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CHAPTER 6

CONSUMER AND BUSINESS BUYER BEHAVIOR

MULTIPLE CHOICE QUESTIONS

1. _________________ refers to the buying behavior of final consumers. a. Consumer buyer behavior b. Target market buying c. Market segment buying d. Business buying behavior

Answer: (a) Page: 191

2. ____________ is individuals and households who buy goods and services for personal consumption. a. The target market b. A market segment c. The consumer market d. The ethnographic market

Answer: (c) Page: 191, 192

3. According to the text, the American consumer market consists of: a. 189 million consumers. b. 284 million consumers. c. 375 million consumers. d. 438 million consumers.

Answer: (b) Page: 191

4. Understanding consumer buying behavior is not easy. The answers are often locked deep within the consumer’s head. The central question for marketers is: a. how much money is the consumer willing to spend? b. how much does the consumer need the product being offered for sale? c. how much does a discount or a coupon affect the purchase rate? d. how do consumers respond to various marketing efforts the company might use?

Answer: (d) Page: 192

5. The starting point in understanding how consumers respond to various marketing efforts the company might use is the:

a. Lipinski model of buying behavior. b. stimulus-response model of buyer behavior. c. Freudian model of buying behavior. d. Maslow’s model of life-cycle changes.

Answer: (b) Page: 192, Figure 6-1

6. According to the stimulus-response model of buyer behavior (as presented in your text), the place where consumers process marketing stimuli prior to making a purchase decision is called the: a. consumer’s value chain. b. consumer’s cognitive schema. c. consumer’s black box. d. consumer’s thoughts-emotions network.

Answer: (c) Page: 192, Figure 6-1

7. Consumer purchases are influenced strongly by cultural, social, personal, and: a. psychographic characteristics. b. psychological characteristics. c. psychometric characteristics. d. supply and demand characteristics.

Answer: (b) Page: 192, 193, Figure 6-2

8. ______________ is the most basic cause of a person’s wants and behaviors. a. Culture b. Social class c. Personality d. Lifestyle


9. A child in the United States is normally exposed to all of the following values EXCEPT: a. achievement and success. b. activity and involvement. c. material comfort. d. collectivism.


10. Marketers are always trying to spot ____________ in order to discover new products that might be wanted. a. opinion graphers b. dissonant groups c. cultural shifts

d. benchmarks

Answer: (c) Page: 193

11. The cultural shift toward _____________ has resulted in more demand for casual clothing and simpler home furnishings. a. liberal political causes b. conservative political causes c. informality d. downsizing


12. A ________________ is a group of people with shared value systems based on common life experiences and situations. a. culture b. subculture c. lifestyle composite d. social class


13. Hispanics are often called an emerging market. Which of the following general product categories do not sell well to Hispanics? a. automobiles b. computers c. photography equipment d. generics


14. African American consumers are strongly motivated by: a. quality and ability to return merchandise. b. quality and selection. c. stores who honor their cultural traditions. d. stores who have store credit.


15. The fastest growing and most affluent U.S. demographic segment is the: a. Hispanic American consumers. b. African American consumers. c. Middle Eastern-American consumers. d. Asian American consumers.


16. The greatest barrier to effectively marketing to the Asian American market is thought to be: a. reluctance to grant credit to this group. b. language and cultural traditions. c. the urban nature of their neighborhoods. d. lack of a mass media that reaches this group.


17. Mature consumers are becoming a very attractive market. Currently, the 50 and older population is estimated to be about ___________ strong. a. 75 million b. 85 million c. 95 million d. 115 million


18. Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors are called: a. cultures. b. subcultures. c. social classes. d. social factors.


19. Which of the following is most true about social class in America? a. Social class is not determined by a single factor. b. Social class is determined by income. c. Social class lines are fixed. d. Social class lines are rigid.


20. According to the characteristics of the major American social classes, the _________________ are the social elite who live on inherited wealth and have well-known family backgrounds. a. upper-uppers b. lower-uppers c. upper-middles d. upper-lowers

Answer: (a) Page: 197, Table 6-1

21. According to the characteristics of the major American social classes, the _________________ are primarily concerned with “attaining the better things in life.” They have attained positions as professionals, independent businesspersons, and corporate managers. a. upper-uppers b. lower-uppers c. upper-middles d. upper-lowers

Answer: (c) Page: 197, Table 6-1

22. According to the characteristics of the major American social classes, the _________________ are the class who leads a “working-class lifestyle.” They depend heavily on relatives for economic and emotional support. a. upper-uppers b. lower-uppers c. upper-middles d. working class

Answer: (d) Page: 197, Table 6-1

23. Sybil, Sara, and Janice are all on the school tennis team. They are very proud of the fact that the team pulled together to accomplish the goal of winning a state championship for their school. Which is the best characterization of the relationship between these three girls and the rest of their school tennis team? a. group b. trend setters c. VALS pattern d. lifestyle concept


24. Groups which have a direct influence and to which a person belongs are called: a. membership groups. b. facilitative groups. c. bonding groups. d. social groups.


25. As a form of a reference group, the _______________ are ones to which the individual wishes to belong. a. secondary groups b. facilitative groups c. primary groups

d. aspirational groups


26. The __________________ is a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others. a. facilitator b. referent actor c. opinion leader d. social role player


27. Even though buying roles in the family change constantly, the ___________ has traditionally been the main purchasing agent for the family. a. wife b. husband c. teenage children d. grandparent


28. A major reason for the changing traditional purchasing roles for families is that: a. the economic conditions are forcing more teens to work. b. more women than ever hold jobs outside the home. c. children are spending more time on the Web. d. men and women now shop together or “shop until you drop” for entertainment purposes.


29. A(n) ________________ consists of the activities people are expected to perform according to the persons around them. a. behavior b. attitude c. role d. status


30. The stages through which families might pass as they mature over time is a description of what is called the: a. adoption process. b. lifestyle cycle. c. Values and Lifestyle (VALS) topology. d. family life cycle.


31. A ______________ is a person’s pattern of living as expressed in his or her activities, interests, and opinions. a. role b. status c. position d. lifestyle


32. According to the SRI Consulting’s Values and Lifestyles (VALS) typology, _____________________ consumers are those that buy based upon their desire for activity, variety, and risk taking. a. principle-oriented b. status-oriented c. action-oriented d. value-oriented


33. According to Forrester’s Technographics scheme for segmenting Internet customers according to motivation, desire, and ability to invest in technology, __________ are the biggest spenders on computer technology. They adopt new technology for home, office, and personal use before most others. a. New Age Nurturers b. Fast Forwards c. Techno-Strivers d. Mouse Potatoes


34. ______________ is(are) a person’s unique psychological characteristics that lead to relatively consistent and lasting responses to his or her own environment. a. Psychographics b. Personality c. Demographics d. Lifestyle


35. The basic premise of the _____________ is that people’s possessions contribute to and reflect their identities; that is, “we are what we have.” a. lifestyle concept b. self-concept c. personality concept d. cognitive concept


36. A _____________ is a need that is sufficiently pressing to direct the person to seek satisfaction of the need. a. motive b. want c. demand d. requirement


37. A good synonym for motive is a(n) _____________. a. omen b. need c. drive

d. cue


38. The theory of motivation that views people as responding to urges that are repressed but never fully under control was developed by: a. Marshall. b. Kant. c. Freud. d. Maslow.


39. Dr. Ken Kaser designs qualitative research to probe consumers’ hidden, subconscious motivations. He specializes in using nondirective and projective techniques to uncover underlying emotions and attitudes towards brands and buying situations. Which of the following terms would most appropriately describe what Dr. Kaser is doing? a. market segment research b. cohort research c. psychodemographic research d. motivation research

Answer: (d) Page: 203, Marketing at Work 6-1

40. According to Maslow’s Hierarchy of Needs, the lowest order of needs are called: a. self-actualization needs. b. social needs. c. safety needs. d. physiological needs.

Answer: (d) Page: 204, Figure 6-3

41. According to Maslow’s Hierarchy of Needs, the highest order of needs are called: a. self-actualization needs. b. social needs.

c. safety needs. d. physiological needs.

Answer: (a) Page: 204, Figure 6-3

42. __________________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world. a. Readiness b. Selectivity c. Perception d. Motivation


43. People can form different perceptions of the same stimulus because of three perceptual processes. These processes are best described as being: a. selective attention, selective distortion, and selective retention. b. subliminal perception, selective remembrance, selective forgetting. c. closure, modeling, and perceptual screening. d. needs distortion, wants analysis, and perceptual screening.

Answer: (a) Page: 204, 205

44. Kellye is a loyal Sony user. Her television, DVD player, cassette player, and VCR are all Sony products. When she hears or sees ads for Sony products, she almost always remembers the good points about the brand. In addition, when she hears or sees an ad for a competing product that points out the strengths of its products, she tends forget these points quickly or does not process them at all. The process that Kellye is has gone through is best described as being one of: a. selective retention. b. selective attention. c. selective distortion. d. stimulus actualization.


45. In 1957, a researcher announced that he had flashed the phrases “Eat popcorn” and “Drink Coca-Cola” on a screen in a movie theater every five seconds for 1/300th of a second. He reported that although viewers did not consciously recognize these messages, they absorbed them subconsciously and bought 58 percent more popcorn and 18 percent more Coke. This process was eventually named: a. deceptive advertising. b. subliminal advertising. c. psychological manipulation. d. psychological modeling and transfusion.


46. _______________ describes changes in an individual’s behavior arising from

experience. a. Modeling b. Motivation c. Perception d. Learning


47. A ___________ is a strong internal stimulus that calls for action. a. drive b. cue c. response d. perception


48. Jack Lerma has a special relationship with his dog, Chris. Seeing dog toys in a pet store window, hearing of a special price on dog food during a television commercial, or talking with a friend and receiving a recommendation a on kennel are all forms of __________, which may eventually impact Jack’s purchasing decisions and responses to the objects he has seen or heard about. a. drives b. cues c. reinforcements d. dyads


49. If a consumer describes a car as being the “most economical car on the market,” then this descriptor is a(n): a. rule. b. attitude. c. belief. d. cue.


50. If a consumer tells friends “I like my car more than any other car on the road,” then the consumer has expressed a(n): a. rule. b. attitude. c. belief. d. cue.


51. ___________ puts people into a frame of mind of liking or disliking things, of moving toward or away from them. a. A rule b. An attitude c. A belief d. A cue


52. Which of the following is NOT one of the five stages of the buyer decision process? a. need recognition b. brand identification c. information search d. purchase decision

Answer: (b) Page: 207, Figure 6-4

53. According to the buyer decision process suggested in the text, the first stage is characterized as being one of: a. awareness. b. information search. c. need recognition. d. demand formulation.


54. The buying process can be triggered by a(n) __________ when one of the person’s normal needs—hunger, thirst, sex—rises to a level high enough to become a drive. a. awareness b. external stimuli c. internal stimuli d. experiential motivation


55. The stage in the buyer decision process in which the consumer is aroused to search for more information is called: a. information search. b. evaluation of alternatives. c. search for needs. d. perceptual search.


56. The consumer can obtain information from any of several sources. If the consumer were to obtain information from handling, examining, or using the product, then the consumer would have obtained the information by using a(n): a. personal source.

b. commercial source. c. informative source. d. experiential source.


57. How the consumer processes information to arrive at brand choices occurs during which stage of the buyer decision process? a. need recognition b. information search c. evaluation of alternatives d. purchase decision


58. Generally, the consumer’s purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. These two factors are best described as being: a. the cost and availability of the product. b. the attitude of others and the cost of the product. c. the availability of the product and unexpected situational factors. d. the attitude of others and unexpected situational factors.


59. With respect to postpurchase behavior, the larger the gap between expectations and performance: a. the greater likelihood of re-purchase. b. the greater the customer’s dissatisfaction. c. the less likely the consumer will be influenced by advertising. d. the less likely the consumer will need sales confirmation and support.


60. Cognitive dissonance occurs in which stage of the buyer decision process model? a. need recognition b. information search c. evaluation of alternatives d. postpurchase conflict


61. A company must always guard against dissatisfying customers. On average, a satisfied customer tells 3 people about a good purchase experience. A dissatisfied customer, however, on average gripes to ________ people. a. 7 b. 9 c. 11 d. 30


62. The _________________ is the mental process through which an individual passes from first hearing about an innovation to final adoption. a. adoption process b. consumption process c. innovation process d. new product development process


63. All of the following are part of the adoption process that consumers may go through when considering an innovation EXCEPT: a. awareness. b. process. c. interest. d. trial.


64. With respect to adopter categories, the _______________ are guided by respect, are the opinion leaders in their communities, and adopt new ideas early but carefully. a. seekers b. innovators c. early adopters d. early majority


65. With respect to adopter categories, the ___________________ are skeptical and they adopt an innovation only after a majority of people have tried it. a. early adopters b. early majority c. late majority d. laggards


66. Several characteristics are especially important in influencing an innovation’s rate of adoption. _________ is the degree to which the innovation may be tried on a limited basis. a. Relative advantage b. Synchronization c. Compatibility d. Divisibility


67. If a company makes products and services for the purpose of reselling or renting them to others at a profit or for use in the production of other products and services, then the company is selling to the: a. business market. b. international market. c. consumer market. d. private sector market.


68. All of the following are among the primary differences between a business market and a consumer market EXCEPT: a. purchase decisions to satisfy needs. b. market structure and demand. c. the nature of the buying unit. d. the types of decisions and the decision process involved.


69. The business marketer normally deals with _____________ than the consumer marketer does. a. far greater but smaller buyers b. far greater and larger buyers c. far fewer but far larger buyers d. far fewer and smaller buyers


70. When demand comes (as it does in the business market) from the demand for consumer goods, this form of demand is called: a. kinked demand. b. inelastic demand. c. cyclical demand. d. derived demand.


71. General Motors buys steel because consumers buy cars. If consumer demand for cars drops, so will General Motors’ demand for steel. This is an example of the relationships found in: a. kinked demand. b. inelastic demand. c. cyclical demand. d. derived demand.


72. That business markets have more buyers involved in the purchase decision is evidence of which of the following characteristic differences between business and

consumer markets? a. market structure and demand b. the nature of the buying unit c. types of decisions made d. type of decision process itself

Answer: (b) Page: 215-216

73. Purchases in the business market often involve large sums of money, complex technical and economic considerations, and interactions among many people at many levels of the buyer’s organization. This is evidence of which of the following characteristic differences between business and consumer markets? a. market structure and demand b. the nature of the buying unit c. types of decisions made and the decision process d. type of business classification


74. The place in the business buying behavior model where interpersonal and individual influences might interact is called the: a. environment. b. response. c. stimuli. d. buying center.

Answer: (d) Page: 216-219, Figure 6-6

75. In a _______________, the buyer reorders something without any modifications. a. habitual rebuy b. straight rebuy c. modified rebuy d. new task buy


76. In a _______________, the buyer wants to change something about product specifications, prices, terms, or suppliers. a. habitual rebuy b. straight rebuy c. modified rebuy d. new task buy


77. When a firm buys a product or service for the first time, it is facing a: a. habitual rebuy situation. b. straight rebuy situation. c. modified rebuy situation.

d. new task situation.


78. The “in” suppliers are most likely to get nervous and feel pressure to put their best foot forward in which of the following types of buying situations? a. modified rebuy b. new task buying c. straight rebuy d. indirect rebuy


79. If a firm were to bid to do a “turnkey” operation where they would choose a building site, design a cement factory to build the plant, hire construction crews, assemble materials and equipment to run the new factory, and turn over the finished factory ready to operate to the owners, the bidding firm would be using which of the following? a. core process products selling b. design products selling c. reciprocal selling d. systems selling


80. The decision-making unit of a buying organization is called its _____________: all the individuals and units that participate in the business decision-making process. a. buying center b. purchasing center c. bidding center d. demand-supply center


81. Considering the major influences on business buyer behavior, as shown in a model in the text, under which influence stage would you expect to find the influences of authority, status, empathy, and persuasiveness? a. environmental b. organizational c. interpersonal

d. individual


82. The stage of the business buying process where the buyer describes the characteristics

and quantity of the needed item is called: a. problem recognition. b. general need description. c. product specification. d. proposal solicitation.

Answer: (b) Page: 223-225, Figure 6-8

83. If a buying team is asked by the purchasing department to rank the importance of reliability, durability, price, and other attributes of an item, then the team is going through a business buying process stage called: a. problem recognition. b. general need description. c. product specification. d. proposal solicitation.

Answer: (b) Page: 223-225, Figure 6-8

84. ________________ is the stage of business buying where an organization decides on and specifies the best technical product characteristics for a needed item. a. Problem recognition b. General need description c. Product specification d. Proposal solicitation


85. _________________ is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production. a. Cost analysis b. Order analysis c. Product analysis d. Value analysis


86. Reviewing trade directories, doing a computer search, or phoning other companies for recommendations would be methods that an interested buyer might perform in which of the following stages of the business buying process model? a. problem recognition b. vendor analysis c. product specification d. supplier search


87. Factors such as supplier reputation for repair and servicing capabilities are important criteria for evaluation at which stage in the business buying process?

a. problem recognition b. supplier search c. supplier selection d. order-routine specification


88. Blanket contracts are typically part of which of the following stages in the business buying process? a. general need description b. product specification c. supplier selection d. order-routine specification

Answer: (d) Page: 224, 225

89. The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties is called: a. general need description. b. product specification. c. supplier selection. d. order-routine specification.


90. The _______________ may lead the buyer to continue, modify, or drop the arrangement that has been entered into by the buyer and seller. a. performance review b. order-routine specification c. supplier selection d. general need description


91. Increasingly, business buyers are purchasing all kinds of products and services electronically, either through electronic data interchange links (EDI) or on the Internet. The descriptive term for such purchases, exchanges, and links is: a. e-marketing. b. e-commerce. c. e-procurement. d. e-transaction.


92. E-purchasing by businesses has its drawbacks and problems. More than 80 percent of companies say that __________ is the leading barrier to expanding electronic links with customers and partners. a. security

b. privacy c. cost d. lack of correct technology


TRUE/FALSE QUESTIONS

93. One of the beauties of studying consumer buying behavior is its simplicity.

Answer: (False) Page: 191, 192

94. With respect to studying consumer or buyer behavior, the central question for marketers is: “How do consumers respond to various marketing efforts the company might use?”

Answer: (True) Page: 192

95. In a simple model of buyer behavior, marketing and other stimuli are processed in a consumer’s black box.

Answer: (True) Page: 192, Figure 6-1

96. If consumers have a cultural shift toward greater concern about health and fitness, then a correct marketing response would be to manufacture or market health and fitness services, exercise equipment, and sports clothing.


97. If the U.S. population of Asian Americans were a separate nation, its buying power of $500 billion annually would rank twelfth in the free world.

Answer: (False) Page: 194

98. The fastest growing and most affluent racial or ethnic subculture within the United States culture is the Asian American group.


99. In the United States, a source of concern is the fixed lines between social classes and the problems that this rigidity brings.


100. Inherited wealth characterizes the lower upper social class category.

Answer: (False) Page: 197, Table 6-1

101. Upper lowers in the United States social class lead a “working-class lifestyle.”

Answer: (False) Page: 197, Table 6-1

102. Opinion leaders are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others.


103. Women account for nearly one-half of all hardware purchases. The most accurate correlation with this example would be that of changing social class distinctions.


104. A person’s lifestyle is reflected by his or her activities, interests, and opinions.


105. In the VALS typology, action-oriented buyers base their purchases on the actions and opinions of others.


106. A good illustration of the “Mouse Potatoes” lifestyle (as described by Forrester’s Technographics scheme) would be a person who is dedicated to interactive entertainment and willing to spend for the latest in “technotainment.”


107. A person’s self-concept is also called the self-image.


108. Another term for motive is self-concept.


109. The highest order of needs within Maslow’s hierarchy of needs scheme is esteem needs such as self-esteem, recognition, or status.

Answer: (False) Page: 202, Figure 6-3

110. Selective attention is the tendency for people to screen out most of the information to which they are exposed.


111. Numerous studies by psychologists and consumer researchers have found no link

between subliminal messages and consumer behavior.


112. Learning occurs through the interplay between drives, stimuli, cues, responses, and reinforcement.


113. Research has shown that attitudes are relatively easy to change while beliefs are extremely difficult to change.

Answer: (False) Difficulty: (3) Page: 205-207

114. The buyer decision process model begins with information search.

Answer: (False) Difficulty: (2) Page: 207, Figure 6-4

115. The larger the gap between expectations and performance, the greater the consumer’s dissatisfaction.


116. The early majority segment of adopter classification scheme shown in the text are characterized as being guided by respect—they are the opinion leaders in their communities, and adopt new ideas early but carefully.


117. In the adopter classification scheme, innovators account for about half of the bell-shaped adoption curve.


118. The business market consists of all the organizations that buy goods and services to use in the production of other products and services that are sold, rented, or supplied to others.


119. The business market is huge, however, at present the consumer market still involves more dollars and items for sale.


120. Business buyers usually face more simple situations when purchasing than do consumers because of the amount of information that they have prior to purchase.


121. A straight rebuy occurs when a business buyer wants to modify product specifications, prices, terms, or suppliers.


122. The buying center, by its very nature, is a fixed and formally identifiable unit within an organization.


123. Unlike consumer buying behavior, business buying behavior is not influenced by interpersonal factors.

Answer: (False) Page: 220, 221, Figure 6-7

124. The first stage of the business buying process is that of problem recognition.

Answer: (True) Page: 221, Figure 6-8

125. Value analysis is performed in the supplier search stage of the business buying process model.


126. In business buying, MRO stands for maintenance, repair, and operations.


ESSAY QUESTIONS

127. Harley-Davidson Motorcycle Company has used consumer behavior studies to advance the organization’s knowledge about its consumers. This strategy has been pivotal in meeting the challenge of the Japanese motorcycle manufacturers. How has Harley-Davidson used focus groups to keep up with its shifting market and varying consumer tastes? What information has the company obtained about its customers?

Answer:Harley-Davidson uses focus groups to explore its consumers’ feelings about the company’s products. For example, cut-and-paste collages of pictures (assembled by representative consumers) showed how consumers felt about the company’s motorcycles. This focus group exercise was then followed by a more extensive (16,000 surveys) battery of psychological, sociological, and demographic questions that attempted to classify Harley users into distinct groups (advertising could then be directed toward these specific groups). The company found that Harley customers were buying more than just motorcycles when the company’s product was purchased. The customers were making a lifestyle statement and displaying an attitude. These lifestyle statements and attitudes

were then captured in advertisements directed toward the target audiences. The company believes that knowledge of consumer behavior is very important to the overall success of their strategy and campaigns.

Page: 189-191

128. Define the consumer market and briefly describe the elements of a simple model of buying behavior as identified in your text.

Answer:The consumer market is made up of all the final consumers of products and services combined. A simple model of consumer behavior consists of (1) marketing and other stimuli (such as the 4Ps [product, price, place, and promotion] and environmental forces [economic, technological, political, and cultural forces]), (2) the buyer’s black box (that includes the buyer’s characteristics and the buying decision process), and (3) the buyer’s responses (which includes product choice, brand choice, dealer choice, purchase timing, and purchase amount).

Page: 192, Figure 6-1

129. Describe the importance of culture, subculture, and social class influences on consumer buying behavior.

Answer:Culture is the most basic cause of a person’s wants and behavior. Subcultures are smaller groups of shared value systems based upon common life experiences or situations. Subcultures often make up significant market segments. Social classes are relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors related to product preferences and purchase behaviors.

Page: 193-196

130. Briefly, characterize the Hispanic, African American, and Asian American subcultures found in the United States market.

Answer:a). Hispanic Americans consist of Cuban, Mexican, Central American, South American, and Puerto Rican peoples. They are approximately 35 million strong, and buy more than $400 billion worth of goods and services each year. They are expected to grow by 64 percent in the next 20 years. They are somewhat easy to reach through the growing number of Spanish media stations and publications. This group has long been a target for food, beverages, and household care items.b). African Americans, if a separate nation, would (with a buying power of $500 billion annually) rank twelfth in the free world. This group is growing in affluence and sophistication. They are strongly motivated by quality and selection. They are brand loyal and do less shopping around.c). Asian Americans are the fastest-growing and most affluent of the subculture segments. They now number 10 million with a disposable income of $229 billion

annually. They are estimated to reach 30 million by 2050. Presently, the Chinese group is the largest.

Page: 193-195

131. Describe what a group is, and the various forms of groups that (according to the text) a consumer might be a part of.

Answer:A group is two or more people who interact to accomplish individual or mutual goals. Types of groups would include:a). Membership groups—groups that have a direct influence and to which a person belongs.b). Reference groups—serve as a direct (face-to-face) or indirect points of comparison or reference in forming a person’s attitudes or behavior.c). Aspirational groups—one to which the individual wishes to belong.

Page: 196, 197

132. List and briefly describe the five categories of Forrester’s Technographics scheme, which segments consumers according to motivation, desire, and ability to invest in technology.

Answer:The five categories as outlined in the text include:a). Fast Forwards—the biggest spenders on computer technology. Fast Forwards are early adopters of new technology for home, office, and personal use.b). New Age Nurturers—also big spenders but focused on technology for home uses, such as a family PC.c). Mouse Potatoes—consumers who are dedicated to interactive entertainment and willing to spend for the latest in “technotainment.”d). Techno-Strivers—consumers who use technology primarily to gain a career edge.e). Handshakers—older consumers, typically managers, who don’t touch computers at work and leave that to younger assistants.

Page: 201

133. List and briefly describe Maslow’s Hierarchy of Needs.

Answer:Beginning at the bottom of the pyramid model:a). physiological needs—hunger, thirstb). safety needs—security, protectionc). social needs—sense of belonging, loved). esteem needs—self-esteem, recognition, statuse). self-actualization needs—self-development and realization

Page: 202, 204, Figure 6-3

134. Discuss and illustrate the difference between an attitude and a belief.

Answer:A belief is a descriptive thought that a person holds about something. An attitude is a person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea. Beliefs may be based on knowledge, opinion, or faith, and they may carry an emotional charge. Attitudes are primarily feelings of like and dislike. Attitudes are difficult to change.

Page: 205-207

135. Identify each of the stages of the buyer decision process. Be sure to give a brief description of each stage.

Answer:a). Need recognition: The first stage of the buyer decision process, in which the consumer recognizes a problem or need. The buyer senses a difference between his or her actual state and some desired state. The need can be triggered by internal or external stimuli.b). Information search: The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search.c). Evaluation of Alternatives: The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. The consumer can use product attributes, degrees of importance, brand beliefs, total product satisfaction, or an evaluation procedure to perform alternative evaluation.d). Purchase decision: The stage in the buyer decision process in which the consumer actually buys the product. Factors that can influence this action phase are: the purchase intention, the attitudes of others, and unexpected situational factors.e). Postpurchase behavior: The stage of the buyer decision process in which consumers take further action after purchase based upon their satisfaction or dissatisfaction. The considerations are the consumer’s expectations and the product’s perceived performance. Cognitive dissonance can set in, and must be dealt with before complete satisfaction can be achieved.

Page: 207-210, Figure 6-4

135. People differ in their readiness to adopt or try new products. Take each of the five adopter groups mentioned in the text and give a synonym or brief description of each primary characteristic that sets each particular group apart from the others.

Answer:a). Innovators—venturesome—they try new ideas at some risk.b). Early adopters—respected—they are the opinion leaders in their communities and adopt new ideas early but carefully.c). Early majority—deliberate—although they are rarely leaders, they adopt new ideas before the average person.

d). Late majority—skeptical—they adopt an innovation only after a majority of people have tried it.e). Laggards—tradition bound—they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself.

Page: 213, Figure 6-5

136. An innovative product’s rate of adoption is influenced by five characteristics. List and then briefly discuss each of these characteristics.

Answer:a). Relative advantage—the degree to which an innovation appears superior to existing products.b). Compatibility—the degree to which the innovation fits the values and experiences of potential consumers.c). Complexity—the degree to which the innovation is difficult to understand or use.d). Divisibility—the degree to which the innovation may be tried on a limited basis.e). Communicability—the degree to which the results of using the innovation can be observed or described to others.

Page: 213, 214

137. Explain how business markets differ from consumer markets.

Answer: The main differences include market structure and demand, the nature of the buying unit, and the types of decisions and the decision process within the two. Business markets are geographically concentrated and have derived, inelastic, and fluctuating demand. Buying is more professional and involves more people. Decisions are more complex, more formalized, and the buyer and seller are more dependent upon one another.

Page: 215

138. There are three types of buying situations faced by the business buyer. List and briefly explain or characterize each of these situations.

Answer:a). Straight rebuy—the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department.b). Modified rebuy—the buyer wants to modify product specifications, prices, terms, or suppliers. More people in the firm are involved in this situation.c). New-task—a company buys a product for the first time. In such cases, the greater the cost or risk, the larger the number of decision participants and the greater their efforts to collect information will be.

Page: 217

139. List and define the stages in the business buying decision process.

Answer:(a) Problem recognition: the stage in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service.(b) General need description: the stage in which the company describes the general characteristics and quantity of a needed item.(c) Product specification: the stage in which the buying organization decides on and specifies the best technical product characteristics for a needed item.(d) Supplier search: the stage in which the buyer tries to find the best vendors.(e) Proposal solicitation: the stage in which the buyer invites qualified suppliers to submit proposals.(f) Supplier selection: the stage in which the buyer reviews proposals and selects a supplier or suppliers.(g) Order-routine specification: the stage in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties.(h) Performance review: the stage in which the buyer rates its satisfaction with suppliers, deciding whether to continue, modify, or drop them.


APPLICATION QUESTION

140. In the past few years, Frito-Lay snack foods introduced several new products to their already extensive line of chips. The new products were a “baked” potato chip and a “reduced fat” potato chip. Using information found in the chapter on factors that influence consumer behavior, indicate cultural, social, personal, and psychological questions that would be useful to answer so that meaningful market segments can be derived for either of these two new products (pick one of the two products). Be specific in your recommendations.

Answer:The purpose of this question is to get students to review information found in the chapter and in Figure 6-2. This question may be given as a take-home assignment since it requires extended thought.

In order to construct an answer, the student should consider the following:a) Culture—any relevant variables within the general culture, subculture, and social class structure should be identified. For example, what types of Americans have an affinity for snack foods, which groups prefer a more healthy or reduced diet, do particular subcultures have different preferences in snack foods, do the different subcultures have different views toward healthy lifestyles, and do social class and income (or occupational) variables have any impact on the question?b) Social—would groups influence the acceptability of the new products, would there be peer pressure (such as with “stop smoking” campaigns), what family dynamics would come into play in the selection of the new products (would a Mom that wants a healthy lifestyle have more influence than children who want traditional snack items), and would either of the new products have an elevated status because of their newness?

c) Personal—in this section such factors as the consumer’s age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept should be examined. For example, would these new products be aimed at those that are already participating in a health-related lifestyle, with respect to product selection, or should the products be aimed at those that have problems and are looking for healthy alternatives to solve their problems?d) Psychological—a consumer’s motivation, perception, learning, and beliefs and attitudes would certainly be impacted by the adoption of either of these two new products. Does the consumer look at these two new products as being inferior to the older, more preferred products, how much does the consumer really know about these products, and what beliefs or attitudes must be formed or changed for the products to be successful?

Students should construct their answers using some type of plan that is similar to the ideas presented above unless other more specific instructions are given. Students should feel free to construct their own questions, however, the questions should be useful in determining market segments that could be targeted by the company for sales and promotional efforts.


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