13-test-bank (income and social class)

13 - Test Bank Consumer Behaviour (University of Ottawa) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university 13 - Test Bank Consumer Behaviour (University of Ottawa) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Victor wanted to be able to show Marilyn ʹ s parents that he had some money, too, so he wore his best Italian suit and his large cubic zirconium pinky ring. They were Victor ʹ s way of advertising his achievements. Products used in this way are called: A) consumption markers B) status utilities C) social class indicators D) status symbols E) fraudulent symbols 1) 2) Between 1970 and 1994, real per capita income increased substantially, but some consumer groups got a larger share of the pie than others. What was one of the key factors to which this imbalance was attributed: A) couples getting married at older ages B) influx of illegal aliens C) unfair competition from foreign manufacturers D) more women entering the work force E) growth of computer - related industries 2) 3) The money available to a household over and above that required for a comfortable standard of living is termed: A) capricious income B) diversion income C) fun money D) discretional income E) discretionary income 3) 4) Consumer demand for goods and services depends on: A) ability and willingness to buy B) understanding the product or service C) economics and finance D) target marketing and PR E) the money to buy the product or service 4) 5) A current statement on the share of household budget expenditures is: A) men are directing this in regards to major purchases B) very minimal or no change at all C) share has increased for food and clothing D) share has increased for shelter and transportation E) share has remained the same for most goods 5) 1 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

12) People within a social class share all of these characteristics EXCEPT: A) they tend to socialize with people from a wide variety of backgrounds B) they have approximately equal social standing within the community C) they work in roughly similar occupations D) they share many of the same ideas and values about the way life should be lived E) they tend to have similar lifestyles because of their income levels and common tastes 12) 13) Universally people develop a ________ whereby they are ranked in terms of their relative standing in society. A) ranking order B) placement order C) deployment order D) social placement E) pecking order 13) 14) Katrina, a new recruit for Maple Leaf Foods, is promoted very quickly over longer - term employees, and is given a parking space with the company vice presidents. This is an example of: A) corporate culture B) company favouritism C) social stratification D) rapid advancement E) employee discrimination 14) 15) Johann seemed to have all the luck  some would say that he was ʺ born with a silver spoon in his mouth. ʺ This is an example of: A) homogamy B) status assumption C) status recognition D) prestige status E) ascribed status 15) 16) Although members of a particular social group carry the same identity of membership, some members are better off, better liked or respected, and have more authority or power than others. The group exhibits: A) a differential structure B) a ʺ big cheese ʺ structure C) a status hierarchy D) social inequity E) intra - class rivalry 16) 17) The most influential and the earliest attempt to describe Canadian class structure was proposed in 1941 by: A) Richard Coleman B) W. Lloyd Warner C) Bernard Blishen D) Max Weber E) George Katona 17) 3 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

18) According to the class structure outlined in the text, most medical doctors and university professors would be in the ________ class. A) middle B) lower - upper C) working class D) upper - middle E) upper - upper 18) 19) Max ʹ s family is part of what is called ʺ the new rich. ʺ They are the newer social elite, drawn from current professionals. His father is a medical doctor and his mother is vice president at a large urban bank. Max ʹ s family (based on the description given in the text) belongs to which of the following social class categories? A) Lower - Upper B) Upper - Upper C) Upper - Middle D) Lower - Middle E) Middle 19) 20) Stephanie ʹ s parents are considered to be blue collar; however, her dad owns a construction company and performs mostly white - collar duties. Her mother runs an office cleaning company from their home. The couple earns about $90,000 a year and are able to send Stephanie and her two sisters to the state university close to their hometown. Based on this description, which of the following contemporary views of the American class structure best describe Stephanie ʹ s family? A) Lower - Upper B) Upper - Upper C) Middle D) Upper - Middle E) Lower - Middle 20) 21) The millions of consumers around the world who can now afford higher quality products are referred to as belonging to the ________. A) mass class B) global middle class C) mobile demanders D) culture shifters E) swing class 21) 22) Sandra Jackson decided to become a university professor after several years as a doctor. She still wanted to help people; she just wanted to do it differently. Sandra ʹ s case is an example of which of the following? A) Upward mobility B) Diagonal mobility C) Horizontal mobility D) Downward mobility E) Circular mobility 22) 4 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

28) Trisha grew up in a drug - ridden intercity neighborhood. Through sheer determination and intelligence,Trisha is now a medical doctor teaching on the staff of a large university hospital. Trisha is proud of what she has accomplished, but sometimes she feels like she isn ʹ t quite sure who she really is. The concept of ________ was developed to assess the impact of such inconsistencies. A) inconsistent markers B) hierogamy C) a taste culture D) status crystallization E) homogamy 28) 29) One problem in assigning people to a social class is status inconsistency. For example, consumers who earn at least 15 percent less than the median for their class must often make certain sacrifices to maintain the appearance of living up to class expectations. They are said to be: A) underprivileged B) culture - bound C) underutilized D) status - seekers E) the paradox class 29) 30) Jacques, when viewing television ads for furniture, is more interested in hearing about sturdiness than fashionability. This is a characteristic of: A) creative pleasure seekers B) old fashioned approaches C) social adaptability D) low income earners E) working class consumers 30) 31) Tara intended for her daughter to go to university, so she started saving for this event when her daughter was born. This most likely indicates a/an ________ social class. A) attitudinal B) academic C) prestigious D) higher E) aspirational 31) 32) A major class difference involves the worldview of consumers. These behaviours are typical of working classes EXCEPT: A) they evaluate products in utilitarian terms, such as comfort or sturdiness B) their vacation trips tend to be short and nearby C) they envy higher social classes and try to maintain the appearance of a high - status lifestyle D) they have a more intimate and constricted view of the world, involving their relatives and community E) their buying behaviour is dictated by immediate or short - term needs 32) 6 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

33) A major class difference involves the worldview of consumers. These behaviours are typical of higher - status classes EXCEPT: A) they tend to be concerned about appearance and body image B) they are more likely to be conservative and family oriented C) they tend to evaluate products in terms of style or fashionability rather than in utilitarian terms D) they tend to focus on long - term goals such as saving for university education or retirement E) they are more likely to experiment with new products or styles 33) 34) When Otis visited Toronto he watched CNN on TV in his hotel, went to the ROM, and to hear the symphony. Most likely he belongs to: A) middle and working B) upper and upper middle class C) upper D) working E) middle class 34) 35) Miguel has worked very hard over the past ten years, and has reaped the rewards of his labours by being named company president (salary $200,000./yr.) However, even after his new - found wealth, he is unhappy. This condition is known as: A) achievement dysfunction B) depressive anxiety C) unsatisfied status D) affluenza E) acquired deficiency 35) 36) Differentiating people on the basis of their aesthetic and intellectual preferences is consistent with the concept of: A) social patterning B) social engineering C) art appreciation D) class separation E) taste cultures 36) 37) From a semiotic point of view, there are differences in the way meanings are expressed and interpreted by consumers within different social strata. The working class tend to focus on the description and content of objects rather than the relationship among objects, using: A) animated codes B) restricted codes C) elaborated codes D) intrinsic codes E) content - specific codes 37) 7 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

44) The lower classes use more restrictive codes than do the upper classes. How does this knowledge change the way insurance would be sold to a working - class man compared to an upper - class man? A) The promotion to the working - class man would use a large vocabulary, while the upper - class promotion would contain few qualifiers. B) The promotion to the working - class man would emphasize pictures while the upper - class promotion would emphasize words. C) The promotion to the working - class man would emphasize the long - term benefits of insurance, while the upper - class promotion would emphasize the short - term consequences of the choice. D) The promotion to the working - class man would emphasize his immediate satisfaction in knowing that his family will be cared for, while the upper - class promotion would emphasize the long - term consequences of the choice. E) Both men would receive the same ad because elaboration codes have been found to be irrelevant to this product category. 44) 45) After three years of hard work, Nancy finally became the director of the marketing department. To celebrate she shopping and bought some new expensive outfits. Nancy ʹ s attitude toward luxury is: A) crystallized B) hedonic C) reward D) indulgence E) functional 45) 46) The term ʺ old money ʺ doesn ʹ t just mean wealthy; it means: A) essentially, inherited wealth B) that people in this category are mostly over 65 C) laundering ʺ new ʺ money from illegal or unethical businesses into socially acceptable businesses D) super - rich, as in oil sheiks E) nouveaux riches 46) 47) The most affluent of ʺ old money ʺ Canadians: A) are plagued by status anxiety B) got their money the old - fashioned way: ʺ They earned it! ʺ C) continue to live in mansions in Manhattan rather than move to the suburbs D) have a family history of public service and philanthropy E) use wealth as a way of making distinctions among themselves, rather than ancestry or lineage 47) 48) Another name for the newly rich is the: A) status seekers B) type A personality C) dot.com millionaires D) upper class E) working wealthy 48) 9 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

49) The constant, even obsessive, concern with doing the ʺ right thing, ʺ buying the right thing to make the right impression, is a condition often faced by those who only recently became wealthy and is called: A) post - blue collar syndrome B) ʺ lottery wealth ʺ effect C) status anxiety D) cultural disaffection E) nouveaux riches 49) 50) All of the following terms were coined by Veblen, EXCEPT: A) invidious distinction B) malicious distinction C) conspicuous consumption D) conspicuous waste E) leisure class 50) 51) Veronica recently bought a new high - end BMW. One of the reasons she purchased it was because she knew other people in her neighbourhood would be jealous of her. For Veronica, the role of the BMW was: A) individual distinguishing B) invidious distinction C) inspired differentiation D) integrated status E) implied assurance 51) 52) Joshua was born into a wealthy family and never had to work in his life. He eventually became bored with his life and went looking for a job to keep him busy. His parents were very angry with him and would not speak to him. Joshua could be categorized as belonging to the: A) middle class B) lower - upper C) leisure class D) conspicuous class E) inviduous class 52) 53) The concept of the potlatch, the extravagant feast and display and often even the destruction of wealth or possessions (to show that one can afford to) characteristic of the Kwakiutl Indians of the Pacific Northwest, is analogous to the modern concept of: A) social class B) conspicuous consumption C) the idle rich D) reciprocal demand theory E) status anxiety 53) 54) What modern Canadian ceremony would come closest in intent to a Native American potlatch ? A) a rock concert B) the celebration ordered by a large company who has gained a new lucrative contract C) a baptism D) a marriage E) a university graduation 54) 10 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

61) William and Tracy both live in Britain. They would be considered to be lower - class and love to wear Adidas track pants with very flashy brands like Burberry. The British would put William and Tracy into a group known as the: A) lower elite B) parody displayers C) paradox elite D) chavs E) trickle downer 61) 62) Fred has been a farmer all his life. He inherited the family farm when he was 35 but that was twenty years ago. It looks like he is going to lose the farm and have to take a manual labour job in the city to support his family. What form of mobility best describes Fred’s position? A) Horizontal Mobility B) Downward Mobility C) Two - Way Stretch Mobility D) Upward Mobility E) Vertical Mobility 62) 63) Richard worked very hard on his grades and worked after school part time to be able to afford tutors to help him advance his education. When he was named number one in his class, he was given a certain status. The best term to describe the form of status that was given to Richard was ________. A) ascribed status B) achieved status C) aspirational reference group status D) classification status E) reference group status 63) 64) Which of the following would be the best example of a product with symbolic aspects, but low to moderate prices? A) cars B) washing machines C) homes D) refrigerators E) liquor 64) 65) Psychologists use the term homogamy to describe, “assortative mating.” Which of the following phrases would be the best illustration of homogamy? A) To the victor go the spoils. B) Put the cart before the horse. C) Leave no stone unturned. D) Birds of a feather flock together. E) The grass is always greener. 65) 12 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

66) The lower classes use more restrictive codes than do the upper classes. How does this knowledge change the way insurance would be sold to a working - class man compared to an upper - class man? A) The promotion to the working - class man would emphasize words while the upper - class promotion would emphasize pictures. B) The promotion to the working - class man would emphasize his immediate satisfaction in knowing that his family will be cared for, while the upper - class promotion would emphasize the long - term consequences of the choice. C) The promotion to the working - class man would emphasize the long - term benefits of insurance, while the upper - class promotion would emphasize the short - term consequences of the choice. D) The promotion to the working - class man would emphasize pictures while the upper - class promotion would emphasize words. E) Both men would receive the same ad because elaboration codes have been found to be irrelevant to this product category. 66) TRUE/FALSE. Write ʹ T ʹ if the statement is true and ʹ F ʹ if the statement is false. 67) While consumer demand for necessities shows little cyclical variation, discretionary expenditures can be postponed or eliminated. 67) 68) They typical Canadian household is changing the way it is spending its money. More income is being allocated to food and apparel and less is being spent on shelter and transportation. 68) 69) Behavioural economics is the study of how consumers ʹ motives and expectations about the future affect their current spending, and how these individual decisions add up to affect a society ʹ s economic well - being. 69) 70) ʺ Consumer confidence ʺ refers to how sure consumers feel about their being able to make the right product and brand choices. 70) 71) There is no evidence of a pecking order for people. 71) 72) The concept of social class has been valuable in marketing because it tells researchers how money is spent. Unfortunately, however, social class has failed to tell marketers how much money will be spent within each class. 72) 73) Social mobility is possible in almost any society if the person possesses something that the culture highly values. 73) 74) Basically, the concept of stratification of the society is a universal phenomenon. 74) 75) People within the same social class tend to have similar lifestyles by virtue of their income levels and common tastes. 75) 76) People tend to marry others in similar social classes. 76) 77) Changes in technologies can create changes in social class. 77) 13 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

94) Lottery winners are examples of consumers who become overprivileged virtually overnight. 94) 95) The place one occupies in the social structure is an important determinant not just of how much money is spent; it also influences how it is spent. 95) 96) John is a working class individual. Based on his worldview, maintaining the appearance of his home and property is a priority. 96) 97) Even though the concept of taste cultures has been criticized, it is helpful to marketers because it recognizes the existence of groupings based upon shared tastes in literature, art, home decoration, etc. 97) 98) A marketer of high - priced jewelry must ensure that he draws on restricted codes for the intended market and uses language rich in personal qualifiers and large vocabulary. 98) 99) Beth is considered an upper class woman. Therefore, she has access to economic, social, and cultural capital. 99) 100) There are two reasons as to why an individual will purchase a luxury item - as a way of rewarding an accomplishment or as a way to express their individuality. 100) 101) When people have all the money they want or will ever need, social distinctions no longer revolve around the amount of money one has. 101) 102) Status anxiety is more likely to strike among those in the nouveaux riches group than those in the ʺ old money ʺ class. 102) 103) The high income class is not one market since spending priorities are dependent upon such factors as: where the money was acquired; how the money was acquired; and how long it was acquired. 103) 104) Status symbols are products which act as ʺ badges of achievement ʺ for those who own them, to let others know that they can afford them. 104) 105) Eddie just bought a new Prowler. He can hardly wait to have the guys at the office drool when they see him drive up in this extremely expensive ʺ purple hot rod. ʺ Eddie ʹ s reason for purchase falls into the category described by Thorstein Veblen as invidious distinction. 105) 106) Conspicuous waste is the opposite of conspicuous consumption because one is aimed at showing how important a person ʹ s wealth is, and the other is aimed at showing how unimportant his or her wealth is. 106) 107) People for whom productive work is taboo were termed the leisure class by Veblen. 107) 108) Many 20 - somethings have rebelled against their more affluent parents by mocking wealth with such clothing as shredded jeans, boxy cars, and understated makeup. These are examples of what is called a modern potlatch. 108) 109) Andy deliberately avoids status symbols and would not dream of wearing any clothing item with a logo on it. His behaviour can be termed parody display. 109) 15 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

110) A 50 - year - old male with a PhD would be more likely to be a tightwad than a 32 - year - old female with no university degree. 110) 111) Emily earns an income of over $200,000 per year and lives in a very rich neighbourhood. Interestingly, she loves shopping at Wal - Mart. Wal - Mart would consider her as part of their Brand Aspirational segment. 111) 112) The most important factor for determining consumer demand for goods and services is consumers ʹ ability to buy. 112) 113) In order to predict purchases of expensive, symbolic products, both social class and income data are needed. 113) 114) Samuel would like to use occupational prestige to measure social class, but his study is international, and the prestige of occupations change from one culture to the next. 114) 115) Conspicuous waste is the opposite of conspicuous consumption because one is aimed at showing how important a person ʹ s wealth is, and the other is aimed at showing how unimportant his or her wealth is. 115) 116) Social stratification refers to the creation of artificial divisions in a society. 116) 117) Differences between the upper and lower classes and white and blue - collar segments are disappearing. 117) 118) Aaron is part of a loyalty program that has two tiers - Gold and Silver. Rita is part of a loyalty program that only has one tier - Gold. Aaron will feel better about the program he is in. 118) 119) One limitation with measuring social class is that we cannot derive any valuable insight from it. 119) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 120) After a household allocates money for expenses of a comfortable standard of living (shelter, food, etc.), the remaining money left out of their earnings is called ________. 120) 121) People in a society develop a hierarchy by which they are ranked in terms of their relative standing. In the animal species, a social organization likewise is developed. In chickens, this social structure is termed ________. 121) 122) What is the term for the passage of individuals from one social class to another (regardless of direction)? 122) 123) The major pieces of information we consider when trying to classify people into the appropriate social class are ________. 123) 124) ________ codes are dominant among the working classes, while ________ codes tend to be used by the middle and upper classes. 124) 16 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

141) Identify for each of the following items whether they would be more likely found in a working - class living room or an upper class living room. (Items: a Bible, a sculpture, still - life portraits, photographs of family members, large potted plants, an abstract painting, a TV set, a family pet, piano) 142) A Mercedes - Benz is typically considered a luxury brand. Based on consumer attitudes toward luxury, what are three different reasons for purchasing a Mercedes - Benz? 143) How does the relationship between wealth and social class affect the way marketers segment affluent markets? Are there some consumption situations in which income alone is a good indicator of consumer behaviour? 144) Describe restricted and elaborated codes. What are they useful for identifying? 145) Why is wearing a baseball cap backward (with the brim toward the back) a type of parody display ? 18 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405

Answer Key Testname: UNTITLED13 1) D Skill: Application 2) D Skill: Understanding 3) E Skill: Recall 4) A Skill: Recall 5) D Skill: Recall 6) D Skill: Understanding 7) A Skill: Recall 8) E Skill: Application 9) D Skill: Understanding 10) C Skill: Recall 11) C Skill: Application 12) A Skill: Understanding 13) E Skill: Recall 14) C Skill: Application 15) E Skill: Application 16) C Skill: Recall 17) C Skill: Recall 18) D Skill: Recall 19) A Skill: Application 20) C Skill: Application 21) A Skill: Recall 22) C Skill: Application 23) B Skill: Application 19 Downloaded by Nick Sokolon (worksokonick@gmail.com) lOMoARcPSD|15491405