a. to measure the penetration rate for selected goods and services.
b. to convert disposable income to discretionary income.
c. to indicate the number of hours an average person needs to work to purchase
selected goods and services.
d. as a measure of a countrys rate of inflation during a specific time period.

D b

59.

The consumer price index for apparel was 100 in a given year; five years later it
was 131. This means that an article of clothing that initially sold for $30 would
cost ___ five years later.
a. $24
c. $61
b. $39
d. $69

D b

60.

If a consumers actual earnings increase by 3 percent but the consumer price


index (CPI) rises by 5 percent, that consumer is facing a(n)
a. increase in discretionary income.
c. falling CPI.
b. decline in disposable income.
d. constant real income.

D b

61.

Which of the following statements concerning disposable or discretionary income


is correct?
a. Discretionary income reflects ones take-home pay.
b. Disposable income is greater than discretionary income.
c. Disposable income is generally used to predict purchases of luxuries.
d. Unlike discretionary income, disposable income reflects the applicable
inflation rate.

D b

62.

A fine watch manufacturer that markets watches costing from $3,000 to


$25,000+ wants to determine the percentage of an areas households that would
purchase its products. The firm plans to determine the number of authorized
watch dealers in each territory based upon this calculation. This manufacturer
should study the average households
a. disposable income.
c. per-capita income.
b. discretionary income.
d. real income.

E c

63.

The large number of working women increases the need for


a. value-oriented pricing.
c. time-saving services.
b. greater consumer choice.
d. increased consumer voice.

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Chapter 8: Final Consumers

Multiple Choice - Applied/Comprehensive/Integrative


D b

64.

The major difference between a family and a household is based upon


a. the size of the unit.
b. whether the members of the unit are related or unrelated.
c. whether the head of the household unit is male or female.
d. whether the female head of household is working on a full-time basis.

D d

65.

Which statement concerning ethnicity/race is correct?


a. Worldwide, there are less than five different languages that are each spoken
by at least one million people.
b. Hispanic is a racial term.
c. The percent of white population in the United States is forecast to increase
between 2010 and 2050.
d. The increase in ethnic and racial segments in the United States is due to both
birth rates and immigration.

E c

66.

Which of these data would NOT be part of a demographic profile of the


American consumer?
a. The life expectancy is 79 years for females.
b. Sixty-four percent of Americans own their home.
c. Sixty-four percent of the male population is introverted.
d. Seventy-five percent of adults are high school graduates.

D c

67.

Eighty-three percent of the readers of a popular business magazine are male. Its
readers average household income is $85,800, and over 97 percent work in a
professional/managerial capacity. These data describe the magazines consumer
a. buying power index.
c. demographic profile.
b. life-style profile.
d. sociographic profile.

D a

68.

Which of the following is NOT a major limitation of demographic data?


a. Poor reliability due to difficulties in measurement
b. Time lags between collection and distribution of data
c. Poor availability of demographic data in less-developed and developing
countries
d. Broad demographic data that can hide opportunities

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Multiple Choice - Applied/Comprehensive/Integrative


E d

69.

Which of these questions could be answered by collecting and analyzing


demographic data?
a. Why do consumers with similar demographic characteristics act so different?
b. How do different motives affect consumer decisions?
c. What are the factors that affect a consumers perceived risk?
d. What geographic areas have the largest population increases of senior
citizens?

D d

70.

An advertising agency has developed a campaign for an exercise machine that


stresses youthfulness, fitness, and health. The campaign is focusing on which of
these concepts?
a. Social performance
c. Social class
b. Reference group influence
d. Culture

D d

71.

Which of these statements about social class is NOT correct?


a. The middle class is known as typical Americans.
b. Each social class may represent a distinct target market.
c. The lower-upper class has the highest income level.
d. The largest social class is the upper-middle.

E c

72.

A person has a position as an executive with a major firm, is active in the


community, and has many friends. These characteristics describe the persons
a. reference group.
c. social performance.
b. social class.
d. family life cycle.

D c

73.

Which statement concerning opinion leaders is NOT correct?


a. They are generally expert about a product category.
b. They are viewed as credible by consumers.
c. They have an impact over a wide range of products.
d. They generally provide information on a face-to-face basis.

D a

74.

An appliance salesperson has learned to focus his or her presentation to the


female head of household in terms of color, freezer location preference (side or
top), and shelf preference (glass or coated wire). In contrast, the salesperson
tends to focus his or her presentation to the male head of the household when
discussing water hookups and payment terms options. The salesperson is
demonstrating which aspect of consumer decision making?
a. Joint decision making
c. Household life cycle
b. Family life cycle
d. Perceived risk

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Chapter 8: Final Consumers

Multiple Choice - Applied/Comprehensive/Integrative


D c

75.

Which lifestyle most closely matches the behavior of inner-directed persons?


a. Me generation
c. Voluntary simplicity
b. Blurring of gender roles
d. Poverty of time

D a

76.

Which of these types of perceived risk is most likely to be high for outer-directed
persons?
a. Social
c. Time
b. Psychological
d. Financial

D a

77.

Which of these statements about perceived risk is correct?


a. A consumers assessment of perceived risk may not necessarily correlate with
the real level of risk.
b. Perceived risk, as judged by consumers, is less important than actual risk to
marketers.
c. Functional perceived risk relates to a products safety.
d. Marketers have little control in reducing consumers perceived risk levels.

Questions 78 and 79 are linked to this scenario: An amateur photographer is especially


interested in the quality of photo processing in terms of trueness of color, sharpness of
image, and absence of scratches on the negative.
D d

78.

What type of perceived risk is most critical to this photographer?


a. Financial perceived risk
c. Psychological perceived risk
b. Social perceived risk
d. Functional perceived risk

D d

79.

Which consumer behavior decision process


photographers purchase process?
a. Routine consumer decision making
b. Limited consumer decision making
c. Low-involvement purchasing
d. High importance of purchase

D d

80.

Which strategy is most appropriate for a retailer that seeks to appeal to the
poverty-of-time lifestyle?
a. Display of working models in each store
b. Overordering inventory to limit stockouts
c. Appeal to male shoppers by using additional male employees
d. Catalog-based sales and home delivery

150

would best

explain the

Chapter 8: Final Consumers

Multiple Choice - Applied/Comprehensive/Integrative


E c

81.

Which lifestyle model suggests that consumer behavior is hard to classify and is
largely situational?
a. The me generation
c. A component lifestyle
b. Blurring gender roles
d. The poverty of time

E c

82.

Which of these is a major limitation of lifestyle analysis?


a. Perceived risk levels cannot be reduced by marketers.
b. Real risk is more important to consumers than perceived risk.
c. Lifestyles are subjective and difficult to measure.
d. The household life cycle has little validity.

E b

83.

In opening his suitcase, a vacationer suddenly realizes that he forgot his razor.
Which stage of the final consumers decision process is the traveler at?
a. Stimulus
c. Information search
b. Problem awareness
d. Purchase

Questions 84, 85, and 86 are linked to this scenario: Bill James, a recent college graduate, is
considering the purchase of a new car.
E c

84.

Bill James has been told by two mechanics that his 9-year-old car requires a new
transmission. Both mechanics also noted that the repair was costly in relation to
the cars value and overall condition. Which stage of the final consumers
decision process is Bill James at?
a. Stimulus
c. Problem awareness
b. Information search
d. Purchase

D b

85.

After searching for a new car, Bill James needs to decide if he would rather
purchase a new car or a dealer demo with 8,000 miles. Bill James is in what
stage of the consumers decision process?
a. Purchase
c. Information search
b. Evaluation of alternatives
d. Cognitive dissonance

D d

86.

After evaluating three models of new cars, Bill decides to drive his car for
another year. The car he really wants to buy costs about $20,000. Bill realizes
that this is too costly for him. At what point in the consumers decision process is
Bill James?
a. Evaluation of alternatives
c. Post-purchase
b. Problem awareness
d. Purchase

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Multiple Choice - Applied/Comprehensive/Integrative


D b

87.

A firm that manufactures energy-saving windows cautions its salespeople to be


realistic in assessing energy savings. It has also prepared a booklet that shows
that potential energy savings are related to such factors as climate, the overall
condition of a home, exposure to wind, and other factors. The firm is attempting
to
a. increase perceived risk.
b. reduce cognitive dissonance.
c. specify criteria in evaluation of alternatives.
d. increase problem awareness.

E a

88.

A college student is looking to buy his first laser computer printer. In the past, he
owned an ink jet printer. The printer represents an important purchase to the
student: it costs about $600, the student plans to use it for the next five years,
and the student plans to use graphics extensively. With what type of decision
making is he likely to be involved?
a. Extended
c. Routine
b. Limited
d. Low-involvement

D a

89.

After spending considerable time in searching for and selecting a camera, a


consumer decided to purchase a compact Olympus model with a zoom lens and
automatic focusing features. The consumer is so satisfied with the camera and
the dealer that she plans to buy the same model as a Christmas present for each
of her sisters. What final consumer decision process is demonstrated in the
consumers gift decision?
a. Routine consumer decision making
b. Limited consumer decision making
c. Extended consumer decision making
d. High-involvement purchasing

D a

90.

Which form of consumer behavior most likely occurs with routine consumer
decision making?
a. Brand loyalty
c. Price bargaining
b. High information search
d. Comparison shopping

True-False - Terminology/Concept
E T

91.

The scope of consumer analysis includes who buys, what they buy, why they buy,
how they buy, when they buy, where they buy, and how often they buy.

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True-False - Terminology/Concept
D F

92.

Generally, the quality of demographic data is better in less-developed and


developing countries than in industrialized countries.

E F

93.

The population of the United States is forecast to grow at 3 percent per year
between 2010 and the year 2020.

E F

94.

In the United States, the majority of residence changes involve moves to a new
region or abroad.

D T

95.

A high degree of urbanization in a country provides marketers with opportunities


for mass distribution.

D F

96.

A common method of measuring the wealth of a country is median personal


income per capita.

D T

97.

The GDP per capita or median personal income measure does not take into
account the purchasing power in a foreign country.

D T

98.

Discretionary income is generally used to measure the ability of a population to


afford a luxury good.

E T

99.

About 60 percent of adult women are currently in the U.S. labor force.

D F

100.

The terms family and household are relatively synonymous.

E T

101.

The majority of households are family households.

E F

102.

The U.S. Bureau of the Census defines Hispanic as a major racial group.

E T

103.

A composite description of a consumer group based upon important


demographics represents a consumer demographic profile.

E T

104.

Demographic data do not consider the psychological or social factors influencing


consumer purchases.

E F

105.

Consumer lifestyle profiles can be determined by compiling demographic data.

E T

106.

Culture, social performance, reference groups, and opinion leadership are all
social aspects of lifestyle.

E T

107.

Inherited wealth characterizes the upper-upper class grouping.

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Chapter 8: Final Consumers

True-False - Terminology/Concept
E F

108.

Opinion leaders generally have an impact over a wide range of products.

D T

109.

The primary importance of opinion leaders to marketers is their high believability,


as compared with commercial cues.

E T

110.

In joint decision making, family members have complementary roles in the


decision making process.

E T

111.

The traditional family life cycle does not include single parent households and
couples who marry but choose not to have children.

D T

112.

The household life cycle corrects many of the deficiencies in the family life cycle.

E F

113.

An outer-directed person is attracted to products that perform well functionally


and that are challenging.

D T

114.

How a product is perceived by ones reference group illustrates the products


social risk.

D T

115.

Of the various lifestyles, the me generation is most concerned with


individuality and self-expression.

D T

116.

The component lifestyle suggests that, for many people, lifestyles may not fit into
clear-cut classifications.

E F

117.

At the information search stage of the final consumers decision process, a


person first recognizes that he or she needs a product or service.

E T

118.

Routine decision making is used when perceived risk is low and time pressure is
high.

D F

119.

Consumers use low-involvement purchasing for goods and services that are
viewed as important.

D T

120.

Brand loyalty is a means of routinizing consumer decision making.

154

Chapter 8: Final Consumers

True-False - Applied/Comprehensive/Integrative
D F

121.

The main difference between final consumers and organizational consumers is


based upon type of good or service purchased.

E T

122.

Lifestyle data such as social class membership and social group influences are
generally less reliable than demographic data.

E T

123.

Because census data are gathered only once every ten years, they must be
supplemented by statistics from such sources as chambers of commerce, public
utilities, and building departments.

D F

124.

The target market for a pharmaceutical manufacturer is people over 75 years old.
The firms marketing strategy should be heavily oriented toward males.

D T

125.

A firm should consider the relative saturation of an area in developing and


implementing its expansion plans.

D F

126.

A consumers real income automatically falls when his or her cost of living rises,
regardless of any increase in earnings.

D F

127.

If the consumer price index goes up by 10 percent and a consumers income rises
by 10 percent, his or her real income increases by 20 percent.

D F

128.

Discretionary income is always higher than disposable income.

D F

129.

The major difference between disposable and discretionary income is that


discretionary income reflects changes in buying power due to the consumer price
index.

D T

130.

The increase in working women in the U.S. labor force has created opportunities
for time-saving appliances, day care centers, and mail-order retailers.

D F

131.

A household is a form of family.

D T

132.

The primary difference between families and households is based upon whether
occupants of a housing unit are related to each other.

D F

133.

Families are growing at a faster rate than households.

D T

134.

In contrast to an evaluation of a population on the basis of a single demographic


attribute, a consumer demographic profile provides a marketer with a better
sense of the target market.

155

Chapter 8: Final Consumers

True-False - Applied/Comprehensive/Integrative
D T

135.

The development of a consumer demographic profile is more useful than


knowledge of a single demographic attribute in the development of a firms
marketing strategy.

D T

136.

Consumer lifestyle analysis enables a company to learn why consumers with


similar demographics act differently.

D T

137.

A person who attains a high level of social performance will be able to move up
the social class system.

D F

138.

Reference group approval is more important to inner-directed than to outerdirected persons.

E T

139.

Unlike the family life cycle, the household life cycle includes both family and
nonfamily households.

E F

140.

Inner-directed persons generally have more social risk than outer-directed


persons.

D T

141.

A persons perceived risk with regard to a product purchase may be reduced as a


result of a positive experience with a particular brand.

D T

142.

The importance of a purchase is generally low in low-involvement purchasing.

D F

143.

Component lifestyle behavior is simpler to categorize than behavior of other


lifestyle groupings.

D F

144.

A consumer can skip steps in the consumer decision process in limited consumer
decision making.

E F

145.

Social and noncommercial cues are less believable than commercial cues.

D F

146.

There are narrow differences in information search among routine, limited, and
extended consumer decision making.

E T

147.

After ranking various brands of compact stereo systems, a person decides to


purchase a $200 Sony system. This behavior would occur during the purchase
stage of the consumers decision process.

D T

148.

The concept of cognitive dissonance suggests marketers should pay attention to


the recent buyer, as well as the prospective buyer, in their communication efforts.

156

Chapter 8: Final Consumers

True-False - Applied/Comprehensive/Integrative
D F

149.

Satisfactory experience with a product can result in consumer decision making


shifting from limited to extended consumer decision making.

D F

150.

High-involvement purchasing could involve routine consumer decision making or


brand loyalty.

151.

a. Identify and discuss several marketing implications regarding the size,


gender, and age of the U.S. population.
b. Identify and discuss several marketing implications regarding the size,
gender, and age trends of the population in a less-developed nation.

152.

Identify and discuss several marketing implications related to the increase in


working women in the United States and other industrialized nations.

153.

Discuss how a car manufacturer could combine demographic and lifestyle


analysis into an integrated consumer profile.

154.

A kitchen renovator has the working class as a target market.


a. Describe the overall characteristics of this group.
b. Outline an effective marketing strategy to appeal to this target market.

155.

a. Show how a financial planning firm can use the traditional family life cycle in
planning a marketing strategy.
b. Outline a marketing strategy for the following groups: newly married, full
nest II, and empty nest I.

156.

a. What appeals/benefits/motives should be stressed to inner-directed persons


considering the purchase of outerwear? Contrast this with appeals to outerdirected persons.
b. What appeals/benefits/motives should be stressed to inner-directed persons
considering the purchase of an exercise machine? Contrast this with appeals
to outer-directed persons.

157.

a. Apply the concept of perceived risk to the purchase of a fine 35mm camera.
Be sure to identify each element of perceived risk.
b. How can a camera manufacturer reduce the level of perceived risk?

Essay

157

Chapter 8: Final Consumers

Essay
158.

Differentiate among these consumer lifestyle concepts: family values, voluntary


simplicity, getting by, me generation, blurring gender roles, and component.
Provide an example of each.

159.

a. Explain the steps in the final consumers decision process for the rental of a
new town house.
b. Under what circumstances would this decision involve extended consumer
decision making? ...limited consumer decision making?

160.

a. What is low-involvement purchasing? How may a firm convert a highinvolvement purchase to a low-involvement one?
b. Brand loyalty can occur for complex items such as computers, as well as for
simple items such as chewing gum. Why?

158

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