Chapter 9 - Decision Making

The first step in the cognitive decision-making process is ________. A) information search B) evaluate alternatives C) problem recognition D) per purchase search

C) problem recognition

Information searches usually happen before we are aware of a problem.

False

The first step in the consumer decision-making process is to conduct information search.

False

The research on loss aversion suggests that people tend to emphasize their losses more than their gains.

true

When a consumer becomes satiated with a favourite product, he or she may trade enjoyment just to try a different product. This is termed variety seeking.

true

Traditionally consumer researchers have approached decision making from a rational perspective.

False

Which of the following most accurately describes one of linguist George Kingsley Zipf's findings in the 1930s? A) People prefer English titles on products ten-to-one over other titles. B) The word "the" occurs about twice as often as the word "of" in the English language. C) People prefer short words rather than long words in advertising. D) The word "sex" should be left out of marketing promotions.

B) The word "the" occurs about twice as often as the word "of" in the English language.

A form of repeat purchasing behaviour reflecting a conscious decision to continue buying the same brand is called: A) post-purchase partum. B) brand loyalty. C) brand preference awareness. D) inertia.

B) brand loyalty.

Ellen stated that she would marry a millionaire. She applied a heuristic in judging men: they must wear expensive shoes and have an expensive automobile in order to even get her attention. What type of decision rule was Ellen applying in her search for a millionaire husband? A) lexicographic rule B) elimination-by-aspects C) conjunctive rule D) simple additive rule

B) elimination-by-aspects

Buying decisions that are made with little or no conscious effort are called ________. A) close minded B) habitual C) satisficing D) extended

B) habitual

Evaluating the effort when we need to make a particular choice is called the ________. A) want B) constructive process C) need D) routine process

B) constructive process

Having too many choices in the marketplace is referred to as: A) purchase momentum. B) consumer hyperchoice. C) pseudo-choice. D) maximizing.

B) consumer hyperchoice.

________ describes a consistent pattern whereby consumers buy the same brand just about every time they go to the store, out of habit, merely because it takes less effort. A) Laziness B) Inertia C) Sloth D) Ritual shopping

B) Inertia

Kent is a loyal Coca-Cola drinker. As a college student, he averages about four Cokes a day. He even prefers Coke to water. However, today when he passes a vending machine in his dorm, he buys a new drink called Big Red. Which of the following most appropriately explains his behaviour, given the facts about Kent's previous behaviour? A) Kent is merely variety seeking. B) Kent is experiencing sensory-specific satiety. C) Kent has hyperopia. D) Kent is influenced by mental accounting.

B) Kent is experiencing sensory-specific satiety.

When consumers anticipate having to use a product in front of others, they tend to prefer ________ products. A) feature-rich B) feature-poor C) highly visible D) symbolic

B) feature-poor

________ shoppers, who have more to lose when they make a bad purchase, actually search less before they buy than do ________ shoppers. A) Affluent; lower-income B) Younger; more senior C) Rational; irrational D) Lower-income; affluent

D) Lower-income; affluent

If a consumer's ideal state is very near or identical to his or her actual state, which of the following best describes the type of problem recognition the consumer would most likely have? A) Opportunity recognition B) Need recognition C) Search recognition D) No problem recognition

D) No problem recognition

Which of the following occurs when a consumer uses a selected product and decides whether it merits his/her expectations? A) Feature creep B) Inertia C) Framing D) Post-purchase evaluation

D) Post-purchase evaluation

________ occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired or ideal state. A) Information search B) Evaluation of alternatives C) Evaluation of the evoked set D) Problem recognition

D) Problem recognition

________ occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired state. A) Information search B) Evaluating alternatives C) Evaluating of evoked set D) Problem recognition

D) Problem recognition

A bucket in consumer decision making is ________. A) cognitive B) habitual C) affective D) all of the above

D) all of the above

A consumer who buys the same brand over and over again exhibits ________. A) staple purchasing B) rational purchase C) customization D) brand loyalty

D) brand loyalty

Albert wants to sell his condo. His realtor advises him to ensure he leaves the place spotless every day prior to going to work. Doing so will ensure any clients she brings by to see the place will offer top dollar. This is due to which heuristic? A) the lexicographic rule B) Zipf's law C) ethnocentrism D) product signal

D) product signal

A shortcut to making a decision is called inertia.

True

"Largest-sized containers are almost always cheaper per unit than smaller sizes" is an example of a market belief.

true

A consumer who falls back on "mental rules-of-thumb" when making a decision is using heuristics.

true

Needs are created when the actual state of a customer declines.

true

Justin has always had an intense interest in steam engines. He has one of the largest collections of pictures and facts about the engines in the United States. He decides to share his interest with others by being a cybermediary. Of the following, which is the best description of what Justin will do as a cybermediary? A) Justin will provide his services to help others organize their own computer programs related to steam engines. B) Justin will market software featuring steam engines. C) Justin will organize a user group online for steam engine enthusiasts. D) Justin will join a user group created by others to get more information about steam engines.

A) Justin will provide his services to help others organize their own computer programs related to steam engines.

A small company, Graig Inventions, produced a pill that had the nutrient value of a healthy breakfast. They put it on the market as a substitute for breakfast for busy people. The product failed. Graig Inventions then marketed the pill as a diet product and it became very successful. What does the example best demonstrate? A) The company did not position the product well. It was difficult to convince consumers that a pill was a breakfast on the superordinate level, but it did appear to fit within the category of diet pills. B) The company confused a subordinate level with a basic level of categorization. C) The company confused a normal level with a basic level of categorization. D) The determinant attributes between diet pills and breakfast was not sufficiently strong.

A) The company did not position the product well. It was difficult to convince consumers that a pill was a breakfast on the superordinate level, but it did appear to fit within the category of diet pills.

Wei Wei decides that the camera she buys must meet minimum standards on all of the key attributes she wants in a camera of this type or she will reject it, regardless of its performance on other attributes. Which decision rule has she decided to follow? A) elimination-by-aspects rule B) conjunctive rule C) attribute preference rule D) simple additive rule

A) elimination-by-aspects rule

Coca-Cola would be an example of a(n) ________ product because it has come to characterize an entire category of soft drinks. A) exemplar B) criteria C) heuristic D) evoked

A) exemplar

Product designers making items such as smartphones and tablets have a tendency to maximize the features included. What is this called? A) feature creep B) product loading C) high selection optioning D) product enriching

A) feature creep

People often make decisions on the basis of mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________. A) framing B) the sum-cost fallacy C) loss aversion D) positioning

A) framing

Shawna believes she is a practical consumer. She is always on the lookout for better ways to obtain order in her life and make housework easier. New products that promise to help with these work tasks catch her eye. However, she sometimes makes mistakes by buying products that do not deliver on their promises to do the work required. Considering the above description, Shawna could be prone to which of the following types of perceived risk? A) functional B) physical C) social D) consumptive

A) functional

Elena is in the toothpaste section of the grocery store, and picks up a box of $0.99 Colgate as she quickly passes through. This is an example of ________ decision making. A) habitual B) uncluttered C) associative D) peripheral

A) habitual

When Jenny goes to the supermarket to purchase cereal, she is overwhelmed by the sheer number of brands, flavours, and options. This is called consumer: A) hyperchoice. B) overload. C) wearout. D) adaptation.

A) hyperchoice.

When Bill asked friends which TV set to buy, they warned him against certain ones but praised others. He went to a huge new "electronics supermarket" where he checked out features of the 27-inch HD flat screen. He saw two he liked overall, but one of them had a feature he really liked: 4K. The process by which Bill sought appropriate guidelines to use in making a purchase decision is: A) information search. B) browsing. C) research. D) window shopping.

A) information search.

A consumer selects a brand that performs best on the most important attribute for that product. This is the result of which decision rule? A) lexicographic rule B) elimination-by-aspects rule C) conjunctive rule D) attribute preference rule

A) lexicographic rule

Allison is in the market to purchase a new computer. She uses a decision strategy whereby she evaluates all of the available options to come up with the best possible decision. This is an example of: A) maximizing. B) a heuristic. C) a pre-purchase solution. D) satisficing.

A) maximizing.

High-ticket items that require substantial expenditures are most subject to which form of purchase risk? A) monetary B) functional C) physical D) social

A) monetary

Which kind of decision rule is being used by a consumer who says that good performance on one or more attributes cannot "make up for" poor performance on other product attributes? A) non-compensatory rule B) compensatory rule C) average mean rule D) simple additive rule

A) non-compensatory rule

A new organic milk product has a long shelf life without being refrigerated. The product did not sell. When the marketing team convinced stores to make space for it with other milk containers in the refrigerators, they couldn't keep it in stock. It was a huge success. Putting it in the fridge allowed consumers: A) to add it to their evoked set. B) to find it in the store. C) to remove it from the inept set. D) to change their heuristic.

A) to add it to their evoked set.

One form of framing called ________ describes people who are so obsessed with preparing for the future that they can't enjoy the present. A) mental accounting B) hyperopia C) myopia D) loss aversion

B) hyperopia

The basic idea behind the long tail is that: A) marketers should pay more attention to its top 20% of customers. B) marketers no longer need to rely on big hit items to make a profit. C) only a small percentage of people use online recommendation programs, therefore, marketers need to be cautious when implementing them. D) consumers' evoked sets are becoming eroded because of too much choice.

B) marketers no longer need to rely on big hit items to make a profit.

Jill's purchase of the Miracle Diet pills was most sensitive to which kind of perceived purchase risk? A) functional B) physical C) social D) physiological

B) physical

When a consumer bases a purchase decision on the ________ rule, one takes into account the relative importance of positively-rated attributes. A) non-compensatory rule B) weighted additive rule C) attribute preference rule D) simple additive rule

B) weighted additive rule

When Jacob first thought of buying a new vehicle, he could name at least eight SUV models. His friend Emily could think of only four. Jacob spent several weeks researching SUVs and rejected five of the models. His evoked set is now smaller than Emily's. Why? A) The evoked set contains only the products that can be remembered at any given time. B) The evoked set is gender specific in that women remember products better than men. C) A product is not likely to be in the evoked set once it has been considered and then rejected. D) Functional risk creates a cognitive dissonance that makes certain products difficult to consciously remember.

C) A product is not likely to be in the evoked set once it has been considered and then rejected.

As a customer's product knowledge continually increases, what typically happens to the amount of search conducted by the consumer? A) It will continually increase. B) It will continually decrease. C) It will increase, and then decrease as the customer reaches a very high level of knowledge. D) It stays the same.

C) It will increase, and then decrease as the customer reaches a very high level of knowledge.

Ariel is looking over the used cars on the lot. He gives high marks to a car which has a rebuilt engine. In his mind that outweighs or "makes up for" relatively lower marks he gave on its fenders and interior appearance. He is using which decision rule? A) prototypicality B) balance C) compensatory D) elimination-by-aspects

C) compensatory

Directories and portals, website evaluators, forums, fan clubs, and user groups are all forms of which of the following? A) cybercash B) design groups C) cybermediaries D) focus groups

C) cybermediaries

The dimensions or qualities a consumer uses when judging the merits of competing purchase options are called: A) purchase options. B) alternative rules. C) evaluative criteria. D) functional categories.

C) evaluative criteria.

As a rule, decisions that involve some kind of ________ are more likely to result in the consumer's engaging in a more extensive search. A) need recognition B) need opportunity C) perceived risk D) term payment

C) perceived risk

Some consumers make judgments about hidden dimensions of products from observable attributes, such as inferring that because a used car is clean and shiny, its mechanical condition is likewise of top quality. In this case, the clean and shiny exterior is a(n): A) intrinsic attribute. B) guarantee. C) product signal. D) warranty.

C) product signal.

Spiro is shopping at Walmart and very quickly picks up everything on his shopping list that he needs. Because it went quickly and he feels good, he keeps shopping. This is an illustration of: A) conspicuous consumption. B) compulsive behaviour. C) purchase momentum. D) selection acceptance

C) purchase momentum.

A decision strategy that seeks to deliver an adequate solution rather than the best possible solution is referred to as ________. A) inertia B) rationalizing C) satisficing D) anchoring

C) satisficing

Choosing a product on the basis of its having the largest number of positive attributes is typically the case when a consumer is using the: A) conjunctive rule. B) elimination-by-aspects rule. C) simple additive rule. D) attribute preference rule.

C) simple additive rule.

Consumers realize they face risks in buying products, of which some factors are objective (unsafe products) and some subjective (embarrassment). Which type of perceived risk is inherent in the purchase of either visible or symbolic goods that are visible to others? A) functional B) physical C) social D) consumptive

C) social

What is the key distinction between a social risk and a psychological risk? A) the cost of the product B) the physical danger that the product may have to the user C) whether the risk is public or private D) whether the product is considered to be a high- or a low-involvement purchase

C) whether the risk is public or private

Jamie is considering ordering a dessert for lunch. Before she ever decides on the kind she prefers, she decides whether to get a fattening or nonfattening dessert. This decision relates to which of the following levels of abstraction of dessert categories? A) superordinate level B) ordinate level C) normal level D) basic level

D) basic level

Low-involvement decisions mean that marketers must constantly be assessing the physical surroundings and product placement. This is called the: A) economics of information. B) purchase momentum. C) constructive processing. D) behavioural influence perspective.

D) behavioural influence perspective.

Although Greg had considered numerous factors when looking at several models of ten- speed bikes, the critical or deciding factors that led to an actual purchase are called: A) alternative weights. B) differential factors. C) preference rules. D) determinant attributes.

D) determinant attributes.

When Japanese cars first became popular in the United States, some drivers of domestic cars placed bumper stickers on their vehicles that stated "Hungry? Eat your foreign car." These stickers encouraged people to support local workers and keep the balance of trade between Japan and the United States more toward an American advantage. The attitude expressed by the stickers is called: A) national inertia. B) lexicographic determinism. C) stereotyping. D) ethnocentrism.

D) ethnocentrism.

If Bill used a mental or problem-solving shortcut to make a purchase decision, he would be utilizing a(n): A) importance weight. B) script. C) strategy. D) heuristic.

D) heuristic.

Craig had heard stories about toaster disasters from his friends. This brand blew up, that one shorted out, another had not lasted even a year, and so on. He knew he should not consider those brands. They were Craig's: A) retrieval set. B) inert set. C) expanded set. D) inept set.

D) inept set.

The practice of monitoring blood flow while we are exposed to various marketing stimuli illustrates the practice of: A) hypermarketing. B) hemomarketing. C) cybermarketing. D) neuromarketing.

D) neuromarketing.

Yasser has expert knowledge about computers. He is now in the market for a new model. He will make a: A) top-down search. B) subordinate search. C) extended search. D) selective search.

D) selective search.

Which buyers are most sensitive to psychological risks in purchase decisions? A) those who are elderly, frail, or in ill health B) those with little income and wealth C) those who are insecure and uncertain D) those lacking respect or attractiveness to peers

D) those lacking respect or attractiveness to peers

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia? A) the customer's degree of risk aversion B) the degree to which the customer seeks out hedonic attributes C) whether the customer is a repeat purchaser D) whether the customer holds a very strong or weak positive attitude toward the product

D) whether the customer holds a very strong or weak positive attitude toward the product

The experiential perspective stresses the importance of learning in decision-making.

FALSE

A straight rebuy is considered a habitual decision.

True

Evaluative criteria are the dimensions used to judge the merits of competing options.

True

Self-regulation refers to a person's efforts to change or maintain his actions over time.

True

A consumer's overall reaction to a product after it was purchased is called feature creep.

false

Consumers expert in product knowledge are more likely than other groups of consumers to engage in an information search because they have a better sense of what information they need.

false

Criteria on which products differ carry less weight in the decision process than do criteria that are similar.

false

Ian discovers the apartment has run out of toilet paper. This is an example of necessity recognition.

false

Incidental learning occurs after a very concentrated search for information.

false

Shelly makes an excellent salary as a production manager for a large company. John has lost his job and has been having a difficult time making ends meet. If Shelly and John were looking to buy the same product, we would expect John to expend more effort than Shelly in gathering information and looking at alternatives.

false

The basic idea of feature creep is that a competitor starts to steal product features from another company.

false

The decision-making continuum is anchored at one end by limited problem solving, and by extended problem solving at the other end.

false

The inert set of brand choices consists of all those alternatives the consumer has in memory plus those prominently displayed in the store.

false

ylvester is a financially poor college student. He tries to make every purchase decision a wise one because of his economic situation. Based on the types of risk mentioned in the text, Sylvester's primary risk when making decisions would appear to be a psychological risk.

false

A positioning strategy relies on the marketer's ability to convince the consumer to consider its product within a given category.

true

Claire remembers that uniquely wonderful taste that can only come from a frosty mug of root beer. As she heads to the soft drink aisle in the grocery store, she decides that today is the day to experience her root beer again. Claire has just conducted what is called an informational search.

true

Decisions are influenced by the way a problem is posed. This is called framing.

true

Generally, search activity is greater when the purchase is important.

true

Habitual decision making is the lowest order of buying decision making.

true

Hirosi ordered the expensive "heart attack special" at his local pub. It came with a full pound of hamburger and a full bucket of fries. Halfway through the meal, Hirosi was not feeling well. Yet according to the sunk-cost fallacy, Hirosi will continue until he has finished the "special."

true

If a consumer considers using the simple additive decision rule, a drawback might be that some of the positive attributes of the chosen brand may not be very important.

true

Jonesy will buy only the lowest-priced spark plug when he goes shopping for auto supplies. Because his car is very old, he really doesn't care about any other qualities. Jonesy is using the non-compensatory decision-making rule format.

true

Products that customers put on the subordinate level always have at least one thing in common.

true

The assumption of a price-quality relationship is one of the most pervasive market beliefs.

true

The evaluation of alternatives is the third stage of the consumer decision-making process.

true

A customer buying an unfamiliar product which carried a fair degree of risk would most likely engage in what type of problem solving? A) Extended problem solving B) Limited problem solving C) Habitual problem solving D) Recognition problem solving

A) Extended problem solving

Casinos make their interiors very plush and expensive looking, knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains gamblers' behavior? A) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational. B) Most people are unaware of the true risk of making certain decisions and believe that a larger wager has higher odds of winning. C) The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behavior that is not rational. D) The functional risk of gambling is decreased in luxurious surroundings, leading gamblers to wager more.

A) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.

Casinos make their interiors very plush and expensive looking, knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains the gambler's behaviour? A) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational. B) Most people are unaware of the true risk of making certain decisions and therefore believe that a larger wager has higher odds of winning. C) The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behaviour that is not rational. D) The functional risk of gambling is decreased in luxurious surroundings leading gamblers to wager more.

A) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.

Which of the following is a key part to the elements of prospect theory? A) People think of gains and losses with respect to some reference point. B) People are loss averse, meaning that losses count half as much as equivalent gains. C) People are risk seeking concerning gains and risk averse concerning losses. D) People tend to undervalue small probabilities.

A) People think of gains and losses with respect to some reference point.

Decisions driven by our emotional responses to a product are called ________. A) affective B) habitual C) cognitive D) compensatory

A) affective

The "good enough" perspective on decision making is known as ________. A) bounded rationality B) framing C) a nudge D) default bias

A) bounded rationality

Since consumers rarely have the resources, especially time, to weigh every possible factor into a decision, they often happily settle for a solution that is just good enough. This is known as: A) bounded rationality. B) reality. C) incidental shopping. D) sufficiency theory.

A) bounded rationality.

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in ________ decision making? A) cognitive B) limited C) habitual D) affective

A) cognitive

Products that consumers are willing to pay more for are called ________ products. A) cult B) limited C) staple D) routine

A) cult

A consumer's existing knowledge of a product may be the result of ________, wherein on a previous occasion the consumer had already searched for relevant information or experienced some of the alternatives. A) directed learning B) actual state-need recognition C) marketing promotions D) the Internet

A) directed learning

People often make decisions on the basis of a mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________. A) framing B) the sum-cost fallacy C) loss aversion D) positioning

A) framing

According to the ________ rule, a product with a low standing on one attribute cannot make up for this position by being better on another attribute. A) noncompensatory B) lexicographic C) elimination-by-aspects D) conjunctive

A) noncompensatory

According to ________, utility is defined in terms of gains and losses. A) prospect theory B) heuristics C) hyperopia D) Zipf's law

A) prospect theory

A hot and thirsty customer buys a cool drink and finds it very satisfying. He then buys another drink even though he had not initially planned on buying two and even though he is no longer thirsty. This is an example of ________. A) purchase momentum B) rational decision making C) behaviorally influenced purchase D) inertia

A) purchase momentum

The view that consumers carefully gather, integrate, and weigh all the information available about a product before making a purchase decision is known as the: A) rational perspective. B) experiential perspective. C) interpretative perspective. D) behavioural influence perspective.

A) rational perspective.

Some researchers characterize the consumer decision-making process as a continuum according to how much effort goes into the decision. They say it is anchored at each end by ________ and ________. A) habitual decision making; limited problem solving B) habitual decision making; extended problem solving C) limited problem solving; extended problem solving D) habitual decision making; unlimited problem solving

B) habitual decision making; extended problem solving

Kraft has repackaged its salad dressings as "anything" dressings to encourage people to shift their ________ and consider the dressings as a complement to more than just salads. A) demonstration signals B) knowledge structures C) mental maps D) mean-end chains

B) knowledge structures

Chet decides to buy a new hedge trimmer to care for his bushes and shrubs. Because Chet is familiar with the local lawn and garden shop and the brands that are carried there, he uses a few simple decision rules to arrive at a purchase option. Chet is following which of the following buying decision behaviour continuum alternatives to make his decision? A) routine response behaviour B) limited problem solving C) graduated response behaviour D) basic problem solving

B) limited problem solving

Tomorrow, Janice will be attending a party with a buffet. In anticipation of splurging on delicious food, she is eating very little today. Janice is using a ________ to help her estimate consumption over time and regulate her behavior. A) constructive process B) mental budget C) diet D) cognitive process

B) mental budget

Tanya type scans the newspaper ads every day for new information about current fashion styles and trends, even though she isn't thinking about buying clothes anytime soon. Tanya is engaging in a(n) ________ search. A) pre-purchase B) ongoing C) internal D) delayed

B) ongoing

The success of ________ hinges on the marketer's ability to convince the consumer to consider its product within a given category. A) identifying competitors B) positioning strategy C) exemplar products D) product locations

B) positioning strategy

Bill could not tell the Argonauts from the Stampeders during CFL Football on his tiny, antiquated black-and-white TV set! After he watched the second half of the game on his neighbour's big TV set, he realized there was a significant difference between his current state of affairs and a desired or ideal state. His perception is labelled: A) fantasy aspiration. B) problem recognition. C) latent response syndrome. D) hemispheric communication.

B) problem recognition.

Louisa has wanted a Louis Vuitton handbag ever since she saw one on the television show Sex and the City. She could never imagine adjusting her household budget in order to save up the money to buy such an item as it was an outrageous amount to spend on a purse. This year she received a large bonus at work and went directly to the Louis Vuitton website and ordered the handbag. What bias does this behaviour reflect? A) loss aversion B) the house money effect C) reference point movement D) brand generalization

B) the house money effect

According to ________, a company can make money if it sells small amounts of items that only a few people want, if the company sells enough different items. A) feature creep B) the long tail C) Zipf's Law D) neuromarketing

B) the long tail

________ is the process by which the consumer surveys his or her environment for appropriate data to make a reasonable decision. A) Problem recognition B) Evaluation of alternatives C) Constructive perspective D) Behavioral influence perspective

C) Constructive perspective

________ describes consumption at the low end. A) Routine buying B) Complex buying C) Inertia D) Utilitarian

C) Inertia

________ is the process by which the consumer surveys his or her environment for appropriate data to make a reasonable decision. A) Problem recognition B) Evaluation of alternatives C) Information search D) Product choice

C) Information search

________ is the process by which the consumer surveys the environment for appropriate data to make a reasonable decision. A) Problem recognition B) Evaluation of alternatives C) Information search D) Product choice

C) Information search

Mona feels that she is moderately knowledgeable about foreign films. Her friend Kim admits to knowing almost nothing about these films, while her other friend Wanda has just finished a course in foreign films with the highest grade in the class. Of the three friends, who is most likely to seek the most information about a new foreign film being shown on campus before deciding to see the film? A) Wanda B) Kim C) Mona D) Both Mona and Kim will seek more information than Wanda.

C) Mona

Which of the following best describes intelligent agents? A) Cookies used to track IP addresses of computer users B) People who can help computer users with problems they encounter when trying to shop online C) Sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases D) Search engines specifically designed for online marketing and other forms of e-commerce

C) Sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases

What type of cybermediaries are intelligent agents? A) They are travel agents who answer questions online. B) They are people who can help computer users with problems they encounter when trying to shop online. C) They are computer programs that recommend products based on past purchasing patterns. D) They are search engines specifically designed for marketing online.

C) They are computer programs that recommend products based on past purchasing patterns.

When purchase decisions are made under conditions of low involvement, often the consumer's decision results from cues in the shopping environment, such as surprise sales, the way products are displayed, etc. This view of what affects consumer decisions is known as the: A) rational perspective. B) experiential perspective. C) behavioural influence perspective. D) interpretivist perspective.

C) behavioural influence perspective.

When using the ________ rule of decision making, a consumer evaluates brands on the most important attribute, but specific cutoffs are imposed. A) lexicographic B) elimination-by-aspects C) conjunctive D) compensatory

C) conjunctive

According to ________, we evaluate the effort we'll need to make a particular choice and then we tailor the amount of cognitive "effort" we expend to make that choice. A) cognitive processing B) mental processing C) constructive processing D) behavioral processing

C) constructive processing

Features actually used to differentiate among choices are called ________ attributes. A) evaluation B) search C) determinant D) segmentation

C) determinant

Dimensions we use to judge the merits of competing options are called ________. A) rational factors B) attributes C) evaluative criteria D) emotional factors

C) evaluative criteria

A mental or problem-solving shortcut to make a decision is called a(n) ________. A) determinant B) detail rule C) heuristic D) experience rule

C) heuristic

Chen Lo uses a decision rule that says "Only buy well-known brand names" when selecting a set of golf clubs. He does not look at price, the store, or even discounts when purchasing clubs. Chen Lo's purchasing pattern is an example of a consumer using a ________. A) habit decision rule B) compensatory rule C) noncompensatory rule D) conjunctive rule

C) noncompensatory rule

The first stage in the consumer decision-making process is ________. A) information search B) evaluation of alternatives C) problem recognition D) product choice

C) problem recognition

Rachael would like to shop around comprehensively for her car insurance this year. However she is overwhelmed at work, so instead of searching more extensively she simply does a quick check on three well-known options and chooses one. According to Herbert Simon, this is known as a ________ solution. A) maximized B) rational C) satisficing D) general search

C) satisficing

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia? A) The cost of the product B) The social risk of the product C) Whether the purchase is made after a compensatory or noncompensatory decision process D) Whether the customers hold a very positive or weak attitude toward the product

D) Whether the customers hold a very positive or weak attitude toward the product

Sometimes purchase decisions characterized by ________ are so routinized that consumers make them with minimal effort and without conscious control. A) active information processing B) choice parameters C) decision habit strength D) automaticity

D) automaticity

The alternatives actively measured during a consumer's choice process are the ________ set. A) inert B) evoked C) evaluate D) consideration

D) consideration

Susan is trying to select a tour. She is going to Scotland but can't make up her mind what she wants to do when she gets there. There are so many variables including the cost, the weather, and Susan's desire to see the village her grandmother called home. Susan's problem emphasizes the importance of the ________ in hospitality marketing. A) rational perspective B) behavioural influence perspective C) psychological perspective D) experiential perspective

D) experiential perspective

Pierre is out shopping for a very sophisticated watch. After reviewing various websites, visiting some jewellers, and speaking with people whose opinion matters to Pierre, he has narrowed his choices down so that he is now only considering TAG Heuer and Rolex. This is an example of ________ problem solving. A) configured B) limited C) complex D) extensive

D) extensive

Over a period of time, many of us acquire product information just by being exposed to advertising, store promotions, or by observing what other people use. This acquisition is termed: A) unconditioned response. B) directed exposure. C) non-conditioned response. D) incidental learning.

D) incidental learning.

Latrell finds that every time he goes to select athletic shoes he always buys the same brand. In fact, he doesn't even remember trying on any of the other competitive brands even though some of these brands have attractive styles and prices. Latrell's purchase decision process has become one of less and less effort. Latrell's decision process in an example of ________. A) cognitive dissonance B) brand loyalty C) ineptness D) inertia

D) inertia

John happened to stop by a showroom and test drive a new Acura LX and then decided he should replace his 2001 clunker before starting his new job. What has occurred? A) impulse shopping B) marketing benefit C) need recognition D) opportunity recognition

D) opportunity recognition

There is a snowstorm tonight, and the Toronto Maple Leafs game is going ahead as scheduled. Your roommate, Alexi, obtained a free ticket from a work associate and is staying home. You, however, paid $75 (non-refundable) and feel like you have to go. This is an example of: A) cost-benefit dichotomy. B) value perception. C) brand loyalty. D) sunk-cost fallacy.

D) sunk-cost fallacy.

Cedric runs out of gas on the way to work. He thinks to himself—"How stupid I am!" Cedric has experienced a form of a problem recognition that is being dominated by a downward movement in his actual state.

true

Claire remembers that uniquely wonderful taste that can only come from a "frosty mug" of root beer. As she heads to the soft drink aisle in her grocery store, she decides that today is the day to experience root beer again. Claire has just conducted what is called an internal search for information.

true

Hirosi ordered the expensive "heart attack special" at the local pub. It came with a one-pound hamburger and a full bucket of fries. Halfway through the meal, Hirosi was not feeling well. Yet according to the sunk-cost fallacy, Hirosi will likely continue until he has finished the "special."

true

If a consumer is following the lexicographic rule in her decision making, than she would select a brand that is the best on the most important attribute.

true

Store managers realize that under conditions of low involvement, consumers are affected by product placement and other cues in the shopping environment such as surprise specials. Managers with the behavioural influence perspective try to facilitate "impulse" buying decisions.

true

The economics of information approach to search states that consumers will continue to acquire as much information as they need to make a decision so long as the benefits from searching outweigh the costs.

true

The success of a positioning strategy depends on the marketer's ability to convince the consumer to consider its product within a given category.

true

When shopping at the supermarket, Russ always unconsciously grabs a carton of milk. This is an example of an automatic purchase.

true