PCM Customer Behavior & Insights 2

Question 1

A customer who purchases a product primarily to signal status to peers is most driven by which type of motivation?

Accepted Answer

Conspicuous consumption

Answer

Conspicuous consumption describes buying to signal wealth or status to others rather than for functional utility.

Question 2

Which research method is best suited for uncovering the 'why' behind customer behaviors that respondents may not consciously articulate?

Accepted Answer

Ethnographic research

Answer

Ethnographic research observes customers in natural settings, revealing unconscious motivations and behaviors they might not report in surveys.

Question 3

In the context of customer decision-making, what does 'satisficing' mean?

Accepted Answer

Choosing the first option that meets a minimum threshold

Answer

Satisficing, coined by Herbert Simon, means selecting the first option that is 'good enough' rather than searching for the optimal solution.

Question 4

A brand launches a loyalty program with points that expire after 90 days. Which behavioral principle does this leverage?

Accepted Answer

Loss aversion

Answer

Expiring points create a sense of potential loss, leveraging loss aversion to drive purchase behavior before the deadline.

Question 5

Which of the following best describes the concept of 'customer lifetime value' (CLV) in relation to customer behavior insights?

Accepted Answer

The predicted net profit from the entire future relationship with a customer

Answer

CLV predicts the total net profit a company expects to earn from a customer over the entire duration of their relationship.

(PCM) Professional Certified Marketer Practice Test