Description
Marketing 4th Canadian Edition By Grewal – Test Bank
Sample Questions
Instant Download With Answers
Chapter 02
Developing Marketing Strategies and a Marketing Plan
Multiple Choice Questions
- The wine industry is a very competitive market. Some wineries invest in corporate social responsibility programs knowing that competitors cannot easily copy the programs. This is a good example of ______
A.defining the target market.
B. reducing the cost.
C. gaining competitive advantage.
D. increasing promotion.
E. providing outstanding customer services.
A sustainable competitive advantage is an advantage over the competition that is not easily copied and could be maintained over a long period of time.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 02-01 Define a marketing strategy.
Topic: 02-01 What Is A Marketing Strategy?
- Customer excellence focuses on:
A.having a good physical location and Internet presence.
B. carrying out effective branding and positioning.
C. having products with high perceived value.
D. retaining loyal buyers and providing excellent service.
E. maintaining efficient operations and an excellent supply chain.
Customer excellence focuses on retaining loyal customers and providing excellent customer service. Viewing customers with a lifetime value perspective is key to modern customer retention programs.
Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: Easy
Learning Objective: 02-01 Define a marketing strategy.
Topic: 02-02 Customer Excellence
- Emily regularly chooses Argo Airlines for her travels. The company values her preference and rewards her with loyalty points. It would entitle Emily for reduced ticket rates for certain flights. Through this offer, the company succeeds in retaining a regular user. In this scenario, which of the following is used by Argo Airlines to achieve sustainable competitive advantage?
A.Operational excellence
B. Product excellence
C. Diversification excellence
D. Locational excellence
E. Customer excellence
By retaining a loyal customer, Argo Airlines has used customer excellence to achieve sustainable competitive advantage. Customer excellence is achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 02-01 Define a marketing strategy.
Topic: 02-02 Customer Excellence
- Operational excellence is achieved by:
A.ensuring an excellent supply chain management and strong relationships with suppliers.
B. maintaining excellent customer service and excellent relationships with suppliers.
C. strong relationships with suppliers and retailing loyal buyers.
D. maintain efficient operations with the best location selection.
E. excellent supply chain management and differentiate the product offerings.
Operational excellence is achieved by ensuring an excellent supply chain management and strong relationships with suppliers. It helps firms to satisfy their customers through better service.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 02-01 Define a marketing strategy.
Topic: 02-03 Operational Excellence
- Tectron Computers Inc., a manufacturer of desktop computers and peripherals, focuses on efficient coordination in every stage of production and delivery and ensures that customers’ demands are met within the target time. This precision makes Tectron a favourite choice among customers. Given this information, which of the following does the company use to achieve sustainable competitive advantage?
A.Product excellence
B. Customer excellence
C. Operational excellence
D. Diversification excellence
E. Locational excellence
Tectron Computers achieves sustainable competitive advantage through operational excellence. It is achieved by ensuring an excellent supply chain management.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 02-01 Define a marketing strategy.
Topic: 02-03 Operational Excellence
- Davison Associates Inc. manufactures office furniture. The management of the company believes that developing a strong brand name is the primary strategy to compete in the market. Hence, it invests a significant share of its resources to position its brands through promotions and service. Which of the following does the company use to achieve sustainable competitive advantage?
A.Diversification excellence
B. Product excellence
C. Customer excellence
D. Locational excellence
E. Operational excellence
In this scenario, Davison Associates uses product excellence to achieve sustainable competitive advantage. Product excellence focuses on having products with high perceived value and effective branding and positioning.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 02-01 Define a marketing strategy.
Topic: 02-04 Product Excellence
- Which of the following strategies involves focusing on having an Internet presence?
A.Diversification excellence
B. Product excellence
C. Locational excellence
D. Operational excellence
E. Customer excellence
Locational excellence focuses on having an Internet presence. A competitive advantage based on location is sustainable because it is not easily duplicated.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-01 Define a marketing strategy.
Topic: 02-05 Locational Excellence
- Foodstar Corp., a chain of restaurants, has outlets in the major residential areas of a town. It ensures that its outlets are well placed and easily accessible. It also maintains a strong Internet presence by updating the details of each day’s menu on its website. Given this information, which of the following strategies is used by Foodstar to achieve sustainable competitive advantage?
A.Locational excellence
B. Operational excellence
C. Product excellence
D. Customer excellence
E. Diversification excellence
Foodstar uses locational excellence to achieve sustainable competitive advantage. Locational excellence involves having a good physical location and Internet presence.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 02-01 Define a marketing strategy.
Topic: 02-05 Locational Excellence
- Apple achieved success by providing customers with products that meet/exceed expectations, good customer service, convenient locations, and an online presence. Which of the following strategies is used by Apple to achieve sustainable competitive advantage?
A. Service excellence
B. Marketing excellence
C. Product excellence
D. Multiple sources of advantage
E. Operational excellence
Successful firms, in many cases, use multiple strategies to build a competitive advantage. In this example, Apple is using product, operational, and service excellence.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 02-01 Define a marketing strategy.
Topic: 02-06 Multiple Sources of Advantage
- The top managers of a firm prepare a marketing plan. They define the mission and objectives of the business and evaluate the present situation of the firm. Which of the following phases of the marketing plan includes these activities performed by the top managers?
A.Planning
B. Implementation
C. Control
D. Initiation
E. Design
In the planning phase of the marketing plan, marketing executives and other top managers define the mission and objectives of the business and evaluate the situation by assessing how various players, both inside and outside the organization, affect the firm’s potential for success.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-02 Describe the elements of a marketing plan.
Topic: 02-07 The Marketing Plan
- Which of the following is NOT an activity in the planning phase of a marketing plan?
A.Developing a marketing mix
B. Setting business objectives
C. Defining the mission
D. Situation analysis
E. Observe consumer behaviour.
The planning phase of a marketing plan involves defining the mission and objectives of a business. It also involves situation analysis and evaluating how different factors affect a firm’s potential for success.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 02-02 Describe the elements of a marketing plan.
Topic: 02-07 The Marketing Plan
- The board of directors of an organization meets to redefine the mission and objectives of the business. They set long-term objectives and form a new mission statement. Which of the following phases of developing a marketing plan do the actions by the board of directors constitute?
A.Initiation
B. Planning
C. Design
D. Control
E. Implementation
The activities of the board of directors occur in the planning phase of developing a marketing plan. It involves defining the mission and objectives of the business.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-02 Describe the elements of a marketing plan.
Topic: 02-08 Step 1: Define the Business Mission and Objectives
- Tech Niche Corp., a provider of IT services, has recorded a decrease in sales and profit over the past few months. The managers of the firm review the situation and conduct a SWOT analysis of the firm. This provides new insights into the ways to improve sales. In the context of developing a marketing plan, the organization is in the phase of:
A.Implementation.
B. Control.
C. Planning.
D. Design.
E. Initiation.
The organization is in the phase of planning. It involves defining the mission and objectives of a business and conducting a situation analysis.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-03 Analyze a marketing situation using a SWOT analysis.
Topic: 02-09 Step 2: Conduct a Situation Analysis
- Availability of new technology in the market can always be categorized as:
A.Strength or Weakness
B. Opportunity or Threat
C. Weakness or Threat
D. Threat
E. Strength or Opportunity
Technology is an external factor, therefore it cannot be a strength or weakness. If a company can use technology to increase its competitive advantage, it would be an opportunity; if they cannot it is a threat.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 02-03 Analyze a marketing situation using a SWOT analysis.
Topic: 02-09 Step 2: Conduct a Situation Analysis
- Lincoln introduced the new Lincoln Navigator, a large luxury SUV, to appeal to higher income families who do not want to buy a minivan. The Navigator is a luxury 8-seat car, which has more power, and offers many more luxury features than traditional minivans. This is an example of:
A.Market development
B. Market positioning
C. Situation analysis
D. Market segmentation
E. A strategic business unit
Lincoln offers a clear, distinct, and desirable understanding of the Navigator model. It is sporty, powerful, roomy, and luxurious for families who require more room.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- Which of the following is NOT correct about segmentation:
A.A market can consists of several segments.
B. There are more than one way of segmenting a market
C. A market segment is a group of consumers who respond to a firm’s marketing efforts in the same way.
D. A company should understand and satisfy the needs of all the segments in the market.
E. Segmentation is a process of dividing the market into distinct groups of customers.
A firm should identify market segments it might pursue. It is almost impossible for a firm to satisfy the needs of all segments.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- The implementation phase of a marketing plan involves:
A.Identifying a business’s mission and objectives.
B. Evaluating the performance of a marketing strategy.
C. Analyzing a market by using marketing metrics.
D. Identifying and evaluating different opportunities.
E. Evaluating the present situation of a business.
The implementation phase of a marketing plan involves identifying and evaluating different opportunities by engaging in a process known as segmentation, targeting, and positioning. It also involves developing and implementing the marketing mix by using the four Ps.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 02-05 Outline the implementation of the marketing mix as a means to increase customer value.
Topic: 02-11 Step 4: Implement Marketing Mix and Allocate Resources
- An organization appoints a marketing manager to study the effectiveness of the marketing plan that it has implemented. The manager analyzes organizational performance using various metrics and gives a final report. In the context of developing a marketing plan, the organization is in the phase of:
A.initiation.
B. planning.
C. design.
D. control.
E. implementation.
The organization is in the control phase of developing a marketing plan. The activities in this phase help a firm to determine why it achieved or did not achieve its performance goals.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-05 Outline the implementation of the marketing mix as a means to increase customer value.
Topic: 02-12 Step 5: Evaluate Performance by Using Marketing Metrics
- Which of the following is an activity in the control phase of a marketing plan?
A.Developing and implementing a marketing mix
B. Identifying a business’s mission and objectives
C. Evaluating the performance of a marketing strategy
D. Identifying the opportunities present in a market
E. Understanding a firm’s competitive strengths and weaknesses
The control phase of a marketing plan entails evaluating the performance of a marketing strategy. It also involves making the necessary corrective actions in a marketing strategy.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 02-05 Outline the implementation of the marketing mix as a means to increase customer value.
Topic: 02-12 Step 5: Evaluate Performance by Using Marketing Metrics
- Which of the following is true of situation analysis?
A.It is performed using a SWOT analysis
B. It is independent of political and demographic factors.
C. It overlooks the opportunities and threats to an organization.
D. It categorizes strengths and weaknesses as outside the control of a firm.
E. It is executed before creating the mission statement of an organization.
A situation analysis is performed using a SWOT analysis. It requires a firm to undertake a critical assessment of resources, capabilities, organization, strategies, and performance in relation to competitors.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-03 Analyze a marketing situation using a SWOT analysis.
Topic: 02-09 Step 2: Conduct a Situation Analysis
- Which of the following is true of a SWOT analysis?
A.It is typically performed by lower-level managers.
B. It is used to design a firm’s mission and objectives.
C. It is independent of social and political factors.
D. It is designed to help a firm determine its own strengths.
E. It is usually conducted in the control phase of a market plan.
A SWOT analysis is designed to help a firm determine its strengths. It is used as a tool in situation analysis.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-02 Describe the elements of a marketing plan.
Topic: 02-08 Step 1: Define the Business Mission and Objectives
- In a SWOT analysis, which of the following is considered a company’s strength?
A.Presence of wide distribution networks
B. Attractiveness of the industry
C. Market exit of a competitor
D. Favourable political changes
E. Acquiring another firm and gaining market access
In a SWOT analysis, the presence of wide distribution networks is considered as a company’s strength. It is an internal factor that contributes to the company’s potential for success.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-03 Analyze a marketing situation using a SWOT analysis.
Topic: 02-09 Step 2: Conduct a Situation Analysis
- In the context of a SWOT analysis, which of the following is considered a company’s weakness?
A.Changes in consumer behaviour
B. Lack of financial resources
C. Unfavourable political changes
D. Natural disasters that affect the company
E. Entry of new players into the industry
In a SWOT analysis, the lack of financial resources is considered as a weakness of a company. It is an internal factor that is in the company’s control.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-03 Analyze a marketing situation using a SWOT analysis.
Topic: 02-09 Step 2: Conduct a Situation Analysis
- In a SWOT analysis, which of the following is considered a threat to businesses?
A.Lack of credibility in the market
B. Limited consumer base
C. Lack of adequate financial resources
D. Poor location of service outlets
E. New entrants into the industry or market
In a SWOT analysis, new entrants into the industry or market are considered a threat to businesses. It is an external negative factor outside a company’s control.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-03 Analyze a marketing situation using a SWOT analysis.
Topic: 02-09 Step 2: Conduct a Situation Analysis
- In the context of a SWOT analysis, which of the following is considered an opportunity to businesses?
A.Presence of wide distribution networks
B. Availability of strong financial resources
C. Favourable political changes
D. Superior product offerings
E. Presence of a strong base of loyal customers
In a SWOT analysis, favourable political changes are considered an opportunity for businesses. They constitute a change in external environment that works in a company’s favour.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-03 Analyze a marketing situation using a SWOT analysis.
Topic: 02-09 Step 2: Conduct a Situation Analysis
- What is the next step that a business organization has to perform after completing situation analysis?
A.Identifying the organization’s objectives
B. Evaluating the effectiveness of the marketing plan
C. Evaluating market performance
D. Conducting segmentation, targeting, and positioning
E. Setting marketing objectives for the organization
After completing situation analysis, an organization has to conduct segmentation, targeting, and positioning. It helps the organization to locate its target customers and design appropriate strategies.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- Which of the following terms refers to a group of consumers who respond similarly to a firm’s marketing efforts?
A.Market segment
B. Targeting
C. Product line
D. Market penetration
E. Market positioning
A market segment refers to a group of consumers who respond similarly to a firm’s marketing efforts. Identifying appropriate market segments helps a company develop suitable marketing strategies.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- Rockslide Inc., a manufacturer of sports equipment, classifies its customers into different age groups. Each of these groups is unique in terms of its preference for the company’s products. Given this information, this classification is an example of:
A.downsizing.
B. positioning.
C. segmentation.
D. diversification.
E. locational excellence.
The classification is an example of segmentation. It is the process of classifying a market into distinct groups of customers where each individual group has similar needs, wants, or characteristics.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- Which of the following refers to the process of classifying a market into distinct groups of customers where each individual group has similar needs, wants, or characteristics?
A.Downsizing
B. Positioning
C. Locational excellence
D. Segmentation
E. Diversification
Segmentation refers to the process of classifying a market into distinct groups of customers where each individual group has similar needs, wants, or characteristics. It is important to identify customer requirements to locate target customers.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- Alchemistro Inc. is a firm that manufactures chemical detergents and associated products. The company decides to manufacture detergent products that cater to the needs of the high-income consumers. Which of the following best describes Alchemistro’s decision to specifically cater to the high-income segment?
A.Locational excellence
B. Downsizing
C. Targeting
D. Diversification
E. Operational excellence
The decision to cater to a particular market segment is a part of targeting. Targeting is the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- SleakTouch Inc., a manufacturer of mobile phones, conducts market research to understand the market situation. The research suggests that its customers are mostly young people between the ages of 30 and 40. The company decides to focus its resources on this market segment. Given this information, the company’s decision is a part of:
A.locational excellence.
B. operational excellence.
C. diversification.
D. downsizing.
E. targeting.
The company’s decision is a part of targeting. Targeting is the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- Market positioning is the process of:
A.attempting to change the identity of competing products in the collective minds of the target market.
B. defining the marketing mix variables to give target customers a distinct and desirable understanding of what a product represents.
C. evaluating the attractiveness of various segments and then deciding which to pursue as a market.
D. dividing the market into distinct groups of customers where each individual group has similar needs, wants, or characteristics.
E. attempting to engage customers with one another or with a company or a brand.
Market positioning is the process of defining the marketing mix variables to give target customers a distinct and desirable understanding of what a product represents. It helps customers to compare a product with competing products.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- Lego Inc., a manufacturer of computers, has developed a brand image by delivering high-quality products at affordable prices. This image results in customers choosing Lego’s products over competing products. In this case, which of the following refers to Lego’s strategy of creating a distinct and desirable understanding in the minds of consumers of what its product represents?
A.Locational excellence
B. Market segmentation
C. Target marketing
D. Market positioning
E. Downsizing
Lego’s strategy is a part of market positioning. It is the process of defining the marketing mix variables to give target customers a distinct and desirable understanding of what a product represents.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 02-04 Explain how a firm chooses what consumer group(s) to pursue with its marketing efforts.
Topic: 02-10 Step 3: Identify and Evaluate Opportunities by Using STP (Segmentation, Targeting, and Positioning)
- In the context of marketing mix, which of the following aspects of customer value is closely associated with products?
A.Value creation
B. Value delivery
C. Value for money
D. Value communication
E. Value exchange
The aspect of value creation is most closely associated with products. Firms develop products and services that customers perceive as valuable enough to buy.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 02-05 Outline the implementation of the marketing mix as a means to increase customer value.
Topic: 02-11 Step 4: Implement Marketing Mix and Allocate Resources
- TravelSmart Inc. offers a range of travel packages to tourist destinations across the world. The customers are charged according to the services provided during the tour. This allows the customers to choose a package proportionate to their income and requirements. Given this information, which of the following elements of a marketing mix is stressed upon by the company?
A.Promotion
B. Product
C. Price
D. Place
E. Power
The company stresses on the element of price. Value-based marketing requires that firms charge a price that customers perceive as giving them good value for the products and services they receive.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 02-05 Outline the implementation of the marketing mix as a means to increase customer value.
Topic: 02-11 Step 4: Implement Marketing Mix and Allocate Resources
- Which of the following Ps of marketing is associated with the delivery of value to customers?
A.Process
B. Place
C. Price
D. Promotion
E. Product
The variable of place is associated with the delivery of value to customers. For the proper delivery of value, a firm makes a product or service readily accessible when and where a customer wants it.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 02-05 Outline the implementation of the marketing mix as a means to increase customer value.
Topic: 02-11 Step 4: Implement Marketing Mix and Allocate Resources
- Paralegal Consulting Inc., a firm that offers legal services, decides to open new branches in rural areas. The new branches would help the firm reach out to people who cannot travel to cities and avail legal help. In this case, this decision reflects the firm’s strategy regarding:
A.product.
B. process.
C. price.
D. place.
E. promotion.
The company’s strategy regarding place is reflected in its decision to start new branches in rural areas. The variable of place determines the accessibility of a product or service.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 02-05 Outline the implementation of the marketing mix as a means to increase customer value.
Topic: 02-11 Step 4: Implement Marketing Mix and Allocate Resources
Chapter 04
Consumer Behaviour
Multiple Choice Questions
- The consumer decision process model represents…
A. Steps consumers go through during a purchase
B. Process that consumers go through in a store to make a final purchase decision
C. Process that companies go through to convince customers to make a purchase
D. Factors that the target market considers to make a purchase decision
E. Steps that consumers go through before, during, and after making purchases
The consumer decision process model represents steps that consumers go through before, during, and after making purchases.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 04-01 Describe the steps in the consumer buying decision process.
Topic: 04-01 The Consumer Decision Process
- Which of the following needs pertain specifically to the performance of a product or service?
A.Esteem needs
B. Functional needs
C. Safety needs
D. Physiological needs
E. Psychological needs
Functional needs pertain to the performance of a product or service. The consumer decision process begins when consumers recognize they have an unsatisfied need and want to go from their needy state to a different, desired state.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-01 Describe the steps in the consumer buying decision process.
Topic: 04-02 Step 1: Need Recognition
- The personal gratification that consumers associate with a product or service fulfills:
A.esteem needs.
B. functional needs.
C. safety needs.
D. physiological needs.
E. psychological needs.
Psychological needs pertain to the personal gratification consumers associate with a product and/or service. If consumers pay $500 to $1,500 for shoes of a particular brand, they are most likely seeking a way to satisfy their psychological needs.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-01 Describe the steps in the consumer buying decision process.
Topic: 04-02 Step 1: Need Recognition
- Marketers can do all of the following to influence the consumer’s decision process at the need recognition stage EXCEPT:
A.Reminder advertising for the product
B. Showing how a new product can enhance consumers’ image
C. Creating awareness about a new product
D. Changing the physical layout of a store to remind customers to buy certain products
E. Invest in SEO of the company website
At the need recognition stage, marketers should remind customers of a need. SEO is a tactic that is helpful at the information search stage.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-02 Step 1: Need Recognition
- Ishika is planning to throw a party for her friends in a restaurant. She tries to recall all the restaurants that she has visited over the years and weighs the pros and cons of each of these restaurants before coming to a decision. Which of the following is being exemplified in this scenario?
A.Habitual decision making
B. An internal search for information
C. Postpurchase dissonance
D. Impulse buying
E. An external search for information
This scenario exemplifies an internal search for information. In an internal search for information, the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Ansel is planning to purchase a new house. He consults his family and friends for suggestions on suitable residential areas. He contacts a number of real estate agents to find out more about the prices of houses. He also searches online to have a look at the houses for sale and reads the comments of people interested in buying houses. This is an example of:
A.habitual decision making.
B. an internal search for information.
C. postpurchase dissonance.
D. impulse buying.
E. an external search for information.
This scenario exemplifies an external search for information. In an external search for information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision. Consumers might fill in their personal knowledge gaps by talking with friends, family, or a salesperson.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- What is a buyer most likely experiencing when he or she examines his or her own memory and knowledge about a product or service that is gathered through past experiences?
A.An external locus of control
B. An impulse buying decision
C. An external search for information
D. An internal locus of control
E. An internal search for information
In an internal search for information, the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- A buyer seeks information beyond her personal knowledge base to help make a buying decision. This is an example of a(n):
A.external locus of control.
B. ritual-based purchase.
C. external search for information.
D. internal locus of control.
E. internal search for information.
In an external search for information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision. Consumers might fill in their personal knowledge gaps by talking with friends, family, or a salesperson.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Mark wants to go to a good fast-food restaurant for dinner. He recalls all the fast-food restaurants that he has visited. He then decides on his favourite, a restaurant that he has been visiting since childhood. This is an example of:
A.habitual decision making.
B. an external search for information.
C. impulse buying.
D. an internal search for information.
E. postpurchase dissonance.
This scenario exemplifies an internal search for information. In an internal search for information, the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Gina wants to buy a car. Before buying it, she asks her friends for their opinions, reads reviews in consumer reports, consults several websites, and visits several dealerships. This is an example of:
A.habitual decision making.
B. an external search for information.
C. impulse buying.
D. an internal search for information.
E. postpurchase dissonance.
This scenario exemplifies an external search for information. In an external search for information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision. Consumers might fill in their personal knowledge gaps by talking with friends, family, or a salesperson.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Brian believes that he can get a better deal when buying his first bike. This is because he believes that if he conducts an extensive search for information and tries to use this information when negotiating his purchase, he will definitely be able to strike a better deal. This is an example of:
A.an external locus of control.
B. limited problem solving.
C. an internal locus of control.
D. ritual consumption.
E. extended problem solving.
In this scenario, Brian has an internal locus of control. People who have an internal locus of control believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Coraline wants to buy a new house. She is a great believer in destiny and fate. She feels that regardless of what information she has, she can do little to influence the outcome of the deal and therefore does not engage in extensive research. This is an example of:
A.an external locus of control.
B. limited problem solving.
C. an internal locus of control.
D. ritual consumption.
E. extended problem solving.
In this scenario, Coraline has an external locus of control. With an external locus of control, consumers believe that fate or other external factors control all outcomes. In that case, they believe it doesn’t matter how much information they gather; if they make a wise decision, it isn’t to their credit, and if they make a poor one, it isn’t their fault.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- The consumer belief that fate or other external factors control all outcomes is called a(n):
A.external locus of control.
B. ritual-based pattern.
C. external search for information.
D. internal locus of control.
E. internal search for information.
With an external locus of control, consumers believe that fate or other external factors control all outcomes. In that case, they believe it doesn’t matter how much information they gather; if they make a wise decision, it isn’t to their credit, and if they make a poor one, it isn’t their fault.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- When consumers believe they have some control over the outcomes of their actions, they generally engage in more search activities. This is called a(n):
A.external locus of control.
B. ritual-based pattern.
C. external search for information.
D. internal locus of control.
E. internal search for information.
People who have an internal locus of control believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- While buying a new gown, Rhonda goes online and looks at several websites. She makes copious notes and spends hours comparing prices and designs. She then consults a designer friend, looks at several magazines, and discusses the issue with her sisters and mother. This is an example of:
A.an external locus of control.
B. limited problem solving.
C. an internal locus of control.
D. ritual consumption.
E. extended problem solving.
In this scenario, Rhonda displays an internal locus of control. People who have an internal locus of control believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Mary believes that if she makes a wise decision, it is not to her credit, and if she makes a poor one, it is not her fault. This is an example of:
A.an external locus of control.
B. limited problem solving.
C. an internal locus of control.
D. ritual consumption.
E. extended problem solving.
In this scenario, Mary displays an external locus of control. With an external locus of control, consumers believe that fate or other external factors control all outcomes. In that case, they believe it doesn’t matter how much information they gather; if they make a wise decision, it isn’t to their credit, and if they make a poor one, it isn’t their fault.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Moderate
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Which of the following statements is true of financial risk?
A.It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively.
B. It is the risk that involves the perceived danger inherent in a poorly performing product or service.
C. It is the risk associated with the fear of an actual harm should a product not perform properly.
D. It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service.
E. It is the risk associated with the way people will feel if a product or service does not convey the right image.
Financial risk is risk associated with a monetary outlay and includes the initial cost of a purchase, as well as the costs of using the item or service. Car manufacturers, for instance, recognize that extended warranties help alleviate financial risk because consumers fear extensive postpurchase repair costs.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Raheem wants to purchase a new laptop. He believes that no matter how hard he looks at other alternatives and other brands available in the market, he will end up compromising some of the features that he would want in his laptop. He feels that he has no restraint over the outcome of his purchase. This belief is most indicative of a(n):
A.need for self-actualization.
B. internal locus of control.
C. postpurchase dissonance.
D. external locus of control.
E. social need.
In this case, Raheem’s belief indicates an external locus of control. With an external locus of control, consumers believe that fate or other external factors control all outcomes. In that case, they believe it doesn’t matter how much information they gather; if they make a wise decision, it isn’t to their credit, and if they make a poor one, it isn’t their fault.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Which of the following statements is true of physiological risk?
A.It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively.
B. It is the risk that involves the perceived danger inherent in a poorly performing product or service.
C. It is the risk associated with the fear of actual harm should a product not perform properly.
D. It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service.
E. It is the risk associated with the way people will feel if a product or service does not convey the right image.
Physiological risk could also be called safety risk. Whereas performance risk involves what might happen if a product does not perform as expected, physiological (or safety) risk refers to the fear of actual harm should the product not perform properly.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Which of the following statements is true of social risk?
A.It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively.
B. It is the risk that involves the perceived danger inherent in a poorly performing product or service.
C. It is the risk associated with the fear of an actual harm should a product not perform properly.
D. It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service.
E. It is the risk associated with the way people will feel if the product or service does not convey the right image.
Social risk involves the fears that consumers suffer when they worry others might not regard their purchases positively.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Which of the following statements best defines psychological risk?
A.It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively.
B. It is the risk that involves the perceived danger inherent in a poorly performing product or service.
C. It is the risk associated with the fear of an actual harm should a product not perform properly.
D. It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service.
E. It is the risk associated with the way people will feel if a product or service does not convey the right image.
Psychological risks are those risks associated with the way people will feel if the product or service does not convey the right image.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Which of the following statements best describes performance risk?
A.It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively.
B. It is the risk that involves the perceived danger inherent in a poorly working product or service.
C. It is the risk associated with the fear of an actual harm should a product not perform properly.
D. It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service.
E. It is the risk associated with the way people will feel if a product or service does not convey the right image.
Performance risk involves the perceived danger inherent in a poorly performing product or service.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Which of the following statements is true of determinant attributes?
A.It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another, such that good characteristics compensate for bad ones.
B. It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
C. It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live.
D. It refers to the mental shortcuts that help consumers narrow down their choices during purchase.
E. It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.
To simplify the potentially complicated decision process, consumers use shortcuts such as determinant attributes and consumer decision rules. Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-08 Psychological Factors
- Which type of risk is less likely to be an influential risk factor when a consumer buys an expensive suit?
A.Performance risk
B. Financial risk
C. Social risk
D. Physiological risk
Physiological risk is also called safety risk. Compared to performance, financial, and social risk, physiological risk is less likely to be an issue with apparel.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Which risk factor would motivate some customers to buy an extended warranty for a TV?
A.Social risk
B. Performance risk
C. Physiological risk
D. Financial risk
E. Perceived risk
Extended warranties help customers alleviate financial risk as they fear extensive post purchase repair costs.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-03 Step 2: Information Search
- Which of the following holds true for the term “compensatory decision rule”?
A.It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another.
B. It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
C. It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live.
D. It refers to the mental shortcuts that help consumers narrow down choices.
E. It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.
A compensatory decision rule assumes that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-04 Step 3: Alternative Evaluation
- Jim wants to buy a new smart phone. He considers several factors, such as camera quality, processor, style, operation system, battery life and price. He selected the most recent Samsung Galaxy even though it was priced a little higher than the budget he has set aside, he feels the superb camera quality and battery life will compensate for the higher price. Which of the following is being illustrated in this scenario?
A.A compensatory decision rule
B. Postpurchase dissonance
C. A determinant attribute
D. Decision heuristics
E. An external locus of control
This scenario illustrates the compensatory decision rule. A compensatory decision rule assumes that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-05 Step 4: Purchase Decision
- Tom wants to buy a new bike. He considers several factors, such as mileage, style, and price. Tom finds the perfect bike, but it is priced quite high. Although the mileage is superb, Tom rejects the bike because it is priced higher than what he is willing to pay. Instead, he buys a bike that is priced lower than the one he initially decided to purchase. Which of the following is being illustrated in this scenario?
A.An external locus of control
B. Postpurchase dissonance
C. A determinant attribute
D. Decision heuristics
E. A noncompensatory decision rule
This scenario illustrates the noncompensatory decision rule. Consumers use a noncompensatory decision rule, in which they choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-05 Step 4: Purchase Decision
- Joss wants to buy a T-shirt. He prefers branded T-shirts to nonbranded ones. Though the Calvin Klein T-shirt is very expensive, Joss decides to purchase it as he believes he is buying a higher quality item. This is an example of:
A.a compensatory decision rule.
B. postpurchase dissonance.
C. a determinant attribute.
D. decision heuristics.
E. a noncompensatory decision rule.
This scenario exemplifies decision heuristics. Some people use decision heuristics, which are mental shortcuts that help them narrow down their choices.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-11 Involvement and Consumer Buying Decisions
- Customers are more likely to use “decision heuristics” for which category of products?
A.Shopping
B. Specialty
C. Convenience
D. Luxury
E. Credence-based
Decision heuristics are mental shortcuts that help customers make a faster decision. Customers are more likely to use decision heuristics when they purchase a convenience product as those carry less risk compared to shopping for specialty products.
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-04 Step 3: Alternative Evaluation
- In Toronto, a retail food store dropped its prices by 12 percent, which led to an increase in its market share from 30 to 45 percent. Because the lower price was the reason why shoppers wanted to buy at that particular store and not at the other competitor retail stores, this is an example of:
A.a compensatory decision rule.
B. postpurchase dissonance.
C. a determinant attribute.
D. decision heuristics.
E. a noncompensatory decision rule.
Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-04 Step 3: Alternative Evaluation
- Which of the following statements is true of the noncompensatory decision rule?
A.It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another, such that good characteristics compensate for bad ones.
B. It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
C. It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live.
D. It refers to the mental shortcuts that help consumers narrow down choices such as price, brand, and product presentation.
E. It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.
Consumers use a noncompensatory decision rule, in which they choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-04 Step 3: Alternative Evaluation
- Which of the following statements holds true for the term “decision heuristics”?
A.It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another, such that good characteristics compensate for bad ones.
B. It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
C. It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live.
D. It refers to the mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation.
E. It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.
Some people use decision heuristics, which are mental shortcuts that help them narrow down their choices. Examples for decision heuristics include price, brand, and product presentation.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-04 Step 3: Alternative Evaluation
- A pattern of behaviours tied to life events that affect what and how people consume is called:
A.an external locus of control.
B. ritual consumption.
C. impulse buying.
D. an internal locus of control.
E. an internal search for information.
After consumers purchase a product or service, they usually consume it, or “put it to the test.” A special type of consumption is called ritual consumption, which refers to a pattern of behaviours tied to life events that affect what and how we consume.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-05 Step 4: Purchase Decision
- Mia goes to the local bakery every morning to have her breakfast, which consists of a bagel with cream cheese and a freshly brewed cup of coffee. She has been doing this for the last 10 years. This is an example of:
A.impulse buying.
B. limited problem solving.
C. postpurchase dissonance.
D. ritual consumption.
E. extended problem solving.
This scenario illustrates ritual consumption. After consumers purchase a product or service, they usually consume it, or “put it to the test.” A special type of consumption is called ritual consumption, which refers to a pattern of behaviours tied to life events that affect what and how we consume.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Moderate
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-05 Step 4: Purchase Decision
- Alpha-techtronics, Inc. buys gifts for Christmas from a particular toy manufacturing company. Alpha then distributes these gifts to several juvenile detention centres every year as part of its social responsibility program. The company delivers beautifully wrapped gifts and stockings filled with other goodies on Christmas Eve. This is an example of:
A.an external locus of control.
B. limited problem solving.
C. an internal locus of control.
D. ritual consumption.
E. extended problem solving.
This scenario exemplifies ritual consumption. After consumers purchase the product or service, they usually consume it, or “put it to the test.” A special type of consumption is called ritual consumption, which refers to a pattern of behaviours tied to life events that affect what and how we consume.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Difficult
Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service.
Topic: 04-05 Step 4: Purchase Decision
Reviews
There are no reviews yet.