Chapter 1: Introduction: The Impact of the Digital Revolution on Consumer Behavior

Multiple Choice Questions: a. b. c. d. 1. Which of the following is not an objective of companies today? attaining customers selling more products making a profit conducting one time transactions (d; Difficulty 1, p. 4) 2. Today, the __________ of the marketplace allows for greater customization of products, services and promotional messages than older marketing tools. a. digital revolution b. one to one concept c. consumerism movement d. environmental conversion (a; Difficulty 1, p. 4) 3. The digital revolution introduced all of the following drastic changes into the business environment, except: a. consumers have more power than ever. b. consumers face more barriers to accessing information. c. marketers can offer more products and services than ever before. d. marketers can gather more information about customers more quickly and easily. (b; Difficulty 2, p. 4-5) 4. The digital revolution allowed for consumers to have more power than ever before. This means that consumers now have the ability to do all of the following except: a. use intelligent agents to locate the best prices. b. bid on various marketing offerings. c. access company information and find out internal costs and R&D information. d. shop for goods around the globe and around the clock. (c; Difficulty 2, p. 5)

5. All of the following are examples of customization of products and services except: a. Amazon.com sending personalized e-mails to previous book purchasers announcing newly published books on similar topics. b. an online drugstore may vary the initial display that returning buyers see when they revisit its website. c. an online merchant will send you updated product information on your recent purchase. d. when entering a keyword, the website will display all related products containing that keyword with price information included. (d; Difficultly 2, p. 5) 6. Marketers can most quickly and efficiently gauge the effectiveness of their online promotional messages rather than rely on delayed feedback through sales information by: a. hiring telemarketers to conduct brief survey calls to a sample of the customers who browsed the website. b. tracking consumer clicks on various pages or links on the website. c. having customers fill out a brief online survey asking their opinion and enticing them with sweepstakes. d. none of the above (b; Difficulty 3, p. 6) 7. The most popular method of gathering and updating customer information is through: a. the Census Bureau. b. competing companies. c. the customers themselves. d. credit card companies. (c; Difficulty 1, p. 6) 8. Currently, the greatest reflection of the digital revolution is through our increased usage of: a. shipping companies. b. credit cards. c. computers connected to the web. d. PDAs. (c; Difficulty 3, p. 6) 9. One of the digital revolution challenges facing marketers and the television advertising industry is: a. remote controls. b. TiVo. c. Internet advertising rates. d. PDAs. (b; Difficulty 2, p. 7) 10. TiVo allows for all of the following except: a. viewer control of what they watch on TV.

b. viewer control over commercials being viewed. c. recording programs onto hard drives without a VCR. d. blocking out any mention of brand names during regular programming. (d; Difficulty 3, p. 7) 11. The digital revolution has introduced a new era of what most resembles a _______________ by eliminating distance and location benefits and by creating access to intelligent agents that direct consumers towards lowest prices. a. monopolistic economy b. perfect competition economy c. C2C environment d. customer driven economy (b; Difficulty 3, p. 8) 12. Virtual competition that leads to a perfect competition environment allows sellers to differentiate themselves mainly on: a. service. b. price. c. website layout and ease of browsing. d. reputation. (b; Difficulty 3, p. 8) 13. _____ and _____, two key features in modern marketing, will become meaningless in the virtual marketplace. a. Strong brand name; reputation b. Customer service; price competition c. Location; store layout d. Price competition; speed of delivery (a; Difficulty 3, p. 8) 14. The term consumer behavior entails all the following except: a. search. b. evaluation. c. method of payment. d. disposal of product. (c; Difficulty 1, p. 8)

15. __________ is known as the behavior consumers display in searching for, purchasing, using, evaluating and disposing of products or services that they expect will satisfy their needs.

a. Consumer feedback b. Consumer evaluation c. Consumer behavior d. Marketing concept (c; Difficulty 2, p. 8) 16. The term consumer behavior describes two different kinds of consuming entities: _____ and ______ consumers. a. non-profit; government b. non-profit; for profit c. personal; organizational d. government; private (c; Difficulty 1, p. 9) 17. A personal consumer buys goods for all except: a. personal consumption. b. gifts. c. home business. d. use of ones household. (c; Difficulty 2, p. 9) 18. Organizational consumers include all except: a. government agencies. b. households. c. non-profit businesses. d. for profit businesses. (b; Difficulty 2, p. 9) 19. Henry Fords introduction of the assembly line to produce cars more efficiently and affordably is a good example of the: a. marketing concept. b. selling concept. c. production concept. d. product concept. (c; Difficulty 2, p. 10) 20. According to the text, historys best example of the success of the production concept is: a. Gillette razors. b. Ford cars. c. Microsofts Windows. d. Dell computers. (b; Difficulty 3, p. 11, table 1-1) 21. The _____ concept assumes that consumers are mostly interested in product availability at low prices. a. marketing

b. societal c. product d. production (d; Difficulty 3, p. 9) 22. The key assumption when applying the production concept is that: a. consumers are more interested in obtaining the product than they are in specific features. b. consumers are more concerned with the features and options the product contains. c. consumers will buy the product that offers them the best quality. d. marketers will analyze the needs and wants of the target market. (a; Difficulty 3, p. 9) 23. The _____ concept assumes that consumers will buy the product that offers them the highest quality, the most features and the best performance. a. production b. marketing c. selling d. product (d; Difficulty 1, p. 9) 24. A main drawback to the product concept is: a. that it leads to marketing myopia. b. that it leads to product obsolescence. c. that it focuses on offering the lowest prices meanwhile sacrificing quality. d. none of the above (a; Difficulty 3, p. 9) 25. The product concept leads to marketing myopia, which means: a. focus on what consumers want and need. b. focus on what is best for society. c. focus on the product rather than the consumer. d. focus on quality of service. (c; Difficulty 3, p. 9)

26. The main reason trains and railroads have minor significance in todays economy is because management overlooked the fact that railroads were faced with competition

not only from other railroad companies, but also from buses, cars and airlines. This is an example of: a. consumer marketing. b. production concept. c. marketing myopia. d. marketing concept. (c; Difficulty 2; p. 10) 27. The key assumption in applying the selling concept is: a. analyzing the wants and needs of the target market. b. projecting the number of units that need to be sold in a certain time period. c. selling the products the marketer has ultimately decided to produce. d. selling the customers the highest quality products possible. (c; Difficulty 2, p. 10) 28. Today, (the) __________ is typically utilized by marketers of unsought goods such as life insurance. a. product concept b. societal marketing c. selling concept d. marketing myopia (c; Difficulty 1, p. 10) 29. The selling concept fails to consider: a. price. b. product quality. c. needs of the target market. d. customer satisfaction. (d; Difficulty 2, p. 10) 30. The key assumption in applying the marketing concept is to: a. make available the latest technologies and features in a product. b. sell the customers what you are good at producing. c. determine the needs and wants of the target market. d. sell the product at the lowest price possible. (c; Difficulty 2, p. 10) 31. The consumer-oriented philosophy that evolved when marketers realized it would be easier to sell more goods to consumers who had already expressed interest is: a. the selling concept. b. the marketing concept. c. the societal marketing concept. d. the customer satisfaction philosophy. (b; Difficulty 2, p. 10) 32. The underlying premise of the marketing concept is that a company should: a. strive to make products available at the lowest prices possible.

b. make what it can sell. c. sell what it can make best. d. include the latest features and technologies in their products. (b; Difficulty 2, p. 10) 33. When General Motors implemented a strategy of a car for every purse of purpose it figured out that not all consumers wanted the same thing, this shows the importance of: a. repositioning. b. selling concept. c. market segmentation. d. word of mouth. (c; Difficulty 2, p. 11, table 1-1) 34. In order for researchers to understand consumer behaviors, needs, wants, and priorities, and in order to design new products, they had to study consumers in depth. The strategic tools that are used to implement the marketing concept include segmentation, targeting, marketing mix, and _____. a. control b. cost analysis c. positioning d. interpretation (c; Difficulty 2, p. 12) 35. Consumer research describes the process and tools used to study consumer behavior. Broadly speaking, there are two theoretical perspectives that guide the development of consumer research methodology: the positivist approach, and the _____ approach. a. negativist b. research c. interpretivist d. standard (c; Difficulty 2, p. 12) 36. Consumer researchers who follow the positivist methodology tend not to: a. be objective. b. seek causes for behavior. c. use qualitative research. d. Conduct research that can be generalized to the larger population. (c; Difficulty 3, p. 12)

37. As human beings, we all have the same biological needs, but we all acquire additional needs that are shaped by our environment. Some of these acquired needs are common to many people. The commonality of a need or interest constitutes a _________. a. target market b. market segment c. consumption decision d. marketing mix (b; Difficulty 2, p. 12) 38. Which of the following statements is most true according to a specific company? a. There are usually more market segments than target markets. b. There are usually more target markets than market segments. c. both are true d. none are true (a; Difficulty 3; p. 12) 39. _____ is developing a distinct image for the product in the mind of the consumer. a. Targeting b. Positioning c. Placement d. Promotion (b; Difficulty 1, p. 12) 40. Successful product positioning centers around two key principles: developing a unique selling proposition, and communicating the _____. a. price b. features and options c. benefits the product will provide d. warranty details (c; Difficulty 2, p. 12) 41. When wanting to position a product successfully, the marketer must decide on a USP. What is a USP? a. Ultimate Selling Price b. Unique Selling Proposition c. Unfair Selling Practices d. Unique Selling Place (b; Difficulty 2, p. 12) 42. Me too products are: a. products that need to be bought along with the original product. b. secondary products that customers need to be reminded to buy. c. products that lack a unique image or benefit. d. products that are classified as childrens toys and entertainment products.

(c; Difficulty 1, p. 12) 43. The marketing mix consists of the four elements of product, price, place and promotion. Promotion includes all the following except: a. advertising. b. public relations. c. warranties. d. building awareness of product. (c; Difficultly 2, p. 13) 44. Savvy marketers realize that in order to outperform competition, they must achieve full profit potential from each and every customer by viewing each customer as a _____ rather than a _____. a. returned products; satisfaction b. relationship; transaction c. confrontations; resolve d. losses; maximum profits (b; Difficulty 2, p. 14) 45. Which of the following is not among the three drivers of successful relationships between customers and marketers? a. customer value b. customer retention c. customer feedback d. customer satisfaction (c; Difficulty 1, p. 14) 46. _________ is defined as the ratio between the customers perceived benefits (economic, functional and physiological) and the resources (monetary, time, effort, psychological) used to obtain those benefits. a. Customer satisfaction b. Customer value c. Customer relationship management d. Consumer decision making (b; Difficulty 2, p. 14) 47. McDonalds customers flock to the thousands of outlets because they know what to expect and know they are getting value for the resources expended. The four core standards of McDonalds corporation are: quality, service, cleanliness, and _____. a. value b. smiling faces c. low process d. standardization (a; Difficulty 2, p. 14)

48. Lexus claims to deliver its buyers quality, zero defects in manufacturing, and superior and personal post-purchase service. This is an example of: a. quality control management. b. value proposition. c. customer satisfaction guarantee. d. corporate futuristic vision. (b; Difficulty 2, p. 14) 49. The concept of customer satisfaction is a function of: a. customer experience. b. customer knowledge. c. customer expectations. d. price paid. (c; Difficulty 1, p. 15) 50. Customers whose experience exceeded expectations will most likely experience: a. satisfaction. b. delight. c. disappointment. d. dissatisfaction. (b; Difficulty 1, p. 15) 51. A study that identified several types of customers identified _____ as being very satisfied customers who have no real loyalty to the company. a. loyalists b. apostles c. mercenaries d. defectors (c; Difficulty 1, p. 15) 52. A study that identified several types of customers identified _____ as being customers whose experiences exceeded their expectation and who provide positive word of mouth about the company. a. loyalists b. apostles c. mercenaries d. activists (b; Difficulty 1, p. 15)

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53. It is important to retain customers and keep them highly satisfied for several reasons except: a. it is usually more expansive to win new customers than to keep existing ones. b. to avoid negative WOM. c. a satisfied customer is a repeat customer. d. satisfied customers will endure abuse from the company and will feel obligated not to switch to a competing brand. (d; Difficulty 1, p. 15) 54. Studies have shown that small reductions in customer defections produce significant increases in profits because of all of the following reasons except: a. loyal customers buy more products. b. loyal customers are less price sensitive. c. loyal customers pay less attention to competitors advertising. d. loyal customers will not mind paying higher prices than new customers. (d; Difficulty 2, p. 15) 55. The Internet today allows for more customer intimacy and customization by offering customers specific individual offers. This type of marketing is known as: a. private marketing. b. one to one marketing. c. B2C marketing. d. relationship marketing. (b; Difficulty 2, p. 15) 56. The fact that not all customers are equal in terms of profitability means that marketers should focus on building: a. relationships with all people who express an interest in the company. b. selective relationships. c. profit classification departments. d. higher barriers to entry. (b; Difficulty 3, p. 15) 57. When a stockbroker company builds a telephone system that recognizes the phone numbers of high-volume traders to ensure their calls are answered promptly, the company has followed what strategy? a. building selective relationships b. technology forward strategy c. customer blackout d. customer prioritization strategy (a; Difficulty 3, p. 15)

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58. The fact that not all customers are equal in terms of profitability has encouraged companies to categorize customers into tiers. The popular customer pyramid groups customers into one of four tiers: platinum, gold, iron, and _____. a. sand b. wood c. lead d. copper (c; Difficulty 1, p. 16) 59. In the customer pyramid classification, where customers are ranked according to profitability, the gold tier group members are those who are all of the following except: a. heavy users. b. somewhat price sensitive. c. usually willing to try new offerings. d. are likely to buy from several providers. (c; Difficulty 3, p. 16) 60. All of the following are traits of the Value and Retention-Focused Marketing concept except: a. understanding consumer behavior in relation to the companys product. b. creation of customer tiers based on volume and consumption patterns. c. make only what you can sell instead of trying to sell what you can make. d. each customer transaction is a part of an ongoing relationship with the customer. (c; Difficulty 3, p. 17, table 1-4) 61. The _______________ requires that all marketers adhere to principles of social responsibility in the marketing of their goods and services. a. marketing concept b. societal marketing concept c. environmental marketing concept d. ethical marketing concept (b; Difficulty 2, p. 18) 62. According to the societal marketing concept, all of the following apply except: a. fast food restaurants should develop foods that contain less fat. b. marketers should not advertise alcoholic beverages or cigarettes to young people. c. marketers should forgo profits to make products available to the less fortunate. d. marketers should not use models or athletes in tobacco advertisements. (c; Difficulty 2, p. 18)

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63. The main deterrent to implementation of the societal marketing concept is: a. the lack of research to aid the success of this concept. b. the lack of evidence that proves the success of this concept. c. the short term orientation in which manager performance is evaluated. d. the lack of trained professionals to overlook its implementation. (c; Difficulty 3, p. 18) 64. Many trade associations try to avoid government intervention and imposing its regulations on the industry by: a. concealing documents. b. starting companies with shady practices using new names to avoid liability. c. developing their own code of ethics to achieve minimum self-regulation. d. using bribery to have governmental officials overlook suspicious practices. (c; Difficulty 3, p. 18) 65. Consumer behavior is a recent field of study, therefore, marketing theorists borrowed heavily from other scientific disciplines such as all the following except: a. psychology. b. anthropology. c. economics. d. physiology. (d; Difficulty 1, p. 19) 66. Social psychology is the study of: a. how an individual operates in a group. b. groups. c. the individual. d. all the above (a; Difficulty 2, p. 19) 67. The model of consumer decision making can be viewed as three distinct but interlocking stages: a. input, analysis, and output. b. environment, search, and evaluation. c. input, process, and output. d. analysis, decision making, and output. (c; Difficulty 2, p. 18)

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68. The external sociological influences that affect the input stage of the consumers decision making process include all except: a. family and friends. b. social class. c. personality. d. informal sources. (c; Difficulty 1, p. 20, figure 1-1) 69. The process stage of the consumer decision making model includes all the following except: a. motivation. b. personality. c. social class. d. attitude. (c; Difficulty 1, p. 20, figure 1-1) 70. The output stage of the consumer decision making model consists of two closely related postdecision activities: a. trial and purchase. b. purchase and repeat purchase. c. purchase and postpurchase evaluation. d. trial and postpurchase evaluation. (c; Difficulty 3, p. 20, figure 1-1)

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