Question 1

The use of word-of-mouth influence as sources of information comprises a social source of information.

Accepted Answer

Word-of-mouth influence refers to the spread of information or opinions about a product, service, or brand through informal or conversational communication among people. This type of communication serves as a social source of information as it is shared among social networks, friends, family members, colleagues, or other acquaintances.

Question 2

Outshoppers are often consumers who live in rural areas that shop in larger cities for important purchases.

Accepted Answer

Outshoppers are defined as consumers who travel from rural areas to larger cities to make important purchases, so this statement is true.

Question 3

Retailers desiring to minimize consumer cognitive dissonance should focus on consumer after-purchase service,on realistic sales presentations,and on exchange privileges.

Accepted Answer

By focusing on consumer after-purchase service, retailers can address any issues or problems that may arise after the purchase, thus reducing cognitive dissonance. Realistic sales presentations also help set accurate expectations, reducing the likelihood of disappointment or regret. Exchange privileges provide consumers with the option to return or exchange a product if it doesn't meet their expectations, further reducing cognitive dissonance.

Question 4

Shopper profiles should ideally be comprised of both demographic and lifestyle factors.

Accepted Answer

By considering both demographic and lifestyle factors in shopper profiles, retailers can gain a deeper understanding of their customers' needs, preferences, and behaviors, which can inform marketing and merchandising strategies to better serve and engage these customers. Demographic factors such as age, gender, income, and ethnicity can provide insight into basic characteristics that may influence shopping habits, while lifestyle factors such as hobbies, interests, values, and attitudes can help retailers understand the motivations and aspirations that drive consumer choices. Together, these factors create a more holistic picture of the shopper, enabling more personalized and effective engagement strategies.

Question 5

If a consumer perceives a purchase to be important,the purchase has a high degree of perceived risk.

Accepted Answer

When a consumer perceives a purchase to be important, the purchase is usually associated with a high degree of perceived risk. Perceived risk is the level of uncertainty or potential harm associated with a product or service, and it can be influenced by various factors such as the product's cost, the consumer's personal values and beliefs, and the level of information available about the product. Therefore, a purchase that is considered important by a consumer is likely to be perceived as risky, as the stakes are higher and the consequences of making a wrong decision can be significant.

Question 6

Class conscious consumers generally have high social perceived risk.

Accepted Answer

Class conscious consumers are concerned with the social implications of their purchases and therefore have a higher social perceived risk. They are more likely to consider factors such as the impact on workers' rights, the environment, and ethical business practices.

Question 7

The study of motivation is easy since consumers may buy the same product for different reasons,may have subconscious motivations,and may not tell the retailer their real reasons for product/service purchases.

Accepted Answer

The study of motivation is complex due to the diverse reasons consumers may have for purchasing the same product, including subconscious motivations and the possibility that they may not disclose their true reasons for their purchases to retailers.

Question 8

A consumer's degree of information search is not based upon his/her perceived risk.

Accepted Answer

A consumer's degree of information search is usually positively correlated to their perceived risk. If a consumer perceives a higher level of risk associated with a purchase decision, they are likely to engage in a more extensive information search before making a decision.

Question 9

A membership club has a differentiated marketing approach: final consumers and organizational consumers.

Accepted Answer

The membership club has two different target markets: final consumers (individuals) and organizational consumers (businesses or institutions). They would use a differentiated marketing approach to cater to the different needs and preferences of these two groups.

Question 10

The decision process is always used consciously by consumers.

Accepted Answer

The decision process can be used consciously or unconsciously by consumers. Many decisions are made without consumers even realizing they are going through a decision process.

Question 11

There are three types of impulse purchases: completely unplanned,partially unplanned,and unplanned substitution.

Accepted Answer

There are indeed three types of impulse purchases as described. Completely unplanned purchases are those that were not even considered before entering the store, partially unplanned purchases are those that were considered but not planned, and unplanned substitution purchases are those where the original planned purchase is replaced with something else.

Question 12

Brand and store loyalty are examples of limited decision making.

Accepted Answer

Limited decision making is a type of decision making in which a consumer has some previous experience with the product or service, and he/she may rely on brand or store loyalty when making a purchase. Therefore, brand and store loyalty are examples of limited decision making.

Question 13

Consumers can evaluate alternatives on the basis of specific criteria and the importance of criteria and on the basis of such cues as price,brand name,and store name.

Accepted Answer

Consumers often evaluate alternatives based on specific criteria such as quality, performance, durability, and other attributes that are important to them. In addition, they may also consider cues such as price, brand name, and store name in making their decisions. This approach to decision-making is known as a multi-attribute model and is commonly used by marketers to understand how consumers evaluate products and services.

Question 14

Cognitive dissonance can occur both before and after a purchase.

Accepted Answer

The answer of Cognitive dissonance can occur both before and...

Question 15

Consumers with high levels of satisfactory experience with a given brand or store may change their behavior from extended decision making in early purchases to routine decision making in subsequent purchases.

Accepted Answer

This statement is true. Consumers who have had a satisfactory experience with a brand or store are more likely to engage in routine decision making for subsequent purchases rather than engaging in extended decision making. This is because they have already established a positive relationship with the brand or store and are familiar with its products and services.

Question 16

Concentrated marketing is a more difficult strategy for a retailer to implement than differentiated marketing.

Accepted Answer

Concentrated marketing focuses on a single market segment, which can be easier for retailers to implement due to the targeted approach, whereas differentiated marketing targets multiple segments, requiring more resources and complex strategies.

Question 17

Online shoppers can also be in-home shoppers.

Accepted Answer

Online shoppers can shop for products from the comfort of their homes, hence they are also in-home shoppers.

Question 18

The family life cycle is an updated version of the household life cycle.

Accepted Answer

The answer of The family life cycle is an updated...

Question 19

Retailers have more control of commercial cues than of noncommercial or social cues.

Accepted Answer

Retailers can control commercial cues such as advertising, promotions, and product displays in their stores. However, noncommercial or social cues such as the weather, economic conditions, or customer behavior are outside of their control.

Question 20

Routine decision making occurs when a consumer uses each of the steps in the purchase process but does not need to spend a great deal of time on each of them.

Accepted Answer

The answer of Routine decision making occurs when a consumer...

Quiz 7: Identifying and Understanding Consumers