MARK 2222 EXAM 2

Weber's Law and Just-noticeable-difference is important for what main reasons?

1. Reducing quantity 2. Reducing quality 3.Differentiation

five stages of the decision making process

1. problem recognition 2.information search 3.evaluation of alternatives 4.purchase 5.post-purchases

Amy is shopping for a dress to wear to a formal dance. She tried on several dresses, not even noticing the price of each. After about two hours of this, she tried one on and exclaimed, "This is it!" That particular dress was the one that she thought made her look fabulous, so she bought it.

Affective based choice

Dawn and her two daughters went to see Pride & Prejudice at the movie theater. They all loved the movie and came out saying, "We're so glad she married Mr. Darcy!" This movie provided them with _____. instrumental performance affective performance direct performance consummatory performance symbolic performance

Affective performance

Which of the following affects consumers' retail outlet selection? retailer advertising all of these answers affect retail outlet selection retailer brands outlet image

All of these

The "merchandise" dimension of store image includes Style Price Selection Quality All the above

All the above

The probability of a consumer experiencing postpurchase dissonance, as well as the magnitude of such dissonance, is a function of which of the following? The individual's tendency to experience anxiety. All of these choices are correct. The difficulty of choosing among the alternatives. The degree of commitment or irrevocability of the decision. The importance of the decision to the consumer.

All these choices are correct

Bobbie bought a Dell computer because her brother has one, and he seems to be satisfied with it. She did not compare any other computers when making this choice.

Attitude based

"I selected the phone that came out best when I balanced the good ratings against the bad ratings."

Compensatory

I decided on a laptop that came out the best after balancing the good ratings against the bad ratings

Compensatory decision rule

"I selected the phone(s) that had no bad features.

Conjunctive

I chose the laptop(s) that had no bad features.

Conjunctive decision rule

Hailey purchased furniture for her living room and spent quite a bit of money. After she purchased it, she started regretting that she spent so much, and she wasn't sure she liked the furniture. To make herself feel better, she told herself that the other furniture she was considering really wasn't that good and probably would not last as long as the furniture she ended up purchasing. Which of the following is Hailey using to reduce her postpurchase dissonance? increasing the importance of the purchase decision increasing the desirability of the brand purchased decreasing the desirability of rejected alternatives reversing the purchase decision decreasing the importance of the purchase decision

Decreasing the desirability of rejected alternatives

I chose the laptop(s) that excelled in at least one attribute that was important to me.

Disjunctive decision rule

Carl and his family purchased a new home, and the builder left half empty paint cans in the garage. Carl doesn't know what to do with them because he cannot put them out in the regular trash. Carl is concerned with which of the following with regard to the paint? use purchase consumption product nonuse disposition

Disposition

Nancy usually considers price and quality when she has to make a major purchase, such as an appliance or an automobile. These two features represent Nancy's _____. alternatives motives choices evaluative criteria heuristics

Evaluative criteria

Victoria owns a discount lingerie store, and several of the bras in her store have a manufacturer's suggested retail price (MSRP) above Victoria's lower price. Victoria is using the MSRP as a(n) _____.

External reference price

T OR F According to your textbook, any source of products or services for consumers is referred to as a channel outlet.

FALSE

T OR F When faced with greater assortments, consumers are more likely to engage in compensatory processing.

FALSE

T OR F Brands which are owned and sold by a specific retail outlet are known as secondary brands.

False

T OR F Committed brand loyal customers are less likely to forgive a product or service failure

False

T OR F Research has shown that consumers shop online for reasons different from those for shopping from catalogs.

False

T OR F Studies continue to show that price is frequently the prime reason consumers select a retail outlet.

False

T OR F Unplanned purchases can be further subdivided into substitute and impulse purchases.

False (reminder purchases and impulse)

For which product is no disposition involved? Laundry detergent Soft drink Ice cream cone Electonsics Clothing

Ice cream cone

Which of the following is an action a consumer may utilize to reduce dissonance (select all that apply)? Increase the desirability of the brand purchased. Reverse the purchase decision (return the product before use). Increase the importance of alternatives that were not considered in the purchase initially. Decrease the desirability of rejected alternatives. Decrease the importance of the purchase decision.

Increase the desirability of the brand purchased. Decrease the desirability of rejected alternatives.

Jackie is thinking about buying a new computer. She went to a bunch of stores to look at different brands, and when she looked at prices, she compared them with a price her sister told her she paid for a similar computer. The price Jackie retrieves from her memory is known as a(n) _____.

Internal reference price

"I looked at the feature that was most important to me and chose the phone that ranked highest on that attribute."

Lexicographic

Price was most important to me, so I chose the cheapest laptop

Lexicographic decision rule

Which of the following occurs when a consumer actively acquires a product that is not used or used only sparingly relative to its potential use? counterfactual thinking consumption guilt prefactual thinking product nonuse nonconsumption guilt

Non consumption guilt (the situation or the purchases changes between the purchase and the potential usage situation.)

Conjunctive, disjunctive, lexicographic, and elimination by aspects are examples of __________________

Noncompensatoet decision rules

According to your textbook, shoppers who browse and/or purchase in more than one channel simultaneously are known as ______________.

Omni-channel shoppers

Which of the following is NOT a personal motive for people to shop? Role playing Peer group attention Physical activity Diversion

Peer group attention

What is the last stage of the decision-making process?

Post-purchase processes

Doubt or anxiety regarding a purchase a consumer has made is known as:

Postpurchase dissonance

Unplanned purchases are further subdivided into which two categories?

Reminder and impulse

What decision rule does the following statement describe? "I have young children and safety record is the most important attribute to me. Therefore, I will look at the 5 cars in my evoked consideration set and then I will choose that car that scores the best on the most important attribute, in this case, the safety records of the car." Lexicographic Conjunctive Sequential Elimination Compensatory Disjunctive

Sequential elimination

Sales of additional items to customers who came to purchase an advertised item are referred to as _______________

Spill over sales

A given consumer's or target market's perception of all the attributes associated with a retail outlet is generally referred to as the _____.

Store image

Why must manufacturers design products with both the primary purpose and other potential uses in mind?

Stringent product liability laws

Monique is buying a new coat for the winter. While she is concerned with how well the coat will keep her warm, she is also concerned with how stylish it will make her look. Her concern for stylishness represents which dimension of product performance? direct instrumental affective consummatory symbolic

Symbolic (aesthetic or image-enhancement performance)

Two types of evaluative criteria are

Tangible and intangible

Which of the following is an ambient condition related to store atmosphere? furnishings symbols layout temperature customer characteristics

Temperature

The increase in product valuation based on "mere" ownership is called

The endowment effect

Which of the following is true regarding postpurchase dissonance? The individual's tendency to experience anxiety is not related to postpurchase dissonance. The easier it is to alter the decision, the more likely postpurchase dissonance will be. All consumer purchase decisions are followed by postpurchase dissonance of some sort. The importance of the decision to the consumer is one factor that influences the probability and magnitude of postpurchase dissonance. Nominal decision making usually results in the greatest magnitude of postpurchase dissonance.

The importance of the decision to the consumer is one factor that influences the probability and magnitude of postpurchase dissonance.

T OR F Sometimes, consumers purchase products and do not use them.

True

T OR F The compensatory rule tends to be the most time consuming and mentally taxing

True

The external ice cube chute on Cade's refrigerator door was not working properly. She could hear the ice falling into the chute, but nothing would come out. She looked inside and realized there was a solid block of ice clogging the chute, and she couldn't get it loose. Cade decided to use a hair dryer to melt the ice, and it worked. Cade's using a hair dryer in a new way represents _____.

Use innovativeness

Using a product in a new way is referred to as

Use innovativeness

Which of the following are key decisions for retailers considering price advertising (Select all/any that apply). What verbal statements should be used? None of these answers are key price advertising decisions What is the cost of the item compared to the total media cost? Should a reference price be used? How large a discount should be used?

What verbal statements should be used? Should a reference price be used? How large a discount should be used?

Which of the following is a variable that influences brand decisions inside a retail outlet? price reductions outlet atmosphere all of the these answers are correct point-of-purchase materials stockout situations

all the above

Joseph is considering the purchase of a computer, and he is comparing brands on the basis of price, memory, speed, and reliability. He mentally ranks each alternative on these attributes and makes a selection based on these rankings.

attribute based

T OR F The elimination by aspects and lexicographic decision rules generally produce a set of acceptable alternatives, whereas conjunctive and disjunctive rules will generally produce a single "best" alternative to choose.

false

We talked about two different types of reference prices, what are they?

internal and external

Which of the following is NOT a factor affecting consumers' retail outlet selection? outlet image number of levels of distribution outlet location and size retail advertising retailer brands

number of levels of distribution

Kelly likes to shop at Target. She really likes the Archer Farms brands with the rooster on the label, which is one of Target's own brands and can only be purchased there. These types of brands are known as _____.

store brands

All other things being equal, consumers tend to prefer which of the following? smaller retail outlets over larger outlets dollar savings over percentage savings percentage savings over dollar savings external reference prices over internal reference prices larger retail outlets over smaller outlets

larger retail outlets over smaller

Confidence value

the consumer's ability to distinguish between brands on the surrogate indicator. For example a consumer may believe that ingredients accurately indicate nutritional value of foods (high predictive value), but they might not use ingredients as an indicator if they have an inability to make complex between brand comparisons!

Predictive Value

the consumer's perception that one attribute is an accurate predictor of the other... for example Oral-B has long promoted support by dentists in order to promote its range of dental hygiene products