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When the prices and profit margins of brands become low, they become commodities, sold on price.

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Scenario 5-2 Since its introduction to the market in 2007, Apple Inc.'s iPhone dominated other smartphones in terms of units activated per year.However, several years later, Apple faced stiff competition from Google's Android software and Research in Motion, the maker of the Blackberry.The problem for Apple is that its competition, primarily phones powered by Android operating systems, largely outnumber the iPhone in terms of available options.In the U.S.alone, there are over twenty smartphones that run on the Android operating system, compared to Apple's one iPhone.Americans are now buying more Android phones than iPhones.Experts claim that if the trend continues, Android will have erased the iPhone's once enormous lead in the high-end smartphone market in a little over a year.Now more than ever, Apple, which insists on tight control of its devices, must find a way to win in an intensely competitive market against rivals that are openly licensing their software to scores of companies. -(Scenario 5-2) Originally, one reason that the iPhone outsold other smartphones was the feeling of pride many consumers associated with owning one.This represents:


A) an emotional benefit.
B) a functional benefit.
C) a need state.
D) cognitive dissonance.

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The consumption process is based on the sequence of four stages: need recognition, information search and alternative evaluation, purchase, and postpurchase use and evaluation.

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Scenario 5-1 As clothing and accessories retailer Gap, Inc.attempted to carry its brand to greater heights, executives felt that a great way to refresh the company's logo would be to change it all together.However, perhaps even quicker than the initial decision to change the logo, the masses reacted so negatively to the change that the company went back on its decision.A number of consumers stated that the new logo looked "cheap, like a crummy PowerPoint presentation," and that was all company executives needed to hear.Gap admitted that the idea of changing the company's logo was probably not the right move nor was it the right time to do so.The company will look for other ways to develop the brand.Clearly, Gap's reaction to consumer sentiments serves as proof that the company cares a great deal about consumer thoughts and opinions. (Iko Han, "Gap's New Logo Proves the Company Knows How to Listen." Cornerline News, October 13, 2010.) -(Scenario 5-1) Gap's logo had been extremely popular, and most of its customers recognized and used their products for years.This is an example of .


A) brand loyalty
B) variety seeking
C) advertising clutter
D) cognitive dissonance

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Which of the following is true about branding and advertising based on social and cultural factors?


A) Consumer behavior lacks the ability to be meaningfully social.
B) Advertisements are purely socially isolated attempts to attitude manipulation.
C) Consumers are merely information processors.
D) Advertisers have meaning as a primary focus.

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A person is most likely to have a high degree of involvement while buying:


A) laundry detergent.
B) a notepad.
C) paper towels.
D) a car.

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D

Advertising clutter derives from the context in which ads are processed.

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Which of the following demonstrates the way we pick up phrases or slogans from advertisements and commercials, then make them part of our everyday conversation, and ultimately part of our popular culture?


A) "Make my day."
B) "How are you?"
C) "Yes we can."
D) "Just do it."

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memory is very important where advertising is concerned and is the kind of memory through which names, words, and concepts are retrieved from people's minds.


A) Iconic
B) Episodic
C) Emotional
D) Semantic

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While grocery shopping, Kate picks up the "Krispys" cereal instead of the usual cereal that she buys every day. This is an example of variety seeking.

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Scenario 5-6 Voice-It Technologies produces inexpensive personal voice recording devices that serve as a substitute for message pads in the home or office.Their recording time is limited to 120 seconds and the devices sell for less than $20.Voice­It's products are about the size of four credit cards stacked on top of one another and have a life of about a year.The slogan the firm uses on its packaging and advertising is "Don't Write It, Voice­It!" -(Scenario 5-6) Most consumers who purchase Voice-It products buy them primarily when their preferred brand is out of stock.They also do not spend much time on information search.What mode of consumer decision making does this indicate?


A) Brand loyalty
B) Limited problem solving
C) Extended problem solving
D) Cognitive dissonance

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Identity is a sociological concept and it matters a great deal to advertisers.The current thinking is that the presence of celebrities in ads help contemporary consumers:


A) minimize buying power.
B) legitimize the symbolic value of consumption.
C) work out their identity issues.
D) reject conspicuous consumption behaviors.

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Which of the following best describes the social meaning approach?


A) It focuses on using beliefs and rituals to subconsciously manipulate people into buying something they don't need.
B) It centers around viewing consumers solely as information processors.
C) It involves knowing how to connect with human beings with reference to their consumption practices.
D) It refers to connecting with people by using ads as mere socially isolated attempts to influence their attitudes.

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When consumers believe their brand to be more popular than it actually is, it is called an accessibility bonus.

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True

The concept of cognitive dissonance is more commonly referred to as:


A) advertising clutter.
B) buyer's remorse.
C) variety seeking.
D) a need state.

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B

In the world of advertising, culture is seen as:


A) people's rules and regulations.
B) the way things are done.
C) a sense of morality in society.
D) the spiritual beliefs of people.

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Consumer preferences and strata have become more dependable than in the past.

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Advertising can influence both internal and external searches.

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Viewing consumers as social beings allows advertisers to focus on the attitudes they have toward brands, which are much more important than the meanings they associate with brands.

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refers to misrepresenting information in a positive way to favor a particular brand with which a consumer has an emotional connection.


A) A need state
B) Cognitive dissonance
C) Predecisional distortion
D) Stratification

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