TRUE/FALSE
1. Consumer behavior is a specialized discipline in the marketing field and represents a small
part of our everyday decisions.
ANS: F
2. Some of the most successful firms are adopting an approach that organizes their activities
around the needs and behaviors of key manufacturers rather than key customers.
ANS: F
3. The activities people undertake when obtaining, consuming, and disposing of products and
services is a good definition of marketing.
ANS: F
4. To gain an effective understanding of the consumer it is most important to study activities
relating to the purchase aspect of consumer behavior.
ANS: F
5. To gain an effective understanding of the consumer it is most important to study activities
relating to the purchase, consumption, and disposal aspects of consumer behavior.
ANS: T
6. Consumer behavior can be defined as the activity people undertake when obtaining,
consuming, and disposing of products and services.
ANS: T
, 7. Obtaining refers to the activities leading up to and including the purchase or receipt of a
product.
ANS: T
8. Disposing refers to how, when, where, and under what circumstances consumers use
products.
ANS: F
9. Consuming includes how consumers get rid of products and packaging.
ANS: F
10. Historically, the study of consumer behavior has focused on why people buy.
ANS: T
,11. Consumption analysis focuses on how people buy.
ANS: F
12. Why and how people consume is the focus of consumption analysis.
ANS: T
13. In the United States, consumers are responsible for about 66 percent of the nation’s
economy.
ANS: T
14. The marketing concept is the process of planning, and execution of ideas, goods and
services to create exchanges that satisfy individual and organizational objective.
ANS: T
15. The marketing concept refers to the ability of a firm to sell what it manufactures to its
targeted consumers.
ANS: F
16. Marketing is the process of making people want to buy what an organization has to sell.
ANS: F
17. Marketing is the process of transforming an organization to have what people will buy.
ANS: T
18. If a firm is doing a good job of marketing, it can ignore the needs and wants of the market.
, ANS: F
19. Due to the high cost of recruiting new customers, firms sometimes try to create
relationships with their customers as a way of retaining them.
ANS: T
20. Public policy makers are not interested in consumer behavior.
ANS: F
21. An understanding of consumer behavior is useful in formulating public policy.
ANS: T
22. Consumer research plays an important role in public policy debates as policy makers need
to predict the effect of their decisions upon the public.
ANS: T
23. The cornerstone of a market-driven economy is the right of any consumer to make an
informed and unrestricted choice from an array of alternatives.
ANS: T
24. From an individual standpoint, possibly the most important reason you should be
interested in consumer behavior is the effect it will have on the overall economy.
ANS: F
25. The retail supply chain consists of all the organizations involved in taking a product from
inception to final consumption.