moriarty_adv-imc9_tif_ch5.doc

Advertising & IMC: Principles and Practice, 9e (Moriarty)Chapter 5 Segmenting and Targeting the Audience

1) ________ describes how individuals or groups select, purchase, use, or dispose of products, as well as the needs and wants that motivate these behaviors.A) MarketingB) ConsumptionC) Consumer behaviorD) PsychologyE) SegmentationAnswer: CDiff: 1 Page Ref: 130-131Skill: ConceptObjective: 5-1

2) Which of the following is a social/cultural influence on consumer decision making?A) state of mindB) innovationC) satisfactionD) familyE) personalityAnswer: DDiff: 2 Page Ref: 131 Skill: ConceptObjective: 5-1

3) Which of the following is NOT a social/cultural influence on consumer decision making?A) cultureB) motivationsC) social classD) reference groupsE) demographicsAnswer: BDiff: 2 Page Ref: 131 Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

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4) Which of the following is a psychological influence on consumer decision making?A) state of mindB) innovationC) familyD) cultureE) brand relationshipAnswer: ADiff: 1 Page Ref: 131 Skill: ConceptObjective: 5-1

5) Which of the following is NOT a psychological influence on consumer decision making?A) state of mindB) selective perceptionC) satisfactionD) personalityE) innovationAnswer: EDiff: 2 Page Ref: 131 Skill: ConceptObjective: 5-1

6) Which of the following choices is a behavioral influence on consumer decision making?A) cultureB) reference groupsC) personalityD) psychographicsE) innovationAnswer: EDiff: 2 Page Ref: 131 Skill: ConceptObjective: 5-1

7) Which of the following is NOT a psychological influence?A) selective perceptionB) needs and wantsC) motivationsD) quantity usageE) attitudes and valueAnswer: DDiff: 3 Page Ref: 131 Skill: ConceptObjective: 5-2


8) ________ is made up of tangible items such as art, literature, buildings, and music and intangible concepts such as knowledge, laws, morals, and customs.A) SocietyB) CultureC) EthnicityD) BehaviorE) Social classAnswer: BDiff: 1 Page Ref: 132Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

9) The boundaries each culture establishes for "proper" behavior are called ________.A) referencesB) valuesC) normsD) subculturesE) core valuesAnswer: CDiff: 1 Page Ref: 132Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

10) ________ are simply rules learned through social interaction that specify or prohibit certain behaviors.A) NormsB) ReferencesC) ValuesD) AttitudesE) MotivationsAnswer: ADiff: 1 Page Ref: 132Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1


11) The source of norms is a culture's ________, which represent underlying belief systems.A) valuesB) legal systemsC) social systemsD) social classesE) education systemsAnswer: ADiff: 1 Page Ref: 132Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

12) A sense of belonging, excitement, fun and enjoyment, warm relationships, self-fulfillment, respect from others, a sense of accomplishment, security, self-respect, and thrift are all examples of ________.A) normsB) cultureC) core valuesD) behaviorsE) attitudesAnswer: CDiff: 2 Page Ref: 132-133Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

13) The position you and your family occupy within your society is known as your ________.A) subcultureB) cultureC) ethnic groupD) reference groupE) social classAnswer: EDiff: 1 Page Ref: 134Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1


14) Which of the following does NOT determine an individual's social class?A) incomeB) wealthC) educationD) occupationE) geographyAnswer: EDiff: 2 Page Ref: 134Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

15) Which of the following is NOT typically used to determine social class?A) incomeB) ageC) family prestigeD) value of homeE) neighborhoodAnswer: BDiff: 2 Page Ref: 134Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

16) Which of the following statements is true regarding social class in the United States?A) Social class is determined solely by income level.B) Lines between social classes in the United States are fixed and rigid.C) People in different social classes tend to buy different products.D) Wealth is more critical than education level in measuring social class.E) People are relegated to a permanent class layer in the United States.Answer: CDiff: 3 Page Ref: 134Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

17) A ________ is a group of people an individual uses as a model for behavior in specific situations.A) subgroupB) social classC) reference groupD) normal groupE) cohortAnswer: CDiff: 1 Page Ref: 134Skill: ConceptObjective: 5-1


18) Family is one of the ________ factors that influence consumer behavior.A) culturalB) socialC) personalD) psychologicalE) businessAnswer: BDiff: 2 Page Ref: 135Skill: ConceptObjective: 5-1

19) Which of the following is the most important reference group because of its formative role and the intensity of its relationships?A) neighborsB) teachersC) familyD) employerE) coworkersAnswer: CDiff: 2 Page Ref: 135Skill: ConceptObjective: 5-1

20) According to the U.S. Census definition, a ________ consists of two or more people who are related by blood, marriage, or adoption, and live in the same household.A) subcultureB) familyC) householdD) reference groupE) normative groupAnswer: BDiff: 1 Page Ref: 135Skill: ConceptObjective: 5-1

21) A ________ consists of all those who occupy a dwelling whether they are related or not.A) subcultureB) familyC) householdD) reference groupE) normative groupAnswer: CDiff: 1 Page Ref: 135Skill: ConceptObjective: 5-1


22) The basic driving forces that motivate us to do something are called ________.A) wantsB) desiresC) valuesD) needsE) attitudes Answer: DDiff: 2 Page Ref: 135Skill: ConceptObjective: 5-1

23) ________ are what we feel for more essential items, such as food and shelter; ________ occur when we desire or wish for something.A) Needs; wantsB) Wants; needsC) Primary needs; secondary needsD) Acquired needs; primary needsE) Innate wants; acquired wantsAnswer: ADiff: 2 Page Ref: 135Skill: ConceptObjective: 5-1

24) ________ needs are those we learn in response to our culture and environment and may include needs for esteem, prestige, affection, power, and learning.A) InnateB) PrimaryC) AcquiredD) SelectiveE) Higher-orderAnswer: CDiff: 1 Page Ref: 135Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

25) Acquired needs are also called ________ needs.A) secondaryB) primaryC) physiologicalD) innateE) safetyAnswer: ADiff: 2 Page Ref: 135Skill: ConceptAACSB: Analytic skillsObjective: 5-1


26) According to Maslow's Hierarchy of Needs, which level of needs includes self-fulfillment and enriching experiences?A) ego needsB) belongingness needsC) safety needsD) self-actualization needsE) physiological needsAnswer: DDiff: 2 Page Ref: 136 Skill: ConceptObjective: 5-1

27) Prestige, status, and accomplishments are all examples of which level of needs in the Maslow's Hierarchy of Needs?A) ego needsB) belongingness needsC) safety needsD) self-actualization needsE) physiological needsAnswer: ADiff: 2 Page Ref: 136Skill: ConceptObjective: 5-1

28) In Maslow's Hierarchy of Needs, ________ needs include water, sleep, and food.A) self-actualizationB) egoC) belongingnessD) safetyE) physiologicalAnswer: EDiff: 2 Page Ref: 136Skill: ConceptObjective: 5-1

29) In Maslow's Hierarchy of needs, ________ needs include love, friendship and acceptance by others.A) self-actualizationB) egoC) belongingnessD) safetyE) physiologicalAnswer: CDiff: 2 Page Ref: 136 Skill: ConceptObjective: 5-1


30) According to the theory of ________, we tend to compensate or justify the discrepancies between what we actually receive and what we thought we would receive.A) selective satisfactionB) cognitive dissonanceC) adaptationD) mass desireE) attributionAnswer: BDiff: 2 Page Ref: 136Skill: ConceptObjective: 5-1

31) Which of the following is the public spread of a private want?A) selective satisfactionB) cognitive dissonanceC) adaptationD) mass desireE) normatizationAnswer: DDiff: 2 Page Ref: 136Skill: ConceptObjective: 5-1

32) A(n) ________ is an internal force that stimulates a person to behave in a particular manner and is produced by the tension caused by an unfulfilled want or need.A) attitudeB) desireC) valueD) motiveE) normAnswer: DDiff: 1 Page Ref: 136Skill: ConceptObjective: 5-1

33) ________ means dividing the market into groups of people who have similar characteristics in certain key product-related areas.A) TargetingB) MarketingC) PositioningD) SegmentingE) ProfilingAnswer: DDiff: 1 Page Ref: 137Skill: ConceptObjective: 5-2


34) Using which strategy do planners treat the market as homogeneous and use general appeals for all consumers?A) multi-segment strategyB) undifferentiated strategyC) behavioral targeting strategyD) microtargeting strategyE) niche strategyAnswer: BDiff: 1 Page Ref: 137Skill: ConceptObjective: 5-2

35) Subsegments of a more general market segment are known as ________ markets and are defined by individuals with some distinctive interest or attitude, such as being ecologically minded consumers.A) behavioralB) nicheC) culturalD) generationalE) socialAnswer: BDiff: 2 Page Ref: 138Skill: ConceptObjective: 5-2

36) Which approach to segmentation divides the market using such characteristics such as gender, ethnicity, income, and so forth?A) demographic segmentationB) geographic segmentationC) psychographic segmentationD) benefit segmentationE) behavioral segmentationAnswer: ADiff: 1 Page Ref: 138Skill: ConceptObjective: 5-2


37) International, national, state, city, climate, and urban/rural are all ways to segment a market by ________.A) demographicsB) geographicsC) psychographicsD) behavioral characteristicsE) benefits soughtAnswer: BDiff: 2 Page Ref: 138Skill: ConceptObjective: 5-2

38) Which of the following is NOT an approach to segmenting consumer markets?A) demographic segmentationB) geographic segmentationC) psychographic segmentationD) behavioral segmentationE) brand segmentationAnswer: EDiff: 2 Page Ref: 138-139Skill: ConceptObjective: 5-2

39) Which approach to segmentation divides people into groups based on product category and brand usage?A) demographic segmentationB) geographic segmentationC) psychographic segmentationD) benefit segmentationE) behavioral segmentationAnswer: EDiff: 2 Page Ref: 139Skill: ConceptObjective: 5-2

40) ________ are the statistical, social, and economic characteristics used to describe a population, including age, gender and sexual orientation, education, income, occupation, race, and family status.A) PsychographicsB) LifestylesC) GeographicsD) DemographicsE) EthnographicsAnswer: DDiff: 1 Page Ref: 139Skill: ConceptObjective: 5-2


41) The youngest of the baby boomers are now in their ________.A) late 20sB) mid to late 20sC) mid to late 40sD) early 50sE) early 60sAnswer: CDiff: 2 Page Ref: 140Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

42) Which age-related population group is also referred to as the iGeneration?A) Generation XB) MillennialsC) Generation YD) the Greatest GenerationE) Me GenerationAnswer: BDiff: 2 Page Ref: 140Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

43) Which of the following most accurately characterizes members of Generation Y?A) They are children of baby boomers.B) They are the most environmentally educated generation.C) They have reached their peak earning and spending years.D) They were once labeled "the Greatest Generation."E) They are less immersed in technology than Gen Xers are.Answer: ADiff: 3 Page Ref: 140Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2


44) Which of the following statements is false?A) In the last decade, gay and lesbian consumers have become substantial target markets.B) Few cultures are more important to U.S. marketing than the Hispanic culture because it is growing proportionately faster than other ethnic groups.C) There are media use differences based on ethnicity.D) In the United States during the last three decades, there has been a gradual movement from white-collar occupations to blue-collar occupations.E) For advertisers, education tends to correlate with the type of medium consumers prefer.Answer: DDiff: 3 Page Ref: 142-143Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

45) Consumers with lower education tend to be higher users of ________ than consumers of higher education tend to be.A) newspapersB) radioC) magazinesD) televisionE) the InternetAnswer: DDiff: 2 Page Ref: 142Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

46) ________ is the amount of money available to a household after taxes and basic necessities such as food and shelter are paid for.A) Taxable incomeB) Discretionary incomeC) Available incomeD) Net incomeE) Gross incomeAnswer: BDiff: 2 Page Ref: 143Skill: ConceptObjective: 5-2


47) What race/ethnicity is growing faster than other ethnic groups?A) CaucasiansB) African AmericansC) AsiansD) HispanicsE) American IndiansAnswer: DDiff: 2 Page Ref: 143Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

48) Of the following, which ethnic minority is expected to be about 30% of the U.S. population by 2050? A) African AmericansB) Asian AmericansC) HispanicsD) Native AmericansE) Arab AmericansAnswer: CDiff: 2 Page Ref: 143Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

49) The term ________ refers to lifestyle and psychological characteristics, such as activities, values, attitudes, interests, and opinions.A) psychologyB) psychographicsC) attitudeD) motivationE) personalityAnswer: BDiff: 1 Page Ref: 145Skill: ConceptObjective: 5-2


50) Which of the following statements regarding attitudes is false?A) Advertisers are interested in attitudes because of their impact on motivations.B) Attitudes vary in direction and strength; that is, an attitude can be positive or negative, reflecting like or dislike, or it can be neutral.C) Most attitudes are deeply set and cannot be changed.D) Attitudes are important to advertisers because they influence how consumers evaluate products, institutions, retail stores, and advertising.E) Attitudes are learned.Answer: CDiff: 3 Page Ref: 145Skill: ConceptObjective: 5-2

51) Psychographic analysis looks at ________ in terms of patterns of consumption, personal relationships, interests, and leisure activities.A) lifestyle B) psychologyC) valuesD) familyE) attitudeAnswer: ADiff: 2 Page Ref: 145Skill: ConceptObjective: 5-2

52) According to the VALS classification of consumers, what are the three primary motivations for buying products and services?A) ideals, achievement, and self-expressionB) self-orientation, self-expression, and self-fulfillmentC) age, social class, and educationD) resources, innovations, and psychographicsE) attitudes, lifestyle, and valuesAnswer: ADiff: 3 Page Ref: 147 Skill: ConceptObjective: 5-2

53) What two variables are used to organize the VALS Lifestyle Framework?A) resources and innovationB) age and self-orientationC) age and social classD) resources and psychographicsE) social class and educationAnswer: ADiff: 3 Page Ref: 147Skill: ConceptObjective: 5-2


54) Which of the following is NOT a VALS classification of consumers?A) ThinkersB) StriversC) MakersD) DoersE) BelieversAnswer: DDiff: 3 Page Ref: 147 Skill: ConceptObjective: 5-2

55) ________ refers to how much of a product category or brand a customer buys.A) AdoptionB) InnovationC) MotivationD) NicheE) UsageAnswer: EDiff: 1 Page Ref: 148Skill: ConceptObjective: 5-2

56) Which of the following is NOT considered a consumer category of brand relationship?A) innovatorsB) ex-usersC) first-timersD) switchersE) regularsAnswer: ADiff: 2 Page Ref: 149 Skill: ConceptObjective: 5-2

57) Which of the following describes people with low levels of brand loyalty who may be willing to try a new brand?A) switchersB) light usersC) early adoptersD) innovatorsE) laggardsAnswer: ADiff: 2 Page Ref: 149Skill: ConceptObjective: 5-2


58) Consumers learn about new products for the first time and make the decision to buy them during the ________.A) need recognition stageB) adoption processC) evaluation processD) trial processE) quality assessmentAnswer: BDiff: 2 Page Ref: 149Skill: ConceptObjective: 5-2

59) Which category of the adoption process represents the 2.5 percent of the population willing to try something new?A) innovatorsB) early adoptersC) early majorityD) late majorityE) laggardsAnswer: ADiff: 2 Page Ref: 149Skill: ConceptObjective: 5-2

60) According to SRI International, early adopters ________.A) have many strong social contactsB) are people involved in unusual activities and whose level of activity will disproportionately affect the behaviors of othersC) are low media usersD) have a simple history of personal relationshipsE) are heavily influenced by others in their social circlesAnswer: BDiff: 3 Page Ref: 149Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2


61) ________ is your view of the relationship between what you gain by trying something new and what you have to lose if it doesn't work out.A) AdoptionB) AdaptationC) Perceived riskD) Selective exposureE) Selective distortionAnswer: CDiff: 1 Page Ref: 149Skill: ConceptObjective: 5-2

62) ________ are professional researchers hired by advertisers to identify trends that may affect consumer behavior.A) ProfilersB) FuturistsC) Trend spottersD) DemographersE) Buzz marketersAnswer: CDiff: 1 Page Ref: 150Skill: ConceptObjective: 5-2

63) ________ are trend spotters who specialize in identifying trendy fads that appeal to young people.A) Cool huntersB) Buzz marketersC) Trend huntersD) Gen Y marketersE) Trend settersAnswer: ADiff: 1 Page Ref: 150Skill: ConceptObjective: 5-2

64) Which of the following is NOT a step in the consumer decision process?A) need recognitionB) cognitive dissonanceC) information searchD) postpurchase evaluationE) purchase decisionAnswer: BDiff: 2 Page Ref: 151Skill: ConceptObjective: 5-3


65) ________ can vary in terms of seriousness or importance, and the goal of advertising at this stage is to activate or stimulate the need.A) Need recognitionB) Information searchC) Evaluation of alternativesD) Purchase decisionE) Postpurchase behaviorAnswer: ADiff: 1 Page Ref: 151Skill: ConceptObjective: 5-3

66) If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake a(n) ________.A) brand personalityB) selective retentionC) postpurchase behaviorD) information searchE) product adoptionAnswer: DDiff: 2 Page Ref: 151Skill: ConceptObjective: 5-3

67) ________ is the stage in which consumers compare various products and features and reduce the list of options to a manageable number.A) Need recognitionB) Information searchC) Evaluation of alternativesD) Purchase decisionE) Postpurchase behaviorAnswer: CDiff: 2 Page Ref: 151Skill: ConceptObjective: 5-3


68) Which of the following statements regarding influences on business-to-business decision making is false?A) In organizational buying, many individuals are involved in making the decision, often with a buying committee making the final decision.B) Although the business buyer may be motivated by both rational and emotional factors, the use of rational and quantitative criteria dominate most decisions.C) Quality is less important in business-to-business buying than in consumer buying.D) The decision is sometimes made based on a set of specifications to potential suppliers who then bid on the contract.E) The decision may span a considerable time, creating a lag between the initial contact and final decision.Answer: CDiff: 2 Page Ref: 152Skill: ConceptObjective: 5-3

69) ________ involves selecting potentially profitable segments as the audience for a marketing communication effort. A) TargetingB) PositioningC) ZoningD) SegmentingE) ProfilingAnswer: ADiff: 2 Page Ref: 152Skill: ConceptObjective: 5-4

70) Which of the following involves matching online ads to interests indicated by recency and frequency of consumer online behavior?A) data miningB) behavioral targetingC) microtargetingD) niche marketingE) mass marketingAnswer: BDiff: 2 Page Ref: 155Skill: ConceptAACSB: Use of information technologyObjective: 5-4


71) Purchasers and users have the same needs.Answer: FALSEDiff: 2 Page Ref: 131Skill: ConceptObjective: 5-1

72) The social and cultural forces that impact consumer decision making include culture, social class, family, and demographics.Answer: TRUEDiff: 2 Page Ref: 131Skill: ConceptObjective: 5-1

73) Values are defined as rules that we learn through social interaction that specify or prohibit certain behaviors.Answer: FALSEDiff: 2 Page Ref: 132Skill: ConceptObjective: 5-1

74) A household differs from a family in that it consists of all those who occupy a dwelling whether they are related or not.Answer: TRUEDiff: 2 Page Ref: 135Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-1

75) A need is an internal force that stimulates an individual to behave in a particular manner.Answer: FALSEDiff: 2 Page Ref: 135Skill: ConceptObjective: 5-1

76) Acquired needs are those we learn in response to our culture and environment and may include needs for esteem, prestige, affection, power, and learning.Answer: TRUEDiff: 2 Page Ref: 135Skill: ConceptObjective: 5-1

77) Physiological needs include the need for water, food, air, and sleep.Answer: FALSEDiff: 3 Page Ref: 135Skill: ConceptObjective: 5-1


78) Consumers who try a product and find it does not meet their expectations may be dissatisfied.Answer: TRUEDiff: 1 Page Ref: 136Skill: ConceptObjective: 5-1

79) According to the theory of cognitive dissonance, people tend to compensate or justify the discrepancies between what they actually receive and what they thought they would receive.Answer: TRUEDiff: 2 Page Ref: 136Skill: ConceptObjective: 5-1

80) Using an undifferentiated strategy, marketers treat the market as homogeneous, purposely ignoring differences in the market and using one marketing strategy that will appeal to as many people as possible.Answer: TRUEDiff: 2 Page Ref: 137Skill: ConceptObjective: 5-2

81) Psychographic segmentation is primarily based on studies of how people spend their money, their patterns of work and leisure, their interests and opinions, and their views of themselves.Answer: TRUEDiff: 2 Page Ref: 139Skill: ConceptObjective: 5-2

82) Consumers with higher education tend to prefer print media, the Internet, and selected radio and cable stations.Answer: TRUEDiff: 2 Page Ref: 142Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

83) In the United States, the Asian market is becoming a huge opportunity because it is growing faster than other ethnic groups.Answer: FALSEDiff: 3 Page Ref: 143Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2


84) Ethnicity is a major factor for segmenting markets.Answer: TRUEDiff: 2 Page Ref: 143Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

85) Psychographics refers to lifestyle and psychological characteristics such as activities, interests, and opinions.Answer: TRUEDiff: 2 Page Ref: 145Skill: ConceptObjective: 5-2

86) Psychographics are the statistical, personal, social, and economic characteristics used to describe a population.Answer: FALSEDiff: 2 Page Ref: 145Skill: ConceptObjective: 5-2

87) In the VALS Framework, psychographic groups are arranged vertically by self-orientation and horizontally by resources.Answer: FALSEDiff: 3 Page Ref: 147 Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

88) In the VALS Framework, Achievers and Strivers are motivated by achievement.Answer: TRUEDiff: 2 Page Ref: 147 Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2

89) The "bling bling generation" is a term coined by gay, upwardly mobile professionals.Answer: FALSEDiff: 3 Page Ref: 148Skill: ConceptAACSB: Multicultural and diversity understandingObjective: 5-2


90) The critical behavior predictor called usage refers to how much of a product category or brand a customer buys.Answer: TRUEDiff: 1 Page Ref: 148Skill: ConceptObjective: 5-2

91) According to the Pareto Rule, 20 percent of the users buy 80 percent of the products.Answer: TRUEDiff: 2 Page Ref: 149Skill: ConceptObjective: 5-2

92) In consumer categories, first-timers are people with low levels of brand loyalty who are willing to leave a brand to try another one.Answer: FALSEDiff: 3 Page Ref: 149Skill: ConceptObjective: 5-2

93) The first step in the consumer decision process is information search.Answer: FALSEDiff: 2 Page Ref: 151Skill: ConceptObjective: 5-3

94) Searchers are people who are driven by a need to know everything they can about a product before making a purchase, particularly for major purchases.Answer: TRUEDiff: 2 Page Ref: 151Skill: ConceptObjective: 5-3

95) A difference between the low- and high-involvement decision processes is that in the low-involvement case, the information search stage may be skipped.Answer: TRUEDiff: 2 Page Ref: 151Skill: ConceptObjective: 5-3

96) The first brands that come to mind when you think of a product category are referred to as your evoked set.Answer: TRUEDiff: 2 Page Ref: 151Skill: ConceptObjective: 5-3


97) Purchase decision is the last step of the consumer decision process.Answer: FALSEDiff: 2 Page Ref: 151Skill: ConceptObjective: 5-3

98) Business buyers are not influenced by emotional factors.Answer: FALSEDiff: 2 Page Ref: 152Skill: ConceptObjective: 5-3

99) After segmenting a market, the marketer selects potentially profitable segments to be the target audience for a marketing communication effort. Answer: TRUEDiff: 2 Page Ref: 152Skill: ConceptAACSB: Analytic skillsObjective: 5-4

100) Profiles are descriptions of the target audience that read like a description of someone you know.Answer: TRUEDiff: 1 Page Ref: 153Skill: ConceptObjective: 5-4

101) A belief that your family is more important than your job is an example of a value. Answer: TRUEDiff: 2 Page Ref: 132Skill: ApplicationAACSB: Multicultural and diversity understandingObjective: 5-1

102) Because people are able to move between social classes, these classes are relatively impermanent and disordered divisions composed of members who do not share values, interests, or behaviors.Answer: FALSEDiff: 3 Page Ref: 134Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-1


103) When an insurance company tailors its promotional messages to show how its products protect people from being devastated by a natural disaster or an accident, the company is appealing to a secondary need on Maslow's Hierarchy of Needs.Answer: FALSEDiff: 2 Page Ref: 135Skill: ApplicationAACSB: Analytic skillsObjective: 5-1

104) Ed purchases new technological devices such as PDAs, DVRs, and MP3 players after many people he knows already own the devices. However, Ed is rarely among the last people he knows to purchase a new technology. Ed is part of the late majority adopter group.Answer: TRUEDiff: 3 Page Ref: 150Skill: ApplicationAACSB: Analytic skillsObjective: 5-2

105) A person buying a boat would be unlikely to exhibit low-involvement buying behavior.Answer: FALSEDiff: 2 Page Ref: 151Skill: ApplicationAACSB: Analytic skillsObjective: 5-3


106) Name and describe the social and cultural influences on consumer decisions and why they are important for advertisers.Answer: The cultural and social forces that impact consumer behavior fall into five major areas: (1) Culture–Made up of tangible items and intangible concepts that together define a group of people or a way of life. It is learned and passed on from one generation to the next. The boundaries each culture establishes for behavior are called norms, which are simply rules that we learn through social interaction that specify or prohibit certain behaviors. The source of norms is our values, which come from our immersion in a specific culture. Advertisers strive to understand the underlying core values that govern people's attitudes and refer to them when selecting an ad's primary appeals. (2) Social Class–The position you and your family occupy within your society and is determined by such factors as income, wealth, education, occupation, family prestige, value of home, and neighborhood. Marketers assume that people in one class buy different goods from different outlets and for different reasons than people in other classes.(3) Reference Groups–A group of people we use as a guide for behavior in specific situations. Reference groups provide information, they serve as a means of comparison, and they offer guidance for consumers. Ads that feature typical users in fun or pleasant surroundings as well as those that use celebrity endorsements are using a reference group strategy.(4) Family–The most important reference group because of its longevity and the intensity of its relationships. A family consists of two or more people who are related by blood, marriage, or adoption, and live in the same household. Advertisers need to understand the structure, changes, and workings of the family in order to communicate.(5) Demographics–The statistical, personal, social, and economic characteristics used to describe a population including age, gender, education, income, occupations, race, and family size. These characteristics serve as the basis for most advertising strategies, and knowing them assists advertisers in message design and media selection for the target market.Diff: 3 Page Ref: 132-135Skill: SynthesisAACSB: Reflective thinking skillsObjective: 5-1


107) Name and describe the psychological influences that motivate consumers and why they are important to advertisers.Answer: (1) Perception and State of Mind–Affects the way you perceive information as well as determines your particular pattern of consumer behavior. Your past experiences with a brand, as well as what your friends say about it, can color your feelings and make you more or less receptive to a brand message. (2) Needs and Wants–Are two different responses that lead to different reactions to an advertising message. The basic driving forces that motivate us are needs. Some needs are innate and others are acquired. A want occurs when we desire or wish for something. A want can provide strong motivation to try or buy something new. Desire is the driving force behind demand. (3) Motivations–An internal force that stimulates a person to behave in a particular manner, usually produced by tension caused by an unfulfilled need. Understanding buying motives is crucial to advertisers because the advertising message and the timing of the ad should coincide with the consumer's motivation priorities.(4) Attitudes–Attitudes impact motivations, and they are learned, so we can establish them, change them, reinforce them, or replace them with new ones. Attitudes are important to advertisers because they influence how consumers evaluate products, institutions, retail stores, and advertising.(5) Psychographics–Refers to lifestyle and psychological characteristics, such as attitudes, interest, and opinions. Advertisers use psychographics in order to understand fairly complex consumer pattern groupings. Knowing the psychographic orientation of consumers is a valuable asset to an advertiser in deciding to whom the messages should be targeted.Diff: 3 Page Ref: 135-137Skill: SynthesisAACSB: Reflective thinking skillsObjective: 5-1


108) Name and describe the behavioral influences on consumer decisions.Answer: (1) Usage Behavior–Refers to how much of a product category or brand a customer buys. There are two ways to look at usage: usage rates and brand relationship. Usage rates refer to quantity of purchase: light, medium, or heavy. Because heavy users typically buy the most of a product category or a brand's share of the market, they are important to marketers and planners make special efforts to understand this key customer group. Brand relationship refers to past, present, or future use of the product by nonusers, ex-users, regulars, first-timers, loyal users, and users of and switchers from, or to, competitive products.(2) Innovation and Adoption–The adoption process is identified in terms of the personal behavior of people and how their behavior reflects the speed with which they are willing to try something new. People are grouped based on these behaviors, such as innovators, early adopters, early majority, late majority, and laggards. Innovators and the early adopters categories are important groups for marketers launching new products.(3) Experiences–People are interested in the experience of doing something like shopping that sometimes may be more important than what is bought. Decisions are often based on what was the experience with the brand–how well it performed, how easy it was to use, and how well customer service responded to questions.Diff: 3 Page Ref: 148-150Skill: SynthesisAACSB: Reflective thinking skillsObjective: 5-2


109) Define segmenting and targeting, and name and describe typical approaches to segmentation.Answer: Segmenting means dividing the market into groups of people who have similar characteristics in certain key product-related areas. Targeting means identifying the group that might be the most profitable audience, the one most likely to respond to marketing communication. There are six approaches to segmentation:(1) Demographic Segmentation–Divides the market using characteristics such as gender, age, ethnicity, income, and so forth.(2) Life Stage Segmentation–Based on the stage in consumers' life cycle, which includes such categories as children, young people living at home, college students, singles living on their own, couples, families with children, empty nesters, and senior singles living alone. Age is a characteristic of life stage, as is living situation. Discretionary income tends to vary with life stage.(3) Geographic Segmentation–Uses location as a defining variable because consumers needs sometimes vary depending upon where they live. The most important variables are world or global, region, nation, state, city, climate, population density, and urban/rural character.(4) Psychographic Segmentation–Primarily based on studies of how people spend their money, their patterns of work and leisure, their interest and opinions, and their views of themselves.(5) Behavioral Segmentation–Divides people into groups based on product category and brand usage.(6) Values and Benefits-based Segmentation–Based on consumers' needs or problems. The idea is that people buy products for different benefits they hope to derive.Diff: 2 Page Ref: 137-139Skill: SynthesisAACSB: Reflective thinking skillsObjective: 5-2


110) Name and describe the stages of the consumer decision process under a high-involvement purchase decision and the role advertising plays in each. How is this different under a low-involvement decision?Answer: The stages of the consumer decision process under a high-involvement purchase decision are:(1) Need Recognition–Occurs when the consumer recognizes a need for a product. The goal of advertising at this stage is to activate or stimulate this need.(2) Information Search–Can be casual or formal. Advertising helps the search process by providing information and making it easy to find and remember.(3) Evaluation of Alternatives–The stage where consumers compare various products and features and reduce the list of options to a manageable number. Advertising is important in this process because it helps sort out products on the basis of tangible and intangible features.(4) Purchase Decision–Often a two-part decision. Usually, we select the brand first and then select the outlet from which to buy it. Sometimes we select the outlet first, particularly with impulse purchases. In-store promotions such as packaging, point-of-purchase displays, price reductions, banners and signs, and coupon displays affect these choices.(5) Postpurchase Evaluation–The point where we begin to reconsider and justify our purchases to ourselves. Many consumers continue to read information even after the purchase to justify the decision to themselves. Advertising, such as copy on package inserts, helps reduce the dissonance by pointing out key features, how to best use the product, or how many product users are satisfied.

The low-involvement decision process is similar, except the information search may be skipped and the evaluation of alternatives minimal.Diff: 3 Page Ref: 150-151Skill: SynthesisAACSB: Reflective thinking skillsObjective: 5-3

111) Old Navy's "SuperModelquins" campaign features mock supermodels with celebrity-worthy stories that are featured on TV and the Web. They've been featured in a flyer patterned after a celebrity magazine, have attended high-profile events, and have a presence on Twitter. What type of influence on consumer decision making is this campaign attempting?A) psychologicalB) culturalC) valuesD) benefitsE) demographicAnswer: BDiff: 3 Page Ref: 131Skill: ApplicationAACSB: Analytic skillsObjective: 5-1


112) Juan was born in Mexico but moved to the United States when he was five years old. His family is still close to relatives living in Mexico, and he lives in a neighborhood where most people speak Spanish, eat traditional Mexican dishes, wear traditional Mexican clothing, and listen to Mexican music. He remembers fondly his grandfather telling him stories of his home country's customs and heroes. All of these factors form the ________ that will influence Juan's consumer behavior.A) social classB) familyC) nicheD) cultureE) psychographicsAnswer: DDiff: 2 Page Ref: 132Skill: ApplicationAACSB: Multicultural and diversity understandingObjective: 5-1

113) Max is trying to get into a fraternity in college. Because he wants to be accepted by this group, he notices the brand of clothes they all seem to wear and the type of beer they drink at parties, and he does the same. Actually, he doesn't even like beer, but that seems to be what is expected of people in this fraternity. What influence does this fraternity represent with respect to Max's consumption behavior? A) cultureB) social classC) reference groupD) familyE) trend spottingAnswer: CDiff: 2 Page Ref: 134Skill: ApplicationAACSB: Multicultural and diversity understandingObjective: 5-1

114) While many advertisers use celebrity endorsements, Old Navy's "SuperModelquins" campaign used mannequins as a(n) ________, playing with the idea that model mannequins can set fashion and appearance standards.A) reference groupB) social classC) ethnic groupD) subcultureE) family segmentAnswer: ADiff: 2 Page Ref: 134Skill: ApplicationAACSB: Analytic skillsObjective: 5-1


115) Recently, an adventurous millionaire successfully made a dangerous climb in the Himalayas. This gentleman really has all of his basic needs satisfied, and he claims to do the things he does for self-fulfillment and enrichment. According to Maslow's Hierarchy of Needs, which need is this man satisfying?A) physiologicalB) safetyC) belongingnessD) egoE) self-actualizationAnswer: EDiff: 2 Page Ref: 136 Skill: ApplicationAACSB: Analytic skillsObjective: 5-1

116) Barbara doesn't like to make major purchase decisions, such as choosing which car to buy. However, she had to replace the old car she owned because it was no longer reliable, so she purchased a new Honda Accord. Although her entire family assisted in the purchase transaction and the salesperson was a close family friend and practically sold the car to her at cost, she is still concerned whether she made the right decision. Barbara is suffering from ________.A) mass desireB) selective dissonanceC) selective distortionD) cognitive dissonanceE) selective exposureAnswer: DDiff: 2 Page Ref: 136Skill: ApplicationAACSB: Analytic skillsObjective: 5-2

117) Wholesome Soups, a maker of organic soups, is starting a new marketing campaign emphasizing the ease of preparing and eating Wholesome Soups on the go. Print, television, and Internet ads feature college-aged students enjoying Wholesome Soups in between classes and during study breaks. Wholesome Soups' new marketing campaign is most likely aimed at which of the following?A) Baby BoomersB) the Me GenerationC) Gen XersD) Echo BoomersE) Generation JonesAnswer: DDiff: 3 Page Ref: 140Skill: ApplicationAACSB: Reflective thinking skillsObjective: 5-2


118) There is a trend in the United States toward rediscovering the flavor of regional cooking and the use of locally grown ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to recreate local culinary traditions. This change in ________ is one of the reasons the number of farmers markets in the United States has increased by 70 percent in the last eight years. A) needsB) demographicsC) lifestyleD) segmentingE) life cycleAnswer: CDiff: 2 Page Ref: 145Skill: ApplicationAACSB: Analytic skillsObjective: 5-2

119) Cameron loves to know about and purchase the most up-to-date technological gadgets. Among his friends, he is almost always the first to own the newest electronic product. Often the products that Cameron buys become adopted by large groups of consumers, but occasionally Cameron will purchase a product that is adopted by only a small portion of the population. To which of the following adopter groups does Cameron belong?A) innovatorB) loyal userC) early majorityD) late majorityE) laggardsAnswer: ADiff: 2 Page Ref: 149Skill: ApplicationAACSB: Analytic skillsObjective: 5-2

120) Carol is conducting research and asking respondents to name the brands that first come to mind for certain product categories. When she asks Bob this question for computers, he mentions IBM, Dell, Gateway, and Hewlett-Packard. These brands represent Bob's ________.A) evoked setB) considerate setC) purchase setD) reference groupE) normative groupAnswer: ADiff: 2 Page Ref: 151Skill: ApplicationAACSB: Analytic skillsObjective: 5-3


121) An invitation to go skiing for the weekend forced Donna to look at her current wardrobe. She decided she needed a much warmer coat. Donna was in which stage of the purchase decision? A) product evaluation B) situational analysis C) need recognition D) problem screening E) information search Answer: CDiff: 2 Page Ref: 151Skill: ApplicationAACSB: Analytic skillsObjective: 5-3

122) Lexus works to keep customers happy after each sale, aiming to delight the customer in order to gain a customer for life. In this pursuit, Lexus is focused on which step of the buyer decision process?A) need recognitionB) information searchC) evaluation of alternativesD) purchase decisionE) post-purchase evaluationAnswer: EDiff: 2 Page Ref: 151Skill: ApplicationAACSB: Analytic skillsObjective: 5-3

123) If baby boomers are predictors of where product and service demand will be, increased demands will most likely be evident in ________ in the upcoming years.A) university enrollmentB) beer and wineC) health careD) the apparel industryE) the automobile industryAnswer: CDiff: 2 Page Ref: 140Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-2


124) With an expected increase in ethnic diversity within the American population, marketers are most likely to place a greater emphasis on which of the following?A) geographic segmentationB) differing advertising messagesC) mass marketingD) "us and them" paradigmsE) tiered marketsAnswer: BDiff: 2 Page Ref: 143Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-2

125) In an advertisement for a local carpet retailer, a well-known radio personality explained how the company solved his problem of replacing his old carpet. Toward what part of the consumer decision process was this ad aimed?A) increase the chances consumers will pay attention to the commercialB) presenting the information in such a manner so that consumers will not distort itC) need recognitionD) meeting the social needs of the target marketE) appeal to the athletic segmentAnswer: CDiff: 2 Page Ref: 151Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-3

Refer to the following scenario to answer the questions below.

Monique and Bob Smith are married with two young children at home and a third away at college. They are also considering adopting another child. Monique is the primary shopper for her family. Every week, she goes shopping to buy products that she and her family need and want.

126) Though Monique doesn't eat them herself, she buys snack items for her children and is always looking for more nutritious snacks rather than mere junk food. In marketing terms, Monique is considered which type of consumer? A) userB) businessC) purchaserD) influencerE) trend setterAnswer: CDiff: 2 Page Ref: 131Skill: ApplicationAACSB: Analytic skillsObjective: 5-1


127) Bob and Monique only purchase cars produced by General Motors. They also attend General Motors car shows, own General Motors merchandise, and encourage their friends and family to buy exclusively from General Motors. Their devotion to General Motors indicates that Bob and Monique belong to a ________.A) demographicB) social classC) reference groupD) brand communityE) corporate cultureAnswer: DDiff: 2 Page Ref: 134Skill: ApplicationAACSB: Reflective thinking skillsObjective: 5-1

128) According to the U.S. Census, Monique, Bob, and the children are considered to be a ________.A) target marketB) familyC) psychographicD) reference groupE) subcultureAnswer: BDiff: 2 Page Ref: 135Skill: ApplicationAACSB: Analytic skillsObjective: 5-1

129) Lex, Bob and Monique's oldest son who is away at college, lives with three other students in a house off-campus. According to the U.S. Census, Lex and the other students represent a ________.A) target marketB) familyC) householdD) reference groupE) subcultureAnswer: CDiff: 2 Page Ref: 135Skill: ApplicationAACSB: Analytic skillsObjective: 5-1


130) After budgeting for the things that he has to pay for, such as his mortgage, car payments, insurance, food, and so forth, Bob figures they have $1,000 left each month to use for whatever they want. This $1,000 represents the Smith's ________ income.A) netB) grossC) spendableD) discretionaryE) left-overAnswer: DDiff: 2 Page Ref: 143Skill: ApplicationAACSB: Analytic skillsObjective: 5-2

131) Describe the three functions of reference groups.Answer: Reference groups provide information, serve as a means of personal comparison, and offer guidance.Diff: 3 Page Ref: 134Skill: SynthesisAACSB: Reflective thinking skillsObjective: 5-1

132) Many students in a junior high school wear the same style of shoes to school each day. From the marketing perspective, why are these students conforming to a similar style? Answer: Consumers often change their behavior to gain acceptance into a particular reference group. Students in this junior high school may want to feel as if they are the same as their fellow classmates, so they will wear the same style of shoes to be part of the group. Diff: 3 Page Ref: 134Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-1

133) Compare and contrast the terms family and household.Answer: According to the U.S. Census, a family consists of two or more people who are related by blood, marriage, or adoption, and live in the same household. A household differs from a family in that it consists of all those who occupy a dwelling whether they are related or not. Therefore, a family is also a household, but a household is not necessarily a family.Diff: 2 Page Ref: 135Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-1


134) What is the difference between a consumer's need and a want?Answer: An item a consumer needs is something the consumer thinks is essential or necessary for his life. An item that is a want is something that is desired but not essential.Diff: 2 Page Ref: 135Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-1

135) For years, the U.S. Army has used an advertising campaign stressing that you can "Be all you can be." What type of need is addressed by this campaign?Answer: It would appear that the army is appealing to its target audience's secondary, or acquired, needs for self-fulfillment and enriching experiences, that is, self-actualization, which represents the highest level of needs on Maslow's Hierarchy of Needs.Diff: 3 Page Ref: 136 Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-1

136) Miriam purchased a new car last month, but she continues to look at advertising for cars and notes how many other cars like hers are on the road. When a news article came out the other day indicating problems with the transmission noted by owners of her make of car, Miriam took that to mean that all types of cars in that class can have those problems, not just hers. She even sought out a Consumer Reports article that pointed out that the car she purchased was rated highly on reliability. What is Miriam experiencing?Answer: Miriam is experiencing cognitive dissonance. According to the theory of cognitive dissonance, we tend to compensate or justify the discrepancies between what we actually received and what we thought we would receive. People engage in a variety of activities to reduce cognitive dissonance, including seeking out information that supports our decisions and ignoring and distorting information that does not.Diff: 2 Page Ref: 136Skill: ApplicationAACSB: Analytic skillsObjective: 5-1

137) Explain why the Hispanic culture is of great interest to marketers in the United States.Answer: Few cultures are more important to U.S. marketing than the Hispanic culture because it is growing proportionately faster than other ethnic groups. There are media differences based on ethnicity, with Hispanic viewers tending to watch commercials in their entirety compared to non-Hispanic viewers. They are also more likely to base purchase decisions on advertisements.Diff: 2 Page Ref: 143Skill: SynthesisAACSB: Multicultural and diversity understandingObjective: 5-2


138) How might geographic shifts in population impact marketers?Answer: People in different regions buy differently. If tastes and preferences are taken with consumers as they disperse geographically at increasing rates, predicting specific consumption patterns in certain geographic areas may become difficult over time.Diff: 2 Page Ref: 145Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-2

139) Why might marketers want to target segments of the population based on lifestyles rather than age groups?Answer: Too much might be assumed about people in the same age group, and grouping people by lifestyle may eliminate some of the inaccurate assumptions made regarding age.Diff: 3 Page Ref: 145-146Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-2

140) Explain how the VALS system categorizes consumers.Answer: The VALS system categorizes consumers along two major dimensions: (1) resources and (2) innovation. Resources include income, education, self-confidence, and energy.The difference between "Survivors" and "Innovators" is that "Survivors" have much lower resources than the "Innovators." Diff: 2 Page Ref: 147Skill: SynthesisAACSB: Reflective thinking skillsObjective: 5-2

141) Ron is single and not a very good cook, so he eats a lot of pizza. In fact, he orders it sometimes five nights per week from his favorite pizza place, Pizza Hut. Why is Ron an important customer for Pizza Hut?Answer: A critical behavior predictor called usage refers to how much of a product category or brand a customer buys. There are two ways to look at usage: usage rates and brand relationship. According to Ron's usage rate, he would most likely be classified as a heavy user. Heavy users typically buy the most of a product category or a brand's share of the market. There's a rule of thumb called the Pareto Rule that says 20 percent of the market typically buys 80 percent of the products. That explains why the heavy user category is so important to marketers and why planners will make special efforts to understand this key customer group. Diff: 2 Page Ref: 149Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-2


142) Why do retailers put several items, such as candy, batteries, small packages of facial tissue, coolers with individual bottles of soft drinks, and so forth right by the checkout?Answer: These items are impulse items. Consumers seeing them while they are waiting to check out may realize they need, or at least want, an item, which is the first step of the consumer decision process. Diff: 3 Page Ref: 151Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-3

143) Explain the role of marketers in the information search step of the consumer decision-making process. Give an example of how the marketer might execute this role.Answer: The role of marketers in the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible by the consumer. Diff: 3 Page Ref: 151Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-3

144) Kim, who is an avid cyclist, decided to buy a new bicycle. She searched the web for information on bikes and visited some bike shops. What is involved in the next step in her decision process if she follows the sequence in the text?Answer: Kim is ready to evaluate alternatives, the stage in which Kim compares various brands and products and reduces the list of options to a manageable number. She needs to choose the attributes that are most important, then judge the alternatives accordingly. Diff: 2 Page Ref: 151Skill: ApplicationAACSB: Analytic skillsObjective: 5-3

145) Explain how marketers may be able to reduce postpurchase cognitive dissonance.Answer: Marketers should make every effort to enhance after-sale communications, providing evidence and support to help consumers feel good about their purchases.Diff: 2 Page Ref: 151Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-3


146) Roger has decided to purchase a personal computer for his household's use, but he doesn't know much about computers and he really doesn't want to spend more than $1,000. How many stages of the consumer decision process is Roger likely to go through in making the decision regarding which computer to purchase?Answer: Roger will probably go through all five stages of the high-involvement decision process. Diff: 2 Page Ref: 151-152Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-3

147) Jan is leaving her present job in consumer marketing at a major consumer packaged goods manufacturer to start a new job with an industrial marketer. What are two things Jan should know about the differences between consumer decision making and business decision making?Answer: Many of the influences that affect consumer buying also are reflected in business-to-business marketing. Although some of the consumer factors are relevant in business purchases, there are some differences as well. Some of the things students can discuss include:(1) In organizational buying, many individuals are involved in making the decision, often with a buying committee making the final decision.(2) Although the business buyer may be motivated by both rational and emotional factors, the use of rational and quantitative criteria dominates most decisions.(3) The decision is sometimes made based on a set of specifications to potential suppliers who then bid on the contract; typically the lowest bid wins.(4) The decision may span a considerable time, creating a lag between the initial contact and final decision. On the other hand, once a decision is made, it may be in place for a long time and sometimes supported by a contract.(5) Quality is hugely important and repeat purchases are based on how well the product performs.(6) Personal selling is also important in B2B marketing, so advertising is used to open the door and generate leads for the sales force.Diff: 2 Page Ref: 152Skill: SynthesisAACSB: Analytic skillsObjective: 5-3


Read the following scenario and then answer the questions that follow.

A recent article in the Wall Street Journal described how the next "Pepsi Generation" likely will be drinking diet cola. Pepsi recently learned that one-third of teens were diet soda drinkers and that teens start drinking diet soft drinks at a very early age. However, they also acknowledged that a substantial portion of young people don't consider diet sodas cool, particularly men. The chief marketing officer for Pepsi-Cola North America was quoted as saying, "We are treating Diet Pepsi as the flagship brand. . . . It's a big step for us." Indeed, this is a major break with the traditional soft-drink marketing, in which the sugar-sweetened brand still dominates in market share. However, with concerns of rising obesity and schools cutting back on sugar-sweetened drinks in vending machines, soft-drink manufacturers, like Pepsi, are responding with increased marketing of their diet soft drinks. As part of this new change in focus, Diet Pepsi will be marketed as a hip, cool brand for everyone, including teenagers and Baby Boomers. Meanwhile, the article stated that Pepsi is narrowing its sales pitch for regular Pepsi-Cola to "soda drinkers younger than 25, Latinos, African-Americans, and sports fans."

148) By treating the diet soda market as relatively homogeneous, what marketing strategy is Pepsi using?Answer: The strategy is the undifferentiated strategy.Diff: 2 Page Ref: 137Skill: ApplicationAACSB: Analytic skillsObjective: 5-2

149) What segmentation variables is Pepsi using when it narrows its marketing efforts for regular Pepsi-Cola to "soda drinkers younger than 25, Latinos, African- Americans, and sports fans"?Answer: Age and ethnicity fall under demographic segmentation, and sports fans represent an interest, which would be psychographic segmentation.Diff: 3 Page Ref: 138-139Skill: ApplicationAACSB: Analytic skillsObjective: 5-2

150) It was also noted in the article that a substantial portion of young people don't consider diet sodas cool, particularly men. What is Pepsi trying to accomplish with its increased effort to reach these consumers?Answer: Pepsi is trying to change their attitude toward diet sodas. Currently, a substantial portion of young people's attitudes toward this product are negative, and Pepsi would like to change that attitude. Attitudes are important to advertisers because they influence how consumers evaluate products.Diff: 2 Page Ref: 145Skill: Critical ThinkingAACSB: Reflective thinking skillsObjective: 5-2


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