CMP Consumer Behavior and Insights 3 — Questions and Answers
Question 1: Which consumer segmentation approach divides the market based on personality traits, values, and lifestyles?
- Demographic segmentation
- Geographic segmentation
- Psychographic segmentation (Correct answer)
- Behavioral segmentation
Correct answer: Psychographic segmentation
Psychographic segmentation groups consumers by psychological characteristics including values, personality, interests, and lifestyle choices.
Question 2: The concept of 'variety seeking' behavior is most common in which buying situation?
- High-involvement, high-risk purchases
- Complex buying behavior decisions
- Low-involvement products with perceived brand differences (Correct answer)
- Dissonance-reducing buying behavior
Correct answer: Low-involvement products with perceived brand differences
Variety-seeking behavior occurs with low-involvement products where consumers switch brands not due to dissatisfaction but simply for novelty.
Question 3: When a consumer feels anxiety after purchasing an expensive item and seeks reassurance, they are experiencing:
- Post-purchase rationalization
- Cognitive dissonance (Correct answer)
- Buyer's remorse syndrome
- Decision fatigue
Correct answer: Cognitive dissonance
Cognitive dissonance is the discomfort felt after a purchase when consumers doubt whether they made the right choice, particularly for high-involvement items.
Question 4: Which of the following best describes the 'evoked set' in consumer decision-making?
- All brands a consumer is aware of in a category
- The brands a consumer actively considers for purchase (Correct answer)
- Brands a consumer has purchased in the past year
- Brands a consumer sees advertised regularly
Correct answer: The brands a consumer actively considers for purchase
The evoked set (also called the consideration set) consists of the specific brands a consumer thinks of and actively evaluates when making a purchase decision.
Question 5: A retail brand launches limited-edition products that sell out quickly to boost desirability. This strategy leverages which consumer behavior principle?
- Social proof
- Scarcity and loss aversion (Correct answer)
- Anchoring bias
- Endowment effect
Correct answer: Scarcity and loss aversion
Scarcity triggers loss aversion — consumers fear missing out on limited items, making products seem more desirable and driving urgency to purchase.
Question 6: Which of the following is an example of operant conditioning applied to consumer loyalty programs?
- Running TV ads repeatedly to build brand familiarity
- Offering points rewards each time a customer makes a purchase (Correct answer)
- Using celebrity endorsers to create positive brand associations
- Sending reminder emails to lapsed customers
Correct answer: Offering points rewards each time a customer makes a purchase
Loyalty points programs use positive reinforcement (a key operant conditioning mechanism) by rewarding purchasing behavior to increase its frequency.
Question 7: What does the 'long tail' concept suggest about consumer demand in digital marketplaces?
- Most revenue comes from a few blockbuster products
- Niche products collectively represent a significant and viable market (Correct answer)
- Consumer attention spans are decreasing over time
- Premium pricing captures a long-term loyal customer segment
Correct answer: Niche products collectively represent a significant and viable market
The long tail theory, popularized by Chris Anderson, holds that niche products with lower individual demand can collectively generate substantial revenue in digital environments.
CMP Consumer Behavior and Insights 3
Which consumer segmentation approach divides the market based on personality traits, values, and lifestyles?