Consumer Behavior, 10e (Schiffman/Kanuk) Chapter 10 The Family and Its Social Class Standing 1) Traditionally, is defined as two or more people related by blood, marriage, or adoption who reside together A) friendship B) celebrity C) household D) a work group E) family Answer: E Diff: Page Ref: 300 Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 2) The is the dominant institution in providing for the welfare of its members and is the major consuming unit A) friendship group B) celebrity group C) household D) work group E) family Answer: E Diff: Page Ref: 300 Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 3) Kevin and Lisa have been married for two years and have not yet had their first child What kind of family does this constitute? A) empty nest B) married couple C) extended family D) single-parent family E) nuclear family Answer: B Diff: Page Ref: 302 Skill: Application Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns ScholarStock 4) A husband and wife and one or more children constitute a(n) A) empty nest B) married couple C) extended family D) single-parent family E) nuclear family Answer: E Diff: Page Ref: 302 AACSB: Analytic Skills Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 5) A husband and wife and one or more children, together with at least one grandparent living within the household, constitutes a(n) A) empty nest B) married couple C) extended family D) single-parent family E) nuclear family Answer: C Diff: Page Ref: 302 Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 6) Because of divorce, separation, and out-of-wedlock births, there has been a rapid increase in the number of households in the U.S A) single-parent family B) nuclear family C) extended family D) married couple E) empty nester Answer: A Diff: Page Ref: 302 AACSB: Multicultural and Diversity Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns ScholarStock 7) Which of the following is true about gender roles in the modern family? A) There is very little difference between working and non-working wives with respect to their purchases of timesaving goods B) Husbands whose wives work take on more responsibility for household chores C) The ultimate responsibility for household management belongs to the husband D) The more traditional the divisions of household labor in a household, the higher the marital satisfaction is of the wife E) Husbands of working wives make more purchase decisions by themselves Answer: A Diff: Page Ref: 303 AACSB: Multicultural and Diversity Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 8) Which of the following is true of recent trends in the family? A) The percentage of men and women either separated or divorced has declined B) Households have increased in size C) Household management now belongs to the husband D) The percentage of family households with no spouse present has risen E) Households with married couples with children are more numerous than nonfamily households Answer: D Diff: Page Ref: 302 Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 9) includes imparting to children the basic values and modes of behavior consistent with the culture A) Intergenerational brand transfer B) Peer socialization C) Consumer socialization D) Shared shopping experience E) Family member socialization Answer: E Diff: Page Ref: 305 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family ScholarStock 10) is defined as the process by which children acquire the skills, knowledge, attitudes, and experiences necessary to function as consumers A) Intergenerational brand transfer B) Peer socialization C) Consumer socialization D) Shared shopping experience E) Family member socialization Answer: C Diff: Page Ref: 305 AACSB: Analytic Skills Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 11) Children perceive to be a close and reliable source of information, whereas adolescents and teenagers are likely to look to for models of acceptable consumption behavior A) their families; their friends B) their friends; media C) media; their friends D) media; their families E) their friends; their families Answer: A Diff: Page Ref: 306 AACSB: Multicultural and Diversity Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 12) A is a person or organization involved in the socialization process because of frequency of contact with the individual and control over the rewards and punishments given to the individual A) socialization agent B) status agent C) consumption agent D) decision agent E) composite agent Answer: A Diff: Page Ref: 305 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family ScholarStock 13) involves the transfer of product loyalties or brand preferences from one generation to another A) Intergenerational brand transfer B) Peer socialization C) Consumer socialization D) Shared shopping experience E) Family member socialization Answer: A Diff: Page Ref: 308 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 14) Gloria buys Crest toothpaste because her mother always bought Crest for her family when she was growing up This is an example of A) intergenerational brand transfer B) peer socialization C) consumer socialization D) shared shopping experience E) family member socialization Answer: A Diff: Page Ref: 308 Skill: Application Objective: 10.2: Understand the socialization process and other roles of the family 15) Socialization is best described as A) a one-way process whereby adults socialize children B) a one-way process whereby children socialize adults C) a one-way process that occurs only during adolescence D) a one-way process that occurs only during adulthood E) a two-way process in which the young person is both socialized and influences those who are doing the socializing Answer: E Diff: Page Ref: 309 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 16) Which of the following attitudes and behaviors are family members likely to influence in preadolescents? A) fashion B) fads C) personal style D) what's "in" versus what's "out" E) consumer behavior norms Answer: E Diff: Page Ref: 309, Figure 10.4 Skill: Application Objective: 10.2: Understand the socialization process and other roles of the family ScholarStock 17) In the case of men's underwear, which is frequently purchased by women for their husbands and unmarried sons, the women are the A) primary users B) secondary users C) beneficiaries D) disposers E) purchasers Answer: E Diff: Page Ref: 311 AACSB: Analytic Skills Skill: Application Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making 18) In the case of men's underwear, which is frequently purchased by women for their husbands and unmarried sons, husbands and unmarried sons represent A) primary users B) secondary users C) beneficiaries D) disposers E) purchasers Answer: A Diff: Page Ref: 311 AACSB: Analytic Skills Skill: Application Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making 19) Kim wants a candy bar and tries to convince her father to purchase one for her by threatening to throw a fit in the crowded grocery store if he does not This is an example of which of the following tactics used by children to influence their parents? A) pressure tactic B) ingratiating tactic C) exchange tactic D) coalition tactic E) consultation tactic Answer: A Diff: Page Ref: 312 Table 10.4 AACSB: Reflective Thinking Skill: Application Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making ScholarStock 20) Billy tries to convince his mother to buy him a new set of markers by suggesting to her that his teacher said he needed them This is an example of which of the following tactics used by children to influence their parents? A) inspirational appeal B) coalition tactic C) consultation tactic D) upward appeal E) rational persuasion Answer: D Diff: Page Ref: 312, Table 10.4 Skill: Application Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making 21) encourage their children to speak-up and express their individual preferences on purchases A) Protective parents B) Consensual parents C) Conservative parents D) Pluralistic parents E) Liberal parents Answer: D Diff: Page Ref: 313 Skill: Concept Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making 22) stress that children should not stress their own preferences, but rather go along with the parents' judgment on what is to be purchased A) Protective parents B) Consensual parents C) Conservative parents D) Pluralistic parents E) Liberal parents Answer: A Diff: Page Ref: 313 AACSB: Analytic Skills Skill: Concept Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making ScholarStock 23) encourage children to seek harmony, but are nevertheless open to the children's viewpoint on purchases A) Protective parents B) Consensual parents C) Conservative parents D) Pluralistic parents E) Liberal parents Answer: B Diff: Page Ref: 313 AACSB: Analytic Skills Skill: Concept Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making 24) In terms of family consumption behavior, children of tend to have more influence on purchases than those of A) consensual parents; pluralistic parents B) pluralistic parents; protective parents C) protective parents; consensual parents D) conservative parents; consensual parents E) protective parents; liberal parents Answer: B Diff: Page Ref: 313 AACSB: Reflective Thinking Skill: Concept Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making 25) In the stage of the traditional family life cycle, single young individuals have established households apart from their parents A) bachelorhood B) honeymooner C) parenthood D) postparenthood E) dissolution Answer: A Diff: Page Ref: 314 Skill: Concept Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior ScholarStock 26) Marriage marks the transition from the stage to the stage of the traditional family life cycle A) bachelorhood; honeymooner B) honeymooner; parenthood C) parenthood; postparenthood D) postparenthood; dissolution E) dissolution; bachelorhood Answer: A Diff: Page Ref: 314 Skill: Concept Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 27) Consumers in the stage of the traditional family life cycle are apt to spend their incomes on rent, basic home furnishings, and the purchase and maintenance of automobiles A) bachelorhood B) honeymooner C) parenthood D) postparenthood E) dissolution Answer: A Diff: Page Ref: 314 AACSB: Analytic Skills Skill: Concept Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 28) Ken and Kira recently married and not currently have any children They both work and are conscientiously saving their money so that they can go on a cruise next summer Ken and Kira are best described as being at the stage of the traditional family life cycle A) bachelorhood B) honeymooner C) parenthood D) postparenthood E) dissolution Answer: B Diff: Page Ref: 315 AACSB: Reflective Thinking Skill: Application Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior ScholarStock 29) The birth of the first child marks the transition from the stage to the stage of the traditional family life cycle A) bachelorhood; honeymooner B) honeymooner; parenthood C) parenthood; postparenthood D) postparenthood; dissolution E) dissolution; bachelorhood Answer: B Diff: Page Ref: 315 AACSB: Analytic Skills Skill: Concept Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 30) During the stage of the traditional family life cycle, married couples tend to be most comfortable financially A) bachelorhood B) honeymooner C) parenthood D) postparenthood E) dissolution Answer: D Diff: Page Ref: 316 AACSB: Reflective Thinking Skill: Concept Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 31) The stage of the basic family unit occurs with the death of one spouse A) bachelorhood B) honeymooner C) parenthood D) postparenthood E) dissolution Answer: E Diff: Page Ref: 316 Skill: Concept Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 10 ScholarStock 52) Defining the middle class in the U.S has always been a challenge What has been adding to the challenge in recent years? A) the global shrinkage of the middle class B) the failing economy C) the geographic shift from metropolitans to the suburbs D) the fact that luxury and technological products are becoming more affordable E) the expansion of educational opportunity Answer: D Diff: Page Ref: 337 AACSB: Multicultural and Diversity Skill: Application Objective: 10.11: Understand the middle-class consumer 53) Downscale consumers are more brand loyal than upscale consumers because A) they have found the brand that satisfies their needs the best B) upscale consumers are never satisfied C) they cannot afford to make mistakes by switching to unfamiliar brands D) they have loyalty towards companies that target them specifically E) intergenerational brand transfer is more prevalent in these households Answer: C Diff: Page Ref: 338 AACSB: Reflective Thinking Skill: Concept Objective: 10.12: Understand the working class and other nonaffluent consumers 54) Downscale consumers often spend a higher percentage of their available incomes on than their middle-class counterparts A) entertainment B) housing C) education D) food E) clothing Answer: D Diff: Page Ref: 338 Skill: Concept Objective: 10.12: Understand the working class and other nonaffluent consumers 17 ScholarStock 55) Lower-middle-class consumers' affinity for makes them prime targets for licensed goods A) status consumption B) external points of identification C) upward comparison D) downward mobility E) prestige Answer: B Diff: Page Ref: 340 Skill: Application Objective: 10.14: Understand how social class is used in consumer research studies 56) Which of the following is true of social class as it relates to saving, spending, and credit? A) Upper-class consumers tend to use their bank credit cards for installment purchases B) Young professionals perceive themselves as being average and have a strong sense of uncertainty about the future C) Lower-class consumers are more future oriented and confident of their financial acumen D) Lower-class consumers tend to pay their credit card bills in full each month E) Upper-class purchasers use their credit cards as a convenient substitute for cash Answer: E Diff: Page Ref: 341 Skill: Concept Objective: 10.14: Understand how social class is used in consumer research studies WATCH MINI CASE: Bob is interviewing for high-level managerial jobs in the Boston area He decides that, in order to make himself more appealing for the job, he should wear expensive suits and carry expensive business accessories To this end, he has decided to purchase an Icon watch, because Bob perceives that Icon watches are expensive and typically worn by people with high social status In fact, Icon specifically targets its wristwatches to image-conscious business executives and has its best results focusing its marketing efforts on men between the ages of 35 and 50 living in affluent zip codes of New York City and its surrounding suburbs 57) In the WATCH MINI CASE, Bob's choice of an Icon wristwatch constitutes A) prestige B) status consumption C) status identification D) social comparison E) social stratification Answer: B Diff: Page Ref: 320 Skill: Application Objective: 10.5: Understand what social class is and how it relates to consumer behavior 18 ScholarStock 58) In the WATCH MINI CASE, seeking a job with higher income and greater prestige, Bob is trying to exercise A) downward mobility B) conspicuous consumption C) downward comparison D) power E) upward mobility Answer: E Diff: Page Ref: 328 Skill: Application Objective: 10.8: Understand the "ups and downs" of social class mobility 59) In the WATCH MINI CASE, Icon seems to be appealing to a target market of consumers seeking a wristwatch that provides A) a sense of achievement B) a sense of power C) a sense of being well-educated D) a sense of status E) a sense of importance Answer: D Diff: Page Ref: 323 AACSB: Analytic Skills Skill: Application Objective: 10.6: Understand the various measures of social class and their role in consumer behavior 60) In the WATCH MINI CASE, Icon's focus on men of a given age in specific zip codes is an example of A) affluence targeting B) single-variable indexing C) geodemographic clustering D) autonomic decision-making E) socialization Answer: C Diff: Page Ref: 329 Skill: Application Objective: 10.9: Understand the relationship between social class and geodemographic clusters 19 ScholarStock PASTA MINI CASE: National Dining Company owns a number of different Italian food franchises Its cheapest restaurants, Pasta Bowls, are opened in geodemographic clusters composed of households earning $35,000 - $50,000 Pasta Bowl emphasizes big portions for a low price, with advertisements portraying Pasta Bowl as a way for busy parents and kids to stop running around and share quality time over a delicious and wallet-friendly meal In contrast, Armando's Italian Grille is National's most expensive chain, emphasizing fresh ingredients, attentive service, and a quiet dining atmosphere These restaurants are opened in geodemographic clusters composed of households earning over $150,000 61) In the PASTA MINI CASE, National Dining Company segments its restaurants' target markets based on A) prestige B) power C) education D) status E) income Answer: E Diff: Page Ref: 325 Skill: Application Objective: 10.6: Understand the various measures of social class and their role in consumer behavior 62) In the PASTA MINI CASE, National Dining Company identifies the social class status of geodemographic clusters through a(n) A) subjective measure B) objective measure C) consumption measure D) reputational measure E) composite variable index Answer: B Diff: Page Ref: 322 Skill: Application Objective: 10.6: Understand the various measures of social class and their role in consumer behavior 20 ScholarStock 63) In the PASTA MINI CASE, Pasta Bowl's advertising is targeting families in the stage of the traditional family life cycle A) bachelorhood B) honeymooner C) parenthood D) postparenthood E) dissolution Answer: C Diff: Page Ref: 314 AACSB: Analytic Skills Skill: Application Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 64) In the PASTA MINI CASE, Pasta Bowl's target market is dominated by members of which of the following social classes? A) upper-upper class B) lower-upper class C) upper-middle class D) middle-middle class E) upper-lower class Answer: E Diff: Page Ref: 327, Table10.12 AACSB: Analytic Skills Skill: Application Objective: 10.7: Appreciate the distinctive profiles of specific social class groupings 65) In the PASTA MINI CASE, Armando's Italian Grille's target market is dominated by members of which of the following PRIZM Cluster Segments? A) middle age couples with working class jobs B) privileged superrich families C) lower income retirees D) empty nesters settled in satellite communities E) young, middle-class families Answer: B Diff: Page Ref: 327, Table 10.12 Skill: Application Objective: 10.7: Appreciate the distinctive profiles of specific social class groupings 21 ScholarStock SMITH MINI CASE: Nathan Smith is single and lives in Detroit, where he works on the assembly line at the local automobile manufacturing plant and is a member of the Automobile Workers Union He views work as a means to buy things to enhance his leisure time and recently purchased a new television so that he could better watch his favorite team, the Detroit Lions, play football Nathan has always followed the Lions, largely because his dad was a big Lions fan 66) In the SMITH MINI CASE, Nathan most likely considered to be in the stage of the traditional family life cycle A) bachelorhood B) honeymooner C) parenthood D) postparenthood E) dissolution Answer: A Diff: Page Ref: 314 Skill: Application Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 67) In the SMITH MINI CASE, Nathan is most likely to be a part of which of the following social classes? A) lower-upper class B) upper-middle class C) lower-middle class D) upper-lower class E) lower-lower class Answer: D Diff: Page Ref: 327, Table 10.12 Skill: Application Objective: 10.7: Appreciate the distinctive profiles of specific social class groupings 68) In the SMITH MINI CASE, which of the following is most likely to describe Nathan? A) Nathan uses his credit card as a convenient substitute for cash B) Nathan perceives himself to be empowered in the sense that he can achieve whatever he sets his mind to C) Nathan saves money primarily in the interest of safety and security D) Nathan is likely to attend the theater and concerts E) Nathan prefers to spend his leisure time on cerebral activities, like reading or visiting museums Answer: C Diff: Page Ref: 341 Skill: Application Objective: 10.14: Understand how social class is used in consumer research studies 22 ScholarStock 69) In the SMITH MINI CASE, which of the following is most likely to describe Nathan? A) Nathan is likely to shop at Neiman Marcus B) Nathan prefers sleek clothing with a subtle look C) Nathan is a good target for licensed goods D) Nathan is likely to end up in the upper-middle class E) Nathan probably watches less television per day than more affluent consumers Answer: C Diff: Page Ref: 340 Skill: Application Objective: 10.14: Understand how social class is used in consumer research studies 70) In the SMITH MINI CASE, Nathan roots for the Lions because his dad did This is an example of A) subjective measurement B) geodemographic clustering C) intergenerational brand transfer D) syncratic decision making E) status consumption Answer: C Diff: Page Ref: 308 Skill: Application Objective: 10.2: Understand the socialization process and other roles of the family 71) The family commonly provides the opportunity for product exposure and trial and imparts consumption values to its members Answer: TRUE Diff: Page Ref: 305 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 72) All households are families Answer: FALSE Diff: Page Ref: 300 AACSB: Analytic Skills Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 73) The incidence of extended family households has risen as a result of geographic mobility Answer: FALSE Diff: Page Ref: 302 AACSB: Analytic Skills Skill: Application Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 23 ScholarStock 74) Working wives tend to purchase more time-saving goods than non-working wives Answer: FALSE Diff: Page Ref: 303 Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 75) A husband's behavior with respect to household chores remains the same whether the wife is or is not employed Answer: TRUE Diff: Page Ref: 303 Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 76) Nonfamily households are more numerous than family households Answer: FALSE Diff: Page Ref: 300 AACSB: Analytic Skills Skill: Concept Objective: 10.1: Understand the changing nature of U.S families, including their composition and spending patterns 77) Marketers frequently target parents looking for assistance in the task of socializing their children Answer: TRUE Diff: Page Ref: 305 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 78) Most adolescents and teens prefer to look to their parents and older siblings in the development of consumer behavior norms Answer: FALSE Diff: Page Ref: 306 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 79) Shared shopping experiences give children the opportunity to acquire in-store shopping skills Answer: TRUE Diff: Page Ref: 306 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 24 ScholarStock 80) Consumer socialization of children functions identically in all cultures Answer: FALSE Diff: Page Ref: 307 AACSB: Multicultural and Diversity Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 81) The majority of U.S Moms are receptive to marketing aimed at their children Answer: FALSE Diff: Page Ref: 307 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 82) Socialization begins in early childhood and culminates in early adulthood Answer: FALSE Diff: Page Ref: 308 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 83) The relative influence of a husband and wife on a particular consumer decision depends in part on the product or service category Answer: TRUE Diff: Page Ref: 311 AACSB: Reflective Thinking Skill: Application Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making 84) Husband-wife decision making appears to be independent of cultural influences Answer: FALSE Diff: Page Ref: 311 AACSB: Multicultural and Diversity Skill: Concept Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making 85) Over the past several decades, as a result of families having fewer children, there has been a trend toward children playing a more active role in the family decision-making process Answer: TRUE Diff: Page Ref: 311 AACSB: Reflective Thinking Skill: Application Objective: 10.3: Understand the dynamics of husband-wife decision making, as well as the influence of children in family consumption decision-making 25 ScholarStock 86) Increases in the divorce rate and the number of out-of-wedlock births, and the decline in the number of extended families has resulted in an increase in the percentage of families that progress through the traditional family life cycle Answer: FALSE Diff: Page Ref: 314 AACSB: Reflective Thinking Skill: Concept Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 87) Families in the parenthood stage are an important market for luxury goods, new automobiles, expensive furniture, and vacations to faraway places Answer: FALSE Diff: Page Ref: 316 AACSB: Reflective Thinking Skill: Application Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 88) According to social comparison theory, individuals normally compare their own material possessions with those owned by others in order to determine their relative social standing Answer: TRUE Diff: Page Ref: 320 AACSB: Analytic Skills Skill: Concept Objective: 10.5: Understand what social class is and how it relates to consumer behavior 89) Individuals with more purchasing power or a greater ability to make purchases have more status Answer: TRUE Diff: Page Ref: 320 AACSB: Analytic Skills Skill: Application Objective: 10.5: Understand what social class is and how it relates to consumer behavior 90) Conspicuous possessions serve as markers or indicators of one's own status and the status of others Answer: TRUE Diff: Page Ref: 320 Skill: Concept Objective: 10.5: Understand what social class is and how it relates to consumer behavior 26 ScholarStock 91) Social-class membership serves consumers as a framework or reference for the development of their attitudes and behavior and provides a natural basis for market segmentation for many products and services Answer: TRUE Diff: Page Ref: 320 AACSB: Analytic Skills Skill: Application Objective: 10.5: Understand what social class is and how it relates to consumer behavior 92) Age and religion are especially important as a means of locating concentrations of consumers with specific social-class membership Answer: FALSE Diff: Page Ref: 322 Skill: Concept Objective: 10.6: Understand the various measures of social class and their role in consumer behavior 93) There is a strong positive relationship between health and economic status Answer: TRUE Diff: Page Ref: 329 Skill: Concept Objective: 10.10: Understand the affluent consumer 94) Although only a minority of U.S households are considered "affluent," these households account for the majority of household income in the United States Answer: TRUE Diff: Page Ref: 331 AACSB: Analytic Skills Skill: Concept Objective: 10.10: Understand the affluent consumer 95) All affluent consumers share the same lifestyle Answer: FALSE Diff: Page Ref: 331 AACSB: Multicultural and Diversity Skill: Concept Objective: 10.10: Understand the affluent consumer 27 ScholarStock 96) What is social comparison theory? How does it relate to status consumption? How might marketers use this theory in advertising? Answer: Social comparison theory suggests that individuals normally compare their own material possessions with those owned by others in order to determine their relative social standing Because visible or conspicuous possessions are easy to spot, they especially serve as markers or indicators of one's own status and the status of others An individual consumer might decide to compare himself to someone who is worse off in order to bolster his self-esteem Alternatively, he might elect to compare upward with someone who appears to have more purchasing power, which is likely to make the consumer feel somewhat inferior Status consumption is the process by which consumers endeavor to increase their social standing through conspicuous consumption and possession Through status consumption, a consumer may display purchases that will reflect positively on his social status by comparison to those surrounding him Marketers can capitalize on tendencies among people by displaying their products as contributing to or elevating the status of its owners Diff: Page Ref: 320 AACSB: Analytic Skills Skill: Application Objective: 10.5: Understand what social class is and how it relates to consumer behavior 97) Identify the four factors that differentiate "income" from "wealth." Answer: ∙ Wealth, not income, is the primary driver to financial freedom Wealth, not income, is a function of savings, so to achieve wealth you have to increase your net worth, not just your income ∙ Wealth deals with the creation of resources and money deals more with consumption ∙ For wealth you need to network and build personal alliances, because a great deal of the information needed to create wealth is passed along via such relationships ∙ You need to find ways to minimize your non-productive spending, because non-productive spending, such as taxes, reduces your ability to create wealth Diff: Page Ref: 325 AACSB: Analytic Skills Skill: Concept Objective: 10.5: Understand what social class is and how it relates to consumer behavior 28 ScholarStock 98) How is social class membership in the United States different from social class membership in other countries, such as China? How is this changing in the U.S.? Answer: Social-class membership in the United States is not as rigid and fixed as it is in some other countries and cultures Although individuals can move either up or down in social-class standing from the class position held by their parents, Americans have primarily thought in terms of upward mobility because of the availability of free education and opportunities for selfdevelopment and self-advancement Because upward mobility has commonly been attainable in American society, the higher social classes often become reference groups for ambitious men and women of lower social status Although the United States is frequently associated with upward mobility, there now are signs of some downward mobility There is also a growing body of evidence that social mobility in America is not what it used to be According to recent research, young adults today are more likely to end up in or around the same social class as their parents Diff: Page Ref: 328 AACSB: Multicultural and Diversity Skill: Concept Objective: 10.8: Understand the "ups and downs" of social class mobility 99) Why marketers target affluent households? If affluent households are such great targets, why not target them exclusively? Answer: Affluent households constitute an especially attractive target segment because its members have incomes that provide them with a disproportionately larger share of all discretionary income Members of affluent households are also healthier, helping them live longer than members of non-affluent households and giving them a longer consumption life Despite their lower proportion of discretionary income, downscale consumers control somewhere near 30% of the total income in the United States Lower-income consumers may also be more brand loyal than wealthier consumers, because they cannot afford to make mistakes by switching to unfamiliar brands Diff: Page Ref: 329-332 AACSB: Analytic Skills Skill: Application Objective: 10.10: Understand the affluent consumer 29 ScholarStock 100) Identify the benefits and dangers of a single company marketing different brands to different social class segments Give an example Answer: People tend to avoid stores that have the image of appealing to a social class very different from their own For this reason, in order to appeal to working class consumers without driving away their middle and upper class consumers, companies will market different brands of their products, or even different stores, to different social class segments For example, Gap opened its Old Navy stores with cheaper clothing in order to sell to working class consumers without giving its Gap stores a working class reputation and driving away Gap's middle and upper class customers While Old Navy has increased the parent company's sales by targeting a new social class segment, the downside to this strategy is that Old Navy sales have cannibalized some Gap sales, with Gap customers instead choosing to buy their clothes at the less expensive Old Navy Diff: Page Ref: 340 Skill: Application Objective: 10.14: Understand how social class is used in consumer research studies 101) How the lower classes and upper classes differ in terms of saving, spending and credit? Answer: Upper class segments are more future-oriented and confident of their financial acumen, and they are more willing to invest in insurance, stocks, and real estate In comparison, lowerclass consumers are generally more concerned with immediate gratification When they save, they are primarily interested in safety and security As for their credit card usage, members of the lower classes tend to use their credit cards for installment purchases, whereas members of the upper social classes pay their credit card bills in full each month Diff: Page Ref: 340-341 AACSB: Multicultural and Diversity Skill: Application Objective: 10.14: Understand how social class is used in consumer research studies 102) What does the term "intergenerational brand transfer" mean? Answer: It means that certain product loyalties or brand preferences tend to be transferred from one generation to another, maybe even three or four generations within the family Diff: Page Ref: 308 Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 103) What are the traditional family life cycle stages a family progresses through? Answer: Stage I: bachelorhood – where a young single adult lives apart from parents Stage II: honeymooners – young married couple Stage III: parenthood – married couple with at least one child living at home Stage IV: postparenthood – an older married couple with no children living at home anymore Stage V: dissolution – one surviving spouse Diff: Page Ref: 314 Skill: Concept Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 30 ScholarStock 104) Name three new emerging households that have become important to marketers with the change in society Answer: Table 10-9 divides alternative households into family and non-family households Students may choose three of the following: Family Households a Childless couples: married couples who elect not to have children b Couples who marry later in life: likely to have fewer or even no children c Couples who have their first child later in life: likely to have fewer children; stress quality lifestyle d Single parenthood as a result of divorce e Single parenthood as a result of having children out of wedlock f Single parenthood as a result of single persons adopting one or more children g Extended family: young single-adult children return home to avoid the expense of living alone while establishing their careers; divorced children and grandchildren return home to parents; frail elderly parents move in with children; newlyweds living with in-laws Nonfamily Households a Unmarried couples: cohabitating heterosexual or homosexual couples who are not married b Divorced persons (no children) c Single persons: primarily a result of delaying first marriage; also men and women who never marry d Widowed persons: longer life expectancy, especially for women, means more over-75 singleperson households Diff: Page Ref: 318, Table 10.6 Skill: Concept Objective: 10.4: Understand how traditional and non-traditional family life cycles impact consumer behavior 105) Describe how materialism manifests in children and how it evolves as they grow up How does media exposure influence childhood and adolescent materialism? Answer: Children learn to attach importance to worldly possessions at an early age, such as seeing a commercial for a doll or action figure on television, pointing to the screen, and shouting "I want that!" Materialism increases from middle childhood (8-9) to early adolescence (ages 1213), and then declines from early to late adolescence (ages 16-18) Research has shown an inverse relationship between self-esteem and materialism in children and adolescence Rather than blaming media for the materialism exhibited by children and adolescents, finding ways to increase this group's self-esteem might serve as a more positive approach to reducing materialism Diff: Page Ref: 308 AACSB: Reflective Thinking Skill: Concept Objective: 10.2: Understand the socialization process and other roles of the family 31 ScholarStock ... 10. 10: Understand the affluent consumer 95) All affluent consumers share the same lifestyle Answer: FALSE Diff: Page Ref: 331 AACSB: Multicultural and Diversity Skill: Concept Objective: 10. 10:... households Diff: Page Ref: 318, Table 10. 6 Skill: Concept Objective: 10. 4: Understand how traditional and non-traditional family life cycles impact consumer behavior 105 ) Describe how materialism manifests... E Diff: Page Ref: 316 Skill: Concept Objective: 10. 4: Understand how traditional and non-traditional family life cycles impact consumer behavior 10 ScholarStock 32) The underlying sociodemographic