CB Chapter 12

Fatima wants to purchase a house and has been viewing residential properties for the past two months. She has been searching for information on the Internet and consulting friends and family in order to arrive at a satisfactory decision. Which of the following decision-making approaches is Fatimah employing? a. The extended decision-making approach b. The limited decision-making approach c. The routine decision-making approach d. The habitual decision-making approach

A

Ben has a high-paying job, and he wants to buy an expensive car. However, he was raised in a family where spending on luxury is considered wasteful. Even though Ben wants to replace his old car with an expensive one, he is concerned about his parents' reaction to his purchase decision. In this case, Ben is concerned about the _____ associated with the purchase. a. time risk b. performance risk c. social risk d. financial risk

C

Maurine has been swamped with work for a while. She decides to treat herself to a spa on the weekend. She merely wants to relax and enjoy her day at the spa. Which of the following decision-making perspectives does Maurine's decision illustrate? a. The behavioral influence decision-making perspective b. The rational decision-making perspective c. The experiential decision-making perspective d. The attribute-based decision-making perspective

C

The risk associated with the likelihood of a product functioning as expected is referred to as _____. a. physical risk b. social risk c. performance risk d. financial risk

C

When Mathew decided to buy a laptop, he searched the Internet for information. However, he could not understand the technical language used in the websites he visited and decided to use product price as an indicator of quality. Which of the following terms best describes Mathew's decision-making process? a. Habitual decision making b. Extended decision making c. Rationalizing d. Satisficing

D

Consumers do not settle for alternatives they are unsure of. a. True b. False

F

Consumers who are more sensitive to the positive role of price tend to desire things with low prices. a. True b. False

F

Experiential decision processes often focus on utilitarian value. a. True b. False

F

In habitual decision making, consumers select a product of any brand that offers the feature they are looking for. a. True b. False

F

In selecting the best information source, consumers do not consider the speed with which the information can be obtained. a. True b. False

F

In the context of the consideration set, the awareness set is the total collection of all possible solutions to a recognized need. a. True b. False

F

Once a consumer initiates the decision-making process, he or she always completes the process. a. True b. False

F

Reward cards can be a successful method of rewarding loyalty even if consumers do not particularly value the product. a. True b. False

F

The amount of involvement a consumer has with a product category has no bearing on the decision-making approach that is used by the consumer. a. True b. False

F

The amount of search tends to decrease as a consumer's level of income increases. a. True b. False

F

The perceived risk for a product or service remains the same across consumers and situations. a. True b. False

F

The rational decision-making perspective fits well within the concept of hedonic value. a. True b. False

F

The rational decision-making perspective helps to explain how consumers react to store layout, store design, and POP (point-of-purchase) displays. a. True b. False

F

The rational decision-making perspective is a recent approach to studying consumer decision making that sheds light on the reasons behind the irrational behavior of consumers. a. True b. False

F

The recognition of a need invariably triggers the other activities found in the decision-making process. a. True b. False

F

When a purchase is imminent, consumers tend to view price as a strong indicator of quality. a. True b. False

F

When consumers view a purchase as coming in the distant future, they are more sensitive to the negative role of price. a. True b. False

F

With limited decision making, consumers search for reviews about products and their attributes on the Internet to avoid making a choice based on their prior beliefs about those products. a. True b. False

F

Brand loyalty occurs when a consumer simply buys a product repeatedly without any real attachment. a. True b. False

False

3. Extended decision making occurs when there is a significant amount of purchase risk involved with the decision. a. True b. False

T

34. Consumers who perform ongoing searches are usually highly involved with the product category and seek information simply for enjoyment. a. True b. False

T

Brand loyalty has an impact on the value of the brand to the firm. a. True b. False

T

Consumers are not always motivated to make the best decision. a. True b. False

T

Consumers do not always proceed through the activities found in the decision-making process in sequential fashion. a. True b. False

T

Consumers generally consider only a small fraction of the actual number of problem solutions that are available. a. True b. False

T

Consumers often make purchases and satisfy needs with very little cognitive effort. a. True b. False

T

In the context of consumer behavior, internal search includes the retrieval of knowledge about products, services, and experiences that is stored in memory. a. True b. False

T

In the context of consumer search behavior, the size of the awareness set increases as external search proceeds. a. True b. False

T

In the context of external search, search regret is more likely to be experienced when consumers utilize unfamiliar techniques during the search process. a. True b. False

T

It costs much less for a firm to retain current customers than to attract new ones. a. True b. False

T

Quality perceptions take place both before and after purchase. a. True b. False

T

Retailers use the brand-lift index to measure the incremental sales that occur when a product is on display. a. True b. False

T

The Internet has made the search process more enjoyable by delivering hedonic value to consumers. a. True b. False

T

The amount of search tends to decrease as consumers become older. a. True b. False

T

Value perceptions influence consumer decision-making activities. a. True b. False

T

Bill is a member of the Conway City Council. He wants to run for the position of mayor of Conway in the upcoming elections. The perceived state for which Bill aspires is called his _____. a. desired state b. hypothetical state c. actual state d. ideal state

a

Consumers who are sensitive to the negative role of price: a. collect and redeem coupons. b. use price to convey prestige. c. are not very bargain conscious. d. desire things with high prices.

a

Dave has been invited to dinner by his friend. On his way to the dinner, he decides to buy a bottle of wine for his host. As he does not know much about wines, he chooses the brand that he had in the past. Which of the following decision-making approaches best describes Dave's choice of wine? a. Limited decision making b. Extended decision making c. Routine decision making d. Habitual decision making

a

Dean goes to the local grocery store, Needs 'n' Necessities, every week to buy groceries. The store is small, but it offers more choices than the other stores in the neighborhood. Dean does not particularly like the store as it does not have a parking facility. However, he shops there regularly as it is conveniently located. In the given scenario, Dean's shopping behavior is driven by: a. brand inertia. b. brand loyalty. c. brand positioning. d. brand extension.

a

In selecting the best information source, consumers: a. consider the ease of obtaining information from the source. b. rely on the sources they know to be biased in favor of the product under consideration. c. with high self-esteem favor impersonal sources of information such as the Internet. d. do not consider the speed with which information can be obtained.

a

In the context of internal search, the _____ consists of the alternatives in a consumer's awareness set that are deemed to be unacceptable for further consideration. a. inept set b. universal set c. inert set d. evoked set

a

Laurie owns a Pluto X20 convertible. She has owned several other Pluto cars over the years. She has even convinced several family members and friends to buy Pluto automobiles. Recently, however, she had a bad service experience at a Pluto dealership. Nevertheless, she decides to purchase a Pluto Y20 for her daughter. In the given scenario, Laurie's engagement with Pluto automobiles best illustrates _____. a. brand loyalty b. brand inertia c. brand equity d. brand extension

a

Sylvia wants to buy a car, and she has narrowed down her options to four brands. She is currently comparing the features of the four cars. In the context of the activities included in the consumer decision-making process, Sylvia is engaged in _____. a. evaluation of alternatives b. search for information c. need recognition d. postchoice evaluation

a

Treyvon recently secured a promotion and a raise at work. He starts thinking about buying a house but wonders whether he can truly afford it. In this case, Treyvon is primarily considering the _____ associated with the purchase. a. financial risk b. social risk c. time risk d. performance risk

a

Which of the following decision-making perspectives primarily assumes that many decisions are learned responses to environmental influences? a. The behavioral influence decision-making perspective b. The rational decision-making perspective c. The experiential decision-making perspective d. The attribute-based decision-making perspective

a

Which of the following is true of limited decision making? a. It is often based on prior beliefs about products and their attributes. b. It often involves extensive comparison between various brands. c. It occurs when product involvement is high. d. It occurs infrequently.

a

Which of the following is true of prepurchase search? a. It enables a consumer to reach a decision for a specific problem. b. It is not necessarily focused on an upcoming decision. c. It is the practice of using decision-making shortcuts to arrive at satisfactory, rather than optimal, decisions. d. It is the practice of reaching decisions based on prior beliefs about products and their attributes.

a

Which of the following is true of quality perceptions? a. Consumers' perception that higher prices mean higher quality can alter because of other variables. b. Consumers are sensitive to the positive role of price when a purchase is imminent. c. Consumers' perception that higher prices mean higher quality does not alter because of other variables. d. Consumers are sensitive to the negative role of price when a purchase is in distant future.

a

Which of the following is true of the rational decision-making perspective? a. It assumes that consumers can identify the expected value associated with a purchase. b. It assumes that consumers often purchase a product based on the feeling attached to it. c. It assumes that consumers sometimes do not follow a well-planned decision-making process. d. It takes into account that consumers do not always pursue utilitarian value.

a

Which of the following statements is true of the amount of search performed by consumers during the decision- making process? a. Moderately experienced consumers search for more purchase-related information than inexperienced consumers do. b. Even when searching costs are greater than the benefits of the search process, consumers go on searching for information. c. Consumers who do not have a positive attitude toward shopping tend to spend more time searching for product information. d. Though situational factors affect actual purchase, they do not affect the amount of search that takes place.

a

After a bad experience with Sunshine Cereals, John decides to never purchase that product. In this case, John has assigned Sunshine Cereals to the _____ within his awareness set. a. hidden set b. inept set c. inert set d. camouflaged set

b

Daniel wanted to buy a Renata car. However, when he learned that the nearest service center was about 50 miles from his residence, he decided to consider other brands. He did not want to drive that far every time he needed to get the car serviced or repaired. In this case, Daniel's decision was primarily influenced by the _____ associated with the product. a. social risk b. time risk c. performance risk d. physical risk

b

Greg is planning to purchase a new truck. He wants to purchase the best one within his budget. He searches the Internet, consults his friends, and visits dealerships to learn more about different brands of trucks. He compares the features and the prices of the different trucks on a comparison shopping website. Which of the following decision- making perspectives best describes Greg's decision-making process? a. The experiential decision-making perspective b. The rational decision-making perspective c. The behavioral influence decision-making perspective d. The affect-based decision-making perspective

b

Hal is considering purchasing a hybrid car as he wants a car with good mileage. He does extensive research online to gather information about the fuel efficiency of hybrid cars as he is worried that they may not stay fuel efficient for long. In this case, Hal is concerned about the _____ associated with the purchase. a. financial risk b. performance risk c. time risk d. physical risk

b

In opportunity recognition, a consumer's: a. desired state does not change. b. actual state does not change. c. desired state changes to the actual state. d. actual state changes to the desired state.

b

Irene has been saving up and searching for the right house to buy. However, she feels disappointed because after spending an entire month researching and looking at a number of houses, she did not find the right one. The disappointment that Irene is experiencing can be best described by the term _____. a. bounded rationality b. search regret c. perceived risk d. absolute threshold

b

John wants to buy roller blades for his daughter. However, he is concerned that she is too young for roller blades and that she might get injured. In the given scenario, John is concerned about the _____ associated with the purchase. a. performance risk b. physical risk c. financial risk d. time risk

b

The risk associated with the cost of a product is known as _____. a. physical risk b. financial risk c. social risk d. performance risk

b

The situation in which consumers are presented with so many details and facts that they cannot assimilate them all is referred to as _____. a. augmented reality b. information overload c. brand inertia d. search regret

b

The total collection of all possible solutions to a recognized need is referred to as the _____ of alternatives. a. awareness set b. universal set c. inert set d. evoked set

b

Tom wants to buy a dishwasher. He consults his friends and looks online for good offers and sales. In the context of the activities included in the consumer decision-making process, Tom is engaged in _____. a. need recognition b. search for information c. postchoice evaluation d. choice

b

Viman, an Indian, has been assigned to his company's London office. He realizes that he does not have suitable clothes for London's harsh winter. Which of the following activities in the consumer decision-making process does the given scenario illustrate? a. Search for information b. Need recognition c. Evaluation of alternatives d. Postchoice evaluation

b

Which of the following illustrates the behavioral influence decision-making perspective? a. Kate browsing the Internet and visiting all the well-known dealers in the city to compare prices and quality to find the perfect sound system b. Marcie visiting a department store to shop for casualwear and deciding to buy a beautifully displayed evening gown c. Tamara and her friend planning to spend an entire weekend relaxing at their favorite spa d. Leona visiting different dealerships and test-driving many cars before deciding which car to buy

b

Which of the following is an example of an internal search? a. Using the Internet to find out details of a product b. Recalling the features of a friend's television while making a buying decision c. Asking a salesman of a retail store to explain the features of a coffee machine d. Reading a review about the quality of a product

b

Which of the following is true of the effect of the Internet on consumer search behavior? a. Consumers no longer have the ability to control information flow efficiently, and they get mired in information overload. b. The ability to control information flow increases consumers' ability to remember information that is gathered. c. The search process has become less enjoyable for consumers. d. The search process has become more expensive and less productive for consumers.

b

Which of the following statements is true of the technologies used by consumers to search for product or service- related information? a. Augmented reality apps help consumers find information related to location. b. GPS-based technologies allow consumers to quickly address specific needs that they have while they are traveling. c. QR codes allow consumers to simply take a photo of an object or scan it into their screen and quickly receive information about it. d. Mobile visual search augments reality with computer simulated information.

b

_____ is the risk associated with how other consumers will view a purchase. a. Performance risk b. Social risk c. Financial risk d. Physical risk

b

A consumer's perceived current state is also known as his or her _____. a. desired state b. ideal state c. actual state d. hypothetical state

c

Anna buys the same brand of orange juice that her family has been consuming for years. She has never thought of trying any other brand. In the given scenario, Anna's purchase decision is an example of _____. a. experiential decision making b. extended decision making c. habitual decision making d. behavioral influence decision making

c

George wants to buy the latest smartphone. When he searches the Internet for information on smartphones, he is swamped with the information that is available. He decides to ignore most of the details as he is unable to comprehend them. George's behavior is a result of _____. a. information incongruity b. information bias c. information overload d. information asymmetry

c

When consumers engage in _____, they tend to search diligently for information that will help them reach a satisfactory decision. a. routine decision making b. limited decision making c. extended decision making d. habitual decision making

c

Which of the following decision-making perspectives assumes that consumers often make purchases and reach decisions based on the affect, or feeling, attached to the product or behavior under consideration? a. The behavioral influence decision-making perspective b. The rational decision-making perspective c. The experiential decision-making perspective d. The attribute-based decision-making perspective

c

Which of the following statements is true in the context of decision-making approaches? a. Consumers do not generally settle for alternatives that they are unsure of. b. Most purchases are made with a lot of prepurchase decision effort. c. Consumers are not always motivated to make the best decision. d. Consumers with low self-esteem favor personal sources of information.

c

Don is browsing the Internet to gather information about high-definition DVD players. He wants to gift one to his mother on her birthday. Don's search is an example of a(n) _____. a. internal search b. postpurchase search c. ongoing search d. prepurchase search

d

In habitual decision making, _____. a. consumers generally pick any brand that is available b. consumers tend to search multiple external sources of information to reach a satisfactory decision c. consumers arrive at a decision based on compromise and intuition d. consumers believe that the consumption of a specific a product of a specific brand will deliver value

d

Isabella is considering buying an electric car, but she is concerned about the safety features of electric cars. She remembers reading that electric cars are unsafe. Therefore, she invests a lot of time reading reviews about electric cars on the Internet. Which of the following external search factors is influencing Isabella's search time? a. Product experience b. Situational influencers c. Personal Factors d. Perceived risk

d

Jake has been driving his hatchback for ten years now. He wants to buy a sedan. Jake's want for a sedan can be described as his _____. a. hypothetical state b. ideal state c. actual state d. desired state

d

Nina is passionate about cars. She does not have any intention of buying a car as she lives in Manhattan and prefers taking the subway rather than driving in the city. Nevertheless, she subscribes to automobile magazines and often visits dealerships to test drive new car models. In the given scenario, Nina's search behavior represents a(n) _____. a. utilitarian search b. post purchase search c. internal search d. ongoing search

d

Soft music and dim lighting in a restaurant generally lead consumers to slow down, stay in the restaurant for a longer time, and buy more drinks and dessert. In this case, the tendency of the diners to spend more time and money can be best explained by the _____. a. rational decision-making perspective b. experiential decision-making perspective c. attribute-based decision-making perspective d. behavioral influence decision-making perspective

d

The experiential decision-making perspective assumes that: a. consumers diligently gather information about purchases, compare various brands, and make an informed decision. b. many consumer decisions are learned responses to environmental influences. c. consumers' decision-making processes invariably focus on utilitarian value. d. consumers' behaviors are based on the sheer enjoyment involved with consumption.

d

The risk associated with the safety of a product as well as the harm from its consumption is referred to as _____. a. financial risk b. performance risk c. time risk d. physical risk

d

Which of the following is true of QR codes? a. They were unpopular because they provided irrelevant product information to consumers. b. They were a type of visual recognition technology. c. They were used to augment reality with simulations and voiceovers. d. They were used by marketers to improve promotional conversion rates.

d

Which of the following statements is true in the context of need recognition? a. Cognitive thought processes do not change the desired state. b. Opportunity recognition involves changing the actual state. c. Need recognition invariably triggers all the other activities found in the decision-making process. d. Consumers do not satisfy all the needs as soon as they are recognized.

d

Which of the following statements is true of consumer decision making? a. Consumers do not engage in decision-making processes in pursuit of hedonic value. b. Consumers invariably complete the decision-making process once they start evaluating alternatives. c. Consumer decision-making processes are independent of value perceptions. d. Consumer decision-making processes do not always involve a tangible product.

d

Which of the following types of decision-making approaches occurs when there are relatively low amounts of purchase risk and product involvement? a. Informed decision making b. Experiential decision making c. Extended decision making d. Limited decision making

d