Test Bank For CB 8th Edition Barry J Babin Eric Harris
Test Bank For CB 8th Edition Barry J Babin Eric Harris
Test Bank For CB 8th Edition Barry J Babin Eric Harris
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
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
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
25. Interpretive research seeks to explain the inner meanings associated with specific consumption experiences.
a. True
b. False
ANSWER: True
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 when consumers think about enjoying some of their favorite foods, their brains are
comparatively less active than when they actually eat the food.
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.
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.
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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. A(n) _____ 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 of 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 a _____ approach
for innovation.
a. market orientation
b. monopolistic orientation
c. production orientation
d. customer orientation
ANSWER: c
38. A consumer research study conducted by Visual Effects Inc. analyzed factors such as age, income, and the stage of
family life cycle to predict the likelihood of consumers purchasing a 3-D television. Data was collected from 3,000
consumers using a structured questionnaire. Which type of research does the given scenario represent?
a. Qualitative research
b. Ethnographic research
c. Quantitative research
d. Phenomenological research
ANSWER: c
39. A consumer to consumer (peer to peer) rental transaction activity is often referred to as _____.
a. multiopsonistic consumption
b. social consumption
c. productive consumption
d. collaborative consumption
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
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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 a _____ 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 _____.
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 are considered benefits.
d. Vanity and the enhancement of perceived self-esteem are considered costs.
ANSWER: b
45. Which of the following is true of the demographics 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.
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ANSWER: c
48. Kayla Smith is engaged in research that seeks to explain the inner meanings and motivations associated with
customers' purchase of clothing. She records customers' words and observes their interactions as they shop. Through her
observations, she develops an understanding of what motivates shoppers. Which of the following types of research is
Kayla conducting?
a. Quantitative research
b. Predictive analytics
c. Quasi-experimental analytics
d. Interpretive research
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. Email is the most widely tracked source of data analytics among marketers.
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d. Big data does not include data from social network interactions and things like GPS tracking.
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?
a. Relationship marketing
b. Production-oriented marketing
c. Differentiated marketing
d. Undifferentiated marketing
ANSWER: c
55. The results of qualitative research are said to be researcher dependent because:
a. they require an examination of the relationships among many variables using multivariate statistical analysis.
b. the results allow a numerical representation of consumers' attitudes and require interpretation by the
researcher.
c. the measurements are structured, meaning that the consumer will choose a response from among alternatives
supplied by the researcher.
d. the interpretation of the results is a matter of the researcher's opinion until corroborated by other findings.
ANSWER: d
58. Berne Retail plans to introduce new private-label brands for beverages. The marketing team will undertake a survey to
obtain feedback on these brands through a test marketing exercise. The data collected in this research study will be
collated in terms of frequency of purchase and subjected to statistical analysis to determine the brands that have the
potential to earn the most. The best-performing new brands will be then chosen for a full-scale rollout. This scenario is an
example of _____.
a. psychographic research
b. demographic research
c. quantitative research
d. geodemographic research
ANSWER: c
59. Which of the following is an example of the kind of information that is included in big data?
a. Focus group interviews
b. Case analyses
c. Survey responses
d. Clinical interviews
ANSWER: c
60. In the context of the changing economy, which of the following statements is true?
a. Economic, political, and social turmoil around the world has made consumers less cautious about spending
money.
b. Mature workers are not apt to retire even with the decreased opportunity to work at an acceptable wage.
c. Many college students are deciding to stay in school longer, given limited prospects in the workforce.
d. Family size is increasing throughout most of Western culture with European families averaging three children
per family.
ANSWER: c
62. When trying to understand the importance of consumer service, organizations must consider two important aspects,
the competitiveness of the marketing environment and the:
a. income level of customers.
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64. _____ addresses questions about consumer behavior (CB) using numerical measurement and analysis tools.
a. Quantitative research
b. Ethnographic research
c. Qualitative research
d. Interpretive research
ANSWER: a
65. Some marketers offer each individual customer a different product, so each customer is essentially treated as a single
market segment. Which of the following marketing plans does this represent?
a. One-to-one marketing
b. Niche marketing
c. Transactional Marketing
d. Close Range Marketing
ANSWER: a
67. The term _____ is used to capture the market activity involving temporary usage for hire (rentals) as a replacement for
traditional ownership.
a. sharing economy
b. personal economy
c. borrowing economy
d. fluctuating economy
ANSWER: a
b. Companies hire more people and raise income levels throughout the economy.
c. Companies incur losses and consequently need to downsize their operations.
d. Companies find it impossible to meet the consumers' demands.
ANSWER: b
69. One of the differences between interpretive and quantitative research is that unlike interpretive research, quantitative
research:
a. is researcher dependent.
b. better enables researchers to test hypotheses.
c. is not likely to stand on its own and requires deep interpretation.
d. does not support a numerical representation of consumers' attitudes.
ANSWER: b
70. Marie is a psychologist who studies consumer behavior (CB). She specializes in the mental reactions involved in
consumer information processing, such as how advertisements persuade consumers to buy a product. In this scenario,
Marie is practicing in the field of _____.
a. forensic psychology
b. quantitative psychology
c. cognitive psychology
d. social psychology
ANSWER: c
71. Theodore Levitt, one of the most famous marketing researchers, emphasized the importance of:
a. the value received by a customer from a product.
b. the tangible features of a product as observed by a customer.
c. the profits from the sale of a product.
d. the features of a product.
ANSWER: a
72. Which of the following types of research includes tools such as case analyses, clinical interviews, focus group
interviews, and other tools in which data are gathered in a relatively unstructured way?
a. Quantitative research
b. Qualitative research
c. Statistical research
d. Quasi-experimental research
ANSWER: b
73. _____ serve multiple market segments, each with a unique product offering.
a. Regional marketers
b. Mass marketers
c. Undifferentiated marketers
d. Differentiated marketers
ANSWER: d
75. In the context of stakeholder marketing, which of the following entities are secondary stakeholders?
a. Suppliers
b. Employees
c. Mass media
d. Regulating agencies
ANSWER: c
76. In the context of technological changes and internationalization, which of the following statements is true?
a. E-commerce accounts for more than one-third of total U.S. retailing as of 2016.
b. Despite internet, geographical distance is a hurdle to the e-commerce.
c. Consumers all over the world are bound by the store hours.
d. The entire world is now truly the market for consumers in free countries.
ANSWER: d
77. Obtaining resources from consumers in return for the value they create is a basic tenet of the _____, which is a theory
that explains why companies succeed or fail.
a. cognitive resource theory
b. resource-advantage theory
c. resource dependence theory
d. need-hierarchy theory
ANSWER: b
79. According to research which of the following is true of consumer behavior (CB)?
a. Consumers often express a more favorable attitude for a product promoted with an "amount off" discount.
b. Consumers often express a more favorable attitude for a product promoted with "percentage off" discount.
c. Consumers do not pay attention to relative advantage while trying out a new product in the market.
d. Consumers are less likely to adopt things that do not transcend existing values and knowledge.
ANSWER: a
81. In the context of consumer behavior (CB), researchers derive meaning from talking to people and observing their
behavior rather than analyzing data in _____.
a. quantitative research
b. interpretive research
c. predictive analytics
d. prescriptive analytics
ANSWER: b
82. Which of the following statements is true of the stakeholder marketing orientation?
a. Firms with this type of orientation recognize that more than just the buyer and seller are involved in the
marketing process.
b. It is a way of doing business in which the actions and decision making of the institution prioritize consumer
value and satisfaction above all other concerns.
c. It stresses solely on the need to monitor and understand competitor actions and to communicate this
information throughout the organization.
d. Firms with this type of orientation innovate primarily to make the production process as efficient and
economical as possible.
ANSWER: a
85. In the context of stakeholder marketing, which of the following entities are primary stakeholders?
a. Communities
b. Mass media
c. Trade organizations
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d. Regulating agencies
ANSWER: d
86. _____ represents the process by which consumers use goods, services, or ideas and transform the experience into
value.
a. Consumption
b. Cost conversion
c. Benefits conversion
d. Expenditure
ANSWER: a
87. TuckIn, a restaurant chain, has hired a market research company to help it better understand its customers and their
preferences. The restaurant chain has several competitors and has experienced a decline in sales in the past few years. The
survey researchers pretended to be customers and observed the interactions of the customers with each other and with the
employees of the restaurant. The researchers noted that several customers returned orders because they did not like the
food. In this scenario, which of the following is most likely to be true of the research company's approach to consumer
research?
a. The research does not provide useful information to the restaurant.
b. The results are objective.
c. The results are researcher dependent.
d. It is not an acceptable approach for understanding consumer behavior.
ANSWER: c
88. Dana and John are planning to furnish their new home. They want to purchase reasonably-priced and good-quality
furniture. To make a well-informed decision, they browse the Internet, read home décor magazines, and visit furniture
stores to explore the available options. Their efforts are an example of a _____ associated with the consumption process.
a. benefit
b. cost
c. value
d. touchpoint
ANSWER: b
90. _____ consists of the multitude of value-producing seller activities that facilitate exchanges between buyers and
sellers.
a. Operations management
b. Leasing
c. Resource planning
d. Marketing
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ANSWER: d
91. How does a company with a consumer orientation differ from a company with a stakeholder orientation?
ANSWER: Answers will vary. Consumer (customer) orientation is a way of doing business in which the actions and
decision making of the institution prioritize consumer value and satisfaction above all other concerns. A
consumer orientation is a key component of a firm with a market-oriented culture.However, an even broader
orientation comes when firms adapt stakeholder marketing. Under this orientation, firms recognize that more
than just the buyer and seller are involved in the marketing process. In fact, primary stakeholders include
customers, employees, owners (or shareholders), suppliers, and regulating agencies; secondary stakeholders
include the mass media, communities and trade organizations. Stakeholder marketing orientation recognizes
that all stakeholders are involved in and/or are affected by the firm's marketing in some way.
92. List a few topics that can be particularly helpful in enlightening consumers about consumer behavior (CB).
ANSWER: Answers will vary. When consumers learn CB, they can apply that knowledge by making better consumer
decisions. Several topics can be particularly helpful in enlightening consumers, including the following:
93. Briefly explain why internationalization places a greater demand on consumer behavior (CB) research.
ANSWER: Answers will vary. The international focus of today's modern company places a greater demand on CB
research. Every culture's people will interpret products and behaviors differently. The meanings these
consumers perceive will determine the success or failure of the product being offered. Although many
restaurant chains can be found worldwide, consumers are not alike everywhere these firms operate. An
Outback Steakhouse in Seoul will offer kimchi (fermented cabbage) on the menu, something neither
American nor Australian. Companies must deal with geographical distances as well as cultural distances.
94. Discuss the relevance of social psychology and cognitive psychology to the study of consumer behavior (CB).
ANSWER: Answers will vary. Psychology is the study of human reactions to their environment. Psychology itself
consists of several subdisciplines. Social psychology and cognitive psychology, in particular, are highly
relevant to CB.Social psychology focuses on the thoughts, feelings, and behaviors that people have as they
interact with other people (group behavior). Consumer behavior most often takes place in some type of social
setting or sometimes with the specific intention of affecting the way others view the self. Thus, social
psychology and CB overlap significantly.Cognitive psychology deals with the intricacies of mental reactions
involved in information processing. Every time a consumer evaluates a product, sees an advertisement, or
reacts to product consumption, information is processed. Thus, cognitive psychology is also very relevant to
CB.
little sign of the growth slowing. There are various reasons for the trend away from ownership although
clearly one big motivator is convenience.
97. Explain why consumers get treated differently in different types of exchange environments.
ANSWER: Answers will vary. The answers to the following two questions will help explain why consumers get treated
differently in different types of exchange environments.
Is there any concern about doing something that would make a customer not want to return to do
business again?
Is there any real incentive to provide a pleasant and valuable experience?
For an organization operating in a market with practically no competitive pressure and a captive audience,
the answers to the two questions above are (1) not at all competitive and (2) not at all dependent on keeping
customers. No matter how poor the service is, they know consumers will return to do more business. The
incentive for better customer service remains relatively small.In a highly competitive market, consumers do
not have to put up with poor treatment from a firm. They can simply go next door. Thus, firms in a highly
competitive market are oriented toward value creation, and consumers typically receive better treatment.