Module 6 - Understanding Consumer Buying Behaviour

Question 1

Consumer decision making is essentially a(n) ____ process.
A. search.
B. problem-solving.
C. involvement.
D. evaluation.
E. satisfaction.

Answer 1

The correct answer is B. See section How Consumers Make High-Involvement Purchase Decisions?

Question 2

Which of the following statements is TRUE?
A. Both the decision-making process and the level of involvement are under the marketer’s control.
B. The decision-making process, but not the level of involvement, is under the marketer’s control.
C. The level of involvement, but not the decision-making process is under the marketer’s control.
D. Neither the decision-making process nor the level of involvement is under the marketer’s control.
E. None of the above is true.

Answer 2

Question not answered The correct answer is D. See section The Psychological Importance of the Purchase Affects the Decision-Making Process.

Question 3

The five mental steps in the high-involvement decision-making process are said to occur in the following order:
A. Information search, alternative evaluation, problem identification, purchase, post-purchase evalua-tion.
B. Post-purchase evaluation, problem identification, information search, alternative evaluation, pur-chase.
C. Problem identification, information search, alternative evaluation, purchase, post-purchase evalua-tion.
D. Alternative evaluation, problem identification, information search, purchase, post-purchase evalua-tion.
E. Problem identification, alternative evaluation, information search, purchase, post-purchase evalua-tion.

Answer 3

Question not answered The correct answer is C. See section How Consumers Make High-Involvement Purchase Decisions?

Question 4

The time involved in seeking product information is referred to as:
A. product commitment time.
B. delay cost.
C. psychological cost.
D. transferred time cost.
E. the opportunity cost of time.

Answer 4

The correct answer is E. See section Information Search.

Question 5

What is the difference in the function provided to consumers by commercial sources as compared to personal and public sources of information?
A. Commercial sources legitimise the product, while personal and public sources inform consumers about the product’s existence.
B. Commercial sources inform consumers about products and their features, while personal and public sources legitimise the purchase.
C. Commercial sources are the primary source of information, while personal and public sources serve as secondary sources.
D. Commercial sources of information provide quantitative information about products, while personal and public sources provide qualitative information.
E. Commercial sources provide formal data about a product, personal and public sources provide informal feedback.

Answer 5

The correct answer is B. See section Information Search.

Question 6

Consumers evaluate each of the brands under consideration on a limited number of product:
A. guidelines.
B. qualifiers.
C. attributes.
D. aggregates.
E. choices.

Answer 6

The correct answer is C. See section Evaluation of Alternatives.

Question 7

All of the following are examples of psychological or social forces affecting consumer behaviour EXCEPT:
A. perception and memory.
B. needs and attitudes.
C. benefits sought.
D. culture.
E. social class.

Answer 7

The correct answer is C. See section Why People Buy Different Things.

Question 8

Consumers who routinely buy from the same store because their experiences with that store have been positive over time are said to have:
A. psychological costs.
B. psychological commitment.
C. source commitment.
D. reciprocal expectations.
E. patronage loyalty.

Answer 8

The correct answer is E. See section Purchase.

Question 9

Which of the following is an example of an availability attribute which consumers use to evaluate alternative products?
A. Cost of installation.
B. Cost of extras.
C. Reputation of brand.
D. Status image.
E. Carried by local stores.

Answer 9

The correct answer is E. See section Evaluation of Alternatives.

Question 10

Which of the following is an example of a social attribute which consumers use to evaluate alternative products?
A. Fashion.
B. Delivery time.
C. Credit terms.
D. Dependability.
E. Cost of extras.

Answer 10

The correct answer is A. See section Why People Buy Different Things.

Question 11

In low-involvement purchasing, consumers:
A. evaluate, then act.
B. postpone action.
C. act, then evaluate.
D. act, then suffer cognitive dissonance.
E. seek peer approval before acting.

Answer 11

The correct answer is C. See section Low-Involvement Purchase Decisions.

Question 12

What do you think should be the primary advertising medium for marketing a particular brand of personal computers for household use?
A. Commercial television, because of the need to reach the maximum number of people in the market area.
B. Printed advertisements (such as newspaper or magazine advertisements), because of the need to provide detailed information to a highly involved market segment.
C. Radio, because it allows for segmentation by lifestyle (such as classical stations and the like).
D. Point-of-purchase displays, because that is where consumers really make this kind of decision.
E. Electronic billboards, because these represent the technological element inherent in computers.

Answer 12

The correct answer is B. See section How Consumers Make High-Involvement Purchase Decisions?

Question 13

The reason why the television is often the primary medium for low-involvement products is because it facilitates:
A. perceptual vigilance.
B. perceptual defence.
C. passive learning.
D. impulse buying.
E. inertia.

Answer 13

The correct answer is C. See section Advertising and Promotion Decisions.

Question 14

Categorisation and integration are what type of mental processes?
A. Short-term memory.
B. Long-term memory.
C. Perceptual organisation.
D. Perceptual selection.
E. Retrieval.

Answer 14

The correct answer is C. See section Perceptual Organisation.

Question 15

Which type of model is the one developed by Martin Fishbein?
A. Non-compensatory model.
B. Diffusion model.
C. Compensatory model.
D. Product life cycle model.
E. Lexicographic model.

Answer 15

The correct answer is C. See section Fishbein Model.

Question 16

From the perspective of a marketing manager, the Fishbein model is most valuable because it:
A. sets minimum standards for each important attribute.
B. is a good example of a JND process.
C. is the best example of a lexicographic process.
D. provides quantitative attitude scores.
E. provides qualitative attitude assessments.

Answer 16

The correct answer is D. See section Fishbein Model.

Question 17

Elements of the Fishbein model include all of the following EXCEPT:
A. actions.
B. attributes.
C. beliefs.
D. importance evaluations.
E. All of the above are elements of Fishbein’s model.

Answer 17

The correct answer is A. See section Fishbein Model.

Question 18

All of the following are examples of social influences on consumers EXCEPT:
A. different social class.
B. family situations.
C. reference groups.
D. attitudes.
E. peer groups.

Answer 18

The correct answer is D. See section Why People Buy Different Things.

Question 19

Kellogg’s cereals could try to convince consumers that oat cereals help to lower cholesterol. If it did this, which attitude change strategy would it be using?
A. Advertising would draw on basic social values.
B. Link the product to an involving issue.
C. Add an important feature to the product.
D. Tie the product to a personally involving situation.
E. Add a new product to the product line.

Answer 19

The correct answer is B. See section Strategies to Increase Consumer Involvement.

Question 20

Lifestyle data are essentially tools for:
A. segmenting markets.
B. measuring attitudes.
C. measuring purchase intention.
D. analysing demographic trends.
E. none of the above.

Answer 20

The correct answer is A. See section Lifestyles.

Question 21

Describe each of the four types of purchasing decision.

Answer 21

Question 22

Describe briefly the five steps consumers go through when purchasing high-involvement products or services.

Answer 22

Question 23

How does low-involvement purchase behaviour differ from high-involvement purchase behaviour?

Answer 23

Question 24

What are the marketing implications of low-involvement purchasing?

Answer 24

Question 25

Describe the Fishbein model by using an example.

Answer 25

Question 26

What is the difference between a compensatory and a non-compensatory model?

Answer 26

Noncompensatory Attitude Models As suggested by Exhibit 6.9, the mental processes involved in forming an attitude are quite complex because consumers must evaluate each alternative brand on every attribute. In some purchase situations, particularly with low-involvement products, consumers may adopt a simpler approach and evaluate alternative brands on only one attribute at a time. Such an approach is noncompensatory because a poor evaluation of a brand on one attribute cannot be offset by a strong evaluation on another. For instance, one noncompensatory model, the lexicographic model, suggests that consumers evaluate brands on the most important attribute first. If one brand appears clearly superior on that dimension, the consumer selects it as the best possible choice. If no brand stands out on the most important attribute, the consumer evaluates the alternative brands on the second most important attribute, and so forth.12

Question 27

How do demographics and lifestyle have an impact on buying behaviour?

Answer 27

Demographics: Demographics influence * the nature of consumer wants and needs * Their ability to buy products to satisfy their wants and needs * The perceived importance of various attributes or choice criteria * Consumers attitudes toward and preferences for different products and brands Lifestyle * People in the same demographic don’t necessary live their lives in the same way * The patterns of activities, interests and opinions and the behaviors that results are referred to as lifestyle * To obtain lifestyle data consumers are asked whether they agree or disagree with a series of statements * Some people say that there are five lifestyle segments * Adapters – older but keep open mind * Traditionalists – older, resist change * Pressured – mainly women who face family and financial pressure * Achievers – they have achieved some of the success strivers want, status conscious * Strivers – hectic 30 something’s, materialistic, strive for success

Question 28

Identify the major social influences on consumers’ decision-making processes.

Answer 28

**Cultural** * this is a set of beliefs, attitudes, and behavior patterns shared by members of a society and transmitted from one generation to the next * cultural differences across countries create challenges and opportunities **Social Class** * every society has its status groupings based on similarities in income, education and * certain reactions to things like advertising can be surmised based on their social class **Reference Groups** * they include a variety of groups that affect the consumer behavior through * normative compliance – e.g. exclusive club * value-expressed influence – to gain status in one’s group * informational influence – involves the use of influential people to help assess the merits of a given product – e.g. asking doctor for advice **The family** * this is a reference group, but its very important because: * its serves as primary socialization agent – this is where consumers learn how and what to consume * it especially important for younger consumer * particular family members specialize in purchasing particular products because or expertise or role structure of family * the more traditional the society, the more men hold the power

Question 29

The decision process pursued by a consumer can be classified by: A. the product price level and the extensiveness of the consumer’s information search. B. the level of product involvement and the extensiveness of the consumer’s information search. C. the extent to which the product is differentiated and the product price level. D. the level of product involvement and of consumer satisfaction. E. the extent to which the consumer searches both internally and externally for relevant product information.

Answer 29

B

Question 30

Brand loyalty is accomplished when consumers are ____ in the purchase process but search for \_\_\_\_. A. highly involved; brand alternatives. B. highly involved; better retail prices. C. somewhat involved; little or no information. D. somewhat involved; better retail prices. E. highly involved; little or no information.

Answer 30

E

Question 31

Generally, which of the following is a low-involvement purchase? A. A car. B. A DVD player. C. A computer. D. Cereal. E. Clothing.

Answer 31

D

Question 32

The consumer decision-making approach associated with high product involvement and extended search is known as: A. complex decision making. B. brand loyalty. C. limited decision making. D. inertia. E. noncompensatory decision making.

Answer 32

A

Question 33

The consumer decision-making approach associated with low product involvement and routine information search is known as: A. brand loyalty. B. complex decision making. C. compensatory decision making. D. inertia. E. variety seeking/impulse purchasing.

Answer 33

D

Question 34

When consumers purchase a particular brand frequently with little thought about alternative brands, they are said to be: A. compensating. B. impulse buyers. C. variety averse. D. brand loyal. E. complex decision makers.

Answer 34

D

Question 35

In which step of the complex decision-making process for high-involvement purchases is the consumer’s purchase-decision process triggered by unsatisfied needs? A. Information search. B. Problem identification. C. Evaluation of alternatives. D. Purchase. E. Post-purchase evaluation.

Answer 35

B

Question 36

The size of the ____ between the current state of a consumer and the desired state of that consumer largely determines the ____ of a particular need. A. gap; strengths. B. gap; integration. C. strength; gap. D. strength; integration. E. exposure; comprehension.

Answer 36

A

Question 37

The reason why we regularly recognise, or identify, problems is because: A. our wants never change. B. our wants are never met. C. our needs are never met. D. our needs are only met temporarily. E. A above is true, but only for low-involvement purchases.

Answer 37

D

Question 38

What determines the effort to which people will go to seek additional information about alternative brands? A. They will keep looking until they find a product with which they are satisfied. B. They will seek additional information so long as the cost in time and trouble equals their perception of the additional benefits they will receive by conduct- ing the search. C. Basically, people will keep seeking information about alternatives until they finally believe looking further will not result in finding more alternatives. D. Most people will keep looking until they cannot find a lower purchase price. E. Typically, people will keep looking for a certain period of time because they are expected to by family and friends.

Answer 38

B

Question 39

The frustrations involved in searching for product information in often crowded stores with rude salespeople are referred to as the: A. delay costs of search. B. psychological costs of search. C. opportunity costs of search. D. commercial-contact costs of search. E. interpersonal costs of search.

Answer 39

B

Question 40

Professional organisations and individuals who provide advice for consumers, such as doctors, lawyers, government agencies and consumer interest groups, are referred to as: A. commercial sources. B. personal sources. C. public sources. D. nominal sources. E. normative sources.

Answer 40

C

Question 41

The limited number of products consumers are familiar with that are likely to satisfy their needs are termed the: A. product group. B. choice set. C. evoked set. D. salient set. E. intention set.

Answer 41

C

Question 42

All of the following are examples of commercial sources of information EXCEPT: A. media advertising. B. promotional brochures. C. lawyers. D. salespersons. E. package and label information.

Answer 42

C

Question 43

The set of attributes used by a particular consumer and the relative importance of each represent the consumer’s: A. choice criteria. B. evoked set. C. salient set. D. intention qualifiers. E. qualifiers.

Answer 43

A

Question 44

The evaluative attributes of repair cost and service quality can explain why most people: A. prefer to lease new vehicles. B. prefer to pay cash for new vehicles. C. do not buy exotic cars that are more than ten years old. D. do not like to buy used domestic cars from national dealers. E. do all of the above.

Answer 44

C

Question 45

The attributes (price, convenience, personnel) of the source where a product can be purchased is considered when the consumer is: A. identifying a problem. B. performing product information search. C. evaluating product alternatives. D. ready to make the purchase. E. making a past purchase evaluation.

Answer 45

D

Question 46

When a consumer notices a special ski vacation package to the French Alps for a low price during a television programme, what type of change in this consumer’s desired state has occurred? A. The desired state is revised upward because of new information. B. As one need is satisfied, the desired state of another need increases. C. A natural deterioration of physical needs occurs. D. The state changes as the result of depletion of the current solution. E. The consumer anticipates a decline in his actual state.

Answer 46

A

Question 47

Which of the following is an example of a cost attribute which consumers use to evaluate alternative products? A. Trade-in allowance. B. Reputation of the brand. C. Status image of the product. D. Delivery time. E. Credit terms.

Answer 47

A

Question 48

Which of the following is an example of a performance attribute which consumers use to evaluate alternative products? A. Likely resale value. B. Credit terms. C. Delivery time. D. Quality of materials. E. Repair costs.

Answer 48

D

Question 49

A shopper who notices different brands of cookies on the shelf of a supermarket and who purchases a package on the basis of a cursory comparison of other brands on the shelf has made what type of purchase? A. Complex decision making. B. Inertia. C. Impulse. D. High-involvement. E. Integrated.

Answer 49

C

Question 50

The statement, ‘Unfavourable attitudes must change before a purchase will be made,’ is: A. always true. B. always true for high-involvement products. C. always true for low-involvement products. D. generally true for high-involvement products, but not for low-involvement products. E. none of the above.

Answer 50

E

Question 51

A key difference between the low- and high-involvement purchase-decision processes is: A. there are more steps in the low- than in the high-involvement process. B. there are more steps in the high- than in the low-involvement process. C. more time is spent at each step of the low- than the high-involvement process. D. more time is spent at each step of the high- than the low-involvement process. E. There are no significant differences.

Answer 51

D

Question 52

What types of brands are consumers most likely to seek when they are making a low- involvement product choice? A. Usually, they will look for products with the kinds of features they want in terms of the importance of those features. B. Typically, they will accept only known brands. C. Consumers will seek the simplest brands available, so that they do not have to do a lot of mental ‘processing.’ D. It is impossible to predict what consumers will do, because they often pick these types of products at random. E. They are likely to pick the brand that is perceived to be the least likely to give them problems.

Answer 52

E

Question 53

Television, rather than print, should be the primary advertising medium for: A. products requiring complex decision making. B. infrequently purchased products. C. products with salient features. D. low-involvement products. E. products for which no clear segments can be identified.

Answer 53

D

Question 54

The process of ____ allows us to select, organise and interpret information. A. perception. B. exposure. C. attention. D. comprehension. E. retention.

Answer 54

A

Question 55

Starting to notice an abundance of Volkswagen Jettas during your daily commute most likely indicates that you: A. need a vacation. B. need a new car. C. are in the market for a new car. D. are considering buying a Jetta. E. are very pleased with the performance of the Jetta you bought last year.

Answer 55

D

Question 56

The sequential steps in the consumer’s perceptual learning process are: A. identification, awareness, trial and adoption. B. identification, awareness, comprehension and action. C. exposure, attention, comprehension and retention. D. perception, identification, attention and action. E. exposure, awareness, attention and retention.

Answer 56

C

Question 57

When consumers perceive separate pieces of related information as an organised whole they are: A. coagulating. B. categorising. C. combining. D. separating. E. integrating.

Answer 57

E

Question 58

When Quaker Oats promoted a link between Cheerios and health problems they were: A. in need of a new advertising agency. B. trying to increase consumer involvement. C. re-segmenting the breakfast cereal market. D. about to be fined by the FDA. E. attempting to improve the health of their customers.

Answer 58

B

Question 59

All of the following are examples of high-involvement consumer behaviour EXCEPT: A. changing attitudes toward the product class or type. B. changing importance of an attribute. C. adding an attribute. D. more extensive or effective advertising and promotion. E. lowering ratings of competing brands.

Answer 59

D

Question 60

The decision to buy a BMW car is most influenced by: A. cultural factors. B. social class factors. C. reference group factors. D. lifestyle factors. E. Any of the above could be the most influential factor.

Answer 60

E

Question 61

Throwing rice at a newly married couple reflects which type of social influence on behaviour? A. Cultural. B. Subcultural. C. Social class. D. Reference groups. E. Family.

Answer 61

A

Question 62

Assume you are the marketing manager for a cruiseline. For most consumers, taking a cruise represents a high-involvement purchase. What are the implications of high involvement for decisions relating to the product and its features, its price, and its promotion?

Answer 62

Because taking a cruise represents a high involvement purchase, consumers search out information pertaining to the product. They seldom consider all brands; rather they focus on a limited number with which they have some familiarity. Thus, for a brand to be even considered it has to be included in the consumer’s evoked set. Next, each brand is evaluated on a limited number of attributes. They are also judged on the relative importance of these attributes (one of which is price). And finally, consumers sum their ratings of each brand across attributes taking into account their relative importance. These are compared against the consumer’s choice criteria. A cruise line, to be successful, must develop a product which best fits the choice criteria of its target market(s). Promotion must take into account the consumers’ choice criteria and their current rating of various alternatives using these criteria. This can be done using advertising or personal selling in a variety of ways. The firm should be careful not to promote too many features or attributes at the same time to avoid confusing the consumer.

Question 63

How would you classify the following products/services in terms of the extent of involvement? How would your ‘classification’ affect your recommendations regarding what pricing, distribution, and promotion decisions to make? a. Frozen vegetables. b. Banking services. c. Tennis racquet. d. Toothpaste. e. Colour television sets. f. Lawn service.

Answer 63

Question 64

Think back to a recent purchase you made involving a product or service costing more than $100 (e.g., a major article of clothing or an MP3 player). Using the framework outlined in Exhibit 6.3 and discussed in the module, describe the decision process involved in making your purchase. What motivated your purchase? What were your thoughts at each stage in the decision process? What activities were involved? For discussion of this issue, consider the purchase of a new colour printer for use with your computer.

Answer 64

For discussion of this issue, consider a new colour printer. (a) Problem identification Problem identification is initiated when the consumer perceives a difference between his ideal and actual state. In the case of the introduction of a new col- our printer, the actual state (i.e. old printer) probably did not change. However, the performance promised by the new printer raises the ideal state – creating a gap that represents a problem. (b) Information search Because this is a relatively high-involvement purchase, information may be sought from several sources, including personal, public and commercial sources. (c) Evaluation of alternatives After all this, an evoked set of branded colour printers may be in your mind. These will, in turn, be evaluated by a set of evaluative criteria formed from your different information sources. These criteria, in terms of their importance to you and your rating of each brand of colour printer on each criterion, will form your attitude towards each brand. (d) Purchase You purchase the colour printer, based on the evaluation described above. Terms of payment may be discussed at this time, if not previously. (e) Postpurchase evaluation Although the purchase is made, you probably considered several printers to be of approximately equal quality, so you now wonder whether you made the cor- rect purchase. However, ten days after you bring your new colour printer home: (1) the seller contacts you to see if everything is working properly; or (2) the manufacturer sends you a special booklet on the printer you purchased and your cognitive dissonance is reduced.

Question 65

With regard to the purchase of a new colour printer, what kinds and sources of information would you use? If others seek out similar kinds and sources of information, what are the implications of your info

Answer 65

The kinds and sources of information for the purchase of a new colour printer would be: * *Kinds of information:** Different types of colour printers, features available in each type, recent technology developments and potential impact on types of printers and their features, leading national and private label (if any) brands by type of printer desired and features of each, reputation of brand and company involved, price of each model of brands of interest, warranties and local stores selling line of printers. * *Sources of information:** Consumers’ union, credible specialised magazines and newspapers catering to business community and computer users in general, owners and/or users of colour printers, retail store personnel and company lit- erature available at local outlets and websites. * *Marketing programme implications:** Competitive price but based in good part on features offered; distribution in large retail computer stores which sell to households and local businesses; use of own salesforce to sell to large business- es and to not-for-profit organisations such as government, hospitals and educational institutions; and extensive advertising in specialised magazines, newspapers focusing on business (Wall Street Journal), special brochures for use by retail sales persons, articulate website and special price deal promotions.

Question 66

As a marketing manager for a soft-drink company, you know that such a drink is a low- involvement purchase for most consumers. How might you try to increase consumers’ involvement with your product (brand) to increase their loyalty and reduce brand switching?

Answer 66

Among the options are to: (a) Draw on a basic social value relating to the consumer’s self-identity (e.g. the ‘Pepsi is the choice of the new generation’ advertisements). (b) Introduce important new features (e.g. Diet Pepsi, caffeine-free Pepsi). (c) Tie to a personally involving situation (e.g. caffeine-free Pepsi for an evening beverage when you do not want to lose sleep). (d) Link to some involving issue (e.g. a percentage of the price of every Pepsi purchased to go to an international famine fund).

Question 67

Based on the attitudes toward the three different cruises summarised in Exhibit 6.9 and assuming that a major segment of consumers hold attitudes similar to those of Paul MacDonald, what actions could you, as marketing manager for Cruise A, take to improve consumers’ attitudes toward your cruise?

Answer 67

Question 68

With reference to consumer behaviour, discuss the differences between high and low involvement decision making styles and review the implications which these different styles may have for the design of the marketing mix, using relevant examples to support your answer.

Answer 68

This question focuses on Module 6 and specifically on The Psychological Importance of the Purchase Affects the Decision-Making Process. In particular Exhibit 6.2 is useful for organising the answer as it readily identifies the four decision making styles which comprise complex decision making; limited decision making, brand loyalty and inertia. The differences between high and low involvement consumer behaviour are given in Exhibit 6.6. Good answers will first of all define the concept of involvement and will discuss the key differences between high and low involvement behaviours. If candidates offer more than three examples of these differences (that consumers are information processors versus information catchers; constitute an active versus a passive audience; evaluate brands before buying rather than afterwards) then this should be counted as a good answer. To pass a candidate must know that with high involvement purchases, represented by complex decision making, products are evaluated prior to purchase and that with low involvement purchases brand evaluations are made after an initial purchase has been made, which is the opposite of complex decision making. Very good answers might then explore the different decision making styles associated with complex decision making, limited decision making, brand loyalty and inertia and may even discuss impulse buying and variety seeking under limited decision making. The marketing mix implications that price is more important for low involvement decisions; that advertising is weaker for high involvement decisions; that wide distribution is necessary for low involvement decisions should be supported by relevant arguments. Good answers will contain a drawn version of this matrix and will discuss complex decision making, brand loyalty, limited decision making and inertia and the different decision making processes associated with these. Competent answers will describe the high involvement purchase situation in some reasonable depth, but should not become engrossed in this discussion. The key task is to distinguish between the different types of buying process and to discuss the marketing mix implications.