Question 1

Which of the following influences decision difficulty?
A) Number of brands considered
B) Number of attributes considered
C) Time pressure
D) Number of brands available
E) All of the above influence decision difficulty.

Accepted Answer

All of the above factors (number of brands considered, number of attributes considered, time pressure, and number of brands available) can influence decision difficulty. The more options and information a consumer has to consider, the more difficult the decision can become. Additionally, time pressure can increase the perception of difficulty as the consumer may not have enough time to fully evaluate all options. Therefore, all of these factors can contribute to overall decision difficulty.

Question 2

Which of following statements about attribute-based versus attitude-based choice is false?
A) In attitude-based choice, people make choices based on overall evaluations of brands.
B) Attribute information is typically more accessible than attitude information, which means the information is easier to recall.
C) Attribute-based choice is often preferred when brands are very similar overall.
D) Attribute information is considered more diagnostic than attitude information. (Diagnostic means that the information is relevant to distinguishing between choices.)
E) Attitude-based choice can only happen if a brand attitude exists.

Accepted Answer

Attribute information is not necessarily more accessible than attitude information. In fact, attitude information, which represents an individual's overall evaluation of a brand, can often be more easily recalled because it is a summary evaluation, whereas recalling specific attribute information may require more cognitive effort.

Question 3

Every time Kirk shops for wine, he chooses which brand to purchase based on the how expensive the bottles are. He tries to choose one that isn't too cheap. Kirk is using what type of heuristic?
A) Simulation heuristic
B) Price-quality heuristic
C) Rationalization heuristic
D) Price-segmentation heuristic
E) Representativeness heuristic

Accepted Answer

Kirk is using the price-quality heuristic, which involves assuming that a higher price means higher quality. He is not using the other heuristics listed, such as the simulation heuristic (imagining scenarios and outcomes), the rationalization heuristic (justifying choices based on personal beliefs), the price-segmentation heuristic (categorizing based on price points), or the representativeness heuristic (making judgments based on how well something fits a stereotype).

Question 4

Adding a similar but inferior decoy product to a product line increases the attractiveness of the other products. This is known as the:
A) part-list cuing
B) price-quality heuristic
C) attraction effect
D) compromise effect
E) anchoring-and-adjustment heuristic

Accepted Answer

The attraction effect is the concept that the presence of a similar but inferior decoy product can increase the attractiveness of the other products in the line, causing customers to perceive them as more valuable by comparison. This can lead to increased sales and revenue.

Question 5

Which of the following about heuristics is false?
A) Heuristics enable us to make decisions quickly and easily.
B) Persuasion heuristics influence consumers' beliefs and attitudes.
C) The MODE model is a type of choice heuristic.
D) Heuristic processing is particularly likely when a decision is perceived as unimportant.
E) Heuristics can lead consumers to overlook important information.

Accepted Answer

The MODE model is not a type of choice heuristic, it is a framework for understanding dual process theories of information processing. The other statements are true about heuristics.

Question 6

Reminding consumers about some brands decreases consumer memory for other brands. This phenomenon is known as the:
A) direction-of-comparison effect
B) anchoring-and-adjustment effect
C) attraction effect
D) compromise effect
E) None of the above is correct.

Accepted Answer

The phenomenon described is not accurately captured by any of the options provided. The direction-of-comparison effect, anchoring-and-adjustment effect, attraction effect, and compromise effect are all distinct psychological or decision-making phenomena that do not specifically relate to the scenario where reminding consumers about some brands decreases memory for other brands. This scenario might be more closely related to concepts like interference or the overshadowing effect in memory and attention, but none of the given choices directly refer to this phenomenon.

Question 7

The manner in which products are displayed on a grocer shelf has little effect on consumer choice when consumer attitudes are highly accessible from memory. This hypothesis is most consistent with which theory?
A) Theory of Reasoned Action
B) Information Integration Theory
C) MODE Model
D) Expectancy Disconfirmation Model
E) Dissonance Reduction Model

Accepted Answer

The MODE Model (Motivation and Opportunity as DEterminants) suggests that when motivation is high and opportunity is present (e.g., when consumer attitudes are highly accessible from memory), behavior is more likely to be deliberate and based on these attitudes, rather than influenced by external factors such as product placement. This contrasts with situations where attitudes are less accessible, and external cues (like product display) might have a greater impact on behavior.

Question 8

What does M.O.D.E. stand for in the MODE model?
A) Motivation; Opportunity; Determinants
B) Memory; Opportunity; Decisions; Emotions
C) Memory; Opinions; Decision; Emotions
D) Motivation; Opinions; Determinants
E) None of the above is correct.

Accepted Answer

The MODE model stands for Motivation, Opportunity, and Determinants of behavior. The model suggests that behavior is influenced by a combination of these three factors. Motivation refers to the individual's desire to engage in the behavior, while Opportunity refers to the external factors that enable or constrain the behavior. Determinants refer to the internal and external factors that influence behavior, such as attitudes, beliefs, and social norms. Therefore, choice A is the correct answer as it correctly identifies the components of the MODE model.

Question 9

Which of the following is not a type of heuristic?
A) Persuasion heuristics
B) Opportunity heuristics
C) Choice heuristics
D) Prediction heuristics
E) All of the above are types of heuristics.

Accepted Answer

Persuasion, Opportunity, Choice, and Prediction heuristics are all valid types of heuristics. There is no heuristic called Opportunity heuristics, therefore it is the incorrect answer.

Question 10

The compromise effect is increased under what condition?
A) Having to justify the decision to someone else
B) Buying a gift for a friend
C) When the consideration set is less than 3 brands
D) When involvement is high
E) Buying a product for oneself

Accepted Answer

The compromise effect, which refers to the tendency for people to choose the middle option when given three options, is increased when people have to justify their decision to someone else. This may be due to a desire to avoid criticism or judgment from others.

Question 11

John sells televisions at Best Buy (a local electronics store). He get an extra commission if he sells the Best Buy brand, "Insignia." So, when he talks to customers, instead of comparing all of the brands the store carries, he tries to focus the customer in on just one or two other brands and compares those to the Insignia. In this way, he can limit the number of brands the customer considers. In thinking about your readings on consumer decision-making, this is an example of what concept?
A) Part-list cuing
B) Price-quality heuristic
C) Attraction effect
D) Compromise effect
E) Anchoring-and-adjustment heuristic

Accepted Answer

This is an example of part-list cuing, which involves presenting only a portion of the available options to influence the decision-making process.

Question 12

Which of the following phenomenon is not a consumer consideration set phenomenon or influence?
A) Regression to the mean effect
B) Part-list cuing effect
C) Attraction effect
D) Compromise effect
E) All of the above are consideration set influences.

Accepted Answer

Regression to the mean effect is not related to consumer consideration set phenomenon or influence. It is a statistical phenomenon where extreme values tend to move towards the group's average over time. The other options are all examples of decision-making biases that can influence a consumer's consideration set.

Question 13

_____ heuristics are used to influence consumers' beliefs and attitudes.
A) MODE
B) Persuasion
C) Attraction
D) Prediction
E) Choice

Accepted Answer

Persuasion heuristics are used to influence consumers' beliefs and attitudes. They involve techniques such as social proof, authority, liking, scarcity, and reciprocity to persuade consumers to make a certain decision or take a certain action.

Question 14

Consumers are most likely to use heuristics when involvement is _____ and processing load is _____.
A) high; high
B) high; low
C) low; high
D) low; low
E) All of the above are correct.

Accepted Answer

Heuristics, which are mental shortcuts or rules of thumb, are more likely to be used when the consumer's involvement is low, indicating a lack of motivation to process information deeply, and when the processing load is high, meaning there is too much information or it is too complex to process thoroughly.

Question 15

Reading the movie listing off a theatre's web site and trying to decide what movie to see is an example of:
A) stimulus-based choice
B) memory-based choice
C) mixed choice
D) normative choice
E) heuristic choice

Accepted Answer

Stimulus-based choice involves making a decision based on the information available at the time of the decision. In this case, the information available is the list of movies at the theatre. Therefore, choosing a movie based on this list would be considered a stimulus-based choice.

Question 16

Sales of the Williams-Sonoma $275 home bread baking increased when Williams-Sonoma introduced a larger and more expensive model. This is an example of which phenomenon?
A) law of large numbers effect
B) part-list cuing effect
C) attraction effect
D) compromise effect
E) MODE model effect

Accepted Answer

The attraction effect occurs when the introduction of a less attractive option (in this case, the larger and more expensive model) makes another option (the $275 model) more appealing by comparison, leading to increased sales of the latter.

Question 17

Which statement regarding heuristics is true?
A) Heuristics involve effortful processing.
B) Heuristics are useful tools that managers should use more often.
C) Heuristics use the scientific approach to form predictions
D) Heuristics are cognitive shortcuts.
E) None of the above is true.

Accepted Answer

Heuristics are cognitive shortcuts that allow individuals to quickly make decisions without effortful processing or using the scientific approach. While they can be useful tools, they also have the potential to lead to errors and biases.

Question 18

Tina is driving down Main Street in the town where she lives trying to decide where to eat lunch. Many of the restaurants are right on this street and she can see their signs. Others are nearby, but she can't see them - she has to recall them. What type of choice strategy is this?
A) Stimulus-based choice
B) Memory-based choice
C) Mixed choice
D) Normative choice
E) Heuristic choice

Accepted Answer

The answer of Tina is driving down Main Street in...

Question 19

Samantha is getting married. She is currently evaluating six different catering companies to cater the reception. What concept helps best explain Samantha's consideration set?
A) Memory-based choice
B) Subjective rationality
C) Heuristic-based choice
D) Attribute-based choice
E) Miller's Rule

Accepted Answer

The answer of Samantha is getting married. She is currently...

Question 20

Consumers very typically consider between 5 and 9 brands when making product purchase decisions. What concept helps best explain why this is so?
A) Memory-based choice
B) Rationalization
C) Miller's rule
D) The consideration set
E) None of the above is correct.

Accepted Answer

The answer of Consumers very typically consider between 5 and...

Quiz 4: Consumer Evaluation and Choice

Which of the following influences decision difficulty?

Which of following statements about attribute-based versus attitude-based choice is false?

Every time Kirk shops for wine, he chooses which brand to purchase based on the how expensive the bottles are. He tries to choose one that isn't too cheap. Kirk is using what type of heuristic?

Adding a similar but inferior decoy product to a product line increases the attractiveness of the other products. This is known as the:

Which of the following about heuristics is false?

Reminding consumers about some brands decreases consumer memory for other brands. This phenomenon is known as the:

The manner in which products are displayed on a grocer shelf has little effect on consumer choice when consumer attitudes are highly accessible from memory. This hypothesis is most consistent with which theory?

What does M.O.D.E. stand for in the MODE model?

Which of the following is not a type of heuristic?

The compromise effect is increased under what condition?

Which of the following phenomenon is not a consumer consideration set phenomenon or influence?

_____ heuristics are used to influence consumers' beliefs and attitudes.

Consumers are most likely to use heuristics when involvement is _ and processing load is _.

Reading the movie listing off a theatre's web site and trying to decide what movie to see is an example of:

Sales of the Williams-Sonoma $275 home bread baking increased when Williams-Sonoma introduced a larger and more expensive model. This is an example of which phenomenon?

Which statement regarding heuristics is true?

Tina is driving down Main Street in the town where she lives trying to decide where to eat lunch. Many of the restaurants are right on this street and she can see their signs. Others are nearby, but she can't see them - she has to recall them. What type of choice strategy is this?

Samantha is getting married. She is currently evaluating six different catering companies to cater the reception. What concept helps best explain Samantha's consideration set?

Consumers very typically consider between 5 and 9 brands when making product purchase decisions. What concept helps best explain why this is so?