Chapter 04 Consumer Behaviour

Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information befo

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Chapter 04 Consumer Behaviour

Multiple Choice Questions

1 Consumer decision process model represents…

E Steps that consumer go through before, during, and after making purchases.

The consumer decision process model represents steps before, during, and after making purchases that consumer go through

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: Moderate

Learning Objective: 04-01 Describe the steps in the consumer buying decision process.

Topic: 04-01 The Consumer Decision Process

2 Which of the following needs pertain specifically to the performance of a product or

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Blooms: Remember

Difficulty: Easy

Topic: 04-02 Step 1: Need Recognition

3 The personal gratification that consumers associate with a product or service fulfills:

Blooms: Remember

Difficulty: Easy

4 Marketers can do all the followings to influence consumers decision process at the need recognition stage EXCEPT:

E Invest on SEO of the company website

At the need recognition stage, marketers should remind customers of a need SEO is tactic that is helpful at the information search stage

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Blooms: Apply

Difficulty: Difficult

Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product

or service.

5 Ishika is planning to throw a party for her friends in a restaurant She tries to recall all the restaurants that she has visited over the years and weighs the pros and cons of each of these restaurants before coming to a decision Which of the following is being exemplified in this scenario?

B An internal search for information

This scenario exemplifies an internal search for information In an internal search for

information, the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences

Blooms: Apply

or service.

Topic: 04-03 Step 2: Information Search

6 Ansel is planning to purchase a new house He consults his family and friends for

suggestions on suitable residential areas He contacts a number of real estate agents to find outmore about the prices of houses He also searches online to have a look at the houses for sale and reads the comments of people interested in buying houses This is an example of:

E an external search for information.

This scenario exemplifies an external search for information In an external search for

information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision Consumers might fill in their personal knowledge gaps by talking with friends, family, or a salesperson

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Blooms: Apply

or service.

7 What is a buyer most likely experiencing when he or she examines his or her own memory and knowledge about a product or service that is gathered through past experiences?

E An internal search for information

In an internal search for information, the buyer examines his or her own memory and

knowledge about the product or service, gathered through past experiences

Blooms: Remember

Difficulty: Easy

or service.

8 A buyer seeks information beyond her personal knowledge base to help make a buying decision This is an example of a(n):

C external search for information.

In an external search for information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision Consumers might fill in their personal knowledge gaps by talking with friends, family, or a salesperson

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Blooms: Remember

Difficulty: Easy

or service.

9 Mark wants to go to a good fast-food restaurant for dinner He recalls all the fast-food restaurants that he has visited He then decides on his favourite, a restaurant that he has been visiting since childhood This is an example of:

D an internal search for information.

This scenario exemplifies an internal search for information In an internal search for

information, the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences

Blooms: Apply

or service.

10 Gina wants to buy a car Before buying it, she asks her friends for their opinions, reads reviews in consumer reports, consults several websites, and visits several dealerships This is

an example of:

B an external search for information.

This scenario exemplifies an external search for information In an external search for

information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision Consumers might fill in their personal knowledge gaps by talking with friends, family, or a salesperson

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Blooms: Apply

or service.

11 Brian believes that he can get a better deal when buying his first bike This is because he believes that if he conducts an extensive search for information and tries to use this

information when negotiating his purchase, he will definitely be able to strike a better deal This is an example of:

C an internal locus of control.

In this scenario, Brian has an internal locus of control People who have an internal locus of control believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities

Blooms: Apply

or service.

12 Coraline wants to buy a new house She is a great believer in destiny and fate She feels that regardless of what information she has, she can do little to influence the outcome of the deal and therefore does not engage in extensive research This is an example of:

A an external locus of control.

In this scenario, Coraline has an external locus of control With an external locus of control, consumers believe that fate or other external factors control all outcomes In that case, they believe it doesn't matter how much information they gather; if they make a wise decision, it isn't to their credit, and if they make a poor one, it isn't their fault

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Blooms: Apply

or service.

13 The consumer belief that fate or other external factors control all outcomes is called a(n):

A external locus of control.

With an external locus of control, consumers believe that fate or other external factors control all outcomes In that case, they believe it doesn't matter how much information they gather; if they make a wise decision, it isn't to their credit, and if they make a poor one, it isn't their fault

Blooms: Remember

Difficulty: Easy

or service.

14 When consumers believe they have some control over the outcomes of their actions, they generally engage in more search activities This is called a(n):

D internal locus of control.

People who have an internal locus of control believe they have some control over the

outcomes of their actions, in which case they generally engage in more search activities

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Blooms: Remember

Difficulty: Easy

or service.

15 While buying a new gown, Rhonda goes online and looks at several websites She makes copious notes and spends hours comparing prices and designs She then consults a designer friend, looks at several magazines, and discusses the issue with her sisters and mother This is

an example of:

C an internal locus of control.

In this scenario, Rhonda displays an internal locus of control People who have an internal locus of control believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities

Blooms: Apply

or service.

16 Mary believes that if she makes a wise decision, it is not to her credit, and if she makes a poor one, it is not her fault This is an example of:

A an external locus of control.

In this scenario, Mary displays an external locus of control With an external locus of control, consumers believe that fate or other external factors control all outcomes In that case, they believe it doesn't matter how much information they gather; if they make a wise decision, it isn't to their credit, and if they make a poor one, it isn't their fault

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Blooms: Understand

or service.

17 Which of the following statements is true of financial risk?

regard their purchases positively

convey the right image

Financial risk is risk associated with a monetary outlay and includes the initial cost of a purchase, as well as the costs of using the item or service Car manufacturers, for instance, recognize that extended warranties help alleviate financial risk because consumers fear extensive postpurchase repair costs

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Blooms: Remember

Difficulty: Easy

or service.

18 Raheem wants to purchase a new laptop He believes that no matter how hard he looks at other alternatives and other brands available in the market, he will end up compromising some

of the features that he would want in his laptop He feels that he has no restraint over the outcome of his purchase This belief is most indicative of a(n):

it isn't to their credit, and if they make a poor one, it isn't their fault

Blooms: Apply

or service.

19 Which of the following statements is true of physiological risk?

service

C It is the risk associated with the fear of actual harm should a product not perform properly.

item or service

Physiological risk could also be called safety risk Whereas performance risk involves what might happen if a product does not perform as expected, physiological (or safety) risk refers

to the fear of actual harm should the product not perform properly

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Blooms: Remember

Difficulty: Easy

or service.

20 Which of the following statements is true of social risk?

A It is the risk that involves the fears that consumers suffer when they worry others might not

Social risk involves the fears that consumers suffer when they worry others might not regard their purchases positively

Blooms: Remember

Difficulty: Easy

or service.

21 Which of the following statements best defines psychological risk?

E It is the risk associated with the way people will feel if a product or service does not

Psychological risks are those risks associated with the way people will feel if the product or service does not convey the right image

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Blooms: Remember

Difficulty: Easy

or service.

22 Which of the following statements best describes performance risk?

B It is the risk that involves the perceived danger inherent in a poorly working product or

Performance risk involves the perceived danger inherent in a poorly performing product or service

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Blooms: Remember

or service.

23 Which of the following statements is true of determinant attributes?

alternatives and trade off one characteristic against another, such that good characteristics compensate for bad ones

product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes

lives and how they live

purchase

E It refers to the product or service features that are important to buyers and on which

competing brands or stores are perceived to differ

To simplify the potentially complicated decision process, consumers use shortcuts such as determinant attributes and consumer decision rules Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ

Blooms: Remember

or service.

Topic: 04-08 Psychological Factors

24 Which type of risk is less likely to be an influential risk factor when a consumer buy an expensive suits?

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or service.

25 Which risk factor motivate some customers to buy extended warranty for a set of TV?

26 Which of the following holds true for the term "compensatory decision rule"?

A It refers to the set of criteria that consumers use consciously or subconsciously to evaluate

alternatives and trade off one characteristic against another

A compensatory decision rule assumes that the consumer, when evaluating alternatives, tradesoff one characteristic against another, such that good characteristics compensate for bad characteristics

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Blooms: Remember

Difficulty: Easy

or service.

Topic: 04-04 Step 3: Alternative Evaluation

27 Jim wants to buy a new smart phone He considers several factors, such as camera quality,processor, style, operation system, battery life and price He selected the most recent SamsungGalaxy even though it was priced a little higher than the budget he has set aside, he feels the superb camera quality and battery life will compensate for the higher price Which of the following is being illustrated in this scenario?

A A compensatory decision rule

This scenario illustrates the compensatory decision rule A compensatory decision rule

assumes that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics

Blooms: Apply

or service.

Topic: 04-05 Step 4: Purchase Decision

28 Tom wants to buy a new bike He considers several factors, such as mileage, style, and price Tom finds the perfect bike, but it is priced quite high Although the mileage is superb, Tom rejects the bike because it is priced higher than what he is willing to pay Instead, he buys

a bike that is priced lower than the one he initially decided to purchase Which of the

following is being illustrated in this scenario?

E A noncompensatory decision rule

This scenario illustrates the noncompensatory decision rule Consumers use a

noncompensatory decision rule, in which they choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes

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Blooms: Apply

or service.

29 Joss wants to buy a T-shirt He prefers branded T-shirts to nonbranded ones Though the Calvin Klein T-shirt is very expensive, Joss decides to purchase it as he believes he is buying

a higher quality item This is an example of:

D decision heuristics.

This scenario exemplifies decision heuristics Some people use decision heuristics, which are mental shortcuts that help them narrow down their choices

Blooms: Apply

or service.

Topic: 04-11 Involvement and Consumer Buying Decisions

30 Customers are more likely to use "decision heuristics" for which category of products?

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Blooms: Analyze

or service.

31 In Toronto, a retail food store dropped its prices by 12 percent, which led to an increase in its market share from 30 to 45 percent Because the lower price was the reason why shoppers wanted to buy at that particular store and not at the other competitor retail stores, this is an example of:

C a determinant attribute.

Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ

Blooms: Apply

or service.

32 Which of the following statements is true of the noncompensatory decision rule?

B It refers to the set of criteria that consumers use consciously or subconsciously to choose a

brand, and product presentation

Consumers use a noncompensatory decision rule, in which they choose a product or service

on the basis of a subset of its characteristics, regardless of the values of its other attributes

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Blooms: Remember

Difficulty: Easy

or service.

33 Which of the following statements holds true for the term "decision heuristics"?

D It refers to the mental shortcuts that help consumers narrow down choices; examples

include price, brand, and product presentation

Some people use decision heuristics, which are mental shortcuts that help them narrow down their choices Examples for decision heuristics include price, brand, and product presentation

Blooms: Remember

Difficulty: Easy

or service.

34 A pattern of behaviours tied to life events that affect what and how people consume is called:

B ritual consumption.

After consumers purchase a product or service, they usually consume it, or "put it to the test."

A special type of consumption is called ritual consumption, which refers to a pattern of behaviours tied to life events that affect what and how we consume

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Blooms: Remember

Difficulty: Easy

or service.

35 Mia goes to the local bakery every morning to have her breakfast, which consists of a bagel with cream cheese and a freshly brewed cup of coffee She has been doing this for the last 10 years This is an example of:

D ritual consumption.

This scenario illustrates ritual consumption After consumers purchase a product or service, they usually consume it, or "put it to the test." A special type of consumption is called ritual consumption, which refers to a pattern of behaviours tied to life events that affect what and how we consume

Blooms: Apply

or service.

36 Alpha-techtronics, Inc buys gifts for Christmas from a particular toy manufacturing company Alpha then distributes these gifts to several juvenile detention centres every year as part of its social responsibility program The company delivers beautifully wrapped gifts and stockings filled with other goodies on Christmas Eve This is an example of:

D ritual consumption.

This scenario exemplifies ritual consumption After consumers purchase the product or service, they usually consume it, or "put it to the test." A special type of consumption is calledritual consumption, which refers to a pattern of behaviours tied to life events that affect what and how we consume

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Blooms: Apply

or service.

37 Which of the following statements best defines postpurchase dissonance?

A It refers to an internal conflict that arises from an inconsistency between two beliefs, or

between beliefs and behaviour

merchandise

effort

moderate amount of effort and time

and effort to analyzing alternatives

Postpurchase dissonance (or buyer's remorse) is an internal conflict that arises from an

inconsistency between two beliefs, or between beliefs and behaviour Postpurchase cognitive dissonance is a feeling of regret, guilt, or grave uneasiness, which generally occurs when a consumer questions the appropriateness of a purchase after his or her decision has been made

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Blooms: Remember

Difficulty: Easy

or service.

Topic: 04-06 Step 5: Postpurchase

38 After having eaten an expensive Indian meal at a fine dining restaurant, Shane realized that he could have eaten more at another restaurant for a lesser price Which of the following

is being illustrated in this scenario?

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Blooms: Apply

or service.

39 Fiola buys a new car After having bought the car, she sees an advertisement of another carlisting all its benefits She questions whether she made the right choice She regrets

purchasing her car without checking the other option This is an example of:

C postpurchase dissonance.

This scenario illustrates postpurchase dissonance Postpurchase dissonance (or buyer's

remorse) is an internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behaviour Postpurchase cognitive dissonance is a feeling of regret, guilt,

or grave uneasiness, which generally occurs when a consumer questions the appropriateness

of a purchase after his or her decision has been made Postpurchase dissonance is especially likely for products that are expensive, infrequently purchased, highly expressive, and

associated with high levels of risk

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Blooms: Apply

or service.

40 Which of the following statements holds true for the term negative word-of-mouth?

customers

competition

D It refers to consumers spreading negative information about a product, service, or store to

others

features of a product or service

Negative word-of-mouth occurs when consumers spread negative information about a

product, service, or store to others The Internet has provided an effective method of

spreading negative word-of-mouth to millions of people instantaneously through personal blogs, Twitter, and corporate websites

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Blooms: Remember

Difficulty: Easy

or service.

41 Anna bought a laptop from Cosmo-Z Electronics, Inc While working one day, the laptop suddenly crashed Despite Anna's best efforts, she could not reboot it She made a visit to the service centre, but they refused to check her laptop, saying that they did not have the requisite expertise The centre also refused to make any alternative arrangements Anna then decided topost her problems on Facebook to advise people not to buy computers from that company This postpurchase review is an example of:

Blooms: Apply

or service.

42 In the context of consumer buying decisions, which of the following is a need or want that

is strong enough to cause a person to seek satisfaction?

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Blooms: Remember

Difficulty: Easy

Learning Objective: 04-03 Summarize how psychological; social; and situational factors influence consumers' buying behaviour Topic: 04-08 Psychological Factors

43 Which of the following statements is NOT true of the different types of needs as

categorized by Abraham Maslow?

D Physiological needs are generally met for most people in developed countries.

Safety needs refers to individual protection and physical well-being; Esteem needs relate to the satisfaction of the inner desires of individuals

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Blooms: Remember

Difficulty: Easy

Learning Objective: 04-03 Summarize how psychological; social; and situational factors influence consumers' buying behaviour.

45 Two tourists were angry after a hotel clerk gave away their room reservations without their consent They lashed out against the company by posting a nasty video of their

experience online, which more than 20,000 people viewed when it went viral This act by the tourists to inform others about their discomforting experience with the hotel is an example of:

C the behavioural component of attitude.

This act by the tourists to inform others about their discomforting experience with the hotel is

an example of the behavioural component of attitude The behavioural component of attitude

is a component of attitude that comprises the actions a person takes with regard to the issue at hand

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Blooms: Apply

46 Which of the following statements holds true about self-actualization?

C It refers to the mental state that occurs when individuals feel completely satisfied with their

include price, brand, and product presentation

Maslow categorized five groups of needs, namely, physiological, safety, love, esteem, and self-actualization Self-actualization occurs when individuals feels completely satisfied with their lives and how they live At this stage, they don't care what others think

47 John attends meditation classes He believes that meditation will help him maintain a happy, satisfied outlook on life John meditates to primarily boost his confidence Which of the following needs is met by attending such classes?

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Blooms: Apply

48 School reunions help individuals bond with friends and teachers Such occasions fulfill theindividuals':

Difficulty: Easy

49 Which of the following statements holds true about the cognitive component of attitude?

or her like or dislike of something

beliefs, feelings, and behaviours

C It refers to the part of attitude that reflects what a person believes to be true.

issue at hand

An attitude consists of three components The cognitive component reflects what we believe

to be true, the affective component involves what we feel about the issue at hand—our like or dislike of something—and the behavioural component comprises the action(s) we take based

on what we know and feel

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Blooms: Remember

Difficulty: Easy

50 Identify the term that refers to a person's enduring evaluation of his or her feelings about

an object or idea and behavioural tendencies toward that object or idea

Blooms: Remember

Difficulty: Easy

51 Michelle believes that all spiders are dangerous and that a spider bite can have fatal consequences Such a belief reflects:

B the cognitive component of her attitude.

An attitude is a person's enduring evaluation of his or her feelings about and behavioural tendencies toward an object or idea An attitude consists of three components The cognitive component reflects what we believe to be true, the affective component involves what we feel about the issue at hand—our like or dislike of something—and the behavioural component comprises the action(s) we take based on what we know and feel

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Blooms: Apply

52 Evonnia is scared of snakes and feels a strong wave of fear whenever she sees one This fear is an example of:

A the affective component of her attitude.

Blooms: Apply

53 Alexandra is so scared of spiders that she screams loudly every time she sees one The act

of screaming aloud is an example of:

C the behavioural component of attitude.

This scenario illustrates the behavioural component of attitude An attitude is a person's enduring evaluation of his or her feelings about and behavioural tendencies toward an object

or idea An attitude consists of three components The cognitive component reflects what we believe to be true, the affective component involves what we feel about the issue at hand—ourlike or dislike of something—and the behavioural component comprises the action(s) we take based on what we know and feel

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Blooms: Apply

54 Jesse believes that Ross is honest and generous In this case, which of the following components of Jesse's attitude is reflected?

B The cognitive component

The cognitive component of Jesse's attitude is reflected in this scenario An attitude is a person's enduring evaluation of his or her feelings about and behavioural tendencies toward

an object or idea In this case Jesse's cognitive component of her attitude is reflected An attitude consists of three components The cognitive component reflects what we believe to betrue, the affective component involves what we feel about the issue at hand—our like or dislike of something—and the behavioural component comprises the action(s) we take based

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Blooms: Apply

55 Cielo loves visiting Williams Café, which is located near her college Her enduring evaluation of Williams Café is that she loves the ambience but doesn't enjoy the food too much She spends over an hour at the café, almost every day, sipping coffee and reading her books Which of the following psychological factors is most likely affecting Cielo's decision

to be a regular visitor at Williams Café?

The psychological factor indicated in this scenario is attitude An attitude is a person's

enduring evaluation of his or her feelings about and behavioural tendencies toward an object

or idea An attitude consists of three components The cognitive component reflects what we believe to be true, the affective component involves what we feel about the issue at hand—ourlike or dislike of something—and the behavioural component comprises the action(s) we take based on what we know and feel

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Blooms: Apply

56 Most shoppers believe that Walmart has the lowest price on every product it sells This belief is a result of the message used in Walmart's advertising and the opinions expressed by its customers Which of the following psychological factors is affecting the decision-making process of these customers?

E Their attitude

The psychological factor affecting the decision-making process of these customers is attitude

An attitude is a person's enduring evaluation of his or her feelings about and behavioural tendencies toward an object or idea

57 Donatella feels that Lorenzo is kind, charming, and humorous and that is why she feels good when she is around him Which component of Donatella's attitude is reflected in this scenario?

A The affective component

The affective component of Donatella's attitude is reflected in this scenario An attitude consists of three components The cognitive component reflects what we believe to be true, the affective component involves what we feel about the issue at hand—our like or dislike of something—and the behavioural component comprises the action(s) we take based on what

we know and feel

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Blooms: Apply

58 Jesse feels that Ross is kind, charming, and humorous and therefore she tries to hang out with him whenever she gets the chance Which component of Jesse's attitude is reflected whenshe hangs out with Ross?

C The behavioural component

The behavioural component of Jesse's attitude is reflected when she hangs out with Ross An attitude consists of three components The cognitive component reflects what we believe to betrue, the affective component involves what we feel about the issue at hand—our like or dislike of something—and the behavioural component comprises the action(s) we take based

Blooms: Apply

59 Joe likes BlackBerry brand and still buys BlackBerry phones He sometimes have to arguewith his friends and explain why he buys BlackBerry phones Which components of Joe's attitude are reflected here?

D The affective and behavioural components

Joe likes BlackBerry reflects the affective component and buying and arguing with friends reflect behavioural components

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Blooms: Apply

60 A hockey equipment manufacturing company is endorsed by NHL superstars Therefore, ice hockey fans tend to buy hockey equipment from this company Which of the following social factors is affecting the decision-making process of the hockey fans?

D The reference group

The reference group is the social factor affecting the decision-making process of the hockey fans A reference group is one or more persons an individual uses as a basis for comparison regarding beliefs, feelings, and behaviours A consumer might have various reference groups, including family, friends, coworkers, or famous people the consumer would like to emulate

Blooms: Apply

Topic: 04-09 Social Factors

61 Which of the following refers to the process by which people select, organize, and

interpret information to form a meaningful picture of the world?

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Blooms: Remember

Difficulty: Easy

62 Sam wants to play football He consults coaches regarding his chances to play at the national level He also consults players who are currently playing football at school and the university level He reads articles about football He acquires more knowledge from each newpiece of information With all the additional knowledge, his thoughts about the game are different from what he had gathered from reading Sam is engaging in:

Blooms: Apply

63 A change in a person's thought process or behaviour that arises from experience and takes place throughout the consumer decision process is called:

Learning refers to a change in a person's thought process or behaviour that arises from

experience and takes place throughout the consumer decision process

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Blooms: Remember

Difficulty: Easy

64 Many firms use athletes as spokespeople who represent what many people would ideally like to be In the context of the consumer decision-making process, which of the following do these spokespeople represent?

Blooms: Apply

Topic: 04-09 Social Factors

65 Which of the following is true of a reference group?

or her like or dislike of something

B It refers to one or more persons an individual uses as a basis for comparison regarding

beliefs, feelings, and behaviours

others

issue at hand

A reference group is one or more persons an individual uses as a basis for comparison

regarding beliefs, feelings, and behaviours A consumer might have various reference groups, including family, friends, coworkers, or famous people the consumer would like to emulate

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Blooms: Remember

Difficulty: Easy

66 Allison is buying a can of orange soda She scrutinizes all the information provided on thecan She checks the ingredients for artificial flavours, the calorie and nutrient content, and the expiry date In this case, Allison can be categorized as a(n):

Blooms: Apply

Learning Objective: 04-04 Explain how involvement influences the consumer buying decision process.

Topic: 04-11 Involvement and Consumer Buying Decisions

67 In the context of consumer buying decision, a consumer's degree of interest or concern in

a product or service is called:

Involvement is the consumer's degree of interest or concern in the product or service

Consumers may have different levels of involvement for the same type of product

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