Advertising And Integrated Brand Promotion 6th Edition By Thomas O'Guinn - Test Bank

Advertising And Integrated Brand Promotion 6th Edition By Thomas O'Guinn - Test Bank   Instant Download - Complete Test Bank With Answers     Sample Questions Are Posted Below   Chapter 5 - Advertising, Integrated Brand Promotion, and Consumer Behavior TRUE/FALSE 1.When researchers study consumer behavior, they study a process that begins with the product …

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Advertising And Integrated Brand Promotion 6th Edition By Thomas O’Guinn – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 5 – Advertising, Integrated Brand Promotion, and Consumer Behavior
TRUE/FALSE
1.When researchers study consumer behavior, they study a process that begins with the product evaluation and ends with the perception of a need.
ANS: F DIF: Easy REF: p. 167 OBJ: 5-1
NAT: AACSB Analytic | CB&C Model Research TYP: Knowledge
2.Consumption episodes are based on the sequence of four stages: need recognition, information search and alternative evaluation, purchase, and postpurchase use and evaluation.
ANS: T DIF: Easy REF: p. 167 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
3.Advertising has never been able to point out or activate a need state, but it has been able to provide information on how to alleviate the discomfort of an existing unfulfilled need.
ANS: F DIF: Moderate REF: p. 168 OBJ: 5-1
NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
4.Functional benefits from a product or service are derived from the intangible characteristics of that product or service and are strong factors in purchase decisions.
ANS: F DIF: Moderate REF: p. 168 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Product TYP: Comprehension
5.Advertising can influence both internal and external searches.
ANS: T DIF: Easy REF: p. 169-170 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
6.Evaluative criteria are universal traits or attributes that pertain to all product categories, used as rating factors when considering purchases and reviewing a consideration set.
ANS: F DIF: Difficult REF: p. 171 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Product TYP: Knowledge
7.Shortly after Juan bought a Ford truck, he began to second-guess his decision, nervously questioning whether the Toyota or Chevy trucks were actually better deals. He wondered if he had really made the right purchase, going through a common experience called internal search.
ANS: F DIF: Moderate REF: p. 172 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Application
8.When an individual feels a symbolic or self-expressive meaning about a brand, his or her involvement level tends to be lower within this product category.
ANS: F DIF: Moderate REF: p. 173 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
9.In the text, involvement and prior experience are combined to derive eight types of consumer decision making.
ANS: F DIF: Easy REF: p. 174 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
10.While purchases based on brand loyalty are often just consumption simplifiers, purchases based on habit are the result of strong commitment.
ANS: F DIF: Easy REF: p. 176 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
11.Jerome always buys Coke, and only Coke—not Pepsi or any other cola brand. Consumers like Jerome, who repeatedly purchase a single brand to fulfill a specific need, are demonstrating brand loyalty.
ANS: T DIF: Easy REF: p. 176 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Application
12.Kia glances into her shopping cart and realizes she never tries a “new” brand, an “off” brand, or a “store” brand, but always seems to pick the traditional, well-known products that are practically “household” names—Crest, Tide, Cheerios, Kleenex. This preference for certain products is called brand attitude.
ANS: T DIF: Difficult REF: p. 177-178 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Application
13.Values are the accumulation of ideas and feelings—either factual or self-serving—that a person has about an object or an issue.
ANS: F DIF: Easy REF: p. 178 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
14.MAAMs stands for Marketing Analysis of Attribute Models, and it is a framework used to identify four primary “attribute models” that make up consumer decision making.
ANS: F DIF: Moderate REF: p. 179 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
15.Two major obstacles must be overcome for an ad message to be effective—consumer resistance to changing beliefs, and consumer exposure to massive volumes of ads.
ANS: T DIF: Difficult REF: p. 181 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
16.Selective attention is essentially the greatest challenge to advertisers, because consumers commonly rely on this powerful perceptual defense to simply ignore ads that don’t interest them.
ANS: T DIF: Moderate REF: p. 181 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
17.The elaboration likelihood model of information processing (ELM) identifies two unique paths to attitude change: the central route to persuasion and the peripheral route to persuasion.
ANS: T DIF: Difficult REF: p. 183 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Promotion TYP: Knowledge
18.Viewing consumers as social beings who do more than just process information allows advertisers to focus on the attitudes they have toward brands, which are much more important than the meanings they associate with brands.
ANS: F DIF: Moderate REF: p. 185 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
19.Advertisements that are not consistent with the values of a people, a society, or a culture are likely to stand out, demand attention, and be remembered and accepted.
ANS: F DIF: Easy REF: p. 187 OBJ: 5-4
NAT: AACSB Diversity | CB&C Model Customer TYP: Comprehension
20.Rituals can take the form of ordinary things that are done in a certain way — not randomly — and are performed in the same way by people of all cultures.
ANS: F DIF: Easy REF: p. 188 OBJ: 5-4
NAT: AACSB Diversity | CB&C Model Customer TYP: Knowledge
21.Social class, race, ethnicity, gender, life stage, and even knowledge are ways in which members of a culture are classified by systematic inequalities that affect their social standing, called intergenerational effect.
ANS: F DIF: Moderate REF: p. 190 OBJ: 5-5
NAT: AACSB Diversity | CB&C Model Customer TYP: Knowledge
22.In past decades, advertisers realized that they could tell social class based on what people consumed and how they consumed, and vise versa, and this belief has remained an unchallenged foundation of marketing and promotion.
ANS: F DIF: Difficult REF: p. 190 OBJ: 5-5
NAT: AACSB Analytic | CB&C Model Promotion TYP: Comprehension
23.Celebrity is a unique sociological concept in which public images of prominent people are used by advertisers to provide a framework that brings people together with a sense of community, group sharing, and social commitment.
ANS: F DIF: Difficult REF: p. 194 OBJ: 5-5
NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
24.Race itself—a person’s pigmentation or skin color—has much to do with preferences for certain products and services, and purchasing of certain product categories and brands.
ANS: F DIF: Easy REF: p. 194-195 OBJ: 5-5
NAT: AACSB Diversity | CB&C Model Customer TYP: Comprehension
25.In only a select few areas of the world do consumption and branding have a political connection or history, so politics tends to have little influence on global advertising.
ANS: F DIF: Moderate REF: p. 196 OBJ: 5-5
NAT:AACSB Diversity | CB&C Model International Perspective
TYP:Comprehension
26.The world of advertising “discovered” African Americans in the 1950s, Hispanics in the 1960s, gays and lesbians in the 1970s, and working women in the 1980s.
ANS: F DIF: Moderate REF: p. 198 OBJ: 5-5
NAT: AACSB Diversity | CB&C Model Customer TYP: Comprehension
27.When today’s advertisers talk about identifying and reaching consumers through the powerful sociological concept of community, they are referring to various U.S. locations, geographic regions, and populated areas.
ANS: F DIF: Moderate REF: p. 198 OBJ: 5-5
NAT: AACSB Diversity | CB&C Model Customer TYP: Application
28.Jamal manages a Chicago Jiffy Lube and Ted manages a Detroit Jiffy Lube. Though they have never met, but have only emailed through their franchise network, they experience a sense of connectedness by virtue of their common experience, called brand stratification.
ANS: F DIF: Moderate REF: p. 200 OBJ: 5-5
NAT: AACSB Communication | CB&C Model Customer TYP: Application
29.In many ways, advertisements of contemporary society don’t just exist in the sociocultural context of our time, they are the sociocultural context of our time.
ANS: T DIF: Moderate REF: p. 203 OBJ: 5-6
NAT: AACSB Analytic | CB&C Model Promotion TYP: Comprehension
MULTIPLE CHOICE
1.The text explores the concept of consumer behavior from two perspectives, or points of view. What are they?
a. psychological and social
b. formal and informal
c. cultural and global
d. economic and political
ANS: A DIF: Easy REF: p. 167 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
2.The concepts of need recognition, information search and alternative evaluation, purchase, and post purchase and evaluation represent the four stages of the
a. creation of brands.
b. belief system regarding goods and services.
c. consumer decision-making process.
d. stratification of consumers.
ANS: C DIF: Easy REF: p. 167 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
3.Which phenomenon is experienced when the consumer’s current situation is unsatisfactory, mental discomfort or anxiety are recognized, and the individual becomes motivated to take action?
a. habit
b. need state
c. cognitive dissonance
d. involvement
ANS: B DIF: Easy REF: p. 168 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
4.When advertisers promote snowblowers in January, air conditioners in June, and school supplies in August, in essence they are actually
a. activating need states.
b. providing functional benefits.
c. creating brand communities.
d. offering peripheral cues.
ANS: A DIF: Moderate REF: p. 168 OBJ: 5-1
NAT: AACSB Analytic | CB&C Model Promotion TYP: Application
5.A consumer survey finds that many dog owners purchase a premium brand of dog food because of its functional benefits. Which of the following qualifies as a functional benefit?
a. It is promoted in an emotional commercial showing an adorable sheepdog.
b. It is allows them to feel less guilt about leaving their dog home alone all day.
c. It has more nutrients and vitamins than any other dog food on the market.
d. It makes them feel like responsible dog owners.
ANS: C DIF: Moderate REF: p. 168 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Application
6.A well-known refrigerator manufacturer that has been around for decades, features the reliability, durability, and economy of its products. These features are appreciated by a consumer who is focusing on
a. aesthetics and appearance.
b. premiums and promotions.
c. slogans and catch phrases.
d. functional benefits and performance characteristics.
ANS: D DIF: Moderate REF: p. 168 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Application
7.A young man tends to buy things that allow him to experience pleasure, avoid guilt, feel pride, or relieve fear. In doing so, he chooses products based on
a. emotional benefits.
b. rituals.
c. external searches.
d. consideration sets.
ANS: A DIF: Moderate REF: p. 168-169 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
8.Once they decide they need something, what is typically the first option for consumers to take, and sometimes all that is needed, as they begin to think about a product purchase?
a. developing a consideration set
b. conducting an internal search for information
c. conducting an external search for beliefs
d. determining evaluative criteria to use
ANS: B DIF: Difficult REF: p. 169 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
9.A new neighbor just moved in and asks you where to get good take-out food. Three places immediately come to mind, and you mention them. The short list of possibilities that you quickly created is called a(n)
a. external set.
b. evaluation set.
c. evoked set.
d. consideration set.
ANS: C DIF: Difficult REF: p. 170 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Application
10.A magazine advertisement for a home entertainment system contains detailed copy, technical information, and a long list of product design features. In general, this ad would be most appropriate for someone who is
a. doing an external search.
b. in need of an internal search.
c. looking for emotional benefits.
d. trying to fulfill a basic need.
ANS: A DIF: Difficult REF: p. 170 OBJ: 5-1
NAT: AACSB Analytic | CB&C Model Promotion TYP: Application
11.Which of the following statements would be made by someone most likely experiencing cognitive dissonance?
a. “I sure need a new lawn mower, but I’m too lazy to find out what’s out there.”
b. “I’d like to buy one of those new Toro lawn mowers, but they’re kind of expensive.”
c. “I hear the new Toro lawn mowers are the best, but my neighbor says his is hard to start.”
d. “I just bought a new Toro lawn mower, but now I realize the new John Deere might have been a better choice.”
ANS: D DIF: Moderate REF: p. 172 OBJ: 5-1
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
12.The concept of cognitive dissonance is more commonly referred to as
a. brand loyalty.
b. buyer’s remorse.
c. customer satisfaction.
d. false advertising.
ANS: B DIF: Easy REF: p. 172 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
13.The idea of involvement in the context of consumer decision making basically refers to how
a. you will use the product or service.
b. much the product or service means to you.
c. your past experience with the product or service informs you.
d. the product or service will fulfill one of your needs.
ANS: B DIF: Moderate REF: p. 173 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
14.A person may have a high degree of involvement with a consumption decision for many different reasons, such as when the item is
a. on sale.
b. bought on a regular basis.
c. inexpensive.
d. associated with a risk.
ANS: D DIF: Moderate REF: p. 173 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
15.A young woman needs to buy a tent, sleeping bag, back pack, and hiking boots for a two-week camping trip in the mountains. She has never bought camping equipment in her life, so she has virtually no experience with these product categories. But she is very involved in these purchases, since they will be expensive and will need to last a long time. In this situation, she is engaging in
a. extended problem solving.
b. cognitive dissonance.
c. limited problem solving.
d. variety seeking.
ANS: A DIF: Difficult REF: p. 174 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Application
16.In which decision-making mode is a consumer engaged when both experience and involvement are low?
a. limited problem solving
b. habit or variety seeking
c. extended problem solving
d. brand loyalty
ANS: A DIF: Easy REF: p. 174 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
17.A young mother consistently buys Oreos for a special treat, which her kids love. But now and then she buys Salerno Butter Cookies or Keebler Animals Crackers, just for a change. Which aspect of decision making does this demonstrate?
a. habit
b. variety seeking
c. limited problem solving
d. brand loyalty
ANS: B DIF: Moderate REF: p. 175 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Application
18.When a consumer has a rich prior experience with a product, regularly purchases it, and has highly favorable attitudes toward it, which concept is demonstrated?
a. brand loyalty
b. brand recognition
c. brand attitude
d. brand consistency
ANS: A DIF: Easy REF: p. 176 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Comprehension
19.A(n) _____ is a learned and simplified evaluation of any object, person, or issue, and it can vary from positive to negative along a continuum.
a. habit
b. attitude
c. value
d. belief
ANS: B DIF: Moderate REF: p. 177 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
20.A(n) ____ is a combination of knowledge and feelings accumulated about a object or issue. It is does not necessarily have to be “true” but it is “valid,” and it can be logical and factual, or biased and self-serving.
a. perceptual defense
b. cognitive response
c. belief
d. attitude
ANS: C DIF: Difficult REF: p. 178 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Knowledge
21.Multi-attribute attitude models (MAAMs) provide a framework and a set of research procedures for collecting information from consumers
a. about how they establish benchmarks for repetitive integration.
b. to determine the price they are willing to pay for a product.
c. about whether they experience postpurchase anxiety.
d. to assess their salient beliefs and attitudes about competitive brands.
ANS: D DIF: Moderate REF: p. 179 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
22.Any MAAMs analysis will have four main components. What are they?
a. extended problem solving, limited problem solving, habit and variety seeking, and brand loyalty
b. internal search, external search, functional benefits, and emotional benefits
c. evaluative criteria, importance weights, consideration set, and beliefs
d. level of involvement, degree of information search, type of consumer benefit, and stage of the decision-making process
ANS: C DIF: Moderate REF: p. 179 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Promotion TYP: Knowledge
23.A firm is hired to market a high-performance sports car. Three of the elements below would be featured in its MAAMs analysis, but which one would not be included?
a. attributes and performance characteristics
b. strengths and weaknesses of competing cars
c. importance and prioritization of various criteria in the evaluation
d. suggested concepts for new ads and commercials
ANS: D DIF: Difficult REF: p. 179 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Promotion TYP: Application
24.Two main barriers must be overcome if advertising is to have its intended effect. One of them is the cognitive consistency impetus, which refers to the consumer tendency to
a. convert new information into beliefs.
b. want sameness among various products.
c. hold onto existing belief systems.
d. prefer buying things out of habit.
ANS: C DIF: Moderate REF: p. 181 OBJ: 5-3
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Comprehension
25.A young man wants to buy a Sony PlayStation because his friends have several versions of this technology and he has enjoyed playing games with them.  However, he is distracted by the ads for other games and the pitches to spend his money. He is encountering
a. lackluster inundation.
b. overexposure.
c. advertising clutter.
d. commercialization.
ANS: C DIF: Moderate REF: p. 181 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Customer TYP: Application
26.An elderly woman has always been happy with Ivory soap and has no reason to try anything else. Which type of major obstacle must be overcome for an ad message to reach her and be effective?
a. a consumer who is not exposed to massive volumes of ads
b. a consumer who doesn’t pay attention to the message
c. a consumer who is resistant to changing beliefs
d. a consumer who misinterprets the message with other thoughts
ANS: C DIF: Moderate REF: p. 181 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Customer TYP: Application
27.While waiting for his wife to get ready to go out, Marcus picks up one of her decorating magazines and skims through the pages. Six ads are for flooring and carpeting, but he and his wife don’t need new flooring or carpeting, so he barely glances at these ads. This is an example of
a. format conceptualization.
b. post purchase evaluation.
c. cognitive dissonance.
d. selective attention.
ANS: D DIF: Difficult REF: p. 181-182 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Application
28.A bicyclist hears a radio commercial and suddenly realizes everything she believes about the best cycling system is coming into question and being challenged. These types of thoughts, occurring just as beliefs and attitudes are challenged by persuasive communication, are called
a. brand beliefs.
b. selective demand preferences.
c. habitual purchase criteria.
d. cognitive responses.
ANS: D DIF: Difficult REF: p. 182 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Customer TYP: Application
29.Which model takes into account consumer involvement levels, information processing, cognitive responses, and attitude formation in a single framework?
a. the multi-attribute attitude model
b. the intergenerational model
c. the elaboration likelihood model
d. the social stratification model
ANS: C DIF: Moderate REF: p. 182 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Promotion TYP: Knowledge
30.Peripheral cues are best used as attention-getting tools for products when
a. the advertising budget is small.
b. extensive decision making is required.
c. brand loyalty is being challenged.
d. cognitive responses are not expected.
ANS: D DIF: Moderate REF: p. 184 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Promotion TYP: Comprehension
31.One method of understanding how well the advertising message is being heard in the real world is the “consumer insights” approach, which operates on the premise that
a. meanings are more important than attitudes.
b. community defines quality.
c. social class determines consumer behavior.
d. culture underlies the art of advertising.
ANS: A DIF: Moderate REF: p. 185 OBJ: 5-3
NAT: AACSB Analytic | CB&C Model Customer TYP: Knowledge
32.In the world of advertising, culture is seen as a group’s
a. rules and regulations.
b. total way of life.
c. sense of morality.
d. tastes and preferences.
ANS: B DIF: Easy REF: p. 186 OBJ: 5-4
NAT: AACSB Diversity | CB&C Model Customer TYP: Knowledge
33.Cultural values are different from attitudes, because they
a. are the solid foundation on which attitudes are built.
b. cannot be influenced by advertising.
c. can be shaped by a single ad.
d. shift and change, while attitudes remain unchanged.
ANS: A DIF: Moderate REF: p. 187 OBJ: 5-4
NAT: AACSB Diversity | CB&C Model Customer TYP: Comprehension
34.A commercial for hot dogs says it’s not the Fourth of July unless there is a cookout, and it’s not a cookout unless there is a grill full of hot dogs. This ad attempts to tie the product to a
a. social attitude.
b. purchasing habit.
c. cultural ritual.
d. social class.
ANS: C DIF: Moderate REF: p. 188 OBJ: 5-4
NAT: AACSB Diversity | CB&C Model Customer TYP: Application
35.A person’s standing in a society is often based on social stratification, which reflects the systematic inequalities within that society regarding
a. ethnicity, race, and cultural background.
b. political influence, educational benefits, and intelligence.
c. wealth, power, education, and status.
d. religious beliefs, morals, and values.
ANS: C DIF: Moderate REF: p. 190 OBJ: 5-5
NAT: AACSB Analytic | CB&C Model Customer TYP: Knowledge
36.One of the main reasons why social class may not be totally reliable in predicting the preferences and tastes of Americans is that it
a. has little to do with demographics.
b. is hierarchical and involves assigned membership.
c. is difficult to pinpoint who belongs in which class, and why.
d. is static, unchanging, and permanent.
ANS: C DIF: Moderate REF: p. 190 OBJ: 5-5
NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
37.Related to the way a consumer’s culture shapes his or her tastes and preferences is the concept of cultural capital, which is the
a. value that a culture places on certain consumption practices and objects.
b. particular pattern of consumption that depends on fiscal stability.
c. financial investment needed to create a brand.
d. financial value of cultural icons like animated characters.
ANS: A DIF: Moderate REF: p. 192 OBJ: 5-5
NAT: AACSB Diversity | CB&C Model Customer TYP: Knowledge
38.A marketing group needs to predict which brands of laundry detergent college freshmen will buy after they leave home and move into dorms. Which question asked of them would probably give the most accurate answer?
a. “Is laundry detergent a high-involvement purchase for you?”
b. “What brand of laundry detergent do your parents use?”
c. “What is the last ad for laundry detergent you remember seeing?”
d. “How much money does your family make?”
ANS: B DIF: Difficult REF: p. 193 OBJ: 5-5
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
39.Celebrity is a unique sociological concept in marketing today. The current thinking is that the presence of celebrities in ads help contemporary consumers
a. form values that transfer to buying power.
b. legitimize the symbolic value of consumption.
c. develop personal expressions of identity.
d. reject conspicuous consumption behaviors.
ANS: C DIF: Moderate REF: p. 194 OBJ: 5-5
NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
40.When examining advertising in a societal context, it becomes apparent that gender must be related to at least some differences in consumption. Which of the following has been found regarding advertising and gender?
a. Advertisers have been reluctant to communicate to men and women in different ways.
b. Advertisers have no definitive list of such gender differences since the expression of gender often depends on situational and social circumstances.
c. Advertisers often find gender issues too sensitive and tend to avoid them.
d. Advertising researchers have found obvious differences and they pose no problems in creating effective ads for both men and women.
ANS: B DIF: Difficult REF: p. 197 OBJ: 5-5
NAT: AACSB Diversity | CB&C Model Customer TYP: Application
41.Which of the following is true of community, within the context of marketing and advertising?
a. It is the quintessential economic domain in which all purchasing, financing, and banking take place.
b. It refers largely to a geographic place.
c. It can influence some minor purchasing issues but not embedded beliefs or attitudes.
d. It identifies people who are similar in some important way, and different from those not in the community.
ANS: D DIF: Moderate REF: p. 198 OBJ: 5-5
NAT: AACSB Diversity | CB&C Model Customer TYP: Comprehension
42.Advertisements—like books, movies, posters, and paintings—can act as sociocultural “texts” that are read and interpreted by consumers. In that case, advertising
a. is an entity separate from mass media.
b. relies largely on words rather than images.
c. helps to transmit meaning within a culture.
d. has its own hidden social and political agenda.
ANS: C DIF: Moderate REF: p. 202 OBJ: 5-6
NAT: AACSB Diversity | CB&C Model Promotion TYP: Comprehension
43.Effective ads turn mere products into actual brands by
a. wrapping them with cultural meaning.
b. keeping prices lower than those of competitors.
c. describing in detail how they work.
d. repeating the message in more than one medium.
ANS: A DIF: Moderate REF: p. 202 OBJ: 5-6
NAT: AACSB Diversity | CB&C Model Promotion TYP: Comprehension
44.Ads become part of our everyday landscape, language, and reality as a result of many people
a. being bombarded with a clutter of taglines, slogans, jingles, mottos, and reminders.
b. being highly involved in purchasing decisions.
c. picking up and adopting their phrases, ideas, slogans, and agendas.
d. buying only certain products based on trust and loyalty.
ANS: C DIF: Moderate REF: p. 203 OBJ: 5-6
NAT: AACSB Diversity | CB&C Model Customer TYP: Comprehension
45.Which of the following demonstrates the way we pick up phrases or slogans from advertisements and commercials, then make them part of our everyday conversation, and ultimately part of our popular culture?
a. “Make my day.”
b. “Read my lips.”
c. “Yes we can.”
d. “Just do it.”
ANS: D DIF: Easy REF: p. 203 OBJ: 5-6
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
Scenario 5-1
As clothing and accessories retailer Gap, Inc. attempted to carry its brand to greater heights, executives felt that a great way to refresh the company’s logo would be to change it all together.  However, perhaps even quicker than the initial decision to change the logo, the masses reacted so negatively to the change that the company went back on its decision.  A number of consumers stated that the new logo looked “cheap, like a crummy PowerPoint presentation,” and that was all company executives needed to hear.  Gap admitted that the idea of changing the company’s logo was probably not the right move nor was it the right time to do so. The company will look for other ways to develop the brand.  Clearly, Gap’s reaction to consumer sentiments serves as proof that the company cares a great deal about consumer thoughts and opinions.
(Iko Han, “Gap’s New Logo Proves the Company Knows How to Listen.” Cornerline News, October 13, 2010.)
46.(Scenario 5-1) Many consumers expressed very strong feelings against Gap changing its original logo, which has been around for over 20 years.  These passionate consumers likely hold some level of
a. brand loyalty.
b. habitual spending.
c. positive attitudes.
d. cognitive consistency.
ANS: A DIF: Difficult REF: p. 176 OBJ: 5-2
NAT: AACSB Analytic | CB&C Model Customer TYP: Application
47.(Scenario 5-1) Gap’s loyal customers generally believe the company’s products are high-end and sophisticated.  Judging by the initial responses, consumers felt Gap’s new logo represented lower-end products, and would, therefore, appeal to a lower social class.  This concept of differing social levels is called
a. consumer separation.
b. social ranking.
c. stratification.
d. income grouping.
ANS: C DIF: Difficult REF: p. 190 OBJ: 5-4
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
48.(Scenario 5-1) Facebook played a large role in Gap reversing its decision to change the company logo.  Thousands of users created status updates expressing their distaste for the new logo, and company executives could not overlook the consensus feelings.  In this instance, Gap apparently had a strong
a. need state.
b. brand community.
c. set of beliefs.
d. reaction to advertising clutter.
ANS: B DIF: Moderate REF: p. 200 OBJ: 5-5
NAT: AACSB Communication | CB&C Model Customer TYP: Application
Scenario 5-2
Since its introduction to the market in 2007, Apple Inc.’s iPhone dominated other smartphones in terms of units activated per year.  However, several years later, Apple faces stiff competition from Google’s Android software and Research in Motion, the maker of the Blackberry.  The problem for Apple is that its competition, primarily phones powered by Android operating systems, largely outnumber the iPhone in terms of available options.  In the U.S. alone, there are over twenty smartphones that run on the Android operating system, compared to Apple’s one iPhone.  Americans are now buying more Android phones than iPhones. Experts claim that if the trend continues, Android will have erased the iPhone’s once enormous lead in the high-end smartphone market in a little over a year.  Now more than ever, Apple, which insists on tight control of its devices, must find a way to win in an intensely competitive market against rivals that are openly licensing their software to scores of companies.
49.(Scenario 5-2) One reason the iPhone outsold other smartphones originally was the feeling of pride many consumers associated with owning one.  This represents
a. an emotional benefit.
b. a functional benefit.
c. a need state.
d. cognitive consistency.
ANS: A DIF: Moderate REF: p. 169 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Application
50.(Scenario 5-2) At an iPhone display, in one of Apple’s retail stores, an individual is overhead  saying that the iPhone is too expensive, impractical, and only purchased by people who are trying to flaunt their wealth.  These statements (whether factual or biased) concerning the product represent the person’s
a. consideration set.
b. importance weights of evaluative criteria.
c. beliefs.
d. cognitive responses.
ANS: C DIF: Moderate REF: p. 178 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Application
51.(Scenario 5-2) One individual looking to purchase a new smartphone has become fed up with all of the competing advertisements of late.  She has seen so many smartphone commercials boasting various product benefits that she can no longer distinguish them from one another.  This individual is likely suffering from a case of
a. advertising clutter.
b. advertising confusion.
c. cognitive overload.
d. variety seeking.
ANS: A DIF: Difficult REF: p. 181 OBJ: 5-3
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
52.(Scenario 5-2) A new movie is released, and the film’s main character is seen conversing on his iPhone throughout the film.  If the actor portraying the character in the film is admired and consumers purchase the phone because they see him using it, the actor
a. no longer serves as a peripheral cue for these viewers.
b. has created an intergenerational effect for these viewers.
c. is a member of these viewers’ celebrity influencers.
d. is a part of these viewers’ membership groups.
ANS: C DIF: Difficult REF: p. 194 OBJ: 5-5
NAT: AACSB Analytic | CB&C Model Customer TYP: Application
Scenario 5-3
A woman decides to prepare a tuna casserole for dinner. At the grocery store, she looks for Chicken of the Sea tuna and a box of Kraft macaroni and cheese. At first, she can’t find the Chicken of the Sea brand, only competitive brands. She begins to think she’ll make something else for dinner. Then she does see it on a higher shelf. She chooses the Chicken of the Sea tuna because she thinks it’s tastier than other brands, that the company uses nets that won’t harm dolphins, and she likes the talking tuna they use in their commercials. Plus, it’s the kind her mother always buys. She chooses Kraft macaroni and cheese, but really couldn’t tell you why. Interestingly enough, she has not purchased any other brands of tuna or macaroni and cheese over the past few years.
53.(Scenario 5-3) A psychologist and a sociologist would explain the woman’s shopping behavior in different ways. Which statement regarding these different perspectives is true?
a. The sociologist would consider the consumer as a systematic decision maker.
b. Neither perspective can give a complete explanation of consumer behavior.
c. Only the psychological perspective would attempt to explain why people buy certain brands.
d. The two perspectives would look at the consumer and the behavior in very similar ways.
ANS: B DIF: Moderate REF: p. 167 OBJ: 5-Intro
NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
54.(Scenario 5-3) The woman cannot explain why she buys Kraft macaroni and cheese. In fact, if the store was out of it, she would just buy the store brand. From this information, we can conclude that she repeatedly buys this brand
a. but it is a low-involvement purchase.
b. due to successful problem-solving episode long since forgotten.
c. because it is a high involvement purchase.
d. regardless of her social class.
ANS: A DIF: Difficult REF: p. 173 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Application
55.(Scenario 5-3) At first, the woman can’t find the Chicken of the Sea tuna. All she can find are competitive brands. Her first thought is to change the dinner menu. Which of the following is probably true regarding her purchasing behavior regarding this product?
a. It always causes her to go through an extended problem-solving mode.
b. She shows brand loyalty toward it.
c. It is a habit with her.
d. She uses a limited problem-solving mode for it.
ANS: B DIF: Moderate REF: p. 176 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Application
56.(Scenario 5-3) Chicken of the Sea was the kind of tuna her mother always bought when she was a child. She saw it around the house when she lived with her parents, and it was okay then, so it’s okay now. This is a demonstration of
a. cultural consistency.
b. brand community.
c. the intergenerational effect.
d. advertisements as social texts.
ANS: C DIF: Moderate REF: p. 193 OBJ: 5-5
NAT: AACSB Communication | CB&C Model Customer TYP: Application
Scenario 5-4
An American automobile company sees that the market share of one model has steadily declined. It seems that every percentage point drop is matched by a corresponding percentage point rise in the Japanese-made competition. In an effort to regain market share, the automobile company decides to promote its American-made heritage. In fact, every part of its car is manufactured in the United States. The advertising agency for the company comes up with the slogan “Right here. Right now. Your all-American car.” The advertising it creates is image oriented, and hopes to produce a delayed response.
57.(Scenario 5-4) Which of the following is not a functional benefit of the car?
a. Your special-order model will be delivered quickly because no overseas shipping is involved.
b. You are boosting our economy by buying American-made goods.
c. You will never have to wait for replacement parts because the factory is local.
d. You have the pride of knowing that you own a car made with American know-how.
ANS: D DIF: Moderate REF: p. 168 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Application
58.(Scenario 5-4) By running delayed response advertising, the agency is hoping to
a. establish brand loyalty for the car.
b. avoid having to create favorable consumer attitudes toward the car.
c. have the car show up in an internal search when the time comes to shop.
d. create recognition of a need state.
ANS: C DIF: Moderate REF: p. 170 OBJ: 5-1
NAT: AACSB Reflective Thinking | CB&C Model Promotion TYP: Application
59.(Scenario 5-4) After running a MAAMs analysis, the advertising agency discovers that the made-in-America element is a consideration for consumers—in fact, most know where the car is made—but it’s a relatively minor consideration compared to other issues. The task that confronts the advertising agency now is to
a. change the importance weight of the attribute.
b. get the car included in a consideration set.
c. change the evaluative criteria that consumers use.
d. move the car into a limited problem-solving mode for consumers.
ANS: A DIF: Moderate REF: p. 179 OBJ: 5-3
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
60.(Scenario 5-4) It later becomes obvious to the ad agency that not all groups are responding to the “all-American” benefit the same way. People who are in blue-collar jobs react quite favorably to it, but white-collar office workers don’t seem to care one way or another. This situation is best attributed to differing
a. intergenerational effects.
b. social classes.
c. cultural values.
d. peripheral cues.
ANS: B DIF: Easy REF: p. 190 OBJ: 5-5
NAT: AACSB Diversity | CB&C Model Customer TYP: Application
61.(Scenario 5-4) A marketing survey finds that people who respond to the “all-American” benefit also admire deceased actor John Wayne and see him as the prototypical all-American guy. So the agency combines old footage from John Wayne movies and new footage of the car as part of its TV campaign. In this case, the image of John Wayne serves several purposes, but not which of the following?
a. John Wayne is a part of these consumers’ community.
b. John Wayne is a part of these consumers’ aspirational group.
c. John Wayne transfers meaning to the product.
d. John Wayne’s meaning is socially constructed.
ANS: A DIF: Moderate REF: p. 198 OBJ: 5-5
NAT: AACSB Diversity | CB&C Model Customer TYP: Application
Scenario 5-5
Jerome was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a blender to mix certain beverages that he knew his guests would like. Having never purchased a blender before, Jerome felt that he needed to shop carefully and enlist in the help of friends for advice. After visiting several stores and examining numerous models, Jerome settled on a Kitchen-Aid model that cost nearly $100.
62.(Scenario 5-5) The consumption process for the blender began when Jerome
a. brought home a blender from the store.
b. identified the criteria he would use to look for blenders.
c. made a mental list of brands he would consider.
d. realized he did not have a blender for the party.
ANS: D DIF: Easy REF: p. 167 OBJ: 5-1
NAT: AACSB Communication | CB&C Model Customer TYP: Application
63.(Scenario 5-5) Jerome said to a friend, “I don’t know much about buying blenders. Do you?” This is a pretty clear indication that he
a. needs to start by defining his evaluative criteria.
b. has poor brand attitudes about all brands in the market.
c. holds few beliefs about home products.
d. will need to engage in external search for information.
ANS: D DIF: Moderate REF: p. 170 OBJ: 5-1
NAT: AACSB Analytic | CB&C Model Customer TYP: Application
64.(Scenario 5-5) Jerome jokes a bit with a friend about his “search for the perfect blender.” But then he explains his thoughts on this. “This party means everything to me. I’ve been waiting four years for this moment. I want it to be just right!” These comments likely indicate that
a. he has not yet actually begun the consumer decision process.
b. he is comfortable with his internal search for information.
c. his consideration set will likely be very large.
d. his level of involvement in this purchase is high.
ANS: D DIF: Difficult REF: p. 173 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Application
65.(Scenario 5-5) Which of the following best describes Jerome’s mode of consumer decision making toward buying a blender?
a. limited problem solving
b. brand loyalty
c. extended problem solving
d. variety seeking
ANS: C DIF: Moderate REF: p. 174 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Application
66.(Scenario 5-5) Jerome mentions to someone else shopping at the store that low-quality blenders are made of plastic and high-quality blenders have a stainless steel base. This comment represents Jerome’s
a. beliefs.
b. brand loyalty.
c. brand attitude.
d. habits.
ANS: A DIF: Easy REF: p. 178 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Application
Scenario 5-6
Voice-It Technologies produces inexpensive personal voice recording devices that serve as a substitute for message pads in the home or office. Their recording time is limited to 120 seconds and the devices sell for less than $20.00. Voice-It’s products are about the size of four credit cards stacked on one another and have a useful life of about one year. The slogan this firm uses on its packaging and advertising is “Don’t Write It, Voice-It!”
67.(Scenario 5-6) Most consumers have no experience with Voice-It products and view the purchase of this product as low involvement. What mode of consumer decision making does this indicate?
a. brand loyalty
b. limited problem solving
c. extended problem solving
d. habit
ANS: B DIF: Moderate REF: p. 174 OBJ: 5-2
NAT: AACSB Communication | CB&C Model Customer TYP: Application
68.(Scenario 5-6) A consumer who purchased the product from Voice-It was heard to say, “It’s better than having pieces of paper all over. I thought the price was good too.” These statements reflect the consumer’s
a. evaluative criteria.
b. need state.
c. external information.
d. brand attitude.
ANS: D DIF: Difficult REF: p. 178 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Application
69.(Scenario 5-6) Voice-It hired a country singer to do a TV advertisement in which she merely sings, “Don’t Write It, Voice-It!” in an up-tempo tone. In this ad, the singer is
a. serving as a peripheral cue.
b. attempting to generate a cognitive response.
c. defining consumer values.
d. creating a brand community.
ANS: A DIF: Moderate REF: p. 184 OBJ: 5-3
NAT: AACSB Communication | CB&C Model Customer TYP: Application
70.(Scenario 5-6) Bill Gates (CEO of Microsoft), Doug Ivester (former CEO of Coca-Cola), and Jack Welch (former CEO of General Electric) appeared together in a Voice-It ad. They each stated “I don’t write it, I Voice-It!” These individuals are attempting to impact our consumption priorities by serving as a
a. celebrity influencer group.
b. membership reference group.
c. dissociative reference group.
d. self-expressive benefit group.
ANS: A DIF: Moderate REF: p. 194 OBJ: 5-5
NAT: AACSB Analytic | CB&C Model Customer TYP: Application
ESSAY
1.A young woman makes a number of purchases over time, whether an ordinary bag of groceries at the local checkout, a pair of shoes at the discount retailer, a used car at the dealer lot, or a gift from an online florist. Regardless of the goods or services involved, four stages of consumer decision making are involved in the purchase, though at various levels and strengths depending on the item. What are these stages? List them and explain the processes involved in each, walking this consumer through the process. Then choose your own item and identify the details involved in each step as you purchase that item.
ANS:
The four stages of consumer decision making are need recognition, information search and alternative evaluation, purchase, and postpurchase use and evaluation.
Need recognition. The consumer decision making process begins when the young woman recognizes that her desired state is different from her current state. She may experience a form of mental discomfort or anxiety, varying in strength and duration based on the importance of the need. Her needs can be affected by her level of affluence, but many other elements are involved. She may have fundamental needs for food and shelter, and more sophisticated needs for pleasure and achievement. Advertisers would like to think that many of these needs can be fulfilled through consumption, with the simple purchase of goods and services that will provide her with the desired functional benefits and/or emotional benefits.
Information search and evaluation. She begins by drawing on personal experience, an internal search. Attitudes about past purchases may be well-established and often determine the nature of new purchases. For some purchases, she may have a mental list of possibilities, a consideration set. She then does an external search, visiting stores, asking friends, reading consumer information. Finally, she weighs the product attributes and characteristics—the evaluative criteria.
Purchase. The consumer makes a decision and a sale is made. But it isn’t over yet.
Postpurchase use and evaluation. She now owns the item. But will she buy this item again? Commit to it and develop a type of brand loyalty? Switch to another product? Advertising helps her evaluate the purchase and her own customer satisfaction. She may see the advertising after the purchase and allow it to confirm the whole process for her, to convince her that, yes, this was a smart decision and, yes, this is a great product. Advertising can also act to decrease any feelings of cognitive dissonance, also called buyer’s remorse. At this stage, shortly after the purchase, the advertiser is in a position to gain the attention of the consumer and therefore can wield great influence on the sense of satisfaction and the buying behavior in the future.
DIF:ModerateREF:p. 167-172OBJ:5-1
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
2.Select a product that you use at least once a week. Then describe three possible functional benefits and three possible emotional benefits that a person might receive from using the product. Be as specific as possible.
ANS:
The functional benefits described should derive from the more objective performance characteristics of the product. Functional benefits may include such things as convenience, reliability, nutrition, durability, energy efficiency, or economy.
The emotional benefits described should be less tangible and more subjective. They may be perceived differently from consumer to consumer. Emotional benefits may include such things as pride, pleasure, status, avoidance of guilt, or reduction of fear.
DIF:DifficultREF:p. 168-169OBJ:5-1
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application
3.What level of involvement and prior experience is involved when a consumer engages in extended problem solving before purchasing a product? When a consumer only requires limited problem solving? When a consumer relies on habit or variety seeking, or wants to hold onto brand loyalties?
ANS:
First, a situation that calls for extended problem solving is characterized by high involvement and little prior knowledge. In this situation, an advertisement can provide a lot of information to a very interested consumer. It often involves big-ticket items and expensive goods.
Second, a situation that only needs limited problem solving is defined by a low level of involvement as well as a low level of knowledge. Here, there is a basic problem to solve but it is not very engaging or critical. Consumers may just try several brands to see what works, and consumer memory is a huge factor, so ads and promotions such as trial sizes or discount coupons may attract their attention.
Third, a situation involving habit or variety seeking occurs when a purchase isn’t very involving, and the consumer purchases from the same category over and over again. Habit is in play when the consumer buys a single brand repeatedly to solve a basic problem. It simplifies life and doesn’t require continual processing of new information. Variety seeking takes place when the consumer switches brands within a category in a seemingly random pattern, just for the sake of trying something different. This is often occurs when a sensory experience such as taste or smell is involved in the product use.
Finally, a situation that involves brand loyalty is characterized by high involvement and rich prior knowledge. In this case, there is typically very little that even the best advertising can do to win this consumer over to another brand.
DIF:DifficultREF:p. 174-176OBJ:5-2
NAT: AACSB Analytic | CB&C Model Customer TYP: Application
4.How are attitudes and beliefs part of the key psychological processes involved in the advertising process? What is the difference between the two? Discuss these concepts as they relate to the efforts by advertisers to influence consumer behavior: attitudes, brand attitudes, beliefs, salient beliefs.
ANS:
Attitudes are evaluations of any object, person, or issue that are defined along a continuum. They are usually learned and often held with great conviction. Attitudes make purchasing easier because we don’t have to start all over with searches and evaluations of new information for every purchase, but only need to refer to our attitudes and simply decide what is best.
Brand attitudes are evaluations that reflect preferences for goods and services. The items in our grocery carts are direct reflections of our brand attitudes.
Beliefs are the bits of knowledge and accumulated feelings a person has gathered and maintained about an object, issue, or concept, whether they are logical or emotional, objective or subjective, factual or erroneous. Beliefs often infer attitudes. Some beliefs have to be changed if a consumer is ever to add a certain product to his or her consideration set.
Salient beliefs are more important than other beliefs. They are the small number of beliefs that create or underlie a brand attitude. They are stronger for some items and less important for others, so they vary among product categories.
DIF:ModerateREF:p. 177-178OBJ:5-3
NAT: AACSB Analytic | CB&C Model Customer TYP: Comprehension
5.Describe what you consider to be a cultural value (other than individualism) held by Americans, as well as the criteria by which you judge it to be a cultural value. Discuss the effects that advertising can have on shaping this value. Describe how advertising can use this value in selling a product.
ANS:
A cultural value must be of core importance to its society. It is an enduring expression of the culture, one that is shared by the masses, expressing what is held as good and true and important in life. In other words, it must be long-lasting and held dear by most, if not all, of a culture’s members. Some examples of American cultural values (besides individualism) that have been suggested over the years include patriotism, freedom, youth, leisure, family, health, and cleanliness.
Values represent a form of cultural bedrock. They do not change easily, if ever. So advertising really cannot change a value except in the broadest, most long-term sense, and even that is questionable. However, advertisers can attempt to associate themselves with a value, or criticize a competitor for being out of step with one.
An attitude, on the other hand, is influenced by values but is more flexible and subject to change. So it can much more easily be affected by advertising.
DIF:ModerateREF:p. 186-187OBJ:5-4
NAT: AACSB Diversity | CB&C Model Customer TYP: Application
6.Family is cited as being very critical in the consumer behavior mix. List some of the important types of primary families discussed in the book, and discuss how family as well as the intergenerational effect can influence purchase behavior.
ANS:
For years, researchers have tried to determine who in the traditional nuclear family made various purchase decisions. This was largely an exercise in futility. They found that a few purchases might be handled by a particular family member, while others might be based on gender, and still others might be influenced by the children in the household, often in subtle ways. But overall researchers found that many decisions seemed to “just get made” and no one knew who made them, or even when.
Today’s families are no longer characterized as Mom, Dad, two kids, and the family dog. A vast array of arrangements exist in today’s American households, including extended families, second families, single-parent families, same-sex families, grandparents living with families, etc. Different types of families have different needs, and therefore different buying habits. Knowing the makeup of the family, the size of the family, and the household income can shed some light on the likely purchase decisions a family might make, based on inferences of income level and purchase behavior. Tracking the family based on the age of the youngest child at home, called a life-stage variable, can be helpful to marketers.
And the intergenerational effect is often in play, as it has been found that people tend to purchase the brands that their parents purchased. It makes buying decisions easy—if mom and dad bought it, it must be good—and it leads to life-long habits. This intergenerational effect has a very strong influence on overall consumer decision making and behavior, and is one of the best predictors of the brands that adults will ultimately use.
DIF:ModerateREF:p. 193-194OBJ:5-5
NAT: AACSB Reflective Thinking | CB&C Model Customer TYP: Application

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