Deck 9: Decision Making

Question 1

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

A) information search
B) evaluation of alternatives
C) problem recognition
D) product choice

Answer 1

C

Question 2

What is an evoked set?

Answer 2

The evoked set consists of all those product alternatives actively considered by the consumer during his/her choice process. It is composed of products already in memory (the retrieval set) as well as those prominently displayed in the retail environment.

Question 3

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
D) inertia

Answer 3

A

Question 4

A customer buying an unfamiliar product which carried a fair degree of risk would most likely engage in what type of problem solving?

A) Extended problem solving
B) Limited problem solving
C) Habitual problem solving
D) Recognition problem solving

Question 5

Decisions driven by our emotional responses to a product are called ________.

A) affective
B) habitual
C) cognitive
D) compensatory

Question 6

A straight rebuy is considered a habitual decision.

Question 7

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

Question 8

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

A) Problem recognition
B) Evaluation of alternatives
C) Constructive perspective
D) Behavioral influence perspective

Question 9

List and describe the three "buckets" of consumer decision making.

Question 10

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

Question 11

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

Question 12

________ 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

Question 13

List and explain the five types of perceived risk.

Question 14

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

Question 15

A shortcut to making a decision is called inertia.

Question 16

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

Question 17

Evaluating the effort when we need to make a particular choice is called the ________.

A) want
B) constructive process
C) need
D) routine process

Question 18

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

Question 19

A bucket in consumer decision making is ________.

A) cognitive
B) habitual
C) affective
D) all of the above

Question 20

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

Question 21

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

Question 22

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

Question 23

The experiential perspective stresses the importance of learning in decision-making.

Question 24

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

Question 25

Define problem recognition. Show how problems can arise. Give a brief example to illustrate the problem recognition process.

Question 26

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

A) evaluation
B) search
C) determinant
D) segmentation

Question 27

Which of the following occurs when a consumer uses a selected product and decides whether it merits his/her expectations?

A) Feature creep
B) Inertia
C) Framing
D) Post-purchase evaluation

Question 28

List and define the five stages of the cognitive decision-making process.

Question 29

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

Question 30

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

A) information search
B) evaluate alternatives
C) problem recognition
D) per purchase search

Question 31

Dimensions we use to judge the merits of competing options are called ________.

A) rational factors
B) attributes
C) evaluative criteria
D) emotional factors

Question 32

Hirosi ordered the expensive "heart attack special" at the local pub. It came with a one-pound hamburger and a full bucket of fries. Halfway through the meal, Hirosi was not feeling well. Yet according to the sunk-cost fallacy, Hirosi will likely continue until he has finished the "special."

Question 33

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

Question 34

The evaluation of alternatives is the third stage of the consumer decision-making process.

Question 35

Needs are created when the actual state of a customer declines.

Question 36

Cedric runs out of gas on the way to work. He thinks to himself-"How stupid I am!" Cedric has experienced a form of a problem recognition that is being dominated by a downward movement in his actual state.

Question 37

________ 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

Question 38

What are determinant attributes?

Question 39

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.

A) demonstration signals
B) knowledge structures
C) mental maps
D) mean-end chains

Question 40

Incidental learning occurs after a very concentrated search for information.

Question 41

Explain the term "behavioral economics."

Question 42

The success of a positioning strategy depends on the marketer's ability to convince the consumer to consider its product within a given category.

Question 43

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

Question 44

Define framing.

Question 45

A positioning strategy relies on the marketer's ability to convince the consumer to consider its product within a given category.

Question 46

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

A) prospect theory
B) heuristics
C) hyperopia
D) Zipf's law

Question 47

Demonstrate how a marketer could use neuromarketing to advance the cause of his product. You may use any example you choose for your demonstration.

Question 48

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

Question 49

A consumer who buys the same brand over and over again exhibits ________.

A) staple purchasing
B) rational purchase
C) customization
D) brand loyalty

Question 50

How can marketers help people organize information on the internet?

Question 51

Define a hybrid product and give an example.

Question 52

Products that consumers are willing to pay more for are called ________ products.

A) cult
B) limited
C) staple
D) routine

Question 53

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.

Question 54

What is cybermediary? Provide an example to illustrate the function of cybermediaries.

Question 55

A consumer's overall reaction to a product after it was purchased is called feature creep.

Question 56

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

Question 57

Differentiate between an evoked set and a consideration set. Provide examples to illustrate the two terms.

Question 58

________ describes consumption at the low end.

A) Routine buying
B) Complex buying
C) Inertia
D) Utilitarian

Question 59

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

Question 60

Claire remembers that uniquely wonderful taste that can only come from a frosty mug of root beer. As she heads to the soft drink aisle in the grocery store, she decides that today is the day to experience her root beer again. Claire has just conducted what is called an informational search.

Question 61

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

A) determinant
B) detail rule
C) heuristic
D) experience rule

Question 62

Describe the loss aversion tendency and provide an example from your own experience.

Question 63

Decisions are influenced by the way a problem is posed. This is called framing.

Question 64

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.

Question 65

Cybermediaries are sophisticated software programs that use collaborative filtering technologies to learn from past behavior.

Question 66

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

A) inert
B) evoked
C) evaluate
D) consideration

Question 67

What are noncompensatory rules? When are they used? Briefly describe the three types of noncompensatory rules.

Question 68

A consumer who falls back on "mental rules-of-thumb" when making a decision is using heuristics.

Question 69

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

Question 70

Neuromarketing refers to the use of MRI tools that try to understand and then apply a human decision maker's multiattribute preferences for a product category.

Question 71

Pepsi A.M. was positioned as a coffee substitute. In one test market, Pepsi A.M. was introduced onto a university campus. It was both an immense hit and a total failure. The product always sold out in vending machines, but the consumption of coffee stayed the same and the sale of other Pepsi products declined. In terms of levels of categorization, discuss what created the problem in the test market.

Question 72

The "good enough" perspective on decision making is known as ________.

A) bounded rationality
B) framing
C) a nudge
D) default bias

Question 73

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

Question 74

The research on loss aversion suggests that people tend to emphasize their losses more than their gains.

Question 75

Habitual decision making is the lowest order of buying decision making.

Question 76

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

Question 77

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

Question 78

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.

Question 79

Buying decisions that are made with little or no conscious effort are called ________.

A) close minded
B) habitual
C) satisficing
D) extended

Question 80

If a consumer is following the lexicographic rule in her decision making, than she would select a brand that is the best on the most important attribute.