BUS708E CONSUMER BEHAVIOR MID-TERM NAME:

TRUE OR FALSE (2 PTS. EACH)

1. Studying how consumers decide to buy products is a good definition of consumer behavior.

a. True
b. False

2. Organizations that market products or services often study consumer behavior in order to improve business performance.

a. True
b. False

3. Public Policy is the establishment of laws and regulations that guide and govern business practices in order to protect consumers.

a. True
b. False

4. Research has shown that there is relationship between the number of added features a cell phone has and the level of customer satisfaction, such that as features go down, satisfaction goes down. This type of relationship represents a negative correlation.

a. True
b. False

5. An zero correlation means there is no predictable relationship between two variables.

a. True
b. False

MULTIPLE CHOICE (2 PTS. EACH)

1. Julie is trying to decide where to attend college. He has researched several schools online; he has visited three colleges; and he has discussed his preferences with his family. John is currently engaged in what consumer activity?

a. Purchase activity
b. Consumption activity
c. Use activity
e. None of the above is correct.

2. Which of the following is an example of a negative correlation?

a. As advertising increases, sales increase
b. As advertising increases, sales go either up or down
c. As advertising increases, sales decrease
d. Both A and C are correct.

3. Which of following is not a secondary data source?

a. Past company sales records
b. U.S. Bureau of Census reports
c. Documented results of previous research d. Magazines like Advertising Age
e. All of the above are secondary data sources.

4. is the process of dividing the large and diverse market into subsets of consumer who share common needs, characteristics, or behaviors.

a. Market segmentation
b. Market aggregation
c. Branding
d. Advertising e. Positioning

5. The four elements of the marketing mix are:

a. product, price, place, and position
b. price, position, place, and promotion
c. place, product, price, and promotion
d. promotion, place, prestige, and product
e. position, price, product, and promotion

6. is the tendency for a company to focus exclusively on large, average market segments and neglect small, less typical segments.

a. Repositioning
b. False thinking
c. Market neglect
d. Majority fallacy
e. Market aggregation

7. The fact that some people prefer mint flavored-toothpaste, while others prefer cinnamon-flavored is know as:

a. psychographies
b. stereotyping
c. cannibalization
d. the majority fallacy
e. customer preference heterogeneity

8. is when products offered by the same firm are so similar they compete among themselves.

a. The majority fallacy
b. Cannibalization
c. The sales-cost trade-off d. Mass customization
e. Market aggregation

9. Which of the following statements demonstrates the formation of a segment based on demographics?

a. A local restaurant is open for breakfast and lunch, and then closes at 3:00PM. b. GE has developed a microwave that can run on batteries.
c. "University Park" is a new set of student apartments rented exclusively to graduate students.
d. Procter & Gamble offers a $1.00 coupon when consumers purchase three bottles of Pert Shampoo.
e. Cengage Publishing Company publishes a magazine called "Taste of Living" specifically for audiences who enjoy cooking and trying new recipes.

10. is segmentation based on consumer preference for specific product attributes or benefits, usage occasion, user status, rate of product usage, or loyalty.

a. Demographic-based segmentation
b. Ethnographic-based segmentation
c. Psychographic-based segmentation
d. Geo-demographic based segmentation
e. None of the above is correct.

11. Air Walk is a brand of athletic shoes that is marketed to appeal to individuals who engage in skateboarding. This is an example of what kind of segmentation strategy?

a. Benefits sought
b. Price
c. Psychographic
d. Demographic
e. Geo-demographic
e. Geo-demographic

12. Marketers use perceptual maps as a means to display or graph the location of products or brands:

a. with respect to the geographic areas where they are manufactured
b. as they are clustered by retailer, normally in major metropolitan areas
c. within distribution channels
d. in the minds of consumers
e. in terms of the utility created by each product attribute

13. Tammy really likes Diet Coke. When Diet Coke isn't available Tammy chooses Coke Zero or Caffeine Free Diet Coke. In terms of loyalty, Tammy is:

a. attribute loyal
b. brand loyal
c. product loyal
d. low in brand resonance
e. All of the above are correct.

14. The makers of Pantene Hair Care products was interested in determining types of loyalty in its target market. Using marketing research, they asked customers to indicate their first choice and their second choice from among a list of brands and brand extensions. The majority of the participants indicated that Pantene Body Rich Shampoo and Pantene Body Building Mousse were their first and second choice. These results suggest that these consumers are:

a. attribute loyal
b. brand loyal
c. product loyal
d. All of the above are correct.
e. It is impossible to predict from this type of research question.

15. If the vast majority of a brand's customers are brand loyal, what should a marketer do?

a. Harvest the brand
b. Increase the product line
c. Develop as few brand extension as possible
d. Maintain a narrow product line to avoid cannibalization
e. Stop promoting the brand because it is a waste of money