BADM 320 ch. 6 (final)

After purchasing an expensive pair of shoes, you may question whether the shoes are any better than the less expensive shoes you could have purchased instead. This is an example of postpurchase cognitive dissonance.

true

Another name for physiological risk is safety risk.

true

As manager of a local donut shop, Arnie greets his regular customers by name and often begins making their order when he sees them drive into the parking lot. Arnie knows habitual purchasers with strong store loyalty are great customers.

true

Brenda wants a new car that will be dependable transportation and look good. She wants to satisfy both functional and psychological needs

true

Consumers involved in habitual decision making engage in little conscious decision making.

true

Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ

true

Frazier is out of milk and bread and needs to decide what is for dinner. He will be stopping at the grocery store on the way home. Frazier will likely engage in limited problem solving.

true

Generally, people buy one product or service instead of another because they perceive it to be a better value.

true

Mary will not consider purchasing an American car brand based on negative comments made by her parents; therefore, she has developed a negative attitude toward "American" brand cars.

true

One benefit of having satisfied customers is that they may spread positive word of mouth.

true

Situational factors sometimes override psychological and social factors in the consumer decision process.

true

The greater the difference between a consumer's unsatisfied need and the desired state, the greater the need recognition will be.

true

When Hakim asked Marta where she wanted to go for lunch, she said Chili's because she went there at least once a week and always liked it. Marta conducted an internal search for information.

true

When making an important purchase, consumers often consult friends and family. This is considered an external search for information.

true

Customers are more likely to talk about service that exceeded their expectation than about service that did not meet their expectation

false

Jason usually buys Nike shoes, so when his friend asked him what shoes he should buy, he said Nike without thinking about it. Jason's response was an evoked set.

false

Marketers should not encourage customer feedback because it can lead to negative word of mouth.

false

Maslow's hierarchy of needs is an interesting concept for psychology, but it has little relevance for marketing.

false

Pam didn't go see the movie Gravity because her friends all said she wouldn't be able to handle it. When she found out how good it was, she blamed her friends. Pam is demonstrating an internal locus of control.

false

Rachael is visiting colleges before applying to schools. Rachael is likely to be involved in an impulse buying process

false

Setting high customer expectations is a good strategy that will help to avoid customer dissatisfaction in the long run.

false

The consumer decision process begins with a comparison of available alternatives.

false

Vladimir decided not to purchase the iPod shuffle because he didn't think it would hold all of his songs. Vladimir was using his assessment of the iPod shuffle's financial risk in making his decision.

false

When Glen is thirsty, he always buys a Coke. Like many consumers, Glen engages in considerable alternative evaluation when buying habitual products like his Coke.

false

A reference group may have direct or indirect influence on your attitude toward a particular clothing store.

true

__________ attributes are product or service features that are important to buyers and that are used to differentiate among choices

Determinant

Dawn flies regularly between Atlanta and Los Angeles. She almost always uses Delta Airlines and has lots of Delta Sky Miles credit (Delta's frequent flyer program). Still, she uses an online fare comparison website each time to see whether a competitor has a better price or a more convenient schedule. Dawn uses __________ to decide which airline to fly.

a compensatory decision rule

Jonathan prefers shirts made with 100% cotton, but he will sometimes buy shirts with less cotton if they are less expensive. Jonathan uses __________ to decide which shirts to buy.

a compensatory decision rule

The consumer buying process begins when

a consumer recognizes an unsatisfied need

The shared meanings, beliefs, morals, values, and customs of a group of people constitute its a. reference group. b. culture. c. evoked set. d. family. e. cognitive frame.

b. culture.

Though he has never owned a Jaguar, Jerry thinks they are poorly made and have many mechanical problems. For Jaguar to sell Jerry a car, the company would need to change the __________ component of Jerry's attitude. a. cognitive b. physiological c. affective d. functional e. social

a. cognitive

Elena is in the process of buying a new car. There are many possible cars to choose from, but she is focused on a few she would actually consider buying. These make up her __________ set. a. evoked b. universal c. immediate d. retrieval e. focus

a. evoked

Which of the following is NOT an element of the factors affecting consumers' search processes? a. functional versus psychological need b. locus of control c. perceived risk d. actual risk e. perceived benefits versus perceived costs of search

a. functional versus psychological need

Marketers love consumers who engage in __________, buying their company's product with little thought or consideration of alternatives. a. habitual decision making b. extended problem solving c. compensatory decisions d. personal problem solving e. reference group consumption

a. habitual decision making

Most big box retailers regularly move products from one aisle to another. They also put personal care products in the pharmacy area, many aisles away from the grocery products. They do this because consumers who spend more time walking through the store are likely to buy things they hadn't planned to buy, or make a. impulse purchases. b. affective alternative decisions. c. extended problem solving decisions. d. limited problem solving decisions. e. ritual consumption purchases.

a. impulse purchases.

Joanna lives according to her own rules, unconcerned about designer labels, brand names, and luxury items. Joanna is at what level in Maslow's hierarchy of needs? a. self-actualization b. esteem c. safety d. love e. Physiological

a. self-actualization

Paula is about to open a new hardware store. She is making decisions regarding lighting, colors, and layout of merchandise. Paula knows these __________ factors will influence consumers' purchase decisions. a. store atmosphere b. extended habitual c. interpersonal d. postpurchase dissonance e. social

a. store atmosphere

In the consumer decision process, we decide how much time and effort to expend searching for information based partly on a. the degree of perceived risk associated with the product or service being considered. b. postpurchase dissonance. c. the outcome of the alternative evaluation process. d. the results of the external search. e. the results of habitual decision making.

a. the degree of perceived risk associated with the product or service being considered.

When Brandon decided he needed a new car, he immediately called his old college roommate, who owns a BMW dealership, to ask questions about options and financing. Brandon was searching for information from

an external source

When Karen realized her dog had fleas, Karen had

an unsatisfied need.

Zappo's online shoe and clothing store has a unique way of dealing with abandoned shopping carts. If a site visitor places items into the shopping cart and then leaves the site without making a purchase, several days later Zappo's sends a humorous email saying, "Let us show you what your shopping cart did while you were gone," along with a photo of a cute dog intended to represent the shopping cart. This attention-getting device is designed to improve the site's a. postpurchase dissonance. b. conversion rate. c. position in the evoked set. d. reference group influence. e. selective perception

b. conversion rate.

The consumer's level of involvement can lead to two types of buying decisions: __________ and __________. a. physiological/safety; esteem/self-actualization b. extended problem solving; limited problem solving c. economic; social d. habitual; extended e. culturally influenced; autonomous

b. extended problem solving; limited problem solving

When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing __________ needs. a. functional and psychological b. functional c. social d. psychological e. prepurchase

b. functional

Before flying, Jaden researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and follows the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Jaden probably has a misguided sense of his a. reference group identification. b. locus of control. c. attribute sets. d. social risk. e. postpurchase dissonance.

b. locus of control.

American visitors to the Indonesian island of Bali are often aghast when they see the sign for the Swastika resort. Americans associate the swastika symbol with Nazi Germany while Indonesians associate the symbol with the four major elements on Earth. The two groups have different a. factual norms. b. perceptions. c. postpurchase dissonance. d. risk factors. e. attitudes.

b. perceptions.

When Magda decided to buy a new computer, she considered all the brands she could recall seeing advertised. This represents Magda's __________ set. a. evoked b. retrieval c. behavioral d. universal e. deterministic

b. retrieval

Reginald greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays, and offers them free meals on their birthdays. Reginald hopes that this attention to his regulars will encourage them to a. assist him in meeting his functional needs. b. spread positive word of mouth. c. extend problem solving beyond ritual consumption. d. always include his firm in their universal set. e. internalize impulse attitudes.

b. spread positive word of mouth.

Paula is about to open a new hardware store. She is making decisions regarding lighting, colors, and layout of merchandise. Paula knows these __________ factors will influence consumers' purchase decisions. a. postpurchase dissonance b. store atmosphere c. social d. extended habitual e. Interpersonal

b. store atmosphere

__________ refer(s) to the process by which consumers select, organize, and interpret information. a. Values b. Learning c. Perception d. Consumption e. Attitude

c. Perception

The consumer buying process begins when a. a consumer's performance risk is minimized. b. learning follows perception. c. a consumer recognizes an unsatisfied need. d. a consumer enters a store. e. consumers' functional needs are greater than their psychological needs.

c. a consumer recognizes an unsatisfied need.

Zappos.com constantly reminds customers of recently viewed items and informs them when stock is low in an effort to entice the customer to make a purchase. Zappos is trying to improve its a. consumer index. b. culture quotient. c. conversion rate. d. customer total. e. collection ratio.

c. conversion rate.

Andrea and Karl got married a year ago and are ready to move out of their apartment and into a new home. After looking at several houses, they have developed a list of features that are important to them and that are different among the homes they have visited. The features on their list are called a. perceived risk factors. b. trade-off elements. c. determinant attributes. d. short lists. e. an evoked set.

c. determinant attributes.

Elena is in the process of buying a new car. There are many possible cars to choose from, but she is focused on a few she would actually consider buying. These make up her __________ set. a. focus b. universal c. evoked d. retrieval e. immediate

c. evoked

Upscale men's and women's clothing stores like Nordstrom's, Neiman-Marcus, or Saks Fifth Avenue are more likely to appeal to consumers' __________ needs. a. postpurchase b. safety c. psychological d. functional e. Situational

c. psychological

A home security company will advertise the need for home surveillance products to appeal to which level of Maslow's hierarchy of needs? a. physiological b. esteem c. safety d. love e. Self-actualization

c. safety

Black Friday, as the day after Thanksgiving has come to be known in the U.S., is a day marked by many special deals in most retail stores, including deep-discounted products available in limited quantities, called doorbusters, and designed to get shoppers into the store. But one danger of running out of the doorbuster deals is that a shopper may become angry or discouraged at failing to get the special item, and decide not to do any more shopping. This is an example of the impact of __________ on the consumer decision process. a. lifestyle b. the purchase situation c. setting high expectations d. learning e. Perception

c. setting high expectations

The traditional marketing strategy of selling umbrellas when it is raining is an example of how __________ factors influence consumers' decisions. Select one: a. psychological b. economic c. situational d. shopping e. interpersonal

c. situational

Where Caroline grew up, everyone knew everyone else, no one locked the doors on their house, and a person's word could be trusted. When she went to work in another part of the country, she was surprised by how few people had similar values and beliefs. Caroline had to adjust to __________ differences. a. cognitive b. reference group c. evoked d. cultural e. situational

d. cultural

Natalie and her fiancée Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with a Roman Catholic priest officiating. Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Furthermore, Dow is from Thailand and would like to have a monk officiate. Natalie and Dow's wedding decisions are most influenced by a. functional and psychological profit. b. cognitive, affective, and behavioral environment. c. impulse, habitual, and limited problem solving process. d. family, reference groups, and culture. e. universal, retrieval, and evoked sets.

d. family, reference groups, and culture.

Among the factors affecting the consumer decision-making process is/are __________, the way consumers spend their time and money to live. a. the demonstration effect b. life standards c. conspicuous consumption d. lifestyle e. external validation

d. lifestyle

There are approximately 1 billion people living in India. Only about 200 million of these people earn more than the equivalent of $1,000 per year. According to Maslow's hierarchy, most of the other 800 million Indian consumers are primarily addressing their __________ needs. a. social b. esteem c. psychological d. physiological e. Personal

d. physiological

Maslow's hierarchy of needs includes physiological needs at the lowest level and self-actualization at the top. The three levels in between are a. community, family, and self. b. material goods, safety, and love. c. safety, stability, and striving. d. safety, love, and esteem. e. health, wealth, and happiness

d. safety, love, and esteem.

Some websites allow consumers to shop while getting opinions from online friends. Which of the influences on the consumer buying process does this represent? a. psychological b. motives c. perception d. social e. Situational

d. social

There is a saying, "Never go to the grocery store hungry." This saying suggests that a consumer's __________ state may adversely affect purchasing decisions. a. external b. theoretical c. social d. temporal e. Shopping

d. temporal

Andrea and Karl got married a year ago and are ready to move out of their apartment and into a new home. After looking at several houses, they have developed a list of features that are important to them and that are different among the homes they have visited. The features on their list are called

determinant attributes.

Marketers often use principles and theories from sociology and psychology to better understand consumers' actions and to

develop basic strategies for dealing with their behavior.

The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with a. social concerns. b. biased information. c. an evoked set. d. psychological needs. e. evaluative criteria.

e. evaluative criteria.

Most firms maintain customer complaint services online, in the store, or over the telephone. Firms attempt to respond quickly to complaints, hoping to a. offset performance risk with financial risk. b. reduce the cost of postpurchase advertising. c. get themselves into the universal set. d. extend decision rules to the customer complaint desk. e. minimize negative word of mouth and rumors.

e. minimize negative word of mouth and rumors.

The greater the discrepancy between a consumer's __________, the greater the consumer's need recognition will be. a. universal set and evoked set b. financial risk and performance risk c. external and internal information search d. search for alternatives and alternatives found e. needy state and desired state

e. needy state and desired state

Limited problem solving usually relies on a. situational stimuli and attitudes. b. evaluation of the universal set. c. financial analysis of performance risk. d. external search for information. e. past experience more than on external information.

e. past experience more than on external information.

There are approximately 1 billion people living in India. Only about 200 million of these people earn more than the equivalent of $1,000 per year. According to Maslow's hierarchy, most of the other 800 million Indian consumers are primarily addressing their __________ needs. a. personal b. psychological c. social d. esteem e. physiological

e. physiological

Many Hollywood movie stars were among the first to buy electric and hybrid vehicles. These stars often became __________, influencing other consumers' behavior. a. evoked images b. cognitive parameters c. cultural icons d. internal loci of control e. reference groups

e. reference groups

Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process?

evaluation of alternatives

The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with

evaluative criteria.

Elena is in the process of buying a new car. There are many possible cars to choose from, but she is focused on a few she would actually consider buying. These make up her __________ set.

evoked

Marketers particularly want their brands and products to be in consumers'__________ sets.

evoked

When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would only consider those brands she could buy at her local Best Buy electronics store. This represents Maya's __________ set.

evoked

Once consumers have recognized a need, they begin to search for ways to satisfy that need. The internal search is characterized by

examining personal memories and knowledge.

Jordana is a travel agent. Whenever she sells an expensive vacation package, she encourages the customer to buy travel insurance, which provides reimbursement in case of trip cancellation due to illness or another emergency. Jordana is trying to reduce her customers'__________ risk.

financial

When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing __________ needs

functional

A key to successful marketing is determining how to meet the correct balance of __________ needs that best appeals to the firm's target markets.

functional and psychological

By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers'__________ needs.

functional and psychological

Which of the following is NOT an element of the factors affecting consumers' search processes? a. actual risk b. perceived benefits versus perceived costs of search c. functional versus psychological need d. perceived risk e. locus of control

functional versus psychological need

When Kelly began searching for a new car to replace her old, rusty one, she probably relied on __________ sources of information.

internal and external

Ryan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. Michael's favorite phrase, when confronted by the need to make a decision, is "Whatever." In marketing terms, Ryan is said to have a(n) __________ and Michael, a(n) __________.

internal locus of control; external locus of control

André was afraid his new condominium would look shabby to his future in-laws, so he had it painted just before their visit. André was addressing his __________ risk.

social

Before flying, Jaden researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and follows the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Jaden probably has a misguided sense of his

locus of control

The greater the discrepancy between a consumer's __________, the greater the consumer's need recognition will be.

needy state and desired state

Generally, people buy one product or service instead of another because they

perceive it to be the better value for them.

Every year before he puts his boat in the water, James has his mechanic put a new battery in the boat. James is probably concerned with __________ risk.

performance

Kathy has naturally curly hair and has often been disappointed with the haircuts she has received. When she moved to a new town, she approached her new office mates and several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on the __________ associated with her purchase decision.

performance risk

Laura has a nearly new economy car, but she wants a Ford Mustang because she thinks it would be exciting to own one. If she decides to purchase a sports car such as the Mustang, she will be primarily fulfilling a __________ need. a. functional b. functional and psychological c. safety d. postpurchase e. psychological

psychological

Upscale men's and women's clothing stores like Nordstrom's, Neiman-Marcus, or Saks Fifth Avenue are more likely to appeal to consumers' __________ needs.

psychological

When Magda decided to buy a new computer, she considered all the brands she could recall seeing advertised. This represents Magda's __________ set.

retrieval

When the floor rusted through on her old car, Kelly knew she had a problem. Logically, Kelly's next step in the consumer decision process would be to

search for information about cars.

Peter wanted an unbiased source of information to help him decide what brand of appliances to buy for his new condominium. Peter would most likely search for information from

the Consumer Reports website.

The greater the discrepancy between a consumer's needy state and the desired state, the greater

the consumer's need recognition will be.

In the consumer decision process, we decide how much time and effort to expend searching for information based partly on

the degree of perceived risk associated with the product or service being considered.

The consumer decision process model represents A. the concept of habitual decision making. B. the retrieval of an evoked set based on physiological needs. C. the steps that consumers go through before, during, and after making purchases. D. the shift from an internal to an external locus of control. E. the types of decisions all consumers must make.

the steps that consumers go through before, during, and after making purchases.