KEY

College of the North Atlantic

MR1500
Consumer Behaviour
There are 2 parts to this exam:
Part 1 consists of 35 + 2 bonus multiple Choice Questions
Part 2 consists of a choice of 3 of 4 questions to be
answered in the space provided.
Midterm Exam
Chapters 1-7

Name:________________________

PLEASE ANSWER ALL MULTIPLE CHOICE QUESTIONS

ON THE EXAM PAPER
1. The study of consumers as they exchange something of value for a
product or service that satisfies their needs is the definition of
__________________________.
a. sociology
c. consumer behaviour
b. marketing research
d. psychology
2. A complete analysis of consumer behaviour should identify three
types of actors: marketers, public policy actors, and most
importantly___________________________
a. advertisers
c. consumers
b. employees
d. suppliers
3. When Don calls the local utilities commission about the high cost of
water, he would be considered what type of consumer behaviour
"actor"?
a. public policy actor
c. economic actor
b. marketer
d. consumer
4. ______________________________ are individuals that identify
needs, buy and consume products, and dispose of products.
a. Public policy actors
c. Exchangers
b. Marketers
d. Consumers
5. Any study of consumer behaviour includes __________________
since that perspective concentrates on the effects of culture and values
on consumer behaviour.
a. psychology
c. biology
b. b. anthropology
d. economics
6. Large firms often divide their organization into groups or
_______________________that market a set of homogeneous products
to a set of homogeneous market segments.
a. market segments
c. administrative sections
b. policy groups
d. strategic business units
(SBUs)

7. ______________________ organizations are groups that influence

public policies, individuals'
actions, and marketers' strategies in areas that interest their members.
a. social action
c. community action
b. Professional action
d. Universal protection
8. The first activity in any act of consumer behaviour is
a. search
c. recognizing needs
b. evaluation of alternatives
d. purchase

9. Price, colour, and a long-term warranty would be examples of

evaluative _____________________ used to determine which
alternative should be the one selected for purchase.
a. judgements
c. standard
b. criteria
d. benchmark
10. If a consumer places great importance on a purchase, that product
would be considered a(n) ______________________ product.
a.salient
c. high-impact
b. high involvement
d. expensive
11. __________________ are the things that people are, while
behavioural processes are
the tools people use in making decisions.
a. Consumer background characteristics c. Personality traits
d. Consumer features
d. Reference characteristics
12. Beliefs about personal freedom, hard work, and individual rights are
all considered American cultural ____________________
a. norms
c. goals
b. behaviours
d. values
13. Friends, family, and co-workers would all be considered
_________________ groups, if they have a significant effect on
consumer behaviour.
a reference
c. credential
b. endorsement
d. expertise
14. ______________ is the process of dividing the total market into
segments and then targeting specific products at selected segments.
a. Marketing division
c. Market segmentation

b. Population sampling

d. Market channelling

15. The "mental location" to which a consumer assigns a product in his

or her mind is called that product's____________________.
a. extension
c.image
b. position
d. formula
16. Within a_______________________________, consumers are
indistinguishable and are all in one segment.
a. customized market
c.market system
b. mass market
d. psychographic segment
17. When considering segmentation strategies, marketers must develop a
strategy that is both effective and_______________________ .
a. efficient
c. extensive
b. global
d. inclusive
18. The first step in segmenting target markets is to choose background
characteristics relevant to your product, followed by an examination of
the _____________________ processes of those within the background
characteristic segments.
a. thought
c. physical
b. behavioural
d. decision making
19. The two types of product positioning strategies are positioning by
consumer characteristics and behaviours, and positioning
by____________________________.
a. competitor
c. product life cycle stage
b. price
d. product type
20. A company that is experiencing lower inventory and advertising
costs because it is producing and marketing a single product to many
consumers is benefiting from __________________________.
a. value pricing
c. economies of scale
b. accountability
d. psychographic analysis
21 Age, family life cycle, gender, and income are all
________________________ consumer characteristics used in the
process of segmenting a market.
a. demographic
c. cultural
b. psychographic
d. personality

22. When a market is segmented based on consumers' behavioural

processes, consumer decision making and ________________________
may be used as bases of segmentation.
a. demographics
c. perceptions
b. lifestyle
d. value systems
23. The unique pattern of shared meaning that characterize a society and
distinguish it from other societies is the definition of
_________________
a.marketing
c. culture
b. sociology
d. subculture
24. Culture is _____________________ because it guides consumers'
behaviour and also _______________since it changes to reflect changes
in the environment.
a. instinctive; transparent
b. functional; dynamic

c. instinctive; dynamic
d. functional; transparent

25. Divisions of a culture based on such things as race, age, or religion

are called
a. reference groups
c. subcultures
b. equity groups
d. cultural clusters
26. If a company uses one marketing mix throughout the world, that
company has chosen a __________________ marketing strategy.
a. localized
c. differentiated
b. global
d. concentrated
27. Goals and objectives consumers seek are called
______________________ values, whereas the ways consumers achieve
the objectives they seek are called ___________________values.
a. functional; terminal
c. terminal; instrumental
b. material;instrumental
d. material; functional
28. Major differences in cultures are usually found in the areas of
economic conditions, government policies, and
_____________________
a. technological advances
c. law
b. mess communication
d. housing

29. The underlying beliefs regarding what is important and how people
should live are called cultural_________________________.
a. norms
c. action rules
b. values
d. laws
30. The marketing research that involves comparisons of various
cultures is called ___________________.
a. intercultural research
c. cross-cultural analysis
b. multinational research
d. diversified marketing
research
31. When conducting cross-cultural analysis, one of the most important
areas of research involves determining the product's
_____________________ to the targeted consumers.
a. price compatibility
c. name recognition
b. appeal
d. number of uses
32. A(n) __________________is an age-based subculture whose
members' childhood experiences influence their customs and
behaviours.
a. cohort
c. consort
b. affiliate
d. syndicate
33. Which subculture, based on age, includes college students and young
adults experiencing diminishing economic opportunities?
a. baby boomers
c. young achievers
b. Generation X
d. junior adults
34. Which of the following family purchases are often influenced by
children?
a. housing
c. adult clothing
b. consumer electronics
d. newspaper subscriptions
35. The _______________________ class predominately evaluates
products based on a product's function, whereas the
____________________class is more conscious of a product's
appearance.
a. middle; working
c. working; upper
b. middle; upper
d. lower; middle

BONUS
36. _________________________is segmentation based on geography
and demographics.
a. Demogeography
c. Geodemographics
b. Double segmentation
d. Multi-segmentation
37. The predisposed way a person approaches his or her environment is
referred to as _____________________.
a. Iifestyle
c. motivation
b. personality
d. psychographics

Part 2 Complete 3 of 4 of the

questions in the space provided
1) Define what is meant by Learning and then
summarize the basic theory behind Behavioural Learning,
Cognitive Learning and Operational Learning.
Key aspects of answer:
Define Learning p67
Define Behavioural
Define Cognitive
Define Operational
Examples would add value to the answer
2) Motivation refers to the processes that cause people to
behave the way they do. Discuss the Motivational
Process and discuss the three basic types of motivational
conflicts that can occur in humans in reference to the
products that we buy.
Key aspects of answer:
Define Motivation p98
Approach-Approach p101
Approach-Avoid
Avoid-Avoid
Discuss each and Examples would add value to the
answer
3) Define and differentiate between our Real and Ideal
Selves? How is our consumption affected because of the
conflict that may exist between the real and the ideal
self?
Key aspects of answer:
Define Real Self p132
Define Ideal Self
A differentiation between the two needs to be
made
Consumption affected by key factors that appeal to
ideal self p133

4) Define what is meant by ones personality and

describe how marketers use personality traits to segment
and assess markets using branding
Key aspects of answer:
Define Personality p157
Look for a discussion of theories, brand theory,
lifestyle etc to demonstrate concept