Question 1

Jack wants to buy a car.The Nissan receives a low mileage rating when compared to cars by Honda and Toyota, but it scores higher than those cars when it comes to price.Jack feels that the price of a Nissan compensates for its weakness when it comes to mileage.This is an example of:

Accepted Answer

Jack is using a compensatory decision rule, where he weighs the pros and cons and decides that the lower price of the Nissan compensates for its lower mileage rating.

Question 2

Mike chooses a Toyota despite the fact that it is much more expensive than the other two cars.He is convinced that higher price ensures better quality.This is an example of:

Accepted Answer

Decision heuristics are mental shortcuts that people use to make decisions. In this case, Mike is using the heuristic that a higher price ensures better quality.

Question 3

With an external locus of control, consumers believe that fate or other external factors control all outcomes.

Accepted Answer

Consumers with an external locus of control believe that their outcomes are controlled by factors outside of themselves, such as luck or destiny.

Question 4

Determinant attributes are neither rational nor psychologically based.

Accepted Answer

Determinant attributes are based on both rational and psychological factors. They are the key features that customers consider when making a purchase and are usually chosen based on their importance in fulfilling the customer's needs and preferences. Determinant attributes can include both functional and emotional aspects of the product or service.

Question 5

A Toyota has great mileage compared to a Honda.But its weaknesses are style and price.Gina feels that Toyota's excellent mileage is outweighed by its weaknesses in price and style.She chooses a Honda.Gina's choice represents:

Accepted Answer

Gina's choice represents the noncompensatory decision rule because she is not willing to compensate for Toyota's weaknesses in style and price despite its excellent mileage.

Question 6

Convenience products tend to involve greater evaluation than shopping products.

Accepted Answer

Convenience products require minimal effort and evaluation as they are purchased frequently and are typically low-cost, whereas shopping products involve more comparison and evaluation due to their higher cost and less frequent purchase.

Question 7

Physiological risk involves the fears that consumers suffer when they worry others might not regard their purchases positively.

Accepted Answer

Physiological risk actually refers to the fear or concern consumers have regarding the potential harm a product or service might pose to their physical well-being. The fear described in the question relates to social risk.

Question 8

Shopping goods/services are commodity items that are frequently purchased, usually with very little thought.

Accepted Answer

Shopping goods/services are typically items that consumers spend time comparing quality, price, and style before purchasing, unlike convenience goods which are bought frequently with little thought.

Question 9

The manner in which a product is presented can influence the decision process.

Accepted Answer

The way a product is presented can affect how appealing it appears to potential customers and can influence their decision to purchase it. This is why companies invest in packaging, branding, and marketing to make their products stand out on the shelves and catch the attention of consumers.

Question 10

Ritual consumption refers to a pattern of behaviours that have symbolic meanings and vary greatly by culture.

Accepted Answer

Ritual consumption is a real phenomenon that is observed in many cultures, where the consumption of certain foods or drinks is imbued with symbolic meanings and significance. Examples include the use of wine in Christian communion, the sharing of tea in Japanese tea ceremonies, or the use of coca leaves in Andean rituals.

Question 11

Russell practises law.Most of his clients are poor, or working poor, or on disability.He enjoys helping them solve their problems.Sometimes he gets paid and sometimes he doesn't.But he is satisfied with his life and doesn't care what others have to say about it.The act of helping out the poor satisfies Russell's:

Accepted Answer

Self-actualization needs refer to the realization of one's potential and the desire to accomplish everything that one can. Russell finds satisfaction in helping others, which aligns with fulfilling his self-actualization needs.

Question 12

Boris wants to get married and have a family.His need for companionship and acceptance are called:

Accepted Answer

Boris's desire for companionship and acceptance aligns with social needs, which involve relationships and belonging.

Question 13

Jim desires steady employment, health insurance, safe neighbourhoods, and shelter from the environment.These fulfill the of an individual.

Accepted Answer

Jim's desires for steady employment, health insurance, safe neighborhoods, and shelter from the environment align with safety needs, which are concerned with protection and security.

Question 14

Convenience goods/services are products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers.

Accepted Answer

Convenience goods/services are products or services that customers purchase frequently, immediately, and with minimal effort, such as everyday items like groceries or toiletries.

Question 15

Purchasing a national brand, even if it is more expensive, gives many consumers the sense that they are buying a higher quality item.

Accepted Answer

This is a common perception among consumers, even though it may not always be true. National brands often have higher budgets for advertising and marketing, which can create a perception of higher quality.

Question 16

Value is a strong driver of consumers' purchase decisions.

Accepted Answer

Value is often a key factor in purchase decisions as consumers seek to maximize the benefits they receive relative to the cost they incur.

Question 17

Performance risk involves the perceived danger inherent in a poorly performing product or service.

Accepted Answer

Performance risk refers to the potential risks that a consumer associates with the poor performance of a product or service, such as loss of money or negative impact on reputation.

Question 18

Anne is the vice-president of a bank who is well respected in her community.The community has recognized her social contributions by naming a lane after her.This fulfills Anne's:

Accepted Answer

Having a lane named after her recognizes Anne's achievements and contributions, fulfilling her esteem needs by providing her with recognition and respect from her community.

Question 19

Jerry wants a car that has good mileage but low gas consumption.He buys a Toyota.In this case, determines the purchase of the car.

Accepted Answer

The determinant attribute in this case is the car's good mileage and low gas consumption, which influenced Jerry's decision to purchase the Toyota.

Question 20

Mark works hard to ensure that his family has basic needs such as water, food, and sleep.This fulfills the of the family.

Accepted Answer

Mark is addressing the physiological needs of his family, which include basic necessities like water, food, and sleep.

Quiz 5: Targeting the Marketplace Segmentation, Targeting, and Positioning