BA 371 CH 2

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

Problem recognition

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

problem recognition

________ are dimensions used to judge the merits of competing options.

Evaluative criteria

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

Information search

As a customer's product knowledge increases, what typically happens to the amount of search conducted by the consumer?

It will increase, and then decrease as the customer becomes more knowledgeable.

A consumer can recognize a problem as either an opportunity or a need. How should promotions differ between those emphasizing opportunities and those emphasizing needs?

Promotions emphasizing opportunities should attempt to increase the ideal state, while promotions emphasizing needs should give locations where the products can be purchased.

________ is a low-involvement medium because the role of the audience is passive, while ________ is a high-involvement medium because the role of the audience is active.

Television, print

A small company, Craig Inventions, produced a pill that had the nutrient value of a healthy breakfast. The company put the product on the market as a substitute for breakfast for busy people. The product failed. Craig Inventions then marketed the pill as a diet product and it became very successful. What does the example best demonstrate?

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

What type of cybermediaries are intelligent agents?

They are sophisticated software programs that use collaborative filtering technologies to learn from past user behavior in order to recommend new purchases.

Jamie is considering ordering a dessert for lunch. Before she decides on the kind she prefers, she must decide whether to get a fattening or nonfattening dessert. This decision relates to which of the following levels of abstraction of dessert categories?

basic level

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in what type of decision-making?

cognitive decision-making

Consumers can be thought of as ________ because they tend to make decisions in the simplest way possible.

cognitive misers

When using the ________ rule of decision-making, a consumer evaluates brands on the most important attribute, but specific cutoffs are imposed.

conjunctive

The alternatives actively considered during a consumer's choice process are the ________ set.

consideration

In a thought process called ________, 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.

constructive processing

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. What type of decision rule was Ellen most likely applying in her search for a millionaire husband?

elimination-by-aspects

The tendency for people to prefer products from their own culture rather than those of another culture is called ________.

ethnocentrism

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 an American advantage in the balance of trade between Japan and the United States. The attitude expressed by the stickers is best described as ________.

ethnocentrism

Coca-Cola is most likely an example of a(n) ________ product because it characterizes an entire category of soft drinks.

exemplar

Of the following products, which one would typically carry high psychological risk for the average consumer?

expensive mink coat

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

A consumer who uses a few simple decision rules to arrive at a purchase decision is using which of the following?

habitual decision making

A mental or problem-solving shortcut to make a purchase decision is called a(n) ________.

heuristic

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 is an example of ________.

inertia

A(n) ________ refers to a set of beliefs and the way we organize those beliefs in our minds.

knowledge structure

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.

knowledge structures

When the ________ rule of decision-making is used, the brand that is the best on the most important attribute is the one selected.

lexicographic

At mymms.com, you can upload a photo and order a batch of M&Ms with a face and personal message printed on the candy shell. This is an example of ________.

mass customization

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.

mental budget

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 recognized

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 ________.

purchase momentum

A decision strategy that seeks to deliver an adequate solution rather than the best possible solution is referred to as ________.

satisficing

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 could best be described by which of the following mental biases?

the sunk-cost fallacy

Which of the following views on decision making is most closely associated with the economics of information approach to the search process, assuming that consumers collect just as much data as needed to make an informed decision?

traditional perspective

How can a marketer boost a person's motivation to process relevant information?

using novel stimuli

A consumer is most likely to engage in ________ when she is in a good mood or when she is uninvolved in other activities.

variety seeking

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia?

whether the customers hold a very positive or weak attitude toward the product

A consumer who moves his or her ideal state upward is experiencing ________

opportunity

Kent, a college student, is a loyal Coca-Cola drinker. He averages about six Cokes a day. He even prefers Coke to water. However, today when he passed a vending machine in his dorm, he bought a new flavor of soft drink called Big Red. Which of the following most accurately explains his behavior, given the facts about Kent's previous behavior?

Kent is variety seeking.

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 gamblers' behavior?

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

When is a consumer most likely to engage in cognitive decision-making?

This decision mode is most common when the decision is related to the person's self-concept and the outcome has a high degree of risk.

Features actually used to differentiate among choices are called ________ attributes.

determinant

Jack isn't motivated to spend time thinking about what his mom's birthday present could be so he just orders her flowers yet again. Jack is experiencing ________.

inertia

Chen Lo used a decision rule that says, "only buy well-known brand names" when selecting a set of golf clubs. He did 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 ________ rule.

noncompensatory

A ________ rule means that a product with a low standing on one attribute cannot make up for this position by being better on another attribute.

noncompensatory decision

What type of information search is a female customer engaged in when she scans the newspaper ads every day for new information on fashions, even though she isn't thinking of buying anything anytime soon?

ongoing search

The higher the ________, the higher the level of product involvement as the consumer makes the decision.

perceived risk

Jeff is tired of the numerous breakdowns and peeling paint on his old car. When Jeff begins to think actively about his car in this way, which of the following cognitive decision-making process steps is Jeff going through?

problem recognition

Under ________, utility is defined in terms of gains and losses.

prospect theory

According to the theory called ________, 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.

the long tail