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,Name: Class: Date:
Chapter 01: What Is CB and Why Should I Care?
1. In the basic consumption process, the realization of a need creates a want.
a. True
b. False
ANSWER: True
2. Social psychology deals with the intricacies of mental reactions involved in information processing.
a. True
b. False
ANSWER: False
3. Consumption is a value-producing process in which the marketer and the consumer interact to produce
value.
a. True
b. False
ANSWER: True
4. In the context of the ways in which consumers are treated, competition in the marketplace serves to
protect consumers.
a. True
b. False
ANSWER: True
5. The international focus of today's modern company places a greater demand on consumer behavior
(CB) research.
a. True
b. False
ANSWER: True
6. An understanding of consumer behavior (CB) can translate into better public policy for governments.
a. True
b. False
ANSWER: True
7. Qualitative research tools gather data in a highly structured way.
a. True
b. False
ANSWER: False
8. The final step in the basic consumption process, before cycling back to need, is reaction.
a. True
b. False
ANSWER: False
9. In the context of internationalization, companies must deal with geographical distances as well as
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Chapter 01: What Is CB and Why Should I Care?
cultural distances.
a. True
b. False
ANSWER: True
10. Interpretive research better enables researchers to test hypotheses as compared to quantitative
research.
a. True
b. False
ANSWER: False
11. In most of the Western world, notable demographic trends have shaped consumer behavior (CB)
patterns greatly over the past quarter century or so.
a. True
b. False
ANSWER: True
12. Cognitive psychology is helpful in understanding how consumers process information from marketing
communications such as advertisements.
a. True
b. False
ANSWER: True
13. In the context of consumption and consumer behavior, costs involve more than just the monetary
price of the product.
a. True
b. False
ANSWER: True
14. One-to-one marketing is a marketing plan wherein a firm specializes in serving one market segment
with particularly unique demand characteristics.
a. True
b. False
ANSWER: False
15. A consumer's perception of a product determines the success or failure of the product being offered.
a. True
b. False
ANSWER: True
16. Decisions about household budget allocation are not very relevant aspects of consumer behavior
(CB).
a. True
b. False
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Chapter 01: What Is CB and Why Should I Care?
ANSWER: False
17. The phenomenological researcher relies on casual interviews with consumers from whom the
researcher has won confidence and trust.
a. True
b. False
ANSWER: True
18. Relationship marketing is based on the belief that a firm's performance is enhanced through repeat
business.
a. True
b. False
ANSWER: True
19. The Internet has made geographical distance almost a nonissue.
a. True
b. False
ANSWER: True
20. A market orientation represents a much narrower focus than a strategic orientation that focuses more
solely on production.
a. True
b. False
ANSWER: False
21. Unlike qualitative research, quantitative data are not researcher dependent.
a. True
b. False
ANSWER: True
22. In the context of consumer behavior (CB) and marketing strategy, a product is a sum of its attributes.
a. True
b. False
ANSWER: False
23. In the context of firm orientations, mass media and trade organizations are two of the primary
stakeholders of a firm.
a. True
b. False
ANSWER: False
24. Undifferentiated marketers generally adopt a production orientation.
a. True
b. False
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Chapter 01: What Is CB and Why Should I Care?
ANSWER: True
25. Interpretive research seeks to explain the inner meanings associated with specific consumption
experiences.
a. True
b. False
ANSWER: True
26. A part, or tangible feature, of a product that potentially delivers a benefit of consumption is called a
touchpoint.
a. True
b. False
ANSWER: False
27. Consumers usually have negative net worth years into their professional life because of the debt
accumulated in early adulthood.
a. True
b. False
ANSWER: True
28. A market orientation is an orientation wherein innovation is geared primarily toward making the
production process as efficient and economical as possible.
a. True
b. False
ANSWER: False
29. Neuroscience studies suggest that visual appeal increases thinking about a product for both men and
women.
a. True
b. False
ANSWER: False
30. A need is a specific desire that spells out a way a consumer can go about addressing a recognized
want.
a. True
b. False
ANSWER: False
31. Two common interpretative research orientations are big data analytics and predictive analytics.
a. True
b. False
ANSWER: False
32. An economist's focus on consumer behavior (CB) is generally a micro perspective bounded by
specific assumptions.
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Chapter 01: What Is CB and Why Should I Care?
a. True
b. False
ANSWER: False
33. The resource-advantage theory primarily explains the manner in which human resources must be
managed in a company.
a. True
b. False
ANSWER: False
34. Learning about the effect of the environment on consumer behavior (CB) can help consumers apply
that knowledge by making better consumer decisions.
a. True
b. False
ANSWER: True
35. One demographic trend that has shaped consumer behavior (CB) patterns is the increasing family size
throughout most of Western culture.
a. True
b. False
ANSWER: False
36. Which of the following is a part, or tangible feature, of a product that potentially delivers a benefit of
consumption?
a. Benefit
b. Facet
c. Touchpoint
d. Attribute
ANSWER: d
37. FaveMart, a discount chain store, offers the same basic products in all its stores. It has a state-of-the-
art distribution network, and it ships massive quantities of products to its stores around the world. Due to
large quantities, the shipping is very economical, and the store is able to offer lower prices than
competing retailers. FaveMart follows what type of orientation approach for innovation?
a. Market
b. Monopolistic
c. Production
d. Customer
ANSWER: c
38. A consumer research study conducted by Visual Effects Inc. analyzed central tendencies such as age,
income, and the stage of family life cycle to predict the likelihood of consumers purchasing a 3-D
television. Data were collected from 3,000 consumers using a structured questionnaire. Which type of
research does the given scenario represent?
a. Qualitative
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Chapter 01: What Is CB and Why Should I Care?
b. Ethnographic
c. Quantitative
d. Phenomenological
ANSWER: c
39. A consumer to consumer (peer to peer) rental transaction activity is often referred to as what type of
consumption?
a. Multiple
b. Social
c. Productive
d. Collaborative
ANSWER: d
40. Clark, a college student, was hired by a consumer research firm to help a pizza joint learn more about
a consumer segment comprising college students. His job entailed observing what factors influenced
students to decide when to order pizza and where to order it from. Clark learned from his observations
that most students liked Italian dips with their pizza. This led the pizza joint to advertise and offer free
Italian dips with all its orders. Which of the following research techniques did the pizza joint use in the
given scenario?
a. Ethnography
b. Phenomenology
c. Quantitative research
d. Predictive analytics
ANSWER: a
41. In the context of consumer behavior (CB) and marketing strategy, which of the following is true of
niche marketers?
a. They are exclusively consumer oriented.
b. They can be product oriented.
c. They treat all consumer segments the same.
d. They have a minimal need for consumer research.
ANSWER: b
42. Megan is excited about her upcoming high school prom. Although she has many dresses, she decides
to go shopping for a new one. In this scenario, the dress is an example of which step in the basic
consumption process?
a. Necessity
b. Touchpoint
c. Want
d. Reaction
ANSWER: c
43. PCPersonal Inc. sold more than 7 million tablet computers within months of launching the product.
The price of this product ranged from $499 to more than $800. Despite the high price, PCPersonal Inc.
had difficulty keeping up with the demand. In the given scenario, the benefits of the product most likely
outweigh its _____.
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Chapter 01: What Is CB and Why Should I Care?
a. sales
b. necessity
c. demand
d. cost
ANSWER: d
44. In the context of the basic consumption process, which of the following statements is true?
a. The physical efforts spent in acquiring a product enhance the perceived self-esteem of a
consumer.
b. Costs are the negative results of consumption experiences.
c. Browsing the web store and a visit to the retail store do not produce benefits.
d. Vanity and the enhancement of perceived self-esteem are considered costs.
ANSWER: b
45. Which of the following is true of the demographic trends throughout most of Western culture?
a. Households increasingly have one primary income provider.
b. Family size is increasing throughout most of Western culture.
c. European families are averaging less than one child per family.
d. Modern families consist of the stereotypical stay-at-home mom.
ANSWER: c
46. In undifferentiated marketing, _____.
a. a market orientation is adopted
b. a stakeholder orientation is adopted
c. the emphasis is on matching a product with a segment
d. the same basic product is offered to all customers
ANSWER: d
47. In the context of marketing strategy, differentiated marketers _____.
a. minimize the need for consumer research
b. adopt a production orientation
c. focus on the mass production of products
d. want to match a product with a segment
ANSWER: d
48. Malik Johnson is engaged in research that seeks to explain the inner meanings and motivations
associated with customers' purchase of clothing. He records customers' words and observes their
interactions as they shop. Through his observations, he develops an understanding of what motivates
shoppers. Which of the following types of research is Malik conducting?
a. Quantitative research
b. Predictive analytics
c. Quasi-experimental analytics
d. Interpretive research
ANSWER: d
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Chapter 01: What Is CB and Why Should I Care?
49. Which of the following is a characteristic of niche marketing?
a. It offers a unique product to each individual customer.
b. It emphasizes serving customers while incurring minimum costs.
c. It serves multiple market segments and gives the same treatment to all the consumers.
d. It serves one market segment with particularly unique demand characteristics.
ANSWER: d
50. In the context of consumer behavior (CB), the interactions between customers and the wait staff of a
restaurant are called _____.
a. attributes
b. liabilities
c. process nodes
d. touchpoints
ANSWER: d
51. In the context of technological change, which of the following statements is true?
a. Email is the least tracked source of data analytics among marketers.
b. The massive amounts of data available to companies cannot be used for predictive analytics.
c. The data provided by a product may be more valuable to a company than the revenue it
generates.
d. Big data does not include data from social network interactions and things like GPS tracking.
ANSWER: c
52. A market orientation _____.
a. focuses exclusively on providing consumer value to remain ahead in a market
b. focuses on eliminating all competition from a market and establishing market monopoly
c. stresses the need to monitor and understand competitor actions in the marketplace
d. stresses the need to prioritize the profitability of a company over consumer value
ANSWER: c
53. Kim Mathews, a retired school teacher, recently relocated to her old neighborhood. To her dismay,
she learned that the trash collection company in the area charged almost double the price compared to the
companies in other areas. She complained to the company manager but was rudely told that she had to
either pay the fee or dispose the trash on her own. Kim had no other option but to pay the fee. The most
likely reason the company had such poor customer service is that it _____.
a. was dependent on consumers' repeat business
b. did not have competitors providing the same service
c. did not want to serve retired individuals
d. served only high-income households
ANSWER: b
54. Pure & Natural Inc. sells six different brands of laundry detergent. The products under different
brands are tailored to meet the requirements of different market segments. Which of the following
marketing strategies does Pure & Natural Inc. follow?
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