CHAPTER 7

IDENTIFYING AND UNDERSTANDING CONSUMERS

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6 Categories of Factors Impacting Shoppers Figure

7-2 .174
Lifestyle: Social and Psychological Factors p. 177
Impact of Perceived Risk Figure 7-3 p. 178
6 Stages in the Consumer Decision Process Figure
7-6 p. 185
3 Types of Decision-Making p. 188
3 Types of Impulse-Buying p. 189
3 Types of Target Market Strategies pp. 191-193
6 Steps in devising a Target Market Strategy Figure
7-10 p. 192

90

Multiple Choice - Terminology/Concept

1.

An objective, easily identifiable, and measurable population characteristic is called a(n) _____.
a. AIO inventory
b. demographic statistic
c. lifestyle measure
d. reference group measure

2.

The manner in which an individual lives and spends his/her time and money is his/her _____.
a. lifestyle
b. consumer decision process
c. reference group behavior
d. social class structure

3.

The average annual U.S. household after-tax income is about _____.

a. $20,000
b. $35,000
c. $50,000
d. $65,000

4.

Money left after paying taxes and buying necessities is referred to as _____.
a. GDP per capita
b. taxable income
c. discretionary income
d. disposable income

5.

A group of people sharing a distinctive heritage is a(n) _____.

a. culture
b. reference group
c. social class system
d. AIO group

6.

An informal ranking of people in a culture is a(n) _____.

a. AIO group
b. social class
c. reference group
d. family life cycle

91

Multiple Choice - Terminology/Concept

7.

Income, occupation, and education are important components of _____.

a. culture
b. a family life cycle
c. social class
d. reference group affiliation

8.

Aspirational, membership, and dissociative are forms of _____.

a. social classes
b. family life cycles
c. reference groups
d. household life cycles

9.

The family life cycle shows _____.

a. families which share a distinctive heritage
b. how a typical family evolves from bachelorhood to children to solitary retirement
c. the extent to which groups influence a persons thoughts and actions
d. the ranking of people within a culture

10.

Which group is not reflected in the traditional family life cycle?

a. solitary retired
b. single-parent families
c. young marrieds
d. old aged

11.

Which of the following is an element of perceived risk?

a. physical risk
b. reference group risk
c. purchase risk
d. lifestyle risk

12.

The element of perceived risk that relates to product safety is _____ risk.
a. performance
b. social
c. economic
d. physical

13.

The element of perceived risk that relates to how friends and relatives view the purchase of a
good or service is _____ risk.
a. social
b. physical
c. performance
d. psychological

92

Multiple Choice - Terminology/Concept

14.

The element of perceived risk that relates to the effect of a purchase on ones self-esteem is _____
risk.
a. psychological
b. social
c. physical
d. performance

15.

The increased number of working women and the desire for personal fulfillment contribute to
_____.
a. component lifestyles
b. consumer confidence
c. poverty of time
d. performance risk

16.

Outshopping refers to _____.

a. in-home shopping by catalog, mail, and phone
b. consumers who travel long distances to stores
c. consumers with very small or large-sized clothing
d. consumers who spend longer than average times in shopping centers/districts

17.

The process whereby individuals decide whether, what, when, where, how, and from whom to
purchase goods and services is _____.
a. commercial search
b. consumer behavior
c. marketing research
d. outshopping

18.

A cue or drive meant to motivate or arouse a person to act is a _____.

a. commercial cue
b. social cue
c. want
d. stimulus

19.

Which of the following is not considered as a stimulus?

a. a physical drive
b. a motive
c. a commercial cue
d. a social cue

20.

A characteristic of a commercial cue is _____.

a. high marketer control
b. high levels of believability
c. high levels of word-of-mouth communication
d. high levels of customer involvement

93

Multiple Choice - Terminology/Concept

21.

A point-of-purchase display placed in a supermarket by a major food processor is an example of

a(n) _____.
a. noncommercial cue
b. commercial cue
c. advertisement
d. social cue

22.

In which stage of the decision process does a consumer recognize that the good or service under
consideration may solve a situation of shortage or unfulfilled desire?
a. evaluation of alternatives
b. information search
c. stimulus
d. problem awareness

23.

Two components of problem awareness are _____.

a. information search and purchase behavior
b. commercial and noncommercial cues
c. recognition of shortage and recognition of unfulfilled desire
d. physical risk and social risk

24.

Information search involves generating a list of alternative goods and services and _____.
a. determining perceived risk levels
b. judging impulse goods
c. determining the characteristics of each alternative
d. evaluating stimuli

25.

In the evaluation of alternatives stage of the consumer decision process, criteria for a decision can
include _____.
a. price, fit, and durability
b. attitudes, interests, and opinions
c. demographics and psychographics
d. commercial and social cues

26.

Further purchase and re-evaluation are components of which stage in the consumer decision
process?
a. information search
b. evaluation of alternatives
c. purchase act
d. post-purchase behavior

94

Multiple Choice - Terminology/Concept

27.

In which stage of the consumer decision process does cognitive dissonance occur?
a. purchase act
b. post-purchase behavior
c. information search
d. evaluation of alternatives

28.

Doubt that the correct product has been purchased is known as _____.
a. psychological risk
b. perceived risk
c. cognitive dissonance
d. information re-evaluation

29.

Cognitive dissonance shows retailers the importance of _____.

a. social responsibility
b. scrambled merchandising
c. reference grouping
d. after-sale service

30.

Expensive, complex goods or services with which consumers have had little or no experience
generally involve _____.
a. impulse purchases
b. extended decision making
c. limited decision making
d. routine decision making

31.

High-risk products generally require _____.

a. impulse purchasing
b. extended decision making
c. limited decision making
d. routine decision making

32.

In limited decision making, consumers _____.

a. use each purchase process step, but do not spend much time on each step
b. spend much time on information search
c. are unwilling to spend time on shopping
d. view products to have high perceived risk

33.

Moderate-risk items that have been purchased before but not on a regular basis involve which
decision process?
a. impulse purchasing
b. extended decision making
c. limited decision making
d. routine decision making

95

Multiple Choice - Terminology/Concept

34.

The use of habit in consumer decision making is associated with _____ decision making.
a. routine
b. extended
c. limited
d. generalized

35.

Which retail institution is most likely to appeal to a concentrated market segment?

a. department store
b. specialty store
c. conventional supermarket
d. superstore

Multiple Choice - Applied/Comprehensive/Integrative

36.

In comparison to lifestyles, demographics are _____.

a. easier to measure
b. more likely to be profiles
c. more difficult to measure
d. growing at a faster rate

37.

Clothing buyers have been categorized as clothes horses, bargain hunters, image seekers, and
shopping-averse consumers. This divides shoppers by _____.
a. demographics
b. reference groups
c. lifestyles
d. perceived risk

38.

The best way to describe ethnic and racial groups in terms of consumer lifestyles is by _____.
a. cultural influences
b. subcultural influences
c. social performance
d. family life cycle

39.

A subculture can be based upon all of the following except _____.

a. religion
b. geographic region
c. nationality
d. geographic mobility

96

Multiple Choice - Applied/Comprehensive/Integrative

40.

The social class corresponding to the mass market is _____ Americans.

a. upper
b. lower
c. middle
d. family

41.

A retailer is looking for a means of describing consumer behavior that is preferable to shoppers
ages. One such technique is _____.
a. the social class structure
b. outshopping
c. perceived risk
d. the traditional family life cycle

42.

Which consumer lifestyle grouping includes family and nonfamily household members?
a. component lifestyle
b. family life cycle
c. reference group influence
d. household life cycle

43.

Which psychological factor is particularly important to consumers seeking social status?

a. personality
b. class consciousness
c. perceived risk
d. culture

44.

Goods which are highly visible and which consumers feel they are judged by have high _____
perceived risk.
a. time
b. financial
c. physical
d. social

45.

Which form of perceived risk most closely resembles class consciousness?

a. social risk
b. performance risk
c. time risk
d. financial risk

46.

A retailer has begun to pre-wrap gift items and to re-deploy checkout personnel to reduce waiting
times. The retailer is responding to which demographic and lifestyle factor?
a. gender roles
b. poverty of time
c. component lifestyles
d. consumer sophistication and confidence

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Multiple Choice - Applied/Comprehensive/Integrative

47.

The difficulty in classifying consumers by a given demographic and lifestyle profile is recognized
in which of these categories?
a. consumer sophistication and confidence
b. gender roles
c. component lifestyles
d. poverty of time

48.

Consumer researchers that argue that a consumers shopping behavior is difficult to categorize
due to situational factors (such as immediacy of need) or degree of involvement favor use of
which lifestyle factor?
a. gender roles
b. poverty of time
c. component lifestyles
d. consumer sophistication and confidence

49.

A shopper profile should ideally contain _____.

a. data developed from observational-based studies
b. only demographic data
c. only lifestyle data
d. both demographic and lifestyle data

50.

A difficulty in the study of motives is that _____.

a. motives can be observed
b. a researcher needs to distinguish between rational and irrational motives
c. it is based on self-reports of consumers
d. a consumers motives may be related to his/her demographic characteristics

51.

A retailer, through its extensive selection and high service levels, is able to attract shoppers from
long distances. This phenomenon is known as _____.
a. cognitive dissonance
b. outshopping
c. store loyalty
d. extended decision making

52.

Local advertising is ineffective in reaching _____.

a. baby boomers
b. Generation X consumers
c. outshoppers
d. bachelors

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Multiple Choice - Applied/Comprehensive/Integrative

53.

A mapping analysis for a furniture store shows that 20 percent of its customers drive over 1 hour
to visit the retailer. This high proportion of shoppers from a relatively far distance indicates
_____.
a. outshopping
b. limited decision making
c. cognitive dissonance
d. active shoppers

54.

The opposite of in-home shopping, on a convenience dimension, is _____.

a. routine decision making
b. outshopping
c. store loyalty
d. mapping

55.

Word-of-mouth influences in consumer behavior relate to _____.

a. social cues
b. physical drives
c. commercial cues
d. social class structure

56.

A major advantage of the use of social versus commercial cues to consumers is based upon
_____.
a. the use of lifestyle demographic factors
b. degree of cognitive dissonance
c. believability
d. post-purchase behavior

57.

The major difference between social and commercial cues is based on the _____.
a. duration of the consumer decision process
b. degree of information search
c. objectivity of the source
d. degree of problem awareness

58.

Which stimulus provides retailers with the greatest degree of control?

a. problem awareness
b. social cue
c. physical drive
d. commercial cue

59.

An example of recognition of shortage is when a consumer _____.

a. sees an ad for a suit at a 50 percent price reduction
b. becomes aware of a product that he/she has not purchased before
c. gathers a list of products that will solve the problem at hand
d. runs out of a product

99

Multiple Choice - Applied/Comprehensive/Integrative

60.

Recognition of unfulfilled desire occurs when a consumer _____.

a. discovers that a product needs to be repurchased
b. becomes aware of a product he/she has not previously purchased
c. notices that products have worn out
d. needs to replenish products

61.

A high degree of information search generally occurs when _____.

a. perceived risk is high
b. a purchase is viewed as unimportant
c. cognitive dissonance is low
d. a consumer is brand loyal

62.

To overcome potential cognitive dissonance, a retailer should _____.

a. overstate a products attributes in the sales presentation
b. reduce the price of a product to new customers
c. offer trade-in allowances for durable goods
d. realize the importance of customer after-care

63.

Money-back guarantees and honest sales and advertising presentations aid in _____.
a. minimizing cognitive dissonance
b. AIO measurement
c. the problem awareness stage of consumer behavior
d. studying psychographics

64.

A salespersons being honest in assessing a products use, features, and benefits can reduce
consumers _____.
a. social cues
b. commercial cues
c. cognitive dissonance
d. physical drives

65.

The purchase of a good with high perceived risk is likely to involve what type of consumer
decision making?
a. extended decision making
b. routine decision making
c. limited decision making
d. brand loyalty

66.

What type of consumer decision making is most likely to be used when the importance of a
purchase to a customer is very high?
a. routine decision making
b. limited decision making
c. extended decision making
d. brand loyalty

100

Multiple Choice - Applied/Comprehensive/Integrative

67.

Low perceived risk, high experience with a retailer, and high satisfaction with past purchases
generally are characteristics of _____.
a. extended decision making
b. cognitive dissonance
c. routine decision making
d. limited decision making

68.

Impulse purchases and store loyalty are examples of _____.

a. extended decision making
b. routine decision making
c. problem awareness
d. limited decision making

69.

The purest form of an impulse purchase is _____.

a. partially unplanned
b. unplanned substitution
c. completely unplanned
d. reminder impulse

70.

A retailer appealing to two distinct demographic groups is utilizing a _____ marketing strategy.
a. differentiated
b. mass
c. concentrated
d. focused

101

True-False - Terminology/Concept
71.

Lifestyles are easily identifiable and measurable population statistics.

72.

There are more families than households.

73.

The ranking of people within a culture is a reference-group affiliation status report.

74.

The social-class classification system is based on factors such as income, occupation, education,
and dwelling type.

75.

The traditional family life-cycle concept needs to be updated to reflect alternative lifestyles such
as childless couples and single-parent families.

76.

Class-conscious shoppers are concerned with both brand and store image.

77.

Outshoppers generally patronize neighborhood retailers due to the desire to maintain long-term
social relationships with them.

78.

The only stimulus that can be totally controlled by a retailer is a commercial cue.

79.

The information search process can involve the use of commercial, noncommercial, and social
sources.

80.

In the evaluation of alternatives stage of the decision process, a consumer develops criteria,
evaluates the importance of each criterion, and ranks the alternatives.

81.

The last stage of the consumer decision process is the purchase.

82.

Post-purchase behavior falls into either of two categories: further purchases or re-evaluation.

83.

Cognitive dissonance can occur both before and after a purchase.

84.

Consumers always utilize all the steps in the decision process.

85.

Retailers can control the extent of impulse purchases through effective use of displays.

86.

In general, consumer lifestyles are more difficult to categorize than consumer demographics.

87.

Aspirational or membership reference groups have an important influence on the purchase of

goods viewed as conspicuous.

88.

Perceived risk levels vary only slightly among consumers.

89.

The purchase of a highly visible product, such as a costly high-fidelity system, can involve
financial, functional, and social risks.

90.

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

91.
The study of problem awareness is difficult 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.
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92.

Recognition of shortage and recognition of unfulfilled desire are two components of the
information search stage of the consumer decision process.

93.

The use of opinion leaders as sources of information comprises a social source of information.

94.

A consumers degree of information search is largely dependent upon his/her perceived risk.

95.

Cognitive dissonance relates to pre-purchase anxiety.

96.

Retailers desiring to minimize consumer cognitive dissonance should focus on consumer afterpurchase service and on realistic selling presentations and advertising campaigns.

97.

Lower-income consumer groups utilize the decision process more thoroughly than any other
income group.

98.

The decision process is always used consciously by consumers.

99.

Consumers with high perceived risk are most prone to utilize routine decision making.

100.

The type of impulse shopping which is least planned by consumers is unplanned substitution.

103

Essay
101.

a. Outline five major U.S. demographic trends.

b. Identify their implications for a department store chain with stores located in all major U.S.
markets.
(pp. 174-176)

102.

Illustrate how a supermarket food retailer can relate demographics to its selection of a target
market.
(pp. 174-176)

103.

What are the advantages of studying consumer behavior from the perspective of the traditional
family life cycle versus age?
(p. 177)

104.

a. Outline the components of perceived risk as they relate to a consumers purchase of a used
car.
b. How can a used car dealer reduce consumers perceived risk levels?
(p. 177)

105.

What is the relationship among perceived risk, information search, and type of consumer decision
process? Explain your answer.
(pp. 177, 186, 188-189)

106.

Contrast the study of consumer behavior from the perspective of consumer demographics and
consumer lifestyles.
(pp. 178-180)

107.

a. What are the difficulties of studying consumer motives?

b. How can these difficulties be overcome?
(p. 181)

108.

A retailer studying its sales data has found that 25 percent of its customers are outshoppers. What
are the implications of this finding?
(p. 182)

109.

a. Differentiate among social cues, commercial cues, and physical cues as stimuli.
b. Evaluate the level of retailer control for each type of stimulus.
(p. 185)

110.

Distinguish between the recognition of shortage and recognition of unfulfilled desire components
in the problem awareness stage in the consumer decision process.
(pp. 185-186)

111.

a. Why have retailers placed such great importance on post-purchase behavior?

b. How can a retailer minimize a consumers cognitive dissonance?
(pp. 187-188)

112.

a. Discuss impulse purchasing and store loyalty from the perspective of routine decision
making.
b Evaluate impulse purchasing and store loyalty as special opportunities for retailers.
(pp. 189-190)
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