Contemporary Advertising and Integrated Marketing Communications 15th Edition by William F Arens - Test Bank

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The ultimate purpose of marketing is to create exchanges that satisfy the perceived needs, wants, and objectives of individuals and organizations.

TRUE

Utility is the product’s ability to satisfy both functional needs and symbolic (or psychological) wants. One of the roles of IMC is to communicate this utility.

TRUE

Exchange is the traditional, theoretical core of marketing.

FALSE

Nonpersonal influences—factors often outside the consumer’s control—include time, place, and environment.

TRUE

Customers are the people or organizations who consume goods and services. They fall into three general categories: current customers, prospective customers, and centers of influence.

FALSE

The three personal processes govern the way we discern raw sensory information (stimuli) and translate it into feelings, thoughts, beliefs, and actions. The personal processes are perception, learning and persuasion, and motivation.

TRUE

A stimulus is something (light, sound, a scent) we can receive through our senses. It may originate within our bodies, as when we notice that we feel hungry at lunchtime. Or it may originate from outside our bodies, as when we see an ad for an iPhone and decide it looks beautiful.

TRUE

Physiological screens refer to the subconscious filters that shield us from unwanted messages.

FALSE

Each consumer uses psychological screens to evaluate, filter, and personalize information according to subjective emotional standards.

FALSE

Operant conditioning involves an organism receiving reinforcement for a behavior. Both positive reinforcement (a reward such as food) or negative reinforcement (removing a noxious stimulus such as a loud noise) increase the likelihood of a reinforced behavior.

FALSE

Albert Bandura’s social cognitive theory provides a richer, cognitive perspective on how people learn. It suggests that consumers pay attention to the rewards and costs experienced by others in response to the things they do.

TRUE

In the central route to persuasion, consumers have a higher level of involvement with the product or the message, so they are motivated to pay attention to the central, product related information, such as product attributes and benefits or demonstrations of positive functional or psychological consequences.

TRUE

Habit—the acquired behavior pattern that becomes nearly or completely involuntary—is the natural extension of learning.

FALSE

Brand loyalty is the consumer’s conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually.

TRUE

Motivation refers to the underlying forces (or motives) that contribute to our actions. These motives stem from the conscious or unconscious goal of satisfying needs and wants.

FALSE

Needs are the basic, often instinctive, human forces that motivate us to do something. Wants are “needs” that we learn during our lifetime.

TRUE

The most common energizers of consumer behavior are the negatively originated motives, such as problem removal or problem avoidance.

TRUE

Rossiter and Percy pointed out that negatively originated motives could also be called “relief” motives because consumers work to find relief from the negative state.

FALSE

The three positively originated motives—sensory gratification, intellectual stimulation, and social approval—are also called transformational motives because the consumer expects to be transformed in a sensory, intellectual, or social sense.

TRUE

Important interpersonal influences affect—sometimes even dominate— the personal processes of perception, learning and persuasion, and motivation. These influences can best be categorized as the family, the society, and the cultural environment of the consumer.

FALSE

From the advertiser’s point of view, social class seldom represents a functional or operational set of values.

TRUE

Most of us care how we appear to people whose opinions we value. We may even pattern our behavior after members of some groups we affiliate with. This is the significance of reference groups—people we try to emulate or whose approval concerns us. Reference groups can be personal (family, friends, coworkers) or impersonal (political parties, religious denominations, professional associations).

FALSE

Opinion leaders don’t have to be real people. Even fictional ones will do.

TRUE

Consumers evaluate selection alternatives (called the evoked set).

TRUE

Research shows that, to combat cognitive dissonance, consumers are more likely to read ads for brands they’ve already purchased than for new products or competing brands.

The ultimate purpose of marketing is to create exchanges that satisfy the perceived needs, wants, and objectives of individuals and organizations.

Utility is a product’s ability to satisfy both functional needs and symbolic (or psychological) wants.

Any transaction in which one person or organization trades something of value with someone else is an exchange.

Consumer markets comprise people who buy goods and services for their own use.

Business markets are made up of organizations that buy services, natural resources, and component products that they resell, use to conduct their business, or use to manufacture another product.

Consumer behavior refers to the mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy needs and wants.

The consumer decision process involves a sequence of activities: problem recognition (which may occur as a result of seeing an ad), information search, evaluation and selection, store choice and purchase, and finally postpurchase behavior.

Personal processes govern the way we discern raw sensory information (stimuli) and translate it into feelings, thoughts, beliefs, and actions. These personal processes are perception, learning and persuasion, and motivation.

Interpersonal influences include family, society, and culture.

Nonpersonal influences—factors often outside the consumer’s control—include time, place, and environment.

If we do decide to buy, our postpurchase evaluation will affect whether or not we buy again.

The term perception refers to the information we receive through our five senses.

It guides all our activities from the people we associate with to the products we buy. How a consumer perceives each of the different brands in a category determines which ones he or she uses.

A stimulus is something (light, sound, a scent) we can receive through our senses. It may originate within our bodies, as when we notice that we feel hungry at lunchtime. Or it may originate from outside our bodies, as when we see an ad for an iPhone and decide it looks beautiful.

The physiological screens comprise the five senses: sight, hearing, touch, taste, and smell. They detect the incoming data and measure the dimension and intensity of the physical stimuli.

Psychological screens evaluate data based on innate factors, such as the consumer’s personality and instinctive human needs, and learned factors, such as self-concept, interests, attitudes, beliefs, past experiences, and lifestyle.

By definition, learning is a relatively permanent change in thought process or behavior.

Learning contributes to the development of interests, attitudes, beliefs, preferences, prejudices, emotions, and standards of conduct—all of which affect, among other things, one’s eventual purchase decisions.

Screens are a major challenge to advertisers so it’s important to understand what’s in the consumer’s mental files and, if possible, modify them in favor of the advertiser’s product.

Classical conditioning is the theory of learning associated with the Russian psychologist Pavlov.

Operant conditioning involves an organism receiving reinforcement for a behavior.

Albert Bandura’s social cognitive theory suggests that consumers pay attention to the rewards and costs experienced by others in response to the things they do.

Albert Bandura’s social cognitive theory provides a richer, cognitive perspective on how people learn. When individuals in our environment (called models by Bandura) experience good outcomes, we are motivated to try the behavior that led to them.

Persuasion occurs when the change in belief, attitude, or behavioral intention is caused by promotion communication (such as advertising or personal selling).

In the central route to persuasion, consumers have a higher level of involvement with the product or the message, so they are motivated to pay attention to the central, product-related information, such as product attributes and benefits or demonstrations of positive functional or psychological consequences.

In the peripheral route to persuasion, consumers have little or no reason to pay attention to it or to comprehend the central information of the ad.

An attitude is one’s acquired mental position regarding some idea or object.

Brand interest is an individual’s openness or curiosity about a brand.

Habit—the acquired behavior pattern that becomes nearly or completely involuntary—is the natural extension of learning.

Brand loyalty is the consumer’s conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually.

Reinforcing habits remind current customers of the value of their original purchase and encourage them to continue purchasing.

Brand loyalty is the consumer’s conscious or unconscious decision, expressed through interest or behavior, to repurchase a brand continually. It occurs because the consumer perceives that the brand offers the right product features, image, quality, or relationship at the right price.

Reinforcing habits refers to reminding current customers of the value of their original purchase and encouraging them to continue purchasing.

Motivation refers to the underlying forces (or motives) that contribute to our actions.

Needs are the basic, often instinctive, human forces that motivate us to do something.

Wants are “needs” that we learn during our lifetime.

The promise of satisfying a certain level of need is the basic promotional appeal for many ads. Advertisements for tires rely on fulfilling safety needs.

The highest need, self-actualization, is the culmination of fulfilling all the lower needs and reaching to discover the true self.

The highest need, self-actualization, is the culmination of fulfilling all the lower needs and reaching to discover the true self.

Negatively originated motives are also called informational motives because the consumer actively seeks information to reduce the mental state.

The most common energizers of consumer behavior are the negatively originated motives, such as problem removal or problem avoidance.

According to exhibit 5-5, social approval is a positively originated motive.

The three positively originated motives—sensory gratification, intellectual stimulation, and social approval—are also called transformational motives because the consumer expects to be transformed in a sensory, intellectual, or social sense.

Most people care how they appear to people whose opinions are valued. This is the significance of reference groups—people one tries to emulate or whose approval is important.

Often an individual is influenced in opposite directions by two reference groups and must choose between them.

Most of us care how we appear to people whose opinions we value. We may even pattern our behavior after members of some groups we affiliate with. This is the significance of reference groups—people we try to emulate or whose approval concerns us.

An opinion leader is some person or organization whose beliefs or attitudes are respected by people who share an interest in some specific activity.

An opinion leader is some person or organization whose beliefs or attitudes are respected by people who share an interest in some specific activity.

Culture refers to the whole set of meanings, beliefs, attitudes, and ways of doing things that are shared by some homogeneous social group and are typically handed down from generation to generation.

Culture refers to the whole set of meanings, beliefs, attitudes, and ways of doing things that are shared by some homogeneous social groups and are typically handed down from generation to generation.

Global marketers are especially concerned with the purchase environment. According to Professor Carolyn Lin, of all business functions, marketing activities are the most susceptible to cultural error.

A subculture is a segment within a culture that shares a set of meanings, values, or activities that differ in certain respects from those of the overall culture.

Many environments—ecological, social, political, technical, economic, household, and point-of-sale location, to mention a few—can affect the purchase decision.

At the point of making a purchase decision, though, consumers typically search, consider, and compare alternative brands. Consumers evaluate selection alternatives (called the evoked set).

Feedback: At the point of making a purchase decision, though, consumers typically search, consider, and compare alternative brands. Consumers evaluate selection alternatives (called the evoked set).

Consumers evaluate selection alternatives (called the evoked set). To do this, they establish evaluative criteria, the standards they use to judge the features and benefits of alternative products.

The evaluative criteria are the standards the consumers use to judge the features and benefits of alternative products.

The theory of cognitive dissonance (also called postpurchase dissonance) holds that people strive to justify their behavior by reducing the dissonance, or inconsistency, between their cognitions (their perceptions or beliefs) and reality.

Cognitive dissonance occurs when there is inconsistency between what the consumer perceived to be true and reality.

Customers fall into three general categories: current customers, prospective customers, and centers of influence.

The advertisement addresses the consumer market. The product is intended for purchase by dentists and patients for their personal use.

The step in the consumer decision process that follows problem recognition is information search.

According to the Elaboration Likelihood Model, the two routes to persuasion are the central route to persuasion and the peripheral route to persuasion.

Cognitive dissonance is also known as postpurchase dissonance.

Companies conduct marketing research to discover the needs and wants that exist in the market place. The goal is to use this information for product shaping and development—designing products, through manufacturing, repackaging, or IMC, to satisfy more fully the customers’ needs and wants.
This definition of marketing shows that one of the important elements is the special relationship between a customer’s needs and a product’s need-satisfying potential. This is known as the product’s utility. Utility is the product’s ability to satisfy both functional needs and symbolic (or psychological) wants. One of the roles of IMC is to communicate this utility.
Thus, some messages suggest how well a product works; others tout glamour, sex appeal, or status.

Business markets are made up of organizations that buy services, natural resources, and component products that they resell, use to conduct their business, or use to manufacture another product. While one is likely to be more familiar with consumer promotions, almost half of all marketing is business-to-business. In the United States, business buyers purchase trillions of dollars’ worth of manufactured goods every year, billions more of raw materials, and billions more for the services of law firms, accountants, airlines, and advertising agencies. The two most important business markets are reseller markets and industrial markets. Reseller markets buy products to resell them. Industrial markets include millions of firms that buy products used to produce other goods and services.

Government markets buy products for municipal, state, federal, and other government activities. Some firms are immensely successful selling only to government markets. They promote post office vehicles, police and military weapons, and tax collector office equipment to government buyers.

Marketers spend a lot of money to keep individuals and groups of individuals (markets) interested in their products. To succeed, they need to understand what makes potential customers behave the way they do. The goal is to get enough market data to develop profiles of buyers—to find the common ground (and symbols) for communication. This involves the study of consumer behavior: the mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy needs and wants. The behavior of organizational buyers (the people who purchase products and services for use in business and government) is also important.

Psychological screens are used by consumers to evaluate, filter, and personalize information according to subjective emotional standards. These screens evaluate data based on innate factors, such as the consumer’s personality and instinctive human needs, and learned factors, such as self-concept, interests, attitudes, beliefs, past experiences, and lifestyle. They help consumers summarize unwieldy or complex data.

Cognition is not just about how we respond to things we perceive, it is also about how we store information for later use. Many promotional messages rely on consumers making a purchase long after they are exposed to a brand message. Information in memory is not stored randomly, but rather in mental (or perceptual) files. To cope with the complexity of stimuli such as advertising, people rank products and other data in their mental files by importance, price, quality, features, or a host of other descriptors. Memory is a limited resource, and one susceptible to some well-known biases.

In the quest for brand loyalty, companies have three aims related to habits:

a. Breaking habits: These involve getting consumers to unlearn an existing purchase habit and try something new. Marketers frequently offer incentives to lure customers away from old brands or stores. They may also use comparative advertising to demonstrate their product’s superiority.
b. Acquiring habits: These involve teaching consumers to repurchase their brand or repatronize their establishment.
c. Reinforcing habits: These involve reminding current customers of the value of their original purchase and encouraging them to continue purchasing.

Transformational motives are also known as positively originated motives. With the positively originated motives, a positive bonus is promised rather than the removal or reduction of some negative situation. The goal is to use positive reinforcement to increase the consumer’s motivation and to energize the consumer’s investigation or search for the new product. The three positively originated motives—sensory gratification, intellectual stimulation, and social approval—are also called transformational motives because the consumer expects to be transformed in a sensory, intellectual, or social sense.

An opinion leader is some person or organization whose beliefs or attitudes are respected by people who share an interest in some specific activity. All fields (sports, religion, fashion, politics) have opinion leaders. An opinion leader may be a knowledgeable friend or some expert we find credible.
When choosing an opinion leader as a spokesperson for a company or product, advertisers must understand the company’s target market thoroughly. Even if executives in the company do not relate to the spokesperson, they must follow market tastes and interests. A spokesperson out of sync with the market undermines his or her credibility—and the company’s.

Once consumers decide to purchase a certain product, they will still hesitate if they do not know where to buy it or if it is not available in a convenient or preferred location. Similarly, if consumers believe a particular brand is a specialty good but it suddenly appears everywhere, their perception of the product’s “specialness” may diminish. Thus, marketers carefully weigh consumer demand when planning distribution strategy, and they devote much of their promotional activities to communicating the convenience of location.