chapter 9 - decision making

Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comments, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it, and I am not going to waste one drop of it." Les's behavior best illustrates ________.

the sunk-cost fallacy

The first stage in the consumer decision-making process is ________.

problem recognition

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?

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

The first step in the cognitive decision-making process is ________.

problem recognition

________ occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired state.

problem recognition

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 ________.

framing

________ is the process by which the consumer surveys the environment for appropriate data to make a reasonable decision.

information search

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?

no problem recognition