Deck 12: Decision Making I: Need Recognition and Search

Question 1

Consumers engage in extended decision making when they put off the decision making for a later time and restrain themselves from getting involved with the product in consideration.

Answer 1

False
When consumers engage in extended decision making,they tend to search diligently for information that will help them reach a satisfactory decision.Extended decision making occurs when involvement is high and when there is a significant amount of purchase risk involved with the decision.

Question 2

Value perceptions influence the activities found in the decision-making process.

Answer 2

True

Question 3

The rational decision-making perspective centers on the assumption that human beings are rational creatures who carefully consider their decisions and that they can identify the expected value associated with a purchase.

Answer 3

True

Question 4

Decision-making perspectives guide consumers on how to approach decision making.

Question 5

Limited decision making usually occurs when there are relatively low amounts of purchase risk and product involvement.

Question 6

The perceived risk for a product or service remains the same across consumers and situations.

Question 7

Experiential decision processes often focus on utilitarian value.

Question 8

Extended decision making occurs when involvement is high and when there is a significant amount of purchase risk involved with the decision.

Question 9

A consumer who initiates the decision-making process always completes the process.

Question 10

Performance risk is risk associated with the likelihood of a product performing as expected.

Question 11

With limited decision making,consumers search for extensive information on product prices as they have limited amount of money to spend.

Question 12

The rational decision-making perspective focuses on the utilitarian value received from the product.

Question 13

The activities found in the decision-making process are referred to as steps because consumers proceed through the activities in a sequential fashion.

Question 14

The basic consumer behavior consumption process revolves around value-seeking activities that consumers perform as they go about satisfying needs.

Question 15

The decision-making approach that is used depends heavily on the amount of involvement a consumer has with a product purchase and the amount of perceived risk involved with the decision.

Question 16

Perceived risk refers to the perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take.

Question 17

Decision-making processes always involve a tangible product.

Question 18

Consumer decisions can seldom be analyzed from a combination of decision-making perspectives.

Question 19

Physical risk is the risk associated with how other consumers will view the purchase.

Question 20

Retailers use the "brand-lift index" to measure the incremental sales that occur when a product is on display.

Question 21

The end state is the perceived state for which the consumer strives.

Question 22

In an ongoing search,the search effort is focused on simply staying up to date on a topic of interest.

Question 23

Brand inertia is present when a consumer simply buys a product repeatedly without any real attachment.

Question 24

Need recognition occurs when a consumer's actual state matches his/her desired state.

Question 25

With habitual decision making,consumers seek extensive information as most consumers experience high involvement with their habits.

Question 26

In opportunity recognition,a consumer's actual state doesn't change,but his or her desired state changes in some significant way.

Question 27

Prepurchase search activities are focused on locating information that will enable the consumer to reach a decision for a specific problem.

Question 28

Internal search includes the retrieval of knowledge about products,services,and experiences that are stored in memory.

Question 29

Brand loyalty involves deeply-held commitment to rebuy a product or service regardless of situational influences that could lead to switching behavior.

Question 30

The size of the awareness set decreases as external search proceeds.

Question 31

Alternatives that are deemed to be unacceptable for further consideration in decision making comprise a consumer's inert set.

Question 32

Research confirms that consumers generally consider only a small fraction of the actual number of problem solutions that are available.

Question 33

Information overload refers to the situation in which consumers are presented with so much information that they cannot assimilate it all.

Question 34

The difference between ongoing searches and browsing behavior is that an ongoing search is performed when consumers have an enduring interest or involvement with the product,not simply when information is being gathered for a specific purchase.

Question 35

Satisficing is the practice of using decision-making shortcuts to arrive at satisfactory,rather than optimal,decisions.

Question 36

The total collection of all possible solutions to a recognized need is referred to as the universal set of alternatives.

Question 37

Brand loyalty has an impact on the value of the brand to the firm.

Question 38

The inert set includes those alternatives to which consumers are indifferent,or for which strong feelings are not held.

Question 39

A consumer is considered loyal if she simply buys the same product habitually.

Question 40

Consumer search behavior refers to the behaviors that consumers engage in as they seek information that can be used to satisfy needs.

Question 41

When Carl migrated to England,he decided to stay in a cottage in Goodwood,Leicester,even though he had the option of staying in a better place.He opted to stay in Goodwood as the rent was reasonable and the neighborhood culture suited him well.Which of the following activities in the decision-making process best represents Carl's decision to stay in Goodwood?

A)Need recognition
B)Search for information
C)Evaluation of alternatives
D)Choice
E)Postchoice evaluation

Question 42

Situational factors influence the amount of search that takes place.

Question 43

Regret is less likely to be experienced when consumers exert much energy and utilize unfamiliar techniques during the search process.

Question 44

Which of the following decision-making perspectives assumes that consumers often make purchases and reach decisions based on the affect,or feeling,attached to the product or behavior under consideration?

A)Rational decision-making perspective
B)Experiential decision-making perspective
C)Functional decision-making perspective
D)Behavioral influence decision-making perspective
E)Implemental decision-making perspective

Question 45

A positive role of price exists when product price signals the desirability as well as the prestige associated with owning the product.

Question 46

The ability to control information flow increases the value of information and increases the consumers' ability to remember information that is gathered.

Question 47

When Carl arrived in England,he compared four different options for accommodation,keeping in mind the budget as well as the neighborhood culture that would suit him.Which of the following activities in the decision-making process best represents Carl's comparison?

A)Need recognition
B)Search for information
C)Evaluation of alternatives
D)Choice
E)Postchoice evaluation

Question 48

Quality represents the perceived overall goodness or badness of a product.

Question 49

When Carl decided to migrate to England,he was preoccupied with looking up on the Internet for data on accommodation.He also talked with his friends and relatives in England on available options for stay on his arrival.Which of the following activities in the decision-making process best represents Carl's preoccupation?

A)Need recognition
B)Search for information
C)Evaluation of alternatives
D)Choice
E)Postchoice evaluation

Question 50

Which of the following decision-making perspectives assumes that consumers diligently gather information about purchases,carefully compare various brands of products on salient attributes,and make informed decisions regarding what brand to buy?

A)Rational decision-making perspective
B)Experiential decision-making perspective
C)Behavioral influence decision-making perspective
D)Functional decision-making perspective
E)Implemental decision-making perspective

Question 51

Search tends to decrease as a consumer's level of education and income increases.

Question 52

Which of the following is true about the consumer decision-making process?

A)Consumers always proceed through the activities in the decision-making process in a sequential fashion.
B)Consumers always complete the decision-making process once it is initiated.
C)Consumers' decision-making processes don't always involve a tangible product.
D)Consumers' decision-making processes operate independently of any value perceptions.
E)Consumers' decision making doesn't always involve choices linked to value.

Question 53

The term evaluative criteria is used to refer to the product attributes that consumers consider when reviewing possible solutions to a problem.

Question 54

It has been a month since Carl moved into a new apartment in Leicester.He spent most of his life savings on purchasing the apartment.He now considers his decision and feels that he has made the right selection in terms of the amount of money spent and the value received on the purchase.Which of the following activities in the decision-making process best represents Carl's consideration of his decision?

A)Need recognition
B)Search for information
C)Evaluation of alternatives
D)Choice
E)Postchoice evaluation

Question 55

Consumers who are very sensitive to the negative role of price tend to be very bargain conscious.

Question 56

Greg is considering the purchase of a new truck.He wants to purchase the best one within his budget.He searches the Internet,asks friends,and visits dealerships to learn more about different brands and their features.He even found a website where he can directly compare different brands to help him in his decision.Which of the following decision-making perspectives would best describe Greg's decision-making process?

A)Experiential decision-making perspective
B)Behavioral influence decision-making perspective
C)Functional decision-making perspective
D)Implemental decision-making perspective
E)Rational decision-making perspective

Question 57

When Carl,a Cuban,migrated to England,he realized he had no suitable clothes for the winter.Carl felt that he required some warm clothes to brace himself up for the English winter.Which of the following activities in the decision-making process represents this perceived requirement?

A)Need recognition
B)Search for information
C)Evaluation of alternatives
D)Choice
E)Postchoice evaluation

Question 58

Price is information signaling how much potential value may be derived from consuming something.

Question 59

The term search regret refers to the negative emotions that come from failed search processes.

Question 60

Tina,a consumer researcher,assumes that her buying decisions are influenced majorly by the emotions associated with the product,such as the enjoyment involved with the use of the product or service.Which of the following decision-making perspectives does Tina demonstrate?

A)Rational decision-making perspective
B)Experiential decision-making perspective
C)Behavioral influence decision-making perspective
D)Functional decision-making perspective
E)Implemental decision-making perspective

Question 61

Which of the following types of decision-making approaches occurs when there are relatively low amounts of purchase risk and product involvement?

A)Limited decision making
B)Extended decision making
C)Experiential decision making
D)Involved decision making
E)Timed decision making

Question 62

Carl and Sarah,newlyweds,are considering the purchase of their first house.They are very involved with this purchase decision,particularly because they will be spending their entire savings on this purchase.They have been searching for information on the Internet and asking for opinions from friends and family.Which of the following decision-making approaches are they most likely employing?

A)Experiential decision making
B)Habitual decision making
C)Routine decision making
D)Extended decision making
E)Limited decision making

Question 63

Which of the following statements is true about habitual decision making?

A)It occurs when a consumer believes the consumption of a specific product that they have in mind will solve the problem and deliver value.
B)It involves extensive evaluation of alternatives based on the potential to satisfy a particular need.
C)It occurs when a consumer's involvement with the particular product category is high.
D)It occurs when the perceived risk for the particular product is high.
E)It involves a time-consuming process of collecting information and comparing brands.

Question 64

Which of the following is true about behavioral influence decision-making perspective?

A)Consumers are rational and they diligently gather information about purchases.
B)Consumers compare various brands of products on salient attributes.
C)Consumers' behaviors are influenced by environmental forces.
D)Consumers make informed decisions regarding what brand to buy.
E)Consumers' behaviors are influenced by cognitive decision making.

Question 65

Hal is considering purchasing a hybrid automobile as he wants better gas mileage as well as an environment-friendly car.However,he is concerned that the car might not function the way he is anticipating it to.Which of the following best reflects Hal's concern?

A)Financial risk
B)Physical risk
C)Performance risk
D)Time risk
E)Social risk

Question 66

Risk associated with the likelihood of a product functioning as expected is referred to as _____ risk.

A)financial
B)physical
C)social
D)time
E)performance

Question 67

In which of the following types of decision-making approaches do consumers tend to search diligently for information that will help them reach a satisfactory decision?

A)Rational decision making
B)Limited decision making
C)Extended decision making
D)Habitual decision making
E)Routine decision making

Question 68

The perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take is referred to as perceived _____.

A)need
B)stress
C)value
D)inertia
E)risk

Question 69

Risk associated with the cost of the product is known as _____ risk.

A)social
B)physical
C)performance
D)time
E)financial

Question 70

Risk associated with how other consumers will view the purchase is referred to as _____ risk.

A)financial
B)performance
C)social
D)physical
E)time

Question 71

Which of the following is an example of behavioral influence perspective?

A)Marcie goes window-shopping with her friends and buys a designer gown that is on display at a store.
B)Kate needs to buy a wedding gown.She surfs the Internet and visits all the boutiques in Florida to compare prices and quality.
C)Mandy loves skiing and she has signed herself up for an expensive ski training in Switzerland.
D)Tamara plans to spend an entire weekend relaxing at her favorite spa.
E)Leon wants to buy a new automobile.He visits a few dealerships and test-drives quite a few automobiles.He compares prices and features of the various models before selecting one.

Question 72

Ben just got a high-paying job and wants to buy an expensive car.However,he was raised in a family where spending on luxury is considered wasteful.Even though Ben dreams of replacing his old car with an expensive one,he is very concerned about how his parents and relatives will react to his purchase decision.Which of the following best reflects Ben's concern?

A)Financial risk
B)Social risk
C)Performance risk
D)Physical risk
E)Time risk

Question 73

Which of the following decision-making perspectives assumes that many decisions are learned responses to environmental influences?

A)Rational decision-making perspective
B)Experiential decision-making perspective
C)Behavioral influence decision-making perspective
D)Functional influence decision-making perspective
E)Implemental decision-making perspective

Question 74

John's kids have been pestering him to buy them shoes with wheels.However,he's concerned whether using such shoes would be safe for his children or make them more prone to injuries.Which of the following best reflects John's concern?

A)Financial risk
B)Physical risk
C)Performance risk
D)Time risk
E)Social risk

Question 75

Some consumers won't purchase certain brands of automobiles because there is no dealership in their town to provide maintenance services for their vehicles.In some cases,they would have to drive for several hours to the closest dealership.Which of the following is most likely influencing the decision against purchasing one of these brands?

A)Financial risk
B)Physical risk
C)Performance risk
D)Time risk
E)Social risk

Question 76

Most young adults would like to own a high-end luxury automobile,even though most of them could not afford one.Which of the following types of risk is likely to prevent them from purchasing one?

A)Financial risk
B)Social risk
C)Performance risk
D)Safety risk
E)Time risk

Question 77

Tina,a consumer researcher,conducted a research on consumers' dining behaviors.The research findings showed that diners tend to spend more time and money when the ambience consists of dim light and soft music being played in the background.Which of the following decision-making perspectives best corresponds to Tina's research findings on her research subjects?

A)Rational decision-making perspective
B)Experiential decision-making perspective
C)Behavioral influence decision-making perspective
D)Functional decision-making perspective
E)Implemental decision-making perspective

Question 78

Risk associated with the safety of the product as well as its consumption is referred to as _____ risk.

A)financial
B)performance
C)social
D)physical
E)time

Question 79

Which of the following is true of the experiential decision-making perspective?

A)It assumes that consumers follow a "think-feel-do" hierarchy in making decisions.
B)It assumes that consumers' decision-making involves extensive cognitive effort.
C)It assumes that consumers' decision-making processes merely focus on utilitarian value.
D)It assumes that consumers' behaviors are based largely on the sheer enjoyment involved with consumption.
E)It assumes that consumers derive value from the end result of their decisions and not the experience.

Question 80

When Anna goes shopping for groceries every week,she buys the same brand of orange juice that her family has been consuming for years.She picks up the juice without looking at the product information prior to buying it.Which of the following types of decision-making approaches is Anna is most likely adopting while buying orange juice?

A)Extended decision making
B)Rational decision making
C)Habitual decision making
D)Involved decision making
E)Timed decision making