Chapter 7

Match the following terms with the statement that best fits the term. A software program designed to search for words and phrases online Tactics companies use to design websites and posts to maximize the likelihood that their content will show up when someone searches for a relevant term Mathematical formulas, that companies like Google use to determine which entries will turn up in a search Search engine optimization Search algorithms Search engine

A software program designed to search for words and phrases online Search engine Tactics companies use to design websites and posts to maximize the likelihood that their content will show up when someone searches for a relevant term Search engine optimization Mathematical formulas, that companies like Google use to determine which entries will turn up in a search Search algorithms

________ have a better sense of the information relevant to the decision process so their search efforts are more focused and efficient. This type of search is called selective search. Novices Digital natives Experts Top-down searchers

Experts

Which of these options is an example of a heuristic listed in the textbook? Select all that apply. Familiarity Quantity Risk aversion Price Ease of use

Familiarity Risk aversion Price

Marquita is trying to decide where to eat dinner. Which of these terms is most likely to be associated with her decision? Select all that apply. Fast thinking Metnal budget Slow thinking Rational decision making

Fast thinking Metnal budget

Which of these statements is consistent with fast decision making? Select all that apply. Jonas has been looking for a house to buy for the last three months. Jonas is trying to decide whether to switch jobs. Jonas always buy Hunt's Ketchup. Jonas displays brand loyalty by always buying Kraft mayonnaise.

Jonas always buy Hunt's Ketchup. Jonas displays brand loyalty by always buying Kraft mayonnaise.

Which of the following is a stimulus that encourages people to focus on some specific aspect of their lives such as their financial well-being or the environment? Social factor Evoked set Conscious decision Prime

Prime

Which of the following are examples of search engines listed in the textbook? Select all that apply. YouTube Webcrawler Yelp Bing Google

YouTube Bing Google

When people think carefully about the pros and cons of various options, almost like a computer that follows a complicated formula to make a decision, this is known as a(n) __________. feedback loop compensatory rule unconscious decision noncompensatory rule

compensatory rule

Brand loyalty describes a pattern of repeat purchasing behavior that involves a(n) __________ to continue buying the same brand. noncompensatory decision unconscious decision price-related decision conscious decision

conscious decision

Prospect theory analyzes how the value of a decision depends on __________. gains or losses how many choices we have our default bias a rule of thumb

gains or losses

When consumers make habitual or emotional decisions they are typically using a __________ cognitive rule noncompensatory rule compensatory rule price-based decision

noncompensatory rule

Much of the emerging work in behavioral economics focuses on the role of __________, which is a deliberate change by an organization that is intended to modify behavior. evoked sets environmental economics self-fulfilling prophecies nudging

nudging

The sunk-cost fallacy refers to ______ the inclusion of irrelevant costs in our decision-making the tendency to waste things we've already paid for our reluctance to waste something we've already paid for our tendency to allow lower cost items to dominate our decisions

our reluctance to waste something we've already paid for

Behavioral economics is the study of the effects of __________ on the economic decisions we make. psychological and social factors search engine optimization mental accounting macroeconomics

psychological and social factors

Picking a product that is good enough to do the job is called _________. maximizing satisficing minimizing covariation

satisficing

Experts have a better sense of the information relevant to the decision process so their search efforts are more focused and efficient. This type of search is called __________. selective search a top-down search a filter bubble search an ongoing search

selective search

Consumers may use heuristics, or mental rules-of-thumb, to __________. validate decision making justify decision making simplify decision making invalidate decision making

simplify decision making

Hyperchoice happens when we have __________. too few product options to make a quick choice too many product options habitual decision making

too many product options

Which of the following statements is true about robo advisors? Select all that apply. Conversational robo advisors elicit greater trust thannonconversational ones. People tend to follow financial investment advice from a conversational robo advisor even if this investment advice is inconsistent with our actual risk profile. Most people do not like to interact with robo advisors. Robo advisors are powered by AI technology.

Conversational robo advisors elicit greater trust thannonconversational ones. People tend to follow financial investment advice from a conversational robo advisor even if this investment advice is inconsistent with our actual risk profile. Robo advisors are powered by AI technology.

_________ are websites or apps that help filter and organize online marketing information so that customers can identity and evaluate alternatives more efficiently. Cybermediaries Search engine optimizations Long tails Knowledge structures

Cybermediaries

Match these heuristics with the correct description. Selecting an option based on information that is easy to access Using the first information received about an option to decide about it Selecting the safest option among available choices Selecting an option that is different from previous choices Risk aversion Anchoring Variety seeking Availability

Selecting an option based on information that is easy to access Availability Using the first information received about an option to decide about it Anchoring Selecting the safest option among available choices Risk aversion Selecting an option that is different from previous choices Variety seeking

Which of these is one of the two ways consumers make decisions? Select all that apply. Slow thinking Fast thinking Unthinking Irrationally

Slow thinking Fast thinking

Match the following terms with the statement that is most closely associated with that term. Sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases A website or app that helps to filter and organize online market information so that customers can identify and evaluate alternatives more efficiently AI devices like Amazon's Alexa or Google's Home Digital beings that assist humans with various tasks Service robots Digital selling assistants Intelligent agents Intelligent agents

Sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases Intelligent agents A website or app that helps to filter and organize online market information so that customers can identify and evaluate alternatives more efficiently Cybermediary AI devices like Amazon's Alexa or Google's Home Digital selling assistants Digital beings that assist humans with various tasks Service robots