Advertising Promotion and Other Aspects of Integrated Marketing Communications 8th Edition Terence A. Shimp – Test Bank

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Advertising Promotion and Other Aspects of Integrated Marketing Communications 8th Edition Terence A. Shimp – Test Bank

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Chapter 2—Marketing Communications Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable

 

TRUE/FALSE

 

1. A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or groups of sellers and to differentiate them from those of competition.

 

ANS:  T                    PTS:   1

 

2. All organizations and their products can be considered brands.

 

ANS:  T                    PTS:   1

 

3. The concept of brand equity is considered only from the perspective of the customer.

 

ANS:  F                    PTS:   1

 

4. Brand equity occurs when the consumer considers two competing brands to be similar.

 

ANS:  F                    PTS:   1

 

5. A firm-based viewpoint of brand equity focuses on outcomes extending from efforts to enhance a brand’s value to is various stakeholders.

 

ANS:  T                    PTS:   1

 

6. Revenue premium is defined as the revenue differential between a branded item and a corresponding private labeled brand.

 

ANS:  T                    PTS:   1

 

7. Many private-label products possess levels of quality that are equivalent to manufacturers’ national brands.

 

ANS:  T                    PTS:   1

 

8. From the perspective of the customer, brand preference is the basic dimension of brand equity.

 

ANS:  F                    PTS:   1

 

9. Brand equity from the customer’s perspective consists of two forms of brand-related knowledge: brand awareness and brand image.

 

ANS:  T                    PTS:   1

 

10. Brand image is an issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked.

 

ANS:  F                    PTS:   1

 

11. A brand has no equity if consumers are unfamiliar with it.

 

ANS:  T                    PTS:   1

 

12. Brand recall reflects a relatively superficial level of awareness, whereas brand recognition indicates a deeper form of awareness.

 

ANS:  F                    PTS:   1

 

13. The marcom imperative is to move brands from a state of unawareness, to recognition, on to recall, and ultimately to top-of-mind awareness (TOMA).

 

ANS:  T                    PTS:   1

 

14. Brand image can be thought of in terms of the types of associations that come to the customer’s or consumer’s mind when contemplating a particular brand.

 

ANS:  T                    PTS:   1

 

15. Brand associations can be conceptualized in terms of type, favorability, strength, and uniqueness.

 

ANS:  T                    PTS:   1

 

16. Research has identified ten personality dimensions that describe most brands.

 

ANS:  F                    PTS:   1

 

17. Brands scoring high on the sincerity dimension are considered reliable, intelligent, and successful.

 

ANS:  F                    PTS:   1

 

18. The objective of marketing communication is to deemphasize brand equity.

 

ANS:  F                    PTS:   1

 

19. By trying and using brands, consumers learn how good (or bad) they are and what benefits they are (in)capable of delivering, which is known as the leveraging approach to enhancing brand equity.

 

ANS:  F                    PTS:   1

 

20. Marketing communicators draw meaning form the culturally constituted world and transfer that meaning to consumer goods.

 

ANS:  T                    PTS:   1

 

21. A brand can leverage associations by connecting itself with other brands, places, things, and people.

 

ANS:  T                    PTS:   1

 

22. Co-branding occurs when two or more brands enter into a partnership that potentially serves to enhance both brands’ equity and profitability.

 

ANS:  T                    PTS:   1

 

23. A potential downside for the host brand with respect to ingredient branding is that the equity of the ingredient brand might be so great that it overshadows the host brand.

 

ANS:  T                    PTS:   1

 

24. One major by-product of efforts to increase a brand’s equity is that consumer brand loyalty might also increase, which in turn, could positively influence long-term growth and profitability.

 

ANS:  T                    PTS:   1

 

25. The EquiTrend survey asks respondents to rate a number of brands in terms of two dimensions: quality and salience.

 

ANS:  T                    PTS:   1

 

26. Successful brands employ just one or two marcom tools in order to satisfy the brand’s positioning strategy.

 

ANS:  F                    PTS:   1

 

27. One trait shared by the world’s strongest brands is that the company monitors sources of brand equity through ongoing brand audits or tracking studies.

 

ANS:  T                    PTS:   1

 

28. Enhancing brand equity is a means of moving customers to favorable action toward the brand.

 

ANS:  T                    PTS:   1

 

29. The vast majority of marketing executives and marketing academics are against gauging the effect of marcom efforts in terms of the return on marketing investment, or ROMI, because it is almost impossible to measure.

 

ANS:  F                    PTS:   1

 

30. Measuring marcom effectiveness is relatively simple, and most organizations are currently doing a sophisticated job of doing so.

 

ANS:  F                    PTS:   1

 

31. One difficulty with measuring marcom effectiveness is the identification of an appropriate measure, or metric, of effectiveness.

 

ANS:  T                    PTS:   1

 

32. Whatever the measure chosen, any effort to meaningfully assess marcom performance requires having data that are reliable and valid.

 

ANS:  T                    PTS:   1

 

33. A technique called promotion-mix modeling is increasingly being used to determine the relative effect each marcom program element has on sales volume compared to the effects of other elements.

 

ANS:  F                    PTS:   1

 

34. Marketing-mix modeling employs multivariate regression analysis to estimate the effects that the various advertising and promotion elements have in driving sales volume.

 

ANS:  T                    PTS:   1

 

35. To employ marketing-mix modeling, a relatively long series of longitudinal data (i.e., two-year period) is required.

 

ANS:  T                    PTS:   1

 

MULTIPLE CHOICE

 

1. A ____ is a name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers to differentiate them from those of competition.

a.	trademark
b.	market
c.	tradename
d.	brand
e.	guarantee

 

 

ANS:  D                    PTS:   1

 

2. A ____ is everything that one company’s particular offering stands for in comparison to competitors’ offerings.

a.	trademark
b.	logo
c.	symbol
d.	brand
e.	sign

 

 

ANS:  D                    PTS:   1

 

3. The concept of brand equity is considered from which perspective?

a.	from the perspective of the organization that owns the brand
b.	from the vantage point of the customer
c.	from the perspective of the other brands in the product category
d.	a and b
e.	a, b, and c

 

 

ANS:  D                    PTS:   1

 

4. From the perspective of the firm that owns the brand, which of the following is a positive outcome of increased brand equity?

a.	higher market share
b.	increased brand loyalty
c.	ability to charge premium prices
d.	earning a revenue premium
e.	all of the above

 

 

ANS:  E                    PTS:   1

 

5. As a brand’s equity increases, its elasticity of demand ____.

a.	becomes less elastic
b.	becomes more elastic
c.	becomes less inelastic
d.	remains constant
e.	increases

 

 

ANS:  A                    PTS:   1

 

6. The revenue differential between a branded item and a corresponding private labeled item is known as ____.

a.	market premium
b.	price premium
c.	revenue premium
d.	profit premium
e.	equity premium

 

 

ANS:  C                    PTS:   1

 

7. Tide laundry detergent is a well known brand that sells for approximately $8.00 for a 64 ounce bottle, and Procter & Gamble usually sells 2 million of these sizes each year. An average private label store brand costs $6.00 for the same size, and typically 1 million are sold each year. What is Tide’s revenue premium?

a.	$2.00
b.	$1 million
c.	$6 million
d.	$10 million
e.	$16 million

 

 

ANS:  D                    PTS:   1

 

8. A research study involving McDonald’s products discovered a new form of firm-based brand equity that has been labeled ____ brand equity.

a.	name-recognition
b.	taste-premium
c.	market-share
d.	revenue-premium
e.	price-premium

 

 

ANS:  B                    PTS:   1

 

9. From the perspective of the customer or consumer, ____ is the extent to which they are familiar with the brand and have stored in their memory favorable, strong, and unique brand associations.

a.	brand awareness
b.	brand image
c.	brand preference
d.	brand equity
e.	brand effectiveness

 

 

ANS:  D                    PTS:   1

 

10. Brand equity from the customer’s perspective consists of ____.

a.	brand awareness and brand image
b.	brand awareness and brand preference
c.	brand image and brand insistence
d.	brand image and brand tolerance
e.	brand awareness and brand tolerance

 

 

ANS:  A                    PTS:   1

 

11. ____ refers to the extent to which a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked.

a.	Brand image
b.	Brand awareness
c.	Brand loyalty
d.	Brand preference
e.	Brand knowledge

 

 

ANS:  B                    PTS:   1

 

12. The basic dimension of brand equity is ____.

a.	brand image
b.	brand preference
c.	brand tolerance
d.	brand insistence
e.	brand awareness

 

 

ANS:  E                    PTS:   1

 

13. What is the initial challenge for new brands?

a.	achieving brand awareness
b.	enhancing brand image
c.	achieving brand preference
d.	achieving brand insistence
e.	building revenue premium

 

 

ANS:  A                    PTS:   1

 

14. Brand ____ reflects a relatively superficial level of awareness, whereas brand ____ indicates a deeper form of awareness.

a.	image; equity
b.	equity; image
c.	recognition; recall
d.	recall; recognition
e.	associations; image

 

 

ANS:  C                    PTS:   1

 

15. Bill is given a list of brands of shaving products by a researcher and is asked to mark all those that he is aware of. Which level of awareness is this assessing?

a.	recall
b.	recognition
c.	aided recall
d.	unaided recall
e.	positive awareness

 

 

ANS:  B                    PTS:   1

 

16. Maria is asked by a market researcher to list all the brands of toothpaste she can think of. Which type of awareness is this assessing?

a.	recall
b.	recognition
c.	positive awareness
d.	free-association awareness
e.	aided recognition

 

 

ANS:  A                    PTS:   1

 

17. The pinnacle of brand-name awareness that exists when your company’s brand is the first brand that consumers recall when thinking about brands in a particular product category is known as ____.

a.	top-of-category awareness (TOCA)
b.	recognition
c.	tip-of-the-tongue awareness (TOTA)
d.	top-of-mind awareness (TOMA)
e.	top-of-class awareness (TOCA)

 

 

ANS:  D                    PTS:   1

 

18. Which of the following statements is true regarding brand awareness?

a.	Only consumer-oriented (B2C) firms must be concerned with building brand awareness.
b.	Most consumers are able to retrieve a brand name from memory without any reminders.
c.	There are two levels of brand awareness: primary and secondary.
d.	Brand recall reflects a relatively superficial level of awareness, whereas brand recognition indicates a deeper form of awareness.
e.	Although building brand awareness is a necessary step toward brand equity enhancement, it is insufficient.

 

 

ANS:  E                    PTS:   1

 

19. The types of associations that come to the consumer’s mind when contemplating a particular brand is known as ____.

a.	brand image
b.	brand equity
c.	brand awareness
d.	brand cognitions
e.	brand parity

 

 

ANS:  A                    PTS:   1

 

20. Maria is asked by a market researcher to tell him the particular thoughts and feelings she has about Starbuck’s coffee. A particular thought or feeling that comes to Maria’s mind is known as a(n) ____.

a.	brand dimension
b.	cognition
c.	brand link
d.	association
e.	think-feel linkage

 

 

ANS:  D                    PTS:   1

 

21. Brand associations can be conceptualized in terms of ____.

a.	type
b.	favorability
c.	strength
d.	uniqueness
e.	all of the above

 

 

ANS:  E                    PTS:   1

 

22. Research has identified ____ dimensions that seem to capture the personalities of a variety of consumer brands.

a.	four
b.	five
c.	six
d.	seven
e.	eight

 

 

ANS:  B                    PTS:   1

 

23. Which of the following is NOT a personality dimension that describes most brands?

a.	sincerity
b.	excitement
c.	competence
d.	innocence
e.	ruggedness

 

 

ANS:  B                    PTS:   1

 

24. This dimension includes brands that are down-to-earth, honest, wholesome, and cheerful.

a.	excitement
b.	sophistication
c.	competence
d.	sincerity
e.	ruggedness

 

 

ANS:  D                    PTS:   1

 

25. Toyota automobiles are regarded by consumers as reliable, intelligent, and successful. The levels of satisfaction of Toyota owners is at or near the top of satisfaction ratings. Which brand-related personality dimension best describes Toyota?

a.	excitement
b.	competence
c.	sophistication
d.	ruggedness
e.	innocence

 

 

ANS:  B                    PTS:   1

 

26. Luxury items, such as Rolex watches, generally score high on which brand-related personality dimension?

a.	Sincerity
b.	Excitement
c.	Competence
d.	Sophistication
e.	Ruggedness

 

 

ANS:  D                    PTS:   1

 

27. Which personality dimension has General Motors attempted to create for its repair services through its hypothetical “Mr. Goodwrench,” who represents the name and “face” of the trained technicians who work in thousands of GM dealerships?

a.	sincerity
b.	excitement
c.	competence
d.	sophistication
e.	ruggedness

 

 

ANS:  A                    PTS:   1

 

28. What is necessary to create favorable, strong, and unique associations about a brand?

a.	heavy mass media advertising
b.	co-branding
c.	sustained marketing communications
d.	ingredient-branding
e.	brand preference

 

 

ANS:  C                    PTS:   1

 

29. Which of the following is NOT an approach by which brand equity is enhanced?

a.	brand awareness approach
b.	speak-for-itself approach
c.	message-driven approach
d.	leveraging approach
e.	all of the above are approaches by which brand equity is enhanced

 

 

ANS:  A                    PTS:   1

 

30. Consumers learn how good (or bad) a brand is and what benefits it is (in)capable to delivering by trying and using a brand. Which approach to enhancing brand equity is this known as?

a.	message-driven approach
b.	leveraging approach
c.	trial-and-error approach
d.	speak-for-itself approach
e.	initial approach

 

 

ANS:  D                    PTS:   1

 

31. In which approach to enhancing brand equity do marcom practitioners attempt to build advantageous associations through creative, attention getting, and believable messages?

a.	speak-for-itself approach
b.	message-driven approach
c.	leveraging approach
d.	shotgun approach
e.	cast-a-wide-net approach

 

 

ANS:  B                    PTS:   1

 

32. Brand associations can be shaped and equity enhanced through marketing communications that associate the brand with people, places, and “things” that are available to consumers. This approach is known as the ____.

a.	speak-for-itself approach
b.	message-driven approach
c.	leveraging approach
d.	culturally constituted approach
e.	meaning transfer approach

 

 

ANS:  C                    PTS:   1

 

33. People learn cultural values, form beliefs, and become familiar with the physical manifestations, or artifacts, of these values and beliefs through ____.

a.	marcom
b.	media exposure
c.	socialization
d.	brand awareness
e.	active synthesis

 

 

ANS:  C                    PTS:   1

 

34. When a marketing communicator connects a consumer good with a representation of the culturally constituted world, s/he is engaging in ____.

a.	lifestyle marketing
b.	sales promotion
c.	socialization
d.	point-of-purchase advertising
e.	meaning transfer

 

 

ANS:  E                    PTS:   1

 

35. Marketing communicators ____ meaning and create associations for their brands by connecting them with other objects that already possess well-known meaning.

a.	promote
b.	locate
c.	leverage
d.	advertise
e.	obtain

 

 

ANS:  C                    PTS:   1

 

36. Which marcom tool is an especially important instrument of meaning transfer?

a.	sales promotion
b.	personal selling
c.	advertising
d.	public relations
e.	frequency programs

 

 

ANS:  C                    PTS:   1

 

37. Lee Michaels is a national chain jewelry store found in many malls across the U.S. Laurie went in to look at the watches, but she was unfamiliar with some of the brands. The salesperson told her that they were all Swiss-made, meaning they were made in Switzerland, which is known worldwide for the quality of the timepieces produced there. From which source are these brands leveraging their brand meaning?

a.	other brands
b.	people
c.	places
d.	things
e.	names

 

 

ANS:  C                    PTS:   1

 

38. Which of the following is a source by which brand meaning can be leveraged?

a.	other brands
b.	places
c.	things
d.	people
e.	all of the above

 

 

ANS:  E                    PTS:   1

 

39. When two or more brands enter into a partnership that potentially serves to enhance both brands’ equity and profitability, ____ has occurred.

a.	cross-branding
b.	a branding alliance
c.	multi-branding
d.	family-branding
e.	house-branding

 

 

ANS:  B                    PTS:   1

 

40. Kellogg’s, a cereal manufacturer, and Disney and Pixar have partnered in brands of cereal targeted to children that are named after their movies, such as Finding Nemo and The Incredibles. What is this alliance known as?

a.	cross-branding
b.	ingredient branding
c.	family-branding
d.	branding
e.	multi-branding

 

 

ANS:  D                    PTS:   1

 

41. The most important requirement for co-branding is that ____.

a.	there is a logical fit between the two brands
b.	the two brands are similar in price
c.	the two products are not directly competing against each other
d.	the two products have the same target market
e.	the two products are manufactured by the same firm

 

 

ANS:  A                    PTS:   1

 

42. An example of ____ is the sticker on a Dell computer that says “Intel Inside.”

a.	cross-branding
b.	multi-branding
c.	reference branding
d.	ingredient branding
e.	planned branding

 

 

ANS:  D                    PTS:   1

 

43. The EquiTrend survey asks respondents to rate a number of brands in terms of which two dimensions?

a.	quality and preference
b.	awareness and image
c.	quality and salience
d.	image and quality
e.	image and preference

 

 

ANS:  C                    PTS:   1

 

44. Creating and increasing brand loyalty results in a corresponding increase in the value of the ____.

a.	firm
b.	target market
c.	product position
d.	market share
e.	trustmark

 

 

ANS:  E                    PTS:   1

 

45. Which of the following is NOT a trait shared by the world’s strongest brands?

a.	The brand excels at delivering the benefits customers truly desire.
b.	The brand stays relevant.
c.	The pricing system is based on consumers’ perceptions of value.
d.	The brand relies on mass media advertising to satisfy the brand’s positioning strategy.
e.	The brand portfolio and hierarchy make sense.

 

 

ANS:  D                    PTS:   1

 

46. One trait shared by the world’s strongest brands is that the brand’s managers understand what the brand means to ____.

a.	the news media
b.	competitors
c.	customers
d.	them
e.	stock analysts

 

 

ANS:  C                    PTS:   1

 

47. The objective of marketing communications is to enhance brand equity as a means of ____.

a.	defining the marketing mix
b.	moving customers to favorable action toward the brand
c.	increasing short-term sales
d.	reducing the advertising budget
e.	reducing the promotional budget

 

 

ANS:  B                    PTS:   1

 

48. From the marketer’s standpoint, marcom’s objective is to ultimately affect ____.

a.	brand equity
b.	brand awareness
c.	brand image
d.	sales volume and revenue
e.	investment

 

 

ANS:  D                    PTS:   1

 

49. The effect of marcom, or of its specific elements such as advertising, can be gauged in terms of whether it generates a reasonable ____.

a.	return on marketing investment (ROMI)
b.	return on customer investment (ROCI)
c.	return on equity investment (ROEI)
d.	return on brand investment (ROBI)
e.	return on sales investment (ROSI)

 

 

ANS:  A                    PTS:   1

 

50. Which of the following is a motivation underlying the increased focus on measuring marketing performance?

a.	greater demands for accountability on the marketing function from the CEO, the Board, and other executives
b.	the imperative for the CMO to get better at what they do
c.	required by the IRS to report the gains from marketing investment
d.	a and b
e.	a, b, and c

 

 

ANS:  D                    PTS:   1

 

51. Which of the following is NOT a reason for the difficulty in measuring marcom effectiveness?

a.	lack of ability by marcom practitioners
b.	obstacles in identifying an appropriate measure, or metric, of effectiveness
c.	complications with getting people throughout the organization to agree that a particular measure is the most appropriate
d.	snags with gathering accurate data to assess effectiveness
e.	problems with determining the exact effect that specific marcom elements have on the measure that has been selected to indicate effectiveness

 

 

ANS:  A                    PTS:   1

 

52. Specific measures that are used to judge marcom effectiveness are also called ____.

a.	variables
b.	metrics
c.	coefficients
d.	models
e.	variances

 

 

ANS:  B                    PTS:   1

 

53. Harold is trying to determine the appropriate metric his company should use to gauge the effectiveness of its marcom efforts. Which of the following is a possible option?

a.	brand awareness
b.	attitudes toward the brand
c.	purchase intentions
d.	sales volume
e.	all of the above

 

 

ANS:  E                    PTS:   1

 

54. A recent study by the Association of National Advertisers found that among the most common metrics used for measuring ROMI was ____.

a.	change in consumer purchase behavior
b.	incremental sales revenue generated by marketing activities
c.	increases in S-O-M compared to changes in S-O-V
d.	changes in brand loyalty generated by advertising
e.	changes in brand image with increased expenditure on sales promotion

 

 

ANS:  B                    PTS:   1

 

55. Why is it difficult to gain agreement on a suitable system for measuring marcom performance?

a.	People are uncooperative.
b.	People in other disciplines do not understand marketing and marketing communications
c.	Individuals from different backgrounds and with varied organizational interests often see the “world” differently or operate with varying ideas of what best indicates suitable performance.
d.	There is so little difference among the measures that it is difficult for individuals outside of marketing to understand them.
e.	If it isn’t in terms of dollars, others in the organization don’t even want to look at it.

 

 

ANS:  C                    PTS:   1

 

56. Whatever the measure chosen, any effort to meaningfully assess marcom performance necessitates having data that are ____.

a.	short-term and long-term
b.	communication-based and sales-based
c.	representative and normal
d.	normal and bi-modal
e.	reliable and valid

 

 

ANS:  E                    PTS:   1

 

57. What is the most complicated problem of all when assessing marcom performance?

a.	How much data is necessary?
b.	How much relative effect does each program element have compared to the effects of other elements?
c.	How does one assess reliability and validity?
d.	How can a researcher be sure that the data are appropriate for the metric being assessed?
e.	How does one account for sampling and measurement errors?

 

 

ANS:  B                    PTS:   1

 

58. Which technique is increasingly being used to assess the relative effect each program element has compared to the effects of other elements?

a.	marketing-mix modeling
b.	structural equation modeling
c.	marketing optimization modeling
d.	multidimensional scaling
e.	calibration modeling

 

 

ANS:  A                    PTS:   1

 

59. Marketing-mix modeling typically employs which statistical technique to estimate the effects that the various marcom elements have in driving sales volume?

a.	cluster analysis
b.	structural equation modeling
c.	multivariate regression analysis
d.	ANOVA
e.	MANOVA

 

 

ANS:  C                    PTS:   1

 

60. Sam is tasked with employing marketing-mix modeling to determine the effectiveness of various marcom elements in affecting sales volume. What will Sam need to conduct this analysis?

a.	at least five observations for each element assessed along with the level of sales for those time periods
b.	a relatively long series of longitudinal data, such as two years, indicating the level of sales during that period along with corresponding marcom expenditures for each program element
c.	at least ten observations for each element assessed along with the level of sales for those time periods
d.	over 1,000 observations for each element assessed along with the level of sales for those time periods
e.	parameter estimates of the individual effects the various marcom elements have on sales

 

 

ANS:  B                    PTS:   1

 

61. Which of the following statements is FALSE regarding marketing-mix modeling?

a.	In order to employ marketing-mix modeling, a relatively long series of longitudinal data (i.e., for a two-year period) is required.
b.	Marketing-mix modeling employs well known statistical techniques (e.g., multivariate regression analysis) to estimate the effects that the various marcom elements have in driving sales volume.
c.	Parameter estimates indicate the individual effects the various marcom elements have on sales.
d.	Managers learn from such analysis which elements are outperforming others and can use this information to shift budgets from program element to element.
e.	Once the model is estimated, results can be generalized to other situations.

 

 

ANS:  E                    PTS:   1

 

62. Managers learn from the analytic aspect of marketing mix modeling which marcom elements are outperforming others and can then use this statistical information to ____.

a.	shift budgets from program element to element
b.	reposition products to better meet the needs of consumers
c.	develop new products and services
d.	construct more appropriate messages for their target market
e.	identify new markets for their products and/or services

 

 

ANS:  A                    PTS:   1

 

63. In using marketing-mix modeling, the finer, or more disaggregated, the data the better the analysis can be in determining which specific marketing mix elements are most and least effective in ____.

a.	generating awareness
b.	creating brand loyalty
c.	developing new markets
d.	reaching the current target market
e.	driving sales

 

 

ANS:  E                    PTS:   1

 

ESSAY

 

1. Discuss the benefits of brand equity from the firm’s perspective.

 

ANS:

The firm-based viewpoint of brand equity focuses on outcomes extending from efforts to enhance a brand’s value to its various stakeholders. As the value, or equity, of a brand increases, various positive outcomes result:

1.	Achieving a higher market share.
2.	Increasing brand loyalty.
3.	Being able to charge premium prices. A brand’s elasticity of demand becomes less elastic as its equity increases.
4.	Earning a revenue premium, which is defined as the revenue differential between a branded item and a corresponding private labeled item. With revenue equaling the product of a brand’s net price x volume, a branded good enjoys a revenue premium over a corresponding private labeled item to the degree it can charge a higher price and/or generate greater sales volume.

 

 

PTS:   1

 

2. Name and describe the two forms of brand knowledge from a consumer perspective.

 

ANS:

Brand equity from the customer’s perspective consists of two forms of brand-related knowledge:

1.

Brand Awareness, which is an issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked. It is the basic dimension of brand equity. From the vantage point of an individual consumer, a brand has no equity unless the consumer is at least aware of the brand. The two levels of awareness are brand recognition and recall. Brand recognition reflects a relatively superficial level of awareness, whereas brand recall indicates a deeper form of awareness. The marcom imperative is to move brands from a state of unawareness, to recognition, on to recall, and ultimately to top-of-mind awareness (TOMA). This pinnacle of brand-name awareness (i.e., TOMA status) exists when your company’s brand is the first that consumers recall when thinking about brands in a particular product category. Although building brand awareness is a necessary step toward brand equity enhancement, it is insufficient.

2.

Brand Image can be thought of in terms of the types of associations that come to the customer’s or consumer’s mind when contemplating a particular brand. An association is simply the particular thoughts and feelings that a consumer has about a brand. These associations can be conceptualized in terms of type, favorability, strength, and uniqueness. Research has identified five personality dimensions that describe most brands: sincerity, excitement, competence, sophistication, and ruggedness.

 

 

PTS:   1

 

3. Briefly discuss the five dimensions of brand personality.

 

ANS:

The five dimensions of brand personality are:

1.	Sincerity. This dimension includes brands that are down-to-earth, honest, wholesome, and cheerful.
2.	Excitement. Brands scoring high on the excitement dimension are perceived as daring, spirited, imaginative, and up-to-date.
3.	Competence. Brands scoring high on this personality dimension are considered reliable, intelligent, and successful.
4.	Sophistication. Brands that are considered upper class and charming score high on the sophistication dimension.
5.	Ruggedness. Rugged brands are thought of as tough and outdoorsy.

 

 

PTS:   1

 

4. Name and describe the three ways by which brand equity is enhanced.

 

ANS:

The three ways by which brand equity is enhanced are:

1.	Speak-for-itself approach. With this approach, favorable (or perhaps unfavorable) associations are built merely by allowing the brand to “speak for itself.” That is, by trying and using brands, consumers learn how good (or bad) they are and what benefits they are (in)capable of delivering.
2.	Message-driven approach. Marcom practitioners in their various capacities can build (or attempt to build) advantageous associations via the dint of repeated claims about the features a brand possesses and/or the benefits it delivers.
3.	Leveraging approach. Brand associations can be shaped and equity enhanced by leveraging positive associations already contained in the world of people, places, and things, even other brands, that are available to consumers. The culture and social systems in which marketing communications takes place are loaded with meaning. Marketing communicators draw meaning from the culturally constituted world and transfer that meaning to consumer goods, and advertising is an especially important instrument of meaning transfer.

 

 

PTS:   1

 

5. Discuss the reasons accounting for the difficulty in measuring marcom effectiveness.

 

ANS:

Several reasons account for the difficulty in measuring marcom effectiveness:

1.	Choosing a Metric. An initial problem is one of determining which specific measures (also called metrics) should be used to judge marcom effectiveness. Possible options include brand awareness, attitudes toward the brand, purchase intentions, and sales volume. There typically is no magic bullet by which marcom effectiveness can be judged unambiguously and perfectly. All measures/metrics are flawed in some way.
2.	Gaining Agreement. There generally is no consensus. This is not because people are necessarily uncooperative; rather, individuals from different backgrounds and with varied organizational interests often see the “world” differently or operate with varying ideas of what best indicates suitable performance.
3.	Collecting Accurate Data. Whatever the measure chosen, any effort to meaningfully assess marcom performance necessitates having data that are reliable and valid.
4.	Calibrating Specific Effects. Ultimately, brand managers and other marketing executives are interested in knowing more than just how effective the overall marcom program was. They also need to identify the relative effectiveness of individual program elements so that even better decisions can be made in the future as to how best to allocate resources.

 

 

PTS:   1

 

6. Briefly describe some of the problems associated with dot.com marketing efforts.

 

ANS:

The experience of the dot-com marketing efforts shows that although building brand awareness is a necessary step toward brand equity enhancement, it is insufficient. Dot-com ventures had gobs of money and worked on the model of being first (or second) to market with the new e-tailing idea and spending a lot on advertising to create brand awareness. The problem, in short, was that most of the dot-com companies spent large sums of money on advertising, but they didn’t invest adequately in building a brand. Investing in and building a brand are a matter of identifying a reason for the brand’s being – its underlying positioning statement and point of distinction from competitive offerings – and then promoting that point of distinction on a consistent basis. In other words, many of the dot-com companies spent heavily on advertising to create awareness, but they failed to build strong and favorable brand images.

 

Chapter 4—Targeting

 

TRUE/FALSE

 

1. Targeting specific audiences can be considered the starting point for all marcom decisions.

 

ANS:  T                    PTS:   1

 

2. Targeting implies efficiency of effort.

 

ANS:  T                    PTS:   1

 

3. Demographic data is relatively easy to obtain and is the most predictive of consumer choice behavior.

 

ANS:  F                    PTS:   1

 

4. Behaviorgraphics is the most predictive indicator of consumer choice behavior while demographics is the least predictive indicator of behavior.

 

ANS:  T                    PTS:   1

 

5. The best predictor of one’s future behavior is his or her past behavior.

 

ANS:  T                    PTS:   1

 

6. There is little need to target consumers using any of the non-behavioral bases for targeting if behaviorgraphic details are available.

 

ANS:  T                    PTS:   1

 

7. Due to privacy laws, marketers are not able to obtain detailed consumer online behavior.

 

ANS:  F                    PTS:   1

 

8. The biggest issue facing marketers that track consumer online behavior is privacy.

 

ANS:  T                    PTS:   1

 

9. Purchasing patterns often are influenced more by our lifestyles than our demographic backgrounds.

 

ANS:  T                    PTS:   1

 

10. Demographics refers to information about consumers’ attitudes, values, motivations, and lifestyles as they relate to buying behavior in a particular product category.

 

ANS:  F                    PTS:   1

 

11. Yankelovich’s MindBase psychographic segmentation scheme consists of 66 general segments.

 

ANS:  F                    PTS:   1

 

12. In the VALS segmentation scheme, consumer segments are represented along the dimensions of primary motivations and resources.

 

ANS:  T                    PTS:   1

 

13. In the VALS classification system, Thinkers are well-educated professionals who are well-informed about current affairs.

 

ANS:  T                    PTS:   1

 

14. Makers in the VALS classification framework tend to buy the finer things in life.

 

ANS:  F                    PTS:   1

 

15. The Actualizers would be the VALS group most likely to do gardening.

 

ANS:  F                    PTS:   1

 

16. The Believers is the VALS group that is least likely to do gourmet cooking.

 

ANS:  F                    PTS:   1

 

17. The premise underlying geodemographic targeting is that people who reside in similar areas also share demographic and lifestyle similarities.

 

ANS:  T                    PTS:   1

 

18. Geodemographic clustering systems have only been developed for the United States.

 

ANS:  F                    PTS:   1

 

19. PRIZM_NE is a classification system that delineates every neighborhood in the United States into 66 clusters based on their demographic characteristics.

 

ANS:  T                    PTS:   1

 

20. In the PRIZM_NE segmentation system, Bohemian Mix captures a collection of young, mobile urbanites who represent the nation’s most liberal lifestyles.

 

ANS:  T                    PTS:   1

 

21. In the PRIZM_NE segmentation system, Suburban Pioneers is the group that represents those households at the middle of the U.S.’s socioeconomic ladder.

 

ANS:  F                    PTS:   1

 

22. The total population of human beings on the earth is estimated to be approximately 25 billion people.

 

ANS:  F                    PTS:   1

 

23. The median age of Americans has been decreasing in the past three decades.

 

ANS:  F                    PTS:   1

 

24. There are now fewer young adults than was the case in prior generations.

 

ANS:  T                    PTS:   1

 

25. Tweens are usually classified as children between the ages of 8 and 12.

 

ANS:  T                    PTS:   1

 

26. Teenagers want to be “marketed to,” even if irrelevant information is communicated to them.

 

ANS:  F                    PTS:   1

 

27. The Bystander group of Generation X is predominantly white and male.

 

ANS:  F                    PTS:   1

 

28. The Playboy group is the smallest subset of all the Generation X categories and is closest to the Generation X stereotype of being slackers, cynics, and hopeless.

 

ANS:  F                    PTS:   1

 

29. There are indications that baby boomers are retaining many of their more youthful consumption patterns.

 

ANS:  T                    PTS:   1

 

30. Mature consumers are poorer and less willing to spend than ever before.

 

ANS:  F                    PTS:   1

 

31. U.S. citizens aged 55 or older represent 40 percent of the total U.S. population.

 

ANS:  F                    PTS:   1

 

32. Age is the best indicator of how an individual lives and what role consumption plays.

 

ANS:  F                    PTS:   1

 

33. Healthy Indulgers are in good health but are psychologically withdrawn from society.

 

ANS:  F                    PTS:   1

 

34. Ailing Outgoers are a good market for planned retirement communities and entertainment services.

 

ANS:  T                    PTS:   1

 

35. A household represents an independent housing entity, either rental property or owned property.

 

ANS:  T                    PTS:   1

 

36. The traditional American family (i.e., married couples with children younger than 18 years of age) represents over 75 percent of all U.S. households.

 

ANS:  F                    PTS:   1

 

37. Non-family households constitute nearly one-third of all households.

 

ANS:  T                    PTS:   1

 

38. The average age of black Americans is considerably older than that for whites.

 

ANS:  F                    PTS:   1

 

39. Hispanic Americans represent the largest minority group in America.

 

ANS:  T                    PTS:   1

 

40. Approximately half of Hispanic-Americans speak only or mostly Spanish at home.

 

ANS:  T                    PTS:   1

 

41. Asian-Americans are better educated than any other segment of American society.

 

ANS:  T                    PTS:   1

 

MULTIPLE CHOICE

 

1. Targeting implies precision and ____.

a.	efficiency of effort
b.	efficiency of placement
c.	efficiency of promotion
d.	efficiency of advertising
e.	efficiency of pricing

 

 

ANS:  A                    PTS:   1

 

2. ____ represents information about consumers’ behavior in a particular product category or set of related categories.

a.	Demographics
b.	Behaviorgraphics
c.	Psychographics
d.	Geodemographics
e.	Lifestyle analysis

 

 

ANS:  B                    PTS:   1

 

3. Aspects of consumers’ psychological makeup and lifestyles – including their attitudes, values, and motivation – comprise ____.

a.	demographic characteristics
b.	purchasing characteristics
c.	behavioral characteristics
d.	psychographic characteristics
e.	physical characteristics

 

 

ANS:  D                    PTS:   1

 

4. Demographic variables include characteristics such as age, income, and ____.

a.	voting preferences
b.	ethnicity
c.	purchasing preferences
d.	place of residence
e.	all of the above

 

 

ANS:  B                    PTS:   1

 

5. ____ is based on demographic characteristics of consumers who reside within geographic clusters such as zip code areas and neighborhoods.

a.	Behaviorgraphics
b.	Psychographics
c.	Demographics
d.	Geodemographics
e.	Cosmographics

 

 

ANS:  D                    PTS:   1

 

6. In deciding among the four general targeting methods, a marketer must consider two factors.  These factors are ____.

a.	how large should the target be, and what area(s) of the country should it include
b.	what media would best reach the target market, and what appeal would work best
c.	how many target markets should be selected, and how large should they be
d.	how to evaluate the success of the marcom strategies and measure of financial success
e.	how easy or difficult is it to collect data, and how predictive the characteristic is of consumer choice behavior

 

 

ANS:  E                    PTS:   1

 

7. Which type of data is relatively easy to obtain but is the least predictive of consumer choice behavior?

a.	demographic
b.	behavioral
c.	psychographic
d.	geodemographic
e.	holographic

 

 

ANS:  A                    PTS:   1

 

8. Which type of data is relatively difficult or expensive to obtain but is the best predictor of choice behavior?

a.	demographic
b.	psychographic
c.	behaviorgraphic
d.	geodemographic
e.	holographic

 

 

ANS:  C                    PTS:   1

 

9. The best predictor of one’s future behavior is his or her ____.

a.	age
b.	ethnicity
c.	income
d.	place of residence
e.	past behavior

 

 

ANS:  E                    PTS:   1

 

10. Companies such as Revenue Science and Tacoda provide information on ____.

a.	magazine advertising effectiveness
b.	radio listeners’ preferences
c.	Internet advertising effectiveness
d.	internet users’ surfing behaviors
e.	in-store consumers’ purchasing behavior

 

 

ANS:  D                    PTS:   1

 

11. Which of the following companies tracks Internet users’ surfing behaviors and provides this information to advertisers that wish to target prospective customers based on their online search behavior?

a.	Revenue Science
b.	Tacoda Systems
c.	Information Resources Inc.
d.	a and b
e.	a, b, and c

 

 

ANS:  D                    PTS:   1

 

12. A targeting approach that embodies the “aim-where-the-ducks-are-flying” axiom is ____.

a.	demographics
b.	behaviorgraphics
c.	psychographics
d.	geodemographics
e.	physiographics

 

 

ANS:  B                    PTS:   1

 

13. Technological advances in marketing bring with them increased ability to serve consumers but also at the risk of ____.

a.	competitive espionage
b.	invading privacy
c.	increased costs
d.	losing competitive advantage
e.	technological breakdowns

 

 

ANS:  B                    PTS:   1

 

14. Sophisticated practitioners realized that demographic information tells only part of the story about consumers’ buying preferences and purchase behaviors, and began investigating consumers’ ____ characteristics as a means of obtaining a richer understanding of consumer behavior.

a.	geographic
b.	economic
c.	census data
d.	psychographic
e.	holographic

 

 

ANS:  D                    PTS:   1

 

15. In general, ____ refers to information about consumers’ attitudes, values, motivations, and lifestyles as they relate to buying behavior in a particular product category.

a.	demographics
b.	geodemographics
c.	psychographics
d.	holographics
e.	biographics

 

 

ANS:  C                    PTS:   1

 

16. Which of the following is one of Yankelovich’s MindBase segments?

a.	Realists
b.	Experiencers
c.	Thinkers
d.	Survivors
e.	Makers

 

 

ANS:  A                    PTS:   1

 

17. Which of the following is NOT one of Yankelovich’s MindBase segments?

a.	Up & Comers
b.	Innovators
c.	Realists
d.	Family Centereds
e.	Renaissance Masters

 

 

ANS:  B                    PTS:   1

 

18. Bob and Sue are a young, newly married couple without any children. They have a positive, upwardly mobile perspective and expect to benefit from their own skills and abilities. They are environmentalists and enjoy outdoor activities in their free time. In terms of Yankelovich’s MindBase segments, which best describes Bob and Sue?

a.	Up & Comers
b.	Aspiring Achievers
c.	Realists
d.	New Traditionalists
e.	Individualists

 

 

ANS:  A                    PTS:   1

 

19. James is driven by technology and success at work. He is single and finds little time for social interests and prefers to focus on climbing the career ladder. Which of Yankelovich’s MindBase segments best describes James?

a.	Up & Comers
b.	Aspiring Achievers
c.	Individualists
d.	New Traditionalists
e.	Renaissance Masters

 

 

ANS:  C                    PTS:   1

 

20. Mauve is 60 years old and financially successful after a career in banking. She is still vitally connected to her community by participating in several civic activities. She is a life-long learner and actively participates in several senior activities that expand her personal horizons. In terms of Yankelovich’s MindBase segments, ____ best describes Mauve.

a.	Up & Comers
b.	Maintainers
c.	Aspiring Achievers
d.	New Traditionalists
e.	Renaissance Masters

 

 

ANS:  E                    PTS:   1

 

21. The VALS segmentation scheme places American adult consumers into one of ____ segments based on their responses to a 40-item questionnaire.

a.	four
b.	five
c.	six
d.	seven
e.	eight

 

 

ANS:  E                    PTS:   1

 

22. Which of the following is a VALS segment?

a.	Innovators
b.	Up & Comers
c.	Realists
d.	Individualists
e.	New Traditionalists

 

 

ANS:  A                    PTS:   1

 

23. Which of the following is a VALS segment?

a.	Innovators
b.	Thinkers
c.	Believers
d.	Experiencers
e.	all of the above

 

 

ANS:  E                    PTS:   1

 

24. Which of the following is NOT a VALS segment?

a.	Innovators
b.	Makers
c.	Realists
d.	Experiencers
e.	Believers

 

 

ANS:  C                    PTS:   1

 

25. Which of the following is NOT a primary motivations dimension of the VALS psychographics classification model?

a.	pursuit of ideals
b.	resources
c.	need for achievement
d.	drive to self-express
e.	all of the above are primary motivation dimensions in the model

 

 

ANS:  B                    PTS:   1

 

26. What are the two main dimensions of the VALS framework?

a.	individuals’ demographic characteristics and geographic location
b.	individuals’ resources and need for achievement
c.	individuals’ primary motivations and resources
d.	individuals’ religious convictions and status orientation
e.	individuals’ behavioral characteristics and resources

 

 

ANS:  C                    PTS:   1

 

27. Marketers of which of the following product categories would be most interested in the VALS “Achievers” grouping?

a.	supermarkets
b.	discount stores
c.	compact automobiles
d.	high-end clothing manufacturers
e.	American-made products

 

 

ANS:  D                    PTS:   1

 

28. A marketer positioning a product to appeal to members of the “Experiencers” category should emphasize all EXCEPT which of the following benefits?

a.	fashion
b.	entertainment
c.	outdoor recreation
d.	economical
e.	social

 

 

ANS:  D                    PTS:   1

 

29. Katherine is a well-educated professional who is well-informed about current affairs. Although her income allows her many choices, she is a conservative, practical consumer. In terms of the VALS framework, Katherine would be classified as a(n) ____.

a.	Thinker
b.	Believer
c.	Achiever
d.	Experiencer
e.	Actualizer

 

 

ANS:  A                    PTS:   1

 

30. In the VALS framework, “Believers” ____.

a.	exhibit high energy levels, which they devote to physical exercise and social activities
b.	are conservative and predictable consumers who favor established brands and American-made products
c.	are responsible, well educated professionals who are well informed about current events
d.	are a politically conservative group who respects authority and the status quo
e.	are successful, sophisticated, take-charge people with high self-esteem

 

 

ANS:  B                    PTS:   1

 

31. Martin is a politically conservative person who respects authority and the status quo. He drives a high-end automobile and shops at expensive specialty shops. In terms of the VALS framework, Martin is a(n) ____.

a.	Maker
b.	Believer
c.	Achiever
d.	Experiencer
e.	Striver

 

 

ANS:  C                    PTS:   1

 

32. The youngest of the VALS segments are the ____.

a.	Innovators
b.	Believers
c.	Achievers
d.	Experiencers
e.	Makers

 

 

ANS:  D                    PTS:   1

 

33. Alan is 26 years old. He exhibits high energy levels, which he devotes to physical fitness and social activities. In terms of the VALS framework, Alan is a(n) ____.

a.	Innovator
b.	Believer
c.	Achiever
d.	Striver
e.	Experiencer

 

 

ANS:  E                    PTS:   1

 

34. Antonio is a practical, self-sufficient consumer who focuses on family, work, and physical recreation. He is only interested in material possessions that have a practical or functional purpose. He also likes to fix things, such as his car or things around his house. In terms of the VALS framework, Ken is a(n) ____.

a.	Believer
b.	Achiever
c.	Striver
d.	Maker
e.	Survivor

 

 

ANS:  D                    PTS:   1

 

35. Which VALS group has the lowest income?

a.	Thinkers
b.	Strivers
c.	Experiencers
d.	Makers
e.	Survivors

 

 

ANS:  E                    PTS:   1

 

36. Joan has a strong self-esteem and abundant resources. Friends and colleagues look to her for new ideas and trends. In terms of the VALS framework, Joan is a(n) ____.

a.	Believer
b.	Achiever
c.	Innovator
d.	Maker
e.	Shaker

 

 

ANS:  C                    PTS:   1

 

37. Which VALS group is the most likely to buy hand tools?

a.	Innovators
b.	Thinkers
c.	Believers
d.	Makers
e.	Survivors

 

 

ANS:  D                    PTS:   1

 

38. Which VALS group is the most likely to drink domestic beer?

a.	Experiencers
b.	Believers
c.	Innovators
d.	Survivors
e.	Strivers

 

 

ANS:  B                    PTS:   1

 

39. Which VALS group is the most likely to structure their social lives around their family, place of worship, and work?

a.	Innovators
b.	Thinkers
c.	Achievers
d.	Strivers
e.	Makers

 

 

ANS:  C                    PTS:   1

 

40. Which VALS group is the most likely to camp, hike, or enjoy other types of outdoor recreation?

a.	Innovators
b.	Strivers
c.	Survivors
d.	Experiencers
e.	Believers

 

 

ANS:  D                    PTS:   1

 

41. The premise underlying geodemographic targeting is that people who ____ also share demographic and lifestyle similarities.

a.	are in the same income category
b.	reside in similar areas
c.	are of the same age
d.	are of the same gender
e.	are of the same ethnic group

 

 

ANS:  B                    PTS:   1

 

42. ____ is a combination of demographic and lifestyle characteristics of consumers within clusters such as ZIP-code areas.

a.	Psychographics
b.	Topographics
c.	Geodemographics
d.	Behaviorgraphics
e.	Cosmographics

 

 

ANS:  C                    PTS:   1

 

43. Claritas’ PRIZM_NE, a geodemographic marketing service, has grouped U.S. neighborhoods into 66 clusters and given them descriptive names. The “Bohemian Mix” cluster would be expected to have all EXCEPT which of the following types of residents?

a.	early adopters of products and services
b.	urbanites
c.	blue-collar workers
d.	students
e.	liberal people

 

 

ANS:  C                    PTS:   1

 

44. In Claritas’ PRIZM_NE system of geodemographic profiling, PRIZM stands for ____.

a.	Personal Rating Information by Zip Markets
b.	Potential Rank Index by Zip Markets
c.	Personal Rank Index by Zip Markets
d.	Personal Rating Index by Zip Markets
e.	Potential Rating Index by Zip Markets

 

 

ANS:  E                    PTS:   1

 

45. In Claritas’ PRIZM_NE system of geodemographic profiling, NE represents the ____ of Claritas’’s original segmentation system.

a.	new evolution
b.	new edition
c.	next evolution
d.	neo-edition
e.	need edition

 

 

ANS:  A                    PTS:   1

 

46. Terron is a young professional that always attends the latest movie, frequents the newest nightclubs, and has the most up-to-date electronic equipment. To which PRIZM_NE cluster would Terron most likely belong?

a.	Innovators
b.	Bohemian Mix
c.	White Picket Fences
d.	Upper Crust
e.	Big Fish, Small Pond

 

 

ANS:  B                    PTS:   1

 

47. Which PRIZM_NE cluster represents a stereotypical American household of previous generations?

a.	Bohemian Mix
b.	White Picket Fences
c.	Suburban Pioneers
d.	Up & Comers
e.	Traditionalists

 

 

ANS:  B                    PTS:   1

 

48. Which PRIZM_NE cluster includes neighborhoods where occupants live eclectic lifestyles and includes a mix of singles, recently divorced and single parents who have moved into older, inner-ring suburbs?

a.	White Picket Fences
b.	Suburban Pioneers
c.	Bohemian Mix
d.	Up & Comers
e.	Non-traditionalists

 

 

ANS:  B                    PTS:   1

 

49. Which of the following is NOT a major demographic aspect that has considerable relevance for marcom practitioners?

a.	geographic distribution of consumers
b.	age structure of the population
c.	changing household composition
d.	ethnic population developments
e.	all of the above are major demographic aspects of relevance to marcom practitioners

 

 

ANS:  A                    PTS:   1

 

50. What is the approximate population of the world?

a.	600 million people
b.	1.5 billion people
c.	6.4 billion people
d.	15 billion people
e.	20.6 billion people

 

 

ANS:  C                    PTS:   1

 

51. Which country has the greatest population?

a.	United States
b.	India
c.	Russia
d.	China
e.	Germany

 

 

ANS:  D                    PTS:   1

 

52. The U.S. population is estimated to be approximately ____ people.

a.	55 million
b.	300 million
c.	565 million
d.	835 million
e.	1.2 billion

 

 

ANS:  B                    PTS:   1

 

53. Which is the largest ancestral group of U.S. residents?

a.	Irish
b.	Swedish
c.	Italian
d.	African American
e.	German

 

 

ANS:  E                    PTS:   1

 

54. Leslie was born in 1957. To which generation does she belong?

a.	Generation X
b.	Generation Y
c.	Baby Boom
d.	Yup & Comers
e.	Traditionalists

 

 

ANS:  C                    PTS:   1

 

55. There are proportionately ____ young adults (ages 20 to 34) than there were in prior generations.

a.	the same number of
b.	more
c.	fewer
d.	dramatically more
e.	fewer middle-agers than

 

 

ANS:  C                    PTS:   1

 

56. In the U.S., middle-agers (ages 35-54) have ____ in recent years.

a.	stayed the same in number
b.	decreased in number
c.	increased in number
d.	become less affluent
e.	become more affluent

 

 

ANS:  C                    PTS:   1

 

57. Marketers typically refer to children aged 4 through 12 as ____ to distinguish this cohort from younger or older children.

a.	tweens
b.	toddlers
c.	teenagers
d.	kids
e.	busters

 

 

ANS:  D                    PTS:   1

 

58. Jessica is 10 years old. To marketers, she is classified as a ____.

a.	kid
b.	teenager
c.	toddler
d.	buster
e.	tween

 

 

ANS:  E                    PTS:   1

 

59. The desire to buy and own products, the enjoyment of these items, and the desire for money that enables the acquisition of products is known as ____.

a.	socialization
b.	materialism
c.	functionalism
d.	socialism
e.	egoism

 

 

ANS:  B                    PTS:   1

 

60. Sean is a college student and was born in 1985. To which generation does Sean belong?

a.	Baby Boom
b.	Generation X
c.	Generation Y
d.	Generation Z
e.	Mature Generation

 

 

ANS:  C                    PTS:   1

 

61. Sites such as MySpace and Facebook are known as ____ sites.

a.	social networking
b.	pop-up
c.	shopping
d.	entertainment
e.	focused

 

 

ANS:  A                    PTS:   1

 

62. Social networking sites such as MySpace and Facebook have become particularly effective venues for reaching and influencing the consumer behavior of ____.

a.	children
b.	tweens
c.	parents
d.	older individuals
e.	teens and young adults

 

 

ANS:  E                    PTS:   1

 

63. Which of the following is a group into which Generation-Xers have been placed based on their attitudinal profiles?

a.	Yup & Comers
b.	Bystanders
c.	Drifters
d.	Playboys
e.	all of the above

 

 

ANS:  E                    PTS:   1

 

64. The ____ category of Generation X has the highest level of education and income.

a.	Yup & Comers
b.	Bystanders
c.	Playboys
d.	Drifters
e.	Slackers

 

 

ANS:  A                    PTS:   1

 

65. Leigh is a well educated 28 year old and earns a higher income than most people her age. She would most likely fit into the Generation X category known as ____.

a.	Achievers
b.	Bystanders
c.	Yup & Comers
d.	Playboys
e.	Drifters

 

 

ANS:  C                    PTS:   1

 

66. The Bystanders category of Generation X is most likely to contain ____.

a.	white males
b.	white females
c.	female African-Americans and Hispanics
d.	male African-Americans and Hispanics
e.	male Asian-Americans

 

 

ANS:  C                    PTS:   1

 

67. Marian is uneducated, frustrated with her life, and seeks security and status. Marian would fit into the Generation X category known as ____.

a.	Showers
b.	Bystanders
c.	Yup & Comers
d.	Playboys
e.	Drifters

 

 

ANS:  E                    PTS:   1

 

68. Meaningful and profitable marcom targeting efforts typically require that audience members share a combination of ____.

a.	attitudes, opinions, and purchase behavior
b.	demographic, lifestyle, and possibly geographic characteristics
c.	marketing, message, and media preferences
d.	product, place, and price expectations
e.	shopping behaviors, discretionary income, and household type

 

 

ANS:  B                    PTS:   1

 

69. According to the U.S. Census Bureau, people who are 55 and older are classified as ____.

a.	baby boomers
b.	mature people
c.	middle-aged
d.	elders
e.	the very old

 

 

ANS:  B                    PTS:   1

 

70. Alex is a semi-retired individual who is in good health but is psychologically withdrawn from society. Alex would be classified as a(n) ____.

a.	Healthy Hermit
b.	Ailing Outgoer
c.	Frail Recluse
d.	Healthy Indulger
e.	Healthy Insider

 

 

ANS:  A                    PTS:   1

 

71. The best media for reaching the Healthy Hermits would be ____.

a.	television
b.	radio
c.	outdoor advertising
d.	telemarketing
e.	direct mail

 

 

ANS:  E                    PTS:   1

 

72. Juanita is in poor health, but she is socially active, health-conscious, and interested in learning how to do new things. Juanita would be classified as a(n) ____.

a.	Healthy Hermit
b.	Ailing Outgoer
c.	Frail Recluse
d.	Healthy Indulger
e.	Unhealthy Outsider

 

 

ANS:  B                    PTS:   1

 

73. Frail Recluses are ____.

a.	in good health, relatively wealthy, and are socially active
b.	in good health but psychologically withdrawn from society
c.	withdrawn from society and in poor health
d.	in poor health but socially active
e.	the best market for leisure/travel entertainment

 

 

ANS:  C                    PTS:   1

 

74. ____ are in good health, relatively wealthy, and are socially active.

a.	Healthy Hermits
b.	Ailing Outgoers
c.	Frail Recluses
d.	Healthy Indulgers
e.	Happy Campers

 

 

ANS:  D                    PTS:   1

 

75. Non-family households constitute approximately ____ of all households.

a.	18%
b.	24%
c.	32%
d.	45%
e.	66%

 

 

ANS:  C                    PTS:   1

 

76. Since the 1950s, households in the U.S. have ____ in number, ____ in size, and ____ in character.

a.	increased/grown/changed
b.	stayed about the same/increased/stayed the same
c.	decreased/increased/remained similar
d.	grown/shrunk/changed
e.	increased/increased/changed

 

 

ANS:  D                    PTS:   1

 

77. Singles ____.

a.	watch more prime-time television than the national average
b.	watch less late-night television than the national average
c.	watch less cable television than the general population
d.	read more magazines than the general population
e.	are more difficult to reach via any medium compared to married consumers

 

 

ANS:  D                    PTS:   1

 

78. Approximately ____ of Americans fit the category White, not Hispanic.

a.	12%
b.	53%
c.	64%
d.	85%
e.	90%

 

 

ANS:  C                    PTS:   1

 

79. Which of the following is a FALSE statement?

a.	The African American population is growing faster than the rest of the population.
b.	The average age of black Americans is younger than that of whites.
c.	African-Americans are geographically concentrated.
d.	Whites tend to purchase prestige and name-brand products in greater proportion than African-Americans.
e.	none of the above are false statements

 

 

ANS:  D                    PTS:   1

 

80. Which is the largest minority group in the United States?

a.	African Americans
b.	Asian Americans
c.	Jews
d.	Hispanics
e.	Muslim Americans

 

 

ANS:  D                    PTS:   1

 

81. Approximately ____ of Hispanic Americans speak only or mostly Spanish at home.

a.	20%
b.	30%
c.	40%
d.	50%
e.	60%

 

 

ANS:  D                    PTS:   1

 

82. Which group has the highest incomes and most prestigious jobs of any segment of American society?

a.	Whites
b.	African Americans
c.	Hispanic Americans
d.	Muslim Americans
e.	Asian Americans

 

 

ANS:  E                    PTS:   1

 

ESSAY

 

1. Name and briefly describe the four sets of consumer characteristics described in this chapter that singularly or in combination influence what people consume and how they respond to marketing communications.

 

ANS:

The four sets of consumer characteristics discussed in this chapter are:

1.	Behaviorgraphics: represents information about the audience’s behavior in terms of past purchase behavior or online search activity in a particular product category or set of related categories.
2.	Psychographics: captures aspects of consumers’ psychological makeup and lifestyles including their attitudes, values, and motivations.
3.	Demographics: reflect measurable population characteristics such as age, income, and ethnicity.
4.	Geodemographics: based on demographic characteristics of consumers who reside within geographic clusters such as zip code areas and neighborhoods.

 

 

PTS:   1

 

2. Explain the VALS classification model. Name and describe two categories of consumers from this model, the best way to promote to each category you’ve chosen, and the types of products and services that would most likely be purchased by members in each of those categories.

 

ANS:

The VALS segmentation scheme places American adult consumers into one of eight segments based on their responses to a 40-item questionnaire. The horizontal dimension of the VALS framework represents individuals’ primary motivations, whether in terms of their pursuit of ideals, their need for achievement, or drive to self-express. The vertical dimension reflects individuals’ resources as based on their educational accomplishments and income levels. The segments are Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors. Students can name and describe any two of the eight segments to answer this question. Please refer to the text for detailed descriptions of the segments as well as ways to promote to each and products each segment is most likely to purchase.

 

PTS:   1

 

3. Explain the concept of geodemographic targeting and how it is being used in today’s marketplace.

 

ANS:

The word geodemographic is a conjunction of geography and demography. The premise underlying geodemographic targeting is that people who reside in similar areas, such as neighborhoods or postal zip code zones, also share demographic and lifestyle similarities. Several companies have developed services that delineate geographical areas into common groups, or clusters, wherein reside people with similar demographic and lifestyle characteristics. These companies (and their services) include CACI (ACORN), Donnelly Marketing (ClusterPlus), National Decision Systems (Vision), Experian (MOSAIC), and Claritas’ (PRIZM_NE). Claritas’’s PRIZM_NE system is described in detail in the text, with three of the 66 clusters (Bohemian Mix, White Picket Fences, and Suburban Pioneers) described in detail.

 

PTS:   1

 

4. There are indications that baby boomers are retaining many of their more youthful consumption habits. Which industries would be the most influenced by this phenomenon? Discuss how marketing strategies would be impacted.

 

ANS:

Health and beauty aids is one industry that would be significantly influenced by this phenomenon. For example, the increased purchases of hair-color products by baby boomers reflects this tendency for boomers to prolong youth and to gravitate toward products that support their youth obsession. Manufacturers of health-care items, exercise machines, and food products can actively appeal to baby boomers’ passion for remaining in youthful shape. However, it is important to note that, while this group shares the same age group, they do not act the same or purchase identical products. There are distinct difference among people with respect to age, income, ethnicity, lifestyle choices, and product/brand preferences which will impact marketing strategies.

 

PTS:   1

 

5. The Bureau of the Census divides people 55 and older into four distinct segments. Name and describe theses segments, and discuss why these groups of consumers are significant for marketers.

 

ANS:

The U.S. Census classifies mature people as those who are 55 and older and divides this age group into four distinct age segments: 55 to 64 (olders); 65 to 74 (elders); 75 to 84 (the very old); and 85 and over. (Note: Table 4.5 states 75+ as the very old but the text presents the segments as given in this answer.) In 2005 there were approximately 66 million U.S. citizens that fall into this segment. This represents almost one quarter of all Americans. Not only are mature consumers numerous, they also are wealthier and more willing to spend than ever before. Mature Americans control nearly 70 percent of the net worth of all U.S. households. People aged 65 and older are particularly well off, having the highest discretionary incomes and the most assets of any age group. A variety of implications accompany marcom efforts directed at mature consumers. In advertising aimed at this group, it is advisable to portray them as active, vital, busy, forward looking, and concerned with looking attractive and being romantic. Advertisers that use the Internet cannot neglect appeals to seniors, who represent one of the fastest growing groups on the Web.

 

PTS:   1

 

6. Discuss the differences between the African American population and the general population that makes this segment attractive for many companies. How would these factors influence the development of promotional campaigns targeted to African Americans?

 

ANS:

Several notable reasons explain why African Americans are attractive consumers from many companies: (1) The average age of black Americans is considerably younger than that for whites; (2) African Americans are geographically concentrated, with approximately three-fourths of all blacks living in just 16 states; and (3) African Americans tend to purchase prestige and name-brand products in greater proportion than do whites.

 

These factors should influence the development of campaigns targeted to this segment by making personalized appeals by using African American models, particularly younger ones, and contexts with which blacks can identify. Due to the geographic concentration, media purchases can be concentrated in these geographic areas as well. Manufacturers of prestigious brands could also effectively target this group with specialized communications since this segment tends to purchase prestige and name-brand products in greater proportion that other segments of consumers.

 

PTS:   1