Question 1

Ryan runs a store that caters to athletes. He portrays his store as a one-stop-shop for all your running needs, so he has developed a distinct image for his store. This is an example of ________.
A) segmentation
B) targeting
C) placement
D) positioning
E) social marketing

Accepted Answer

This scenario describes positioning, which refers to the process of creating a specific image or identity in the minds of consumers. Ryan has developed a distinct image for his store as a one-stop-shop for all your running needs, which sets it apart from other stores that may cater to a broader range of sports or activities. Segmentation, targeting, placement, and social marketing are all important elements of the marketing mix, but they are not the focus of this scenario.

Question 2

In the consumer decision-making process, the ________ stage focuses on how consumers make decisions.
A) analysis
B) evaluation
C) input
D) process
E) output

Accepted Answer

The "process" stage in the consumer decision-making process specifically focuses on how consumers go through the steps of making decisions, encompassing everything from recognizing a need to the final purchase and post-purchase behavior.

Question 3

Which of the four disciplines that helps shape our understanding of consumer behavior compares human societies' culture and development?
A) psychology
B) sociology
C) anthropology
D) communication
E) economics

Accepted Answer

Anthropology is the discipline that compares human societies' culture and development, and its principles are applied to consumer behavior research to better understand the influence of cultural factors on consumer behavior. Psychology is the study of the human mind and its functions, sociology is the study of social behavior and relationships, communication is the exchange of information and ideas through verbal and nonverbal means, and economics is the study of how individuals and societies allocate resources. While all of these disciplines play a role in understanding consumer behavior, anthropology specifically focuses on cultural factors.

Question 4

$\text{CAR MINI CASE}$: In the early 1900s, Henry Ford made a fortune manufacturing Model T cars and selling them cheaply, making the automobile affordable for a much larger proportion of the population than had previously been the case. He accomplished this by producing only one model of car and doing so cheaply and at high volumes through the utilization of assembly line manufacture. In 1923, General Motors decided to increase its market share in the automobile industry by offering, instead of just one model, as Ford did, a variety of affordable mass-produced models to meet the various differing needs of different types of consumers.
-In the CAR MINI CASE, Ford's business strategy focused on ________.
A) targeting the market
B) positioning its product
C) developing a value proposition
D) segmenting the market
E) minimizing production costs

Accepted Answer

Ford's business strategy focused on minimizing production costs through the production of only one model of car using assembly line manufacture, which allowed for the production of cars at high volumes and low costs, making them affordable to a larger portion of the population.

Question 5

Which of the four disciplines that helps shape our understanding of consumer behavior is defined as the study of the development, structure, functioning and problems of human society?
A) psychology
B) sociology
C) anthropology
D) communication
E) economics

Accepted Answer

Sociology is defined as the study of the development, structure, functioning and problems of human society. The other disciplines listed - psychology, anthropology, communication, and economics - focus on different aspects of consumer behavior.

Question 6

$\text{CAR MINI CASE}$: In the early 1900s, Henry Ford made a fortune manufacturing Model T cars and selling them cheaply, making the automobile affordable for a much larger proportion of the population than had previously been the case. He accomplished this by producing only one model of car and doing so cheaply and at high volumes through the utilization of assembly line manufacture. In 1923, General Motors decided to increase its market share in the automobile industry by offering, instead of just one model, as Ford did, a variety of affordable mass-produced models to meet the various differing needs of different types of consumers.
-In the CAR MINI CASE, which of the following elements of the marketing mix was central to Ford's business model?
A) promotion
B) product
C) price
D) placement
E) production

Accepted Answer

The answer of $\text{CAR MINI CASE}$: In the early 1900s,...

Question 7

The three distinct but interlocking steps of the consumer decision-making process are ________.
A) input, analysis, and output
B) environment, search, and evaluation
C) input, process, and output
D) analysis, decision making, and output
E) analysis, process, and output

Accepted Answer

The three distinct but interlocking steps of the consumer decision-making process are input (information gathering and problem recognition), process (evaluation of alternatives), and output (purchase decision and post-purchase evaluation). Choice C, which lists input, process, and output, best captures this sequence of steps.

Question 8

Which of the following customer retention measurement methods is described: the percentage of customers at the beginning of the year that are still customers by the end of the year?
A) customer valuation
B) retention rate
C) complaint analysis
D) defection rate
E) benchmark

Accepted Answer

The method described is the retention rate, which measures the percentage of customers who remain with a company over a specific period of time.

Question 9

Ryan runs a store that caters to athletes. He divides the athletic market into different subsets of shoe consumers, such as runners, basketball players, and golfers. Ryan decides to focus his attention on that segment of the market that is interested in running. This selection of a specific market segment is known as ________.
A) social marketing
B) market targeting
C) product placement
D) market segmentation
E) product positioning

Accepted Answer

Market targeting is the selection of a specific market segment to focus marketing efforts on. Social marketing is the use of marketing principles to encourage positive behavior or social change. Product placement is the strategic placement of a product in media to increase visibility. Market segmentation is the process of dividing a larger market into smaller groups with similar needs and characteristics. Product positioning is the process of creating a distinct image and identity for a product in the minds of consumers. Therefore, the best choice is B, market targeting, as it specifically refers to the selection of a market segment.

Question 10

Transatlantic Airlines identifies the most profitable customers and offers them specific incentives, a practice known as ________.
A) social marketing
B) customer profitability-focused marketing
C) market targeting
D) market segmentation
E) product positioning

Accepted Answer

The practice of identifying the most profitable customers and offering them specific incentives is known as customer profitability-focused marketing.

Question 11

Which of the four disciplines that helps shape our understanding of consumer behavior is defined as the study of the human mind and the mental factors that impact behavior?
A) psychology
B) sociology
C) anthropology
D) communication
E) economics

Accepted Answer

Psychology is the discipline that helps shape our understanding of consumer behavior through its study of the human mind and the mental factors that impact behavior. Sociology, anthropology, and communication also contribute to our understanding of consumer behavior, but their focus is more on social, cultural, and communicative factors, respectively. Economics focuses on the study of production, distribution, and consumption of goods and services, including factors that influence consumer behavior, but it is not primarily concerned with the psychological aspects.

Question 12

Customer profitability-focused marketing ________.
A) tracks costs and revenues of individual customers and then categorizes those consumers into tiers based on consumption behaviors that are specific to the company's offerings
B) minimizes the cost of production in order to offer the product at the best price possible
C) aggressively markets products to consumers who do not necessarily think that they need the product
D) continually updates the product without regard to the needs of the consumer
E) invests money in attracting customers that are very sensitive to price and are not loyal to any given brand

Accepted Answer

Customer profitability-focused marketing tracks the costs and revenues of individual customers in order to categorize them into tiers based on their consumption behaviors that are specific to the company's offerings. This allows the company to focus its efforts on the most profitable customers, who are often the most loyal and valuable to the company.

Question 13

In the consumer decision-making process, the ________ stage influences the consumer's recognition of a product need.
A) analysis
B) evaluation
C) input
D) process
E) output

Accepted Answer

The input stage is where the consumer recognizes a need or problem that requires a solution. This could be triggered by internal factors (such as hunger or thirst) or external factors (such as an advertisement or social influence). Therefore, the correct answer is C.

Question 14

Once or twice a year, when Estee Lauder runs a particularly good promotion, Candace buys some new make-up. She typically only spends the minimum required to qualify for the promotion. On the customer profitability pyramid, Candace is most likely to fall into the ________ tier.
A) gold
B) lead
C) silver
D) iron
E) platinum

Accepted Answer

Candace is likely in the iron tier because she only buys during promotions and spends the minimum, indicating she is not a highly profitable or loyal customer.

Question 15

Ryan runs a store that caters to athletes. He divides the athletic market into different subsets of shoe consumers, such as runners, basketball players, and golfers, which is known as ________.
A) market targeting
B) product placement
C) product positioning
D) market segmentation
E) social marketing

Accepted Answer

Ryan is dividing the athletic market into different subsets based on their shoe preferences, which is known as market segmentation. This allows him to better target each subset with specific shoe options that cater to their needs. A is incorrect as market targeting refers to the process of choosing which market segments to focus on. B is incorrect as product placement refers to the placement of products within media, not dividing a market into subsets. C is incorrect as product positioning refers to how a product is perceived in the mind of the consumer, not dividing a market into subsets. E is incorrect as social marketing refers to using marketing tactics to promote a social cause or behavior change, not dividing a market into subsets.

Question 16

Disney gets its cast members to go out of their way to make people happy by valuing its employees like internal customers, which is also known as ________.
A) termination costs
B) internal manipulation
C) customer gratitude
D) customer gratuity
E) internal marketing

Accepted Answer

Internal marketing is the process of treating employees as internal customers by meeting their needs and encouraging their satisfaction, motivation, and engagement. By valuing its employees in this way, Disney is able to create a positive work culture and encourage cast members to go above and beyond for guests.

Question 17

In the consumer decision-making process, the ________ stage focuses on how consumers make decisions.
A) analysis
B) evaluation
C) input
D) process
E) output

Accepted Answer

The process stage focuses specifically on how consumers make decisions in the consumer decision-making process. The other stages (input, analysis, evaluation, and output) play a role in the overall process but do not specifically address the decision-making aspect.

Question 18

Gloria always uses Tide laundry detergent and stocks up whenever she sees a sale. As a result, she rarely pays full price for detergent. On the customer profitability pyramid, Gloria is most likely to fall into the ________ tier.
A) gold
B) lead
C) silver
D) iron
E) platinum

Accepted Answer

Gloria is a loyal customer who rarely pays full price for detergent. This indicates that she is a valuable customer to Tide, and she is likely to fall into the gold tier of the customer profitability pyramid.

Question 19

$\text{CAR MINI CASE}$: In the early 1900s, Henry Ford made a fortune manufacturing Model T cars and selling them cheaply, making the automobile affordable for a much larger proportion of the population than had previously been the case. He accomplished this by producing only one model of car and doing so cheaply and at high volumes through the utilization of assembly line manufacture. In 1923, General Motors decided to increase its market share in the automobile industry by offering, instead of just one model, as Ford did, a variety of affordable mass-produced models to meet the various differing needs of different types of consumers.
-In the CAR MINI CASE, Ford's business approach exhibited a ________.
A) production orientation
B) marketing orientation
C) societal marketing orientation
D) product orientation
E) selling orientation

Accepted Answer

Henry Ford's approach focused on producing one standardized model of car and doing so at high volumes through assembly line manufacturing, which demonstrates a production orientation. This approach prioritizes efficiency in production processes and minimizing costs to produce and sell products at lower prices. In contrast, a marketing orientation emphasizes understanding and meeting the needs and wants of consumers, while a societal marketing orientation emphasizes meeting consumer needs in a way that also benefits society and the environment. A product orientation focuses on the quality of the product itself, and a selling orientation emphasizes aggressive selling and promotion tactics to generate sales.

Question 20

Which tier of customers is most likely to get "fired" by a firm?
A) gold
B) lead
C) silver
D) iron
E) platinum

Accepted Answer

Lead customers are typically those who contribute the least value to a firm and require the most resources. As such, they are the most likely to be "fired" by a firm in order to prioritize higher value customers.

Quiz 1: Consumer Behavior: Information-Driven Consumer Behavior

Ryan runs a store that caters to athletes. He portrays his store as a one-stop-shop for all your running needs, so he has developed a distinct image for his store. This is an example of ________.

In the consumer decision-making process, the ________ stage focuses on how consumers make decisions.

Which of the four disciplines that helps shape our understanding of consumer behavior compares human societies' culture and development?

Which of the four disciplines that helps shape our understanding of consumer behavior is defined as the study of the development, structure, functioning and problems of human society?

The three distinct but interlocking steps of the consumer decision-making process are ________.

Which of the following customer retention measurement methods is described: the percentage of customers at the beginning of the year that are still customers by the end of the year?

Transatlantic Airlines identifies the most profitable customers and offers them specific incentives, a practice known as ________.

Which of the four disciplines that helps shape our understanding of consumer behavior is defined as the study of the human mind and the mental factors that impact behavior?

Customer profitability-focused marketing ________.

In the consumer decision-making process, the ________ stage influences the consumer's recognition of a product need.

Once or twice a year, when Estee Lauder runs a particularly good promotion, Candace buys some new make-up. She typically only spends the minimum required to qualify for the promotion. On the customer profitability pyramid, Candace is most likely to fall into the ________ tier.

Ryan runs a store that caters to athletes. He divides the athletic market into different subsets of shoe consumers, such as runners, basketball players, and golfers, which is known as ________.

Disney gets its cast members to go out of their way to make people happy by valuing its employees like internal customers, which is also known as ________.

In the consumer decision-making process, the ________ stage focuses on how consumers make decisions.

Gloria always uses Tide laundry detergent and stocks up whenever she sees a sale. As a result, she rarely pays full price for detergent. On the customer profitability pyramid, Gloria is most likely to fall into the ________ tier.

Which tier of customers is most likely to get "fired" by a firm?