Chapter 6: Consumer Perception

Multiple Choice Questions:

1. Individuals act and react on the basis of _____, not on the basis of _____.
a. objective reality; their previous experiences
b. their previous experiences; their perceptions
c. their perceptions; objective reality
d. their perceptions; their previous experiences
e. their previous experiences; peer pressure
(c; Understanding, Easy, p. 150)

2. The process by which an individual selects, organizes, and interprets stimuli into a
meaningful and coherent picture of the world is known as _____.
a. observation
b. perception
c. realization
d. rationalization
e. understanding
(b; Fact, Easy, p. 152)

3. _____ can simply be described as “how we see the world around us.”
a. Knowledge
b. Perception
c. Motivation
d. Attitude
e. Understanding
(b; Understanding, Moderate, p. 152)

4. _____ is(are) the immediate and direct response of the sensory organs to stimuli.
a. Sensory receptors
b. Sensation
c. Sensory input
d. Sensory adaptation
e. Sensory blocking
(b; Fact, Moderate, p. 152)

5. Products, packages, brand names, advertisements, and commercials are examples of

_____.
a. sensations
b. receptors
c. realities
d. stimuli
e. intensities
(d; Application, Moderate, p. 152)

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6. As sensory input _____, our ability to detect changes in input or intensity _____.
a. decreases; increases
b. increases; increases
c. decreases; remains constant
d. remains constant; decreases
e. increases; remains constant
(a; Understanding, Moderate, p. 152)

7. The point at which a person can detect a difference between “something” and
“nothing” is that person’s _____ for that stimulus.
a. adaptation level
b. absolute threshold
c. just noticeable difference
d. differential threshold
e. sensory adaptation
(b; Fact, Easy, p. 153)

8. Two people driving together may spot a billboard at different times. This means they
have different _____.
a. absolute thresholds
b. differential thresholds
c. just noticeable differences
d. adaptation levels
e. sensory adaptations
(a; Application, Moderate, p.153)

9. John drives by the same billboard every day on his way to work. He has seen the
billboard so many times, that he no longer notices it. This is an example of _____.
a. sensory adaptation
b. just noticeable difference
c. differential threshold
d. perceptual blocking
e. absolute threshold
(a; Application, Challenging, p. 153)

10. Sensory adaptation is of concern to national advertisers, who try to continuously

change their advertising campaigns. They are concerned that consumers will _____.
a. get bored of their ads
b. get used to their ads
c. not understand their ads as intended
d. develop negative reactions to their ads
e. become more attuned to competing advertising
(b; Application, Moderate, p. 153)

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11. Some TV ads decrease sensory input by using silence in their ads to generate
attention. This is a form of advertising used in order to overcome _____.
a. sensation
b. boredom
c. sensory adaptation
d. the just noticeable difference
e. perceptual blocking
(c; Application, Moderate, p. 153)

12. The minimal difference that can be detected between two similar stimuli is called the
_____.
a. perceptual threshold
b. differential threshold
c. sensory threshold
d. absolute threshold
e. sensation threshold
(b; Fact, Moderate, p. 153)

13. Weber’s law states that _____.

a. the stronger the initial stimulus, the weaker the second stimulus must be to exceed
the j.n.d.
b. the j.n.d. of a second stimulus is inversely related to the strength of the original
stimulus
c. the stronger the initial stimulus, the greater the second stimulus must be to exceed
the j.n.d.
d. consumers who buy the same products regularly are more likely than those who
buy less frequently to notice changes in price, packaging, or product attributes
e. the more information consumers are given about a particular product, the more
likely they are to purchase that product
(c; Fact, Moderate, p. 153)

14. Which of the following is true of j.n.d.?

a. Increasing prices below consumers’ j.n.d. is likely to cause a significant drop in
sales.
b. Making product improvements that far exceed consumers’ j.n.d. is likely to
maximize company revenues.
c. There is no j.n.d. for decreased product volume sold existing packaging
d. Changing a company’s logo to an extent just below consumers’ j.n.d. allows
companies to update their image without losing their ready recognition.
e. Increasing prices below consumers’ j.n.d. is likely to go unnoticed by consumers.
(e; Understanding, Challenging, p. 153-154)

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15. A stimulus may be too faint or brief to be consciously seen or heard, such as a deeply
embedded or a very briefly flashed image, but may still be perceived by one or more
sensory receptor cell. This is called _____.
a. subliminal perception
b. sequential transition
c. supraliminal perception
d. sensory adaptation
e. perceptual blocking
(a; Fact, Easy, p. 155)

16. _____ are the two kinds of inputs that interact to form individual perceptions.
a. Subliminal messaging and physical stimuli
b. Contrast and creativity
c. Change and consistency
d. Physical stimuli and predispositions based on previous experience
e. Predispositions based on previous experience and those based on stereotypes
(d; Fact, Moderate, p. 158)

17. In order to penetrate consumers’ perceptual “screen”, marketers frequently use _____
to set their advertisements apart from those surrounding it.
a. product benefits
b. contrast
c. product attributes
d. perceptual blocking
e. differential thresholds
(b; Understanding, Moderate, p. 160)

18. In the context of consumer perception and advertising, in general, _____ is one of the
most attention-compelling attributes of a stimulus.
a. content
b. contrast
c. context
d. drama
e. creativity
(b; Understanding, Challenging, p. 160)

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19. Which of the following is true of the relationship between consumers’ perceptions
and their motives?
a. In general, there is a heightened awareness of stimuli that are irrelevant to
consumers’ needs.
b. The stronger the consumer’s need, the greater the tendency to ignore related
stimuli in the environment.
c. In general, there is decreased awareness of stimuli that are relevant to consumers’
needs.
d. The stronger the consumer’s need, the greater the tendency to pay attention to
related stimuli in the environment.
e. Consumers tend to pay equal attention to all advertising, regardless of their needs
at any given time.
(d; Understanding, Easy, p. 162)

20. _____ is a concept related to perception. People actively seek out messages that they
find pleasant and actively avoid painful or threatening ones.
a. Selective attention
b. Selective exposure
c. Perceptual defense
d. Perceptual blocking
e. Perceptual organization
(b; Fact, Easy, p. 162)

21. _____ is when consumers have a heightened awareness of stimuli that meet their
needs or interests, and minimal awareness of stimuli irrelevant to their needs.
a. Selective attention
b. Selective exposure
c. Perceptual defense
d. Perceptual blocking
e. Perceptual organization
(a; Fact, Easy, p. 162)

22. Consumers subconsciously screen out stimuli that they find psychologically
threatening, even though exposure has already taken place. This is consistent with the
perception factor of _____.
a. selective attention
b. selective exposure
c. perceptual defense
d. perceptual blocking
e. perceptual organization
(c; Fact, Easy, p. 162)

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23. Which of the following is true of selective perception?
a. Consumers actively seek out messages that are painful or threatening.
b. Consumers selectively expose themselves to advertisements that reassure them of
the wisdom of their purchase decisions.
c. Consumers have a heightened awareness of stimuli irrelevant to their needs and
minimal awareness of stimuli that meet their needs or interests.
d. Threatening stimuli are more likely to be consciously perceived than are neutral
stimuli.
e. Consumers are unable to block excessive stimuli from conscious awareness.
(b; Understanding, Challenging, 162)

24. Canada requires tobacco firms to feature graphic health warnings on cigarette packs.
In a perception context, this is to try to combat ____ where people no longer pay
attention to the warning labels on packets.
a. selective attention
b. selective exposure
c. perceptual defense
d. perceptual blocking
e. perceptual organization
(c; Application, Easy, p. 162)

25. Consumers need to protect themselves from being bombarded with stimuli by simply
tuning out such stimuli from their conscious awareness. This is known as _____.
a. selective attention
b. selective exposure
c. perceptual defense
d. perceptual blocking
e. perceptual organization
(d; Fact, Easy, p. 162)

26. In the figure and ground principle of Gestalt psychology, _____.

a. the ground is usually perceived as distinct and central to the image
b. the common line that separates the figure and the ground is generally attributed to
the ground
c. figure-and-ground relationships are always interpreted in the same way
d. figure typically appears to be subordinate to ground and, therefore, less important
e. how a figure-ground pattern is perceived can be influenced by prior pleasant or
painful associations with one or the other element in isolation
(e; Understanding, Challenging, p. 163)

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27. Stimuli that contrast with their environment are more likely to be noticed. In
accordance with this, people have a tendency to organize their perceptions into
_____.
a. groups
b. figure and ground
c. a series of events
d. stereotypes
e. selective exposures
(b; Understanding, Moderate, p. 163)

28. To simplify life, people have a natural tendency to select stimuli from the
environment and organize them into groups and perceive them as a unified whole. In
a perception context, this is known as _____.
a. perceptual defense
b. perceptual blocking
c. perceptual mapping
d. perceptual organization
e. selective perception
(d; Fact, Moderate, p. 163)

29. Individuals express their need for _____ by organizing their perceptions so that they
form a complete picture.
a. closure
b. interpretation
c. grouping
d. figure-ground patterns
e. exposure
(a; Fact, Easy, p. 165)

30. When stimuli are highly ambiguous, an individual will usually _____.
a. ignore them
b. block them out
c. interpret them according to one’s own needs, wishes and interests
d. interpret them according to what is socially acceptable
e. interpret them based on their previous experiences
(c; Understanding, Challenging, p. 167)

31. _____ serves as expectations of what specific situations, people, or events will be
like, and are important determinants of how such stimuli are subsequently perceived.
a. A first impression
b. The physical appearance
c. Jumping to conclusions
d. The halo effect
e. Stereotyping
(e; Fact, Moderate, p. 167)

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32. Because people tend to _____, some copywriters are careful to give their most
persuasive arguments first.
a. evaluate multiple aspects of a product or service based on the evaluation of only
one aspect
b. jump to conclusions before gathering all the pertinent information
c. rely on stereotypes when information is scarce
d. rely on physical appearances to determine the quality of a product
e. hold on to first impressions
(b; Application, Challenging, p. 169)

33. Marketers are sure to perfect products before introducing them because _____.
a. first impressions are hard to change
b. stereotypes about the company will be confirmed
c. it is hard to position a defective product
d. consumers are likely to jump to conclusions before examining all the relevant
information
e. consumers will expect the products they purchase to meet their needs
(a; Application, Challenging, p. 168)

34. Marketers take advantage of _____ when they extend a brand name associated with
one line of products to another.
a. physical appearances
b. consumer stereotypes
c. the halo effect
d. the persistence of first impressions
e. consumers’ tendency to jump to conclusions
(c; Application, Moderate, p. 170)

35. The essence of successful marketing is the image that a product has in the mind of the
consumer, that is, its _____.
a. quality
b. value
c. positioning
d. features
e. attributes
(c; Fact, Moderate, p. 170)

36. Marketers of different brands in the same category can effectively differentiate their
offerings only if they stress the _____ that their brands provide.
a. attributes
b. benefits
c. quality
d. features
e. positioning
(b; Fact, Moderate, p. 170)

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37. Positioning conveys the concept, or meaning, of the product or service in terms of
_____.
a. the attributes of that product or service
b. its price position held in a given product category
c. how it fulfills a consumer need
d. existing consumer stereotypes
e. the popularity of that product or service brand
(c; Understanding, Challenging, p. 171)

38. _____ creates an overall image of the company around which multiple products can
be featured individually.
a. Positioning against the competition
b. Positioning based on a specific benefit
c. Finding an “unowned” position
d. Umbrella positioning
e. Filling several positions
(d; Fact, Challenging, p. 171)

39. When a company like Wendy’s uses the slogan “Where’s the beef?” to differentiate
itself in a large fast food market, and Apple computers uses “Be different,” they are
using a/an _____ strategy.
a. umbrella positioning
b. positioning against competition
c. positioning based on a specific benefit
d. repositioning
e. halo effect
(b; Application, Challenging, p. 171)

40. One company may realize there are several market opportunities for one product. A
company like Anheuser-Busch introduced three brands of beer, and positioned them
according to different criteria. Which positioning strategy would that fall under?
a. umbrella positioning
b. filling several positions
c. positioning based on a specific benefit
d. repositioning
e. positioning against the competition
(b; Application, Challenging, p. 174)

41. _____ enables marketers to determine how their products or services appear to
consumers in relation to competitive brands.
a. Perceptual mapping
b. Positioning
c. Repositioning
d. Perceptual blocking
e. Selective attention
(a; Fact, Easy, p. 174)

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42. The _____ is particularly important in creating a favorable impression of service
quality.
a. service price
b. service environment
c. speed of service
d. reputation of the service provider
e. location of the service provider
(b; Fact, Moderate, p. 176)

43. _____ provides value by sharing with consumers the cost savings that the company
has achieved by reducing the cost of providing the service
a. Satisfaction-based pricing
b. Reference pricing
c. Relationship pricing
d. Perceived pricing
e. Efficiency pricing
(e; Understanding, Moderate, p. 177, Table 6.1)

44. Garden Masters offers a 30-day money-back guarantee to reduce the perceived risk of
purchasing a new lawn mower. This is an example of _____.
a. Satisfaction-based pricing
b. Reference pricing
c. Relationship pricing
d. Perceived pricing
e. Efficiency pricing
(a; Application, Challenging, p. 177, Table 6.1)

45. The Enthusiast magazine offers a discount over newsstand prices for readers who
subscribe for 1 year, and even greater discounts for readers who pay for a 2-year
subscription. This is an example of _____.
a. Satisfaction-based pricing
b. Reference pricing
c. Relationship pricing
d. Perceived pricing
e. Efficiency pricing
(c; Application, Challenging, p. 177, Table 6.1)

46. A _____ is any price that a consumer uses as a basis for comparison in judging
another price.
a. tensile
b. objective
c. discount
d. reference
e. superficial
(d; Fact, Easy, p. 177)

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47. _____ are those prices currently offered at other retail outlets, whereas _____ are
those prices retrieved by the consumer from memory.
a. External reference prices; internal reference prices
b. Transaction utilities; cognitive dissonances
c. Implausible high prices; objective price claims
d. Tensile price claims; plausible low prices
e. Relationship pricing schemes; satisfaction-based prices
(a; Fact, Moderate, p. 177)

48. Jane needed a new desk lamp. She expects to pay about $40 for the lamp, but finds
one she likes for only $30. Jane has experienced _____.
a. negative acquisition utility
b. negative cognitive dissonance
c. positive transaction utility
d. positive cognitive dissonance
e. negative transaction utility
(c; Application, Challenging, p. 178)

49. Packaging, pricing, and advertising are examples of _____.

a. intrinsic characteristics
b. product references
c. consumer expectations
d. extrinsic characteristics
e. objective characteristics
(d; Application, Easy, p. 179)

50. Which of the following is true of services?

a. It is more difficult for consumers to evaluate the quality of products than the
quality of services.
b. Services are simultaneously produced and consumed.
c. Services are tangible.
d. Services are highly consistent in quality.
e. Services are durable.
(b; Understanding, Moderate, p. 179)

51. In _____, consumers rely on price as an indicator of product quality.

a. the halo effect
b. transaction utility
c. figure-and-ground relationships
d. cognitive dissonance
e. price/quality relationships
(e; Fact, Easy, p. 179)

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52. Consumers use price as a surrogate indicator of quality if _____.
a. they have little information with which to make their purchase decision
b. they have confidence in their ability to make an educated product or service
choice
c. they are familiar with the brand name
d. they have experience with the store in which the product was purchased
e. they have experience with the product or service
(a; Understanding, Easy, p. 185)

53. The purpose of institutional advertising is to _____.

a. promote a specific product line
b. promote a specific retail outlet as a way of improving the manufacturer’s image
through the retail store image
c. boost the corporate image
d. enter a product category totally unrelated to the one with which the corporate
name has become synonymous
e. promote the product category as a whole
(c; Understanding, Challenging, p. 186)

54. When consumers associate a high degree of risk with a purchase, they tend to _____.
a. spend less time thinking about their choice
b. purchase products from new or untried brands
c. choose the least expensive model of the product in question
d. rely on store image
e. avoid information about product alternatives
(d; Understanding, Moderate, p. 186)

55. Advertorials and infomercials are attempts from marketers to:

a. make the reader/viewer think it is part of the editorial/programming.
b. deceive consumers by offering products of low quality nature.
c. appeal to the lower class.
d. appear to the viewer as a documentary, and thus command more attentive
viewing than obvious commercials would receive
e. promote products through product placements
(a; Understanding, Challenging, p. 189)

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Multiple Choice Mini Cases:

CELL PHONE MINI CASE: Hype Mobile is a Korean cellular phone manufacturer that
has significant market share in the United States and was the first to introduce camera
phones to the US market. Its most recent print advertisements showed three of its phone
models and three people in different clothing fashions and asked readers to match the
phone with the caller. Mobile Power, Hype’s leading competitor, tried to downplay
Hype’s trendy reputation by offering consumers a 7-day money-back customer
satisfaction guarantee and a 2-year warrantee on its phones, advertising its products as
“mobile tools that are more than just hype.”
56. In the CELL PHONE MINI CASE, Hype’s advertisements engage the attention of
audiences by playing on their need for _____.
a. closure
b. grouping
c. stereotypes
d. peer pressure
e. figure-and-ground relationships
(a; Application, Challenging, p. 165)

57. In the CELL PHONE MINI CASE, Mobile Power’s advertising slogan is an example
of _____.
a. umbrella positioning
b. filling several positions
c. finding an “unowned” position
d. positioning against the competition
e. positioning based on a specific benefit
(d; Application, Moderate, p. 171)

58. In the CELL PHONE MINI CASE, as the first company to sell camera phones in the
United States, Hype has a reputation as a _____ in the US market.
a. discount brand
b. stealth parentage
c. pioneer brand
d. institutional advertiser
e. narrow categorizer
(c; Application, Challenging, p. 186)

59. In the CELL PHONE MINI CASE, Mobile Power’s money-back guarantee and
warrantee are designed to decrease consumers’ _____ associated with purchasing a
Mobile Power phone.
a. social risk
b. time risk
c. psychological risk
d. physical risk
e. perceived risk
(e; Application, Moderate, p. 187)

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EASY DINNER MINI CASE: Easy Dinner manufactures powdered sauces that are quick
and easy to prepare without the “chalky, artificial” taste described by consumers when
asked their opinions of typical powdered sauces. Easy Dinner advertisements feature
hectically busy adults who, at the end of the commercial, are able to calmly sit down to a
delicious meal thanks to Easy Dinner, “a quick and easy dinner solution that doesn’t taste
like it was made from a box.” Using the same advertising slogan, the company changes
its advertisements every four weeks to feature a new humorous vignette of busy
contemporary life.

60. In the EASY DINNER MINI CASE, the setting of Easy Dinner’s advertisements
serve to associate the brand with busy contemporary life styles and quality family
time through which of the following principles of Gestalt psychology?
a. figure-and-ground relationships
b. perceived risk
c. grouping
d. product positioning
e. consumers’ need for closure
(c; Application, Challenging, p. 164)

61. In the EASY DINNER MINI CASE, Easy Dinner’s advertisements serve to position
its product by stressing the brand’s _____.
a. retail store image
b. benefits
c. features
d. social impact
e. attributes
(b; Application, Challenging, p. 170)

62. In the EASY DINNER MINI CASE, Easy Dinner sells its powdered sauce sachets in
individual sachets or in boxes of 4 sachets. Selling the sachets individually allows
consumers to try different flavors while minimizing the _____ in case they don’t like
the new flavor.
a. physical risk
b. social risk
c. time risk
d. financial risk
e. functional risk
(d; Application, Challenging, p. 187, Table 6.5)

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63. In the EASY DINNER MINI CASE, Easy Dinner changes its advertisements so
frequently to overcome the problem of _____.
a. perceptual blocking
b. selective exposure
c. sensory adaptation
d. cognitive dissonance
e. perceptual selection
(c; Application, Moderate, p. 153)

JUICE MINI CASE: Fruit Fusions is a well-known producer of organic fruit blended
yogurts. It has recently decided to start producing fruit juices under the Fruit Fusions
name as well. The company’s research determined that there was a potential niche
market for organic fruit juices packaged in small single servings and sold as an
alternative to canned soft drinks typically consumed during lunch. With the slogan
“Nothing this good comes in a can,” the juice line’s print ads feature brightly a brightly
colored bottle of juice on a completely white background.

64. In the JUICE MINI CASE, Fruit Fusions is taking advantage of _____ in extending
its brand name association to its new juice line as a means of increasing consumer
acceptance of the new product.
a. umbrella positioning
b. product repositioning
c. contrast
d. consumer stereotypes
e. the halo effect
(e; Application, Challenging, p. 170)

65. In the JUICE MINI CASE, Fruit Fusions only sells its new juice line through
high-end grocery stores and lunch boutiques in an effort to create a high-end
reputation for its juice line through _____.
a. retail store image
b. consumer stereotypes
c. playing on consumers’ need for closure
d. making a good first impression
e. perceived risk
(a; Application, Moderate, 176)

66. In the JUICE MINI CASE, Fruit Fusions’ print ads are meant to draw a reader’s
attention through _____.
a. consumers’ need for closure
b. an attribute focus
c. figure-and-ground relationships
d. consumers’ tendency to jump to conclusions
e. consumers’ tendency to group stimuli together
(c; Application, Challenging, p. 163)

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67. In the JUICE MINI CASE, which of the following positioning strategies best
describes that used by Fruit Fusions?
a. umbrella positioning
b. focus on price
c. filling multiple positions
d. finding an “unowned” position
e. positioning based on a specific benefit
(d; Application, Challenging, p. 173)

True/False Questions:

68. For each individual, reality is a totally personal phenomenon, based on that person’s
needs, wants, values, and personal experiences.
(True; Understanding, Moderate, p. 150-151)

69. Marketers are much more interested in what consumers objectively know about their
products than what they perceive.
(False; Understanding, Moderate, p. 151)

70. The minimal difference that can be detected between two similar stimuli is called the
absolute threshold.
(False; Fact, Moderate, p. 153)

71. According to Weber’s law, a consumer will notice a 25 cent rise in the price of a 50
cent product more than a 25 cent rise in the price of a $10 product.
(True; Application, Easy, p. 153)

72. The marketer’s objective is to far exceed consumers’ j.n.d. for product improvements
in order to engender greater brand loyalty from consumers.
(False; Understanding, Moderate, p. 154)

73. Whenever a person is stimulated, he or she is consciously aware of the stimulus.

(False; Understanding, Easy, p. 155)

74. There is strong evidence that subliminal advertising persuades people to buy goods or
services.
(False; Fact, Easy, p. 157)

75. There is evidence that subliminal stimuli may influence affective reactions but not
consumption actions.
(True; Fact, Moderate, p. 158)

76. As an input for individual perceptions, physical stimuli are provided by individuals
themselves in the form of certain predispositions.
(False; Understanding, Moderate, p. 158)

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77. People perceive all stimuli to which they are exposed.
(False; Understanding, Easy, p. 160)

78. People usually see what they expect to see, and what they expect to see is usually
based on familiarity, previous experience, or expectations.
(True; Understanding, Moderate, p. 160)

79. Irrelevant sexuality in advertising leads viewers to remember the sexual aspects of the
ad, not the product or brand advertised.
(True; Fact, Moderate, p. 161)

80. In one type of perceptual defense, individuals sometimes unconsciously distort

information that is not consistent with their needs, values, and beliefs.
(True; Fact, Moderate, p. 162)

81. People tend to experience the numerous stimuli they select from the environment as
separate and discrete sensations.
(False; Understanding, Challenging, p. 163)

82. Deliberate blurring of figure and ground, as when Absolut Vodka embeds the distinct
shape of its bottle in a print image, can result in greater engagement of the audience
with the advertisement.
(True; Application, Moderate, p. 163)

83. Completed messages or tasks are better remembered than those that are incomplete.
(False; Fact, Easy, p. 165)

84. Highly attractive models are perceived as having more expertise regarding
enhancement products such as jewelry, lipstick, and perfume, but not problem-solving
products such as products that correct acne or dandruff.
(True; Application, Moderate, p. 167)

85. When forming first impressions, the perceiver typically knows which stimuli are
relevant, important, or predictive of later behavior.
(False; Understanding, Easy, p. 168)

86. Brands are judged more positively than warranted when evaluated alone than when
evaluated within a group of competing brands.
(True; Fact, Challenging, p. 170)

87. Products and brands have symbolic value for individuals, who evaluate them on the
basis of their consistency with their personal pictures of themselves.
(True; Understanding, Easy, p. 170)

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88. Positioning is more important to the ultimate success of a product than are its actual
characteristics.
(True; Understanding, Easy, p. 170)

89. By stressing the benefits of a product, the same product can be positioned differently
to different market segments without being physically changed.
(True; Fact, Moderate, p. 171)

90. Umbrella positioning is appropriate for small companies with very limited product
lines.
(False; Application, Moderate, p. 171)

91. Because services are intangible, image becomes a key factor in differentiating a
service from its competition.
(True; Understanding, Moderate, p. 175)

92. Unlike tangible products, most services are produced, and then sold and consumed
simultaneously.
(False; Understanding, Challenging, p. 179)

93. Consumers’ perceptions of service quality increase over time.

(False; Fact, Moderate, p. 181)

94. When consumers evaluate concrete attributes of a product, such as performance and
durability, they rely less on price and brand name as indicators of quality than when
they evaluate the product’s prestige and symbolic value.
(True; Understanding, Moderate, p. 184)

95. Consumers tend to perceive stores that offer a small discount on a large number of
items as having lower prices over all than competing stores that offer larger discounts
on a smaller number of products.
(True; Fact, Challenging, p. 185)

96. Consumers are only influenced by risks that they perceive when those risks actually
exist.
(False; Understanding, Easy, p. 187)

97. The amount of risk perceived depends on the specific consumer.

(True; Fact, Easy, p. 187)

98. Psychological risk is the risk that a poor product choice may result in social
embarrassment.
(False; Fact, Moderate, p. 187, Table 6.5)

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 Essay Questions:

99. One important concept of perception is the differential threshold. Talk about
Weber’s law and cite an example.

Answer:

Another term used for the differential threshold is the just noticeable difference.
Earnst Weber discovered that the j.n.d. between two stimuli was not an absolute
amount, but an amount relative to the intensity of the first stimulus. Weber’s law
states that the stronger the initial stimulus, the greater the additional intensity needed
for the second stimulus to be perceived as different. For example, if the price of a
large container of orange juice is $5.50, most consumers will probably not notice an
increase of 25 cents, however, a similar 25 cent increase in the price of gasoline
would be noticed very quickly by consumers because it is a significant percentage of
the initial base cost of gasoline.
(Application, Challenging, p. 153-154)

100. How do marketers take advantage of the j.n.d.?

Answer:

Marketers need to determine the j.n.d. for their products for two reasons: (1) so that
negative changes like reductions in product size are not readily discernable to the
public, and (2) so that product improvements such as larger size are very apparent to
consumers without being wastefully extravagant.
(Application, Moderate, p. 154-155)

101. What is subliminal perception? How does it affect marketers?

Answer:

When people are stimulated below their level of conscious awareness because the
stimuli are too weak or too brief to be consciously seen or heard, this is known as
subliminal perception.

Marketers have tried subliminal messaging in the past, but no real evidence shows
that subliminal messaging can influence consumer decisions, even though in some
instances it has. Some research shows that subliminal perception influences affective
reactions, but not their activities or motives.
(Understanding, Challenging, p. 155-158)

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102. What is the difference between selective attention and perceptual defense?

Answer:

Selective attention is when consumers exercise a great deal of selectivity in terms of

the attention they give to commercial stimuli. They have a heightened awareness of
stimuli that meet their needs or interests and minimal awareness for stimuli irrelevant
to their needs. Consumers are more likely to notice ads about products that are of
interest to them and disregard those that are not.

Perceptual defense is when consumers subconsciously screen out stimuli that they
find psychologically threatening, even though exposure has already taken place.
Furthermore, consumers sometimes unconsciously distort information that is not
consistent with their needs, values and beliefs.
(Understanding, Moderate, p. 162)

103. How important is it for marketers to make a good first impression?

Answer:

It is critical that marketers perfect a product before launching it because first

impressions are very hard to change. Subsequent information about a product’s
advantages, if the first impression was negative, will often be negated by the memory
of the first impression. In forming impressions, the consumer perceiver does not
know which stimuli are important, relevant or predictive or later behavior.
(Fact, Moderate, p. 168)

104. How do marketers try to make sure their customers don’t jump to the wrong
conclusions?

Answer:

When using commercials regarding the product or service, marketers are careful to
give their most persuasive argument first to try to instill certain positive beliefs about
the product or service before consumers jump to the wrong conclusions.
(Fact, Challenging, p. 168-169)

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105. Identify and give an example of the five major positioning strategies.

Answer:

There are five major positioning strategies discussed in the text. Below are the
definitions given for each in the text and an example. Students may provide different
examples.
● Umbrella Positioning: creating an overall image of the company around which
multiple products can be featured individually, e.g. instead of featuring individual
menu options in its advertising, McDonald’s primarily advertises its brand more
generally with themes like “You deserve a break today at McDonald’s.”
● Positioning Against the Competition: advertising a company’s brand in direct
opposition to competing brands, e.g. Visa’s “We make American Express green
with envy.”
● Positioning Based on a Specific Benefit: advertising that smartly and precisely
depicts key benefits of the brands they promote and effectively position these
brands with relation to the unique benefit offered, e.g. Bounty’s “the quicker
picker upper” advertising theme.
● Finding an “Unowned” Position: positioning a product in a currently unoccupied
niche in the market, e.g. Palmolive’s position as a dish soap that is “tough on
grease, soft on hands.”
● Filling Several Positions: brands create several distinct offerings in the product
line, often in the form of different brands, to fill several identified niches, e.g.
Crest Toothpaste’s varied toothpaste offerings to meet any consumer need with a
different product in its product line.
(Application, Challenging, p. 171-174)

106. SERVQUAL is a scale that is designed to measure the gap between customer
expectations or services and their perception of the service actually delivered.
Describe the dimensions on which this scale is based.

Answer:

The SERVQUAL scale measures the gap between customer expectations or services
and their perceptions of the service actually delivered, based on the following five
dimensions: reliability, responsiveness, assurance, empathy, and tangibility. These
dimensions are divided into two groups: the outcome dimension, which focuses on
the reliable delivery of the core service, and the process dimension, which focuses on
how the core service is delivered. The process dimension includes employees’
responsiveness, assurance, and empathy in handling customers, and the service’s
tangible aspects. The product dimension offers the service provider a significant
opportunity to exceed customer expectations.
(Understanding, Challenging, p. 181-182)

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107. What are the types of perceived risk consumers have to deal with?

Answer:

1. functional risk: that the product will not perform as expected

2. physical risk: risk to oneself or others
3. financial risk: that the product will not be worth the cost
4. social risk: that the product choice may result in social embarrassment
5. psychological risk: the risk that a poor product choice will bruise the consumer’s
ego
(Fact, Challenging, p. 187, Table 6.5)

108. There are many ways consumers handle risk. Identify and discuss about three
methods.

Consumers seek information about the products through word of mouth, salespeople,
media, consumer reports, and other product information resources. The more
information consumers have about their product, the more predictable the probable
consequences, thus the lower the perceived risk.

Consumers are brand loyal: consumers avoid risk by remaining brand loyal to a brand
with which they are satisfied instead of trying new or untried brands.

Consumers buy the most expensive model: when in doubt, consumers often feel that
the most expensive model is probably the best in terms of quality, that is, they equate
price with quality.
(Fact, Moderate, p. 188-189)

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