Mkt 3510 chapter 2 decision making

According to ________, utility is defined in terms of gains and losses. A) prospect theory B) heuristics C) hyperopia D) Zipf's law

A) prospect theory

Shortcuts are considered heuristics, or "mental rules-of-thumb" in decision making. True or False

True

According to the ________ rule, a product with a low standing on one attribute cannot make up for this position by being better on another attribute. A) noncompensatory B) lexicographic C) elimination-by-aspects D) conjunctive

A) noncompensatory

The first step in consumer decision making is ________, when the consumer realizes he or she must take some action. A) problem recognition B) evaluation of alternatives C) constructive perspective D) behavioral influence perspective

A) problem recognition

________ describes consumption at the low end product involvement by the consumer. A) Routine buying B) Complex buying C) Inertia D) Utilitarian

C) Inertia

________ is the process by which the consumer surveys the environment for appropriate data to make a reasonable decision. A) Problem recognition B) Evaluation of alternatives C) Information search D) Product choice

C) Information search

Decisions driven by our emotional responses to a product are called ________. A) affective B) habitual C) cognitive D) compensatory

A) affective

The "good enough" perspective on decision making is known as ________. A) bounded rationality B) framing C) a nudge D) default bias

A) bounded rationality

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in ________ decision making. A) cognitive B) limited C) habitual D) affective

A) cognitive

People often make decisions on the basis of a mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________. A) framing B) the sum-cost fallacy C) loss aversion D) positioning

A) framing

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 ________. A) framing B) the sum-cost fallacy C) loss aversion D) positioning

A) framing

A consumer can recognize problems as either an opportunity or a need. How should promotions differ between those emphasizing opportunities and those emphasizing needs? A) Promotions emphasizing needs should attempt to increase a consumer's ideal state, while promotions emphasizing opportunities should simply give locations where the products can be found for purchase. B) Promotions emphasizing opportunities should attempt to increase the ideal state, while promotions emphasizing needs should give locations where the products can be purchased. C) Promotions emphasizing needs should increase the ideal state, while opportunity promotions should attempt to decrease the ideal state. D) Promotions emphasizing needs should decrease the ideal state, while promotions emphasizing opportunities should provide buying locations.

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

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 in an example of ________. A) cognitive dissonance B) brand loyalty C) ineptness D) inertia

B) brand loyalty

Evaluating the effort when we need to make a particular choice is called the ________. A) want B) constructive process C) need D) routine process

B) constructive process

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. A) constructive process B) mental budget C) diet D) cognitive process

B) mental budget

Tanya type scans the newspaper ads every day for new information about current fashion styles and trends, even though she isn't thinking about buying clothes anytime soon. Tanya is engaging in a(n) ________ search. A) pre-purchase B) ongoing C) internal D) delayed

B) ongoing

The success of ________ hinges on the marketer's ability to convince the consumer to consider its product within a given category. A) identifying competitors B) positioning strategy C) exemplar products D) product locations

B) positioning strategy

According to this view, people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weigh the pluses and minuses of each alternative, and arrive at a satisfactory decision. A) problem recognition B) rational perspective C) evoked set D) consideration set

B) rational perspective

When using the ________ rule of decision making, a consumer evaluates brands on the most important attribute, but specific cutoffs are imposed. A) lexicographic B) elimination-by-aspects C) conjunctive D) compensatory

C) conjunctive

According to ________, 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. A) cognitive processing B) mental processing C) constructive processing D) behavioral processing

C) constructive processing

Features actually used to differentiate among choices are called ________ attributes. A) evaluation B) search C) determinant D) segmentation

C) determinant

Dimensions we use to judge the merits of competing options are called ________. A) rational factors B) attributes C) evaluative criteria D) emotional factors

C) evaluative criteria

A mental or problem-solving shortcut to make a decision is called a(n) ________. A) determinant B) detail rule C) heuristic D) experience rule

C) heuristic

Chen Lo uses a decision rule that says "Only buy well-known brand names" when selecting a set of golf clubs. He does 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 ________. A) habit decision rule B) compensatory rule C) noncompensatory rule D) conjunctive rule

C) noncompensatory rule

The first stage in the consumer decision-making process is ________. A) information search B) evaluation of alternatives C) problem recognition D) product choice

C) problem recognition

The first step in the cognitive decision-making process is ________. A) information search B) evaluate alternatives C) problem recognition D) per purchase search

C) problem recognition

A decision strategy that seeks to deliver an adequate solution rather than the best possible solution is referred to as ________. A) inertia B) rationalizing C) satisficing D) anchoring

C) satisficing

Which of the following best describes intelligent agents? A) cookies used to track IP addresses of computer users B) people who can help computer users with problems they encounter when trying to shop online C) sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases D) search engines specifically designed for online marketing and other forms of e-commerce

C) sophisticated software programs that use collaborative filtering technologies to learn from

________ occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired state. A) Information search B) Evaluating alternatives C) Evaluating of evoked set D) Problem recognition

D) Problem recognition

A bucket in consumer decision making is ________. A) cognitive B) habitual C) affective D) all of the above

D) all of the above

A consumer who buys the same brand over and over again exhibits ________. A) staple purchasing B) rational purchase C) customization D) brand loyalty

D) brand loyalty

The alternatives actively measured during a consumer's choice process are the ________ set. A) inert B) evoked C) evaluate D) consideration

D) consideration

Directories and portals, Web site evaluators, forums, fan clubs, and user groups are all forms of which of the following? A) web retailers B) cybercash C) design groups D) cybermediaries

D) cybermediaries

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? A) opportunity recognition B) need recognition C) search recognition D) no problem recognition

D) no problem recognition

Which of the following occurs when a consumer uses a selected product and decides whether it merits his or her expectations? A) feature creep B) inertia C) framing D) post-purchase evaluation

D) post-purchase evaluation

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 ________. A) loss aversion B) hyperopia C) risk positioning D) the sunk-cost fallacy

D) the sunk-cost fallacy

According to ________, 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. A) feature creep B) the long tail C) Zipf's Law D) neuromarketing

B) the long tail

What type of cybermediaries are intelligent agents? A) They are travel agents who answer questions online. B) They are people who can help computer users with problems they encounter when trying to shop online. C) They are computer programs that recommend products based on past purchasing patterns. D) They are search engines specifically designed for marketing online.

C) They are computer programs that recommend products based on past purchasing patterns.

The first step in the consumer decision-making process is to conduct an information search. True or False

False

Self-regulation refers to a person's efforts to change or maintain his actions over time. True or False

True

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? A) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational. B) Most people are unaware of the true risk of making certain decisions and believe that a larger wager has higher odds of winning. C) The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behavior that is not rational. D) The functional risk of gambling is decreased in luxurious surroundings, leading gamblers to wager more.

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

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 ________. A) purchase momentum B) rational decision making C) behaviorally influenced purchase

A) purchase momentum

Buying decisions that are made with little or no conscious effort are called ________. A) close minded B) habitual C) satisficing D) extended

B) habitual

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia? A) the cost of the product B) the social risk of the product C) whether the purchase is made after a compensatory or noncompensatory decision process D) whether the customers hold a very positive or weak attitude toward the product

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

Evaluative criteria are the dimensions used to judge the merits of competing options. True or False

True