University of Texas, El Paso

MKT MISC

Chapter 12

1)Market researchers have found that a consumer's confidence in the overall economy determines how freely they will spend their money and the types of products they will buy.         is the study of how consumers decide what to do with their money.

2.                        describes the state of mind consumers have regarding their overall economic prospects, which impacts their decisions on the purchase of goods and services and their willingness to take on debt or save their money.

3. When consumers                                , they reduce the amount they save, they take on more debt, and they splurge on discretionary items.

4. A range of factors influence the overall                                                 including

individual consumers' pessimism or optimism about events that can impact their personal circumstances, such as a sudden increase in personal wealth as the result of an inheritance or a decline in investments due to global events such as the Great Recession.

5. In the last few years, the label                                            entered our nation's vocabulary, beginning with the Occupy Wall Street movement where protestors camped out in cities across the United States.

6. The                          richest people in the world are worth $1.9 trillion. This is about the same amount shared by the 3.5 billion people who are in the bottom half of the world's income bracket.

7. SRI Consulting Business Intelligence divides consumers into three groups based on their attitudes toward luxury. Which phrase is used by marketers to describe consumers who use their money to buy things that will last and have enduring value?

8. Jessie uses her luxury goods to say, "I've made it." She likes to demonstrate her success to others and purchases conspicuous luxury items, such as high-end automobiles and homes in exclusive communities. SRI Consulting Business Intelligence would

describe Jessie's attitude toward luxury as                                                                      .

9. Devon has a more emotional approach to luxury spending and is more likely to make impulse purchases. Based on Devon's attitude

towards luxury, SRI Consulting Business Intelligence would place her in which consumer group?

10. Bill Gates and Mark Zuckerberg are individuals who recently achieved their wealth and who don't have the benefit of years of training to learn how to spend it. Market researchers would use the term            to describe these consumers.

11. Many argue that America's economy can be described as one that is driven by a fairly small number of rich people. In fact, Citigroup strategists created the term          to describe this type of economy.

12. As discussed in this chapter, SRI Consulting Business Intelligence divides consumers into three groups based on their attitudes toward luxury. The smallest of the three groups includes younger consumers and more males than females. This group's attitude could be described as       .

13. According to market research, people tend to marry in a social class similar to their own. Sociologists use the term                                                                                                                     to describe this tendency.

14. Allocation of resources is rarely equal within a social group. When marketers use the term        , they are referring to the structure exhibited by groups whereby some members are better off than others.

15. Jessie and Devon have equal social standing in the community; they both work in the education system and earn similar salaries. Infact, they tend to socialize together and with other people who share similar

ideas and values about the way life should be lived. Market researchers would say that they both belong to the same                                                                                                                                           .

16. When a person flaunts his status by deliberately using up valuable resources, marketers call this                                                                                        .
17. Some individuals who have a desire to make a statement about their social class, or the class to which they hope to belong, seek status by deliberately avoidin

18. Market researchers use the term                                  to describe products that are purchased not for the enjoyment of the item itself, but rather to let others know that the purchaser/owner can afford it.

19. Marketers understand that individuals make statements about their social class through product purchases. Research on the study of the impact of fakes finds a major headache for many manufacturers, especially in Asia. Officials in China estimate that                          percent of the products made there are counterfeit.

20. If a person who bought the real thing sees imitations of their prized handbag or watch paraded in public, they can respond in a number of ways. One approach is to discontinue using the brand to avoid being mislabeled as a lesser-status person who purchases counterfeit brands. Which term do researchers use for this consumer reaction?

21.                        is the coping strategy used by consumers who go out of their way to emphasize their long relationship with the brand and express concern that its image will be tarnished.

22. Shirley buys an expensive handbag and then sees a woman walking on Worth Avenue with a faux version. Shirley decides to disguise her genuine handbag because she believes that truly high-status people do not need to display expensive logos, whereas those who do are demonstrating that they belong to a lower status. Marketers would describe this coping strategy as      .