KEY College of the North Atlantic MR1500 Consumer Behaviour There are 2 parts to this exam: Part 1 consists of 35 + 2 bonus multiple Choice Questions Part 2 consists of a choice of 3 of 4 questions to be answered in the space provided. Midterm Exam Chapters 1-7 Name:________________________ 1 PLEASE ANSWER ALL MULTIPLE CHOICE QUESTIONS ON THE EXAM PAPER 1. The study of consumers as they exchange something of value for a product or service that satisfies their needs is the definition of __________________________. a. sociology c. consumer behaviour b. marketing research d. psychology 2. A complete analysis of consumer behaviour should identify three types of actors: marketers, public policy actors, and most importantly___________________________ a. advertisers c. consumers b. employees d. suppliers 3. When Don calls the local utilities commission about the high cost of water, he would be considered what type of consumer behaviour "actor"? a. public policy actor c. economic actor b. marketer d. consumer 4. ______________________________ are individuals that identify needs, buy and consume products, and dispose of products. a. Public policy actors c. Exchangers b. Marketers d. Consumers 5. Any study of consumer behaviour includes __________________ since that perspective concentrates on the effects of culture and values on consumer behaviour. a. psychology c. biology b. b. anthropology d. economics 6. Large firms often divide their organization into groups or _______________________that market a set of homogeneous products to a set of homogeneous market segments. a. market segments c. administrative sections b. policy groups d. strategic business units (SBUs) 2 7. ______________________ organizations are groups that influence public policies, individuals' actions, and marketers' strategies in areas that interest their members. a. social action c. community action b. Professional action d. Universal protection 8. The first activity in any act of consumer behaviour is a. search c. recognizing needs b. evaluation of alternatives d. purchase 9. Price, colour, and a long-term warranty would be examples of evaluative _____________________ used to determine which alternative should be the one selected for purchase. a. judgements c. standard b. criteria d. benchmark 10. If a consumer places great importance on a purchase, that product would be considered a(n) ______________________ product. a.salient c. high-impact b. high involvement d. expensive 11. __________________ are the things that people are, while behavioural processes are the tools people use in making decisions. a. Consumer background characteristics c. Personality traits d. Consumer features d. Reference characteristics 12. Beliefs about personal freedom, hard work, and individual rights are all considered American cultural ____________________ a. norms c. goals b. behaviours d. values 13. Friends, family, and co-workers would all be considered _________________ groups, if they have a significant effect on consumer behaviour. a reference c. credential b. endorsement d. expertise 14. ______________ is the process of dividing the total market into segments and then targeting specific products at selected segments. a. Marketing division c. Market segmentation 3 b. Population sampling d. Market channelling 15. The "mental location" to which a consumer assigns a product in his or her mind is called that product's____________________. a. extension c.image b. position d. formula 16. Within a_______________________________, consumers are indistinguishable and are all in one segment. a. customized market c.market system b. mass market d. psychographic segment 17. When considering segmentation strategies, marketers must develop a strategy that is both effective and_______________________ . a. efficient c. extensive b. global d. inclusive 18. The first step in segmenting target markets is to choose background characteristics relevant to your product, followed by an examination of the _____________________ processes of those within the background characteristic segments. a. thought c. physical b. behavioural d. decision making 19. The two types of product positioning strategies are positioning by consumer characteristics and behaviours, and positioning by____________________________. a. competitor c. product life cycle stage b. price d. product type 20. A company that is experiencing lower inventory and advertising costs because it is producing and marketing a single product to many consumers is benefiting from __________________________. a. value pricing c. economies of scale b. accountability d. psychographic analysis 21 Age, family life cycle, gender, and income are all ________________________ consumer characteristics used in the process of segmenting a market. a. demographic c. cultural b. psychographic d. personality 4 22. When a market is segmented based on consumers' behavioural processes, consumer decision making and ________________________ may be used as bases of segmentation. a. demographics c. perceptions b. lifestyle d. value systems 23. The unique pattern of shared meaning that characterize a society and distinguish it from other societies is the definition of _________________ a.marketing c. culture b. sociology d. subculture 24. Culture is _____________________ because it guides consumers' behaviour and also _______________since it changes to reflect changes in the environment. a. instinctive; transparent b. functional; dynamic c. instinctive; dynamic d. functional; transparent 25. Divisions of a culture based on such things as race, age, or religion are called a. reference groups c. subcultures b. equity groups d. cultural clusters 26. If a company uses one marketing mix throughout the world, that company has chosen a __________________ marketing strategy. a. localized c. differentiated b. global d. concentrated 27. Goals and objectives consumers seek are called ______________________ values, whereas the ways consumers achieve the objectives they seek are called ___________________values. a. functional; terminal c. terminal; instrumental b. material;instrumental d. material; functional 28. Major differences in cultures are usually found in the areas of economic conditions, government policies, and _____________________ a. technological advances c. law b. mess communication d. housing 5 29. The underlying beliefs regarding what is important and how people should live are called cultural_________________________. a. norms c. action rules b. values d. laws 30. The marketing research that involves comparisons of various cultures is called ___________________. a. intercultural research c. cross-cultural analysis b. multinational research d. diversified marketing research 31. When conducting cross-cultural analysis, one of the most important areas of research involves determining the product's _____________________ to the targeted consumers. a. price compatibility c. name recognition b. appeal d. number of uses 32. A(n) __________________is an age-based subculture whose members' childhood experiences influence their customs and behaviours. a. cohort c. consort b. affiliate d. syndicate 33. Which subculture, based on age, includes college students and young adults experiencing diminishing economic opportunities? a. baby boomers c. young achievers b. Generation X d. junior adults 34. Which of the following family purchases are often influenced by children? a. housing c. adult clothing b. consumer electronics d. newspaper subscriptions 35. The _______________________ class predominately evaluates products based on a product's function, whereas the ____________________class is more conscious of a product's appearance. a. middle; working c. working; upper b. middle; upper d. lower; middle 6 BONUS 36. _________________________is segmentation based on geography and demographics. a. Demogeography c. Geodemographics b. Double segmentation d. Multi-segmentation 37. The predisposed way a person approaches his or her environment is referred to as _____________________. a. Iifestyle c. motivation b. personality d. psychographics 7 Part 2 Complete 3 of 4 of the questions in the space provided 1) Define what is meant by Learning and then summarize the basic theory behind Behavioural Learning, Cognitive Learning and Operational Learning. Key aspects of answer: Define Learning p67 Define Behavioural Define Cognitive Define Operational Examples would add value to the answer 2) Motivation refers to the processes that cause people to behave the way they do. Discuss the Motivational Process and discuss the three basic types of motivational conflicts that can occur in humans in reference to the products that we buy. Key aspects of answer: Define Motivation p98 Approach-Approach p101 Approach-Avoid Avoid-Avoid Discuss each and Examples would add value to the answer 3) Define and differentiate between our Real and Ideal Selves? How is our consumption affected because of the conflict that may exist between the real and the ideal self? Key aspects of answer: Define Real Self p132 Define Ideal Self A differentiation between the two needs to be made Consumption affected by key factors that appeal to ideal self p133 8 4) Define what is meant by one’s personality and describe how marketers use personality traits to segment and assess markets using branding Key aspects of answer: Define Personality p157 Look for a discussion of theories, brand theory, lifestyle etc to demonstrate concept 9