Deck 3: Overview of Consumer Decision Making

Question 1

Brand laziness can explain many consumer routine choices.

Answer 1

True

Question 2

Christina and Claire are roommates. When Christina shops, she likes to stock up on everything she will need for the next couple of weeks. Claire prefers to only shop for what she needs for the next day or two, making more shopping trips. Christina is more likely to engage in variety seeking than Claire.

Answer 2

True

Question 3

According to your readings, there is widespread agreement between Chinese and Western business people that much of Chinese ethical problems related to defective products are simply due to a lack of production knowledge and expertise.

Answer 3

False

Question 4

Consumers tend to engage in more variety seeking when they purchase products for themselves versus when they purchase products for others.

Question 5

Variety seeking is the opposite of brand loyalty in terms of involvement and information processing.

Question 6

In order for problem recognition to occur in the consumer decision process model, the discrepancy between what the consumer wants and what exists must be substantial and must be readily solvable.

Question 7

As a general rule, the fewer the number of products in a category, the greater the external search.

Question 8

Research shows that close proximity among stores can increase a consumer's external information search.

Question 9

One way to consider and categorize consumer decision making is to consider processing effort and involvement.

Question 10

One of the main goals of marketing is to create needs and wants.

Question 11

The last step in the traditional model of consumer decision making discussed in your readings is the purchase decision.

Question 12

While time pressure can cause people to limit external information search, perceptions of crowding in a retail environment can cause people to increase external search due to the social stimulation of crowds.

Question 13

While brand laziness is a common occurrence, it is actually an irrational way to make purchase decisions.

Question 14

John is shopping for a new cell phone. Upon entering the large electronics store, he realized there were just too many choices! He quickly became frustrated and ended up quickly choosing a brand he had often seen advertised on television. John is experiencing a satisfaction paradox.

Question 15

Extreme degrees of novelty and complexity in the purchase situation can lessen the desire to engage in variety seeking.

Question 16

In the purchase decision stage of the traditional model of consumer decision making, the process always results in actual purchase followed by some post-purchase evaluation.

Question 17

The difference between brand loyalty and brand laziness can be explained by the amount of information processing a person does.

Question 18

During intermediate problem solving, consumers are not motivated to rigorously evaluate each alternative, hence they often engage in heuristics to help them.

Question 19

Because marketing efforts cannot control a person's thoughts, marketing activities cannot trigger problem recognition.

Question 20

Paul recently switched from regular soda to diet sodas because he wants to lose weight. In this case, Paul is engaging in intrinsic variety seeking.

Question 21

The two dimensional model of decision making discussed in your readings considers processing effort and involvement. What four types/categories of consumer decision making make up this model?

A) Brand laziness; brand loyalty; variety seeking; problem solving
B) High involvement; low involvement; high risk; low risk
C) High information processing; low information processing; brand laziness; brand loyalty
D) Variety seeking; problem solving; routine choice; functional risk
E) Routine choice, intermediate problem solving; high risk; high information processing

Question 22

Utility describes the amount of happiness and satisfaction a consumer gains from a product or service.

Question 23

The cluster frontier can be likened to a person's perceived ideal brand.

Question 24

Every time you go to the store, you purchase Charmin toilet paper. You don't really think about why you purchase Charmin because you purchase it out of habit. What type of purchase decision making is this?

A) Intermediate problem solving
B) Routine choice
C) Bounded rationality
D) Extensive problem solving
E) Neutral decision making

Question 25

External uncertainty is really about uncertainty about brand information, whereas, internal uncertainty is really about uncertainty about brand utility.

Question 26

Research has shown that highly satisfied consumers tend to be brand loyal.

Question 27

Cognitive dissonance tends to occur less for higher priced items.

Question 28

When a purchase involves product options that are very different in terms of product attributes and overall attractiveness, post-purchase dissonance is more likely to occur.

Question 29

Cognitive dissonance occurs when consumers second-guess their purchase decisions.

Question 30

In brand clusters, the degree to which brands within a single cluster are dissimilar from each other is called the cluster frontier.

Question 31

Research shows that in general, women enjoy shopping more than men.

Question 32

Clustering brands in one's perceived product market makes decision making easier.

Question 33

Purchases like engagement rings, new cars, and houses involve _____ consumer decision making.

A) intermediate problem solving
B) routine choice
C) variety seeking problem solving
D) extensive problem solving
E) neutral decision making

Question 34

Moderately (medium) experienced customers are more likely to engage in extensive information search during consumer decision making than those with low levels of expertise or experience.

Question 35

Low cluster variance increases the likelihood of a consumer making a bad purchase decision.

Question 36

Consumers often infer the level of demand for brands in a product cluster from the cluster size, such that a larger cluster size implies more demand.

Question 37

The expectancy disconfirmation model suggests that as expectancies increase, satisfaction increases.

Question 38

Research shows that in general, very few consumers enjoy shopping for the sake of shopping.

Question 39

A consumer's perceived utility function for a product rarely differs from his/her true utility function. When this occurs, a satisfaction paradox is created.

Question 40

People who tend to engage in high levels of ongoing search (vs. those that don't) tend to impulse shop less.

Question 41

Select the stage of the consumer decision process that is represented by the observation, "It's really hard for me to get to class on time without a car.":

A) Alternative evaluation
B) Perception
C) Motivation
D) Problem Recognition
E) Information Search

Question 42

According to your readings, there is widespread agreement between Chinese and Western business people that much of Chinese ethical problems related to defective products are due to:

A) lack of production and operations knowledge
B) a lack of a state food and drug administration
C) a national culture that promotes laziness
D) an excessive focus on profit coupled with very fast economic growth
E) faulty technology

Question 43

Chris gets bored easily with his breakfast cereal. Every time he goes to the grocery store, he tries a new brand of cereal. Chris is most likely:

A) high in brand loyalty
B) high in brand laziness
C) high in intrinsic variety seeking motivation
D) high in extrinsic variety seeking motivation
E) high in situational involvement

Question 44

The want-got gap occurs during which stage of the consumer decision process model?

A) Purchase
B) Information search
C) Alternative evaluation
D) Post-purchase evaluation
E) None of the above is correct.

Question 45

_____ attributes are key product attributes that are most likely to affect a buyer's final choice. These attributes are usually described according to their importance and _____.

A) Parity; risk
B) Determinant; uniqueness
C) Cluster; opportunity
D) Parity; opportunity
E) Determinant; risk

Question 46

_____ occur when consumers perceive a decline in their actual conditions while their desired condition remains the same.

A) Opportunities
B) Customer delight
C) Needs
D) Wants
E) Satisfaction

Question 47

Which of the following statements about variety seeking is false?

A) Variety seeking involves low levels of involvement and low levels of information processing.
B) Variety seeking is the opposite of brand loyalty.
C) Derived varied behavior describes situations where consumers' brand switching is either externally imposed or extrinsically motivated.
D) A person who enjoys trying new products out of curiosity is high in intrinsic variety seeking.
E) Involvement is low for variety seekers so they may switch brands to reduce boredom.

Question 48

Fill in the missing step in the traditional model of consumer decision making: -- Problem solving
-- _____
-- Evaluation of alternatives
-- Purchase decision
-- Post-purchase evaluation

A) Variety seeking
B) Information search
C) Cluster formation
D) Dissonance assessment
E) Risk assessment

Question 49

Which of the following statements about variety seeking is true?

A) While variety seeking is prevalent, research shows that a person will typically not engage in variety seeking when he/she knows a new brand choice will be less satisfying than the current brand choice.
B) Variety seeking is less common for parity products.
C) The introduction of new low involvement product categories can encourage variety seeking behavior.
D) Consumers engage in more variety seeking when they purchase a product for themselves versus when they purchase for others.
E) None of the above statements about variety seeking is true.

Question 50

_____ is a consumer's natural inertia toward a product or service based on familiarity and convenience, rather than a fundamental commitment to the brand.

A) Variety seeking
B) Brand loyalty
C) Brand laziness
D) Involvement
E) Bounded rationality

Question 51

Which of the following is not a possible motive to engage in consumer decision making?

A) Problem removal
B) Problem avoidance
C) Normal depletion
D) Dissatisfaction
E) All of the above are possible motives.

Question 52

Lisa is very picky about her peanut butter. She believes that the brand she buys tastes much better than any other brand on the market. Lisa is clearly:

A) high in brand loyalty
B) high in brand laziness
C) high in intrinsic variety seeking motivation
D) high in extrinsic variety seeking motivation
E) high in situational involvement

Question 53

Which of the following statements about brand laziness is false?

A) Making a purchase out of habit with no fundamental commitment to the brand is a form of brand laziness.
B) Commodity-type products such as flour are especially susceptible to brand laziness.
C) Brand laziness can be a smart strategy for consumers because it saves time and effort.
D) Brand laziness is a good phenomenon for marketers because consumers rarely shift their preferences for products in which they practice brand laziness.
E) Brand laziness occurs in part because consumers are cognitive misers.

Question 54

Kyle enjoys collecting antique furniture. He often spends whole weekends browsing through antique shops, thumbing through catalogs and attending estate auctions, even when he isn't actually in the market to purchase anything. This example represents what type of information search?

A) An experiential search
B) An internal search
C) An external search
D) A prepurchase search
E) An ongoing search

Question 55

Which of the following is not one of the perceptions of risk discussed in your readings?

A) Financial risk
B) Functional risk
C) Physical risk
D) Psychological risk
E) All of the above are perceptions of risk.

Question 56

Patty is getting married in six months. She has been shopping for a wedding dress. Patty is most likely experiencing what type of involvement?

A) External involvement
B) Enduring involvement
C) Situational involvement
D) Salient involvement
E) Unique involvement

Question 57

When consumers shop for new automobiles, they often are consider the braking system. Most consumers feel that an anti-lock braking system is an important, valuable attribute to have. However, most brands offer this important feature. Thus, according to your readings on attribute importance and uniqueness, what type of attribute is an anti-lock braking system in this example?

A) A determinant attribute
B) An optional feature
C) An irrelevant attribute
D) A defensive attribute
E) A parity attribute

Question 58

_____ represents a consumer's long term and continuous interest in a brand or product category.

A) External involvement
B) Enduring involvement
C) Situational involvement
D) Salient involvement
E) Unique involvement

Question 59

A _____ is a brand that possess functionally equivalent attributes, making one brand a satisfactory substitute for most others.

A) determinant brand
B) ideal brand
C) parity product
D) compensatory product
E) None of the above is correct.

Question 60

Which of the following is not an example of high intrinsic variety seeking?

A) Trying a new brand because you are curious about it
B) Switching brands because you are bored with your old brand
C) Trying a new brand because your store is out of the brand you usually purchase.
D) Switching brands because it is fun to shop and try new products
E) All of the above are instances of high intrinsic variety seeking.

Question 61

George enjoys video gaming. He seems to know everything there is to know about the various gaming systems on the market and the newest, hottest games. George not only plays video games but he also runs his own Internet blog about video games, and he has started a video club in neighborhood. George is most clearly:

A) high in situational involvement
B) a market maven
C) a creator of brand chaos
D) a connector
E) a strong variety seeker

Question 62

Consumers often interpret larger _____ as an indication of greater external uncertainty, but often interpret larger _____ as an indication of less external uncertainty.

A) cluster variance; brand variance
B) cluster size; cluster variance
C) cluster size; cluster frontier
D) cluster frontier; brand variance
E) cluster variance; cluster size

Question 63

Graph the four major types of consumer decision making based on information processing and involvement. Provide an example of each type of decision.

Question 64

Describe the steps of the traditional model of consumer decision making.

Question 65

Which two factors are combined to form a consumers perceive product market?

A) Cluster size and cluster variance
B) Internal uncertainty and external uncertainty
C) True brand universe and the perceived brand universe
D) Perceived brand universe and perceived utility function
E) True utility function and the perceived utility function

Question 66

Steve was initially happy with his newly purchased personal computer. It had all the features he wanted, including a large monitor and internal memory. But, as he was taking the computer out of the box, Steve noticed an advertisement in the local newspaper showing a similar computer for less than he paid. Suddenly, Steve began to doubt his purchase decision and feel anxious - maybe he had not gotten such a good deal and spent too much money on his purchase. Steve was experiencing:

A) bounded rationality
B) the evoked state
C) cognitive dissonance
D) the post-purchase depression
E) a satisfaction paradox

Question 67

The _____ is the set of all brands that exist along with measures of each brands' attributes; whereas, the _____ includes those brands that the consumer acknowledges.

A) perceived brand universe; true brand universe
B) parity brand set; true brand set
C) true brand universe; perceived brand universe
D) true brand set; situational brand set
E) parity brand universe; perceived brand universe

Question 68

The Expectancy Disconfirmation Model suggests that:

A) as expectancies increase satisfaction increases.
B) as expectancies increase satisfaction decreases.
C) negative disconfirmations cause satisfaction to increase.
D) expectancies are unrelated to satisfaction
E) reality is more important than what exists in the consumer's mind

Question 69

_____ occurs when the product performs as good as consumers expected.

A) Post-consumption evaluation
B) Satisfaction
C) Dissatisfaction
D) Post-purchase regret
E) Cognitive dissonance

Question 70

Which of the following statements about information search during consumer decision making is false?

A) In general, better-educated, younger consumers tend to expend more effort on information search than those who are less-educated and older.
B) Perceptions of crowding in the retail environment can cause people to reduce external information search.
C) Time constraints can cause people to reduce external information search.
D) Market mavens tend to engage in high levels of ongoing information search.
E) Research shows that in general, very few consumers enjoy shopping for the sake of shopping.

Question 71

Markus is trying to decide what type of movie to rent tonight. He has narrowed his choices down to the categories of comedies and action. This process of narrowing down choices into manageable subsets is known as:

A) a cluster frontier
B) a non-compensatory process
C) extended problem solving
D) intrinsic variety seeking
E) a compensatory process

Question 72

List the ways in which problem recognition is triggered.

Question 73

What is the difference between needs and wants?

Question 74

What is want creation? What is the "dark side" of marketers engaging in want creation?

Question 75

List and briefly describe the five perceptions of risk. Identify an example of a product that might carry each risk.

Question 76

Fill in the missing step in the uncertainty-reduction process of consumer decision making: -- product-market perception
-- consideration of a subset of brands
-- choice of one brand from the consideration set
-- _____

A) Variety seeking
B) Information search
C) Cluster formation
D) Bounded rationality
E) Consumption experience

Question 77

In what type of industry structure can information search be almost eliminated?

A) Perfect competition
B) Monopoly
C) Monopolistic competition
D) Both A and B are correct.
E) Both B and C are correct.

Question 78

_____ occurs when product performance falls short of consumers' expectations and seems inferior to rejected alternatives.

A) Post-consumption evaluation
B) Satisfaction
C) Expectancy confirmation
D) Post-purchase paradox
E) Cognitive dissonance

Question 79

Why is variety seeking prevalent among parity product categories?

Question 80

Prior knowledge and experience influences the extent to which consumers conduct external information searches during the decision process. Which group typically will spend the most time gathering information?

A) Consumers with low levels of expertise
B) Consumers with high levels of expertise
C) Consumers with moderate (medium) levels of expertise
D) Consumers who are in a state of brand chaos
E) All of the above will spend equal amounts of time gathering information.