Question 1

The first stage in the cognitive decision-making process is ________.
A) information search
B) evaluation of alternatives
C) problem recognition
D) product choice

Accepted Answer

Problem recognition is the first stage in the cognitive decision-making process where the consumer becomes aware of a need or want that requires satisfaction. Therefore, C is the best choice.

Question 2

A consumer is most likely to engage in ________ when she is in a good mood or when she is uninvolved in other activities.
A) inertia
B) cognitive decision-making
C) variety seeking
D) mental accounting

Accepted Answer

When a consumer is in a good mood or uninvolved in other activities, she may have a higher willingness to explore new and different options. This can lead to variety seeking behavior, where the consumer actively seeks out new products or experiences instead of sticking with familiar options. Inertia (A) is the tendency to stick with familiar options out of habit, while cognitive decision-making (B) involves actively processing information to make a decision. Mental accounting (D) refers to the tendency to categorize and evaluate spending in different ways, and is not directly related to mood or activity level.

Question 3

As a customer's product knowledge increases, what typically happens to the amount of search conducted by the consumer?
A) It will remain the same.
B) It will sharply decrease and then sharply increase.
C) It will decrease, and then increase as the customer becomes more knowledgeable.
D) It will increase, and then decrease as the customer becomes more knowledgeable.

Accepted Answer

As a customer's product knowledge increases, they initially conduct more searches to gather information. Once they become more knowledgeable, the need for extensive searching decreases as they are more familiar with the product.

Question 4

Which of the following views on decision making is most closely associated with the economics of information approach to the search process, assuming that consumers collect just as much data as needed to make an informed decision?
A) experiential perspective
B) traditional perspective
C) constructive perspective
D) behavioral influence perspective

Accepted Answer

The economics of information approach assumes that consumers are rational decision-makers and will collect just the right amount of data to make an informed decision. This aligns with the traditional perspective on decision making, which also assumes that people are rational and use a systematic, step-by-step approach to making decisions. Both the experiential perspective and the constructive perspective assume that decision making is influenced heavily by emotions and subjective experiences, while the behavioral influence perspective emphasizes the role of external cues and social norms in shaping decisions.

Question 5

A consumer who uses a few simple decision rules to arrive at a purchase decision is using which of the following?
A) routine decision making
B) habitual decision making
C) graduated response behavior
D) cognitive decision making

Accepted Answer

Habitual decision making involves using simple decision rules or heuristics to make quick and efficient purchase decisions without extensive information processing.

Question 6

When is a consumer most likely to engage in cognitive decision-making?
A) This decision mode is most common when the decision is related to the person's self-concept and the outcome has a high degree of risk.
B) This decision mode is most common when the decision is related to the person's past behavior and product reinforcements.
C) This decision mode is most common when acceptable products are already contained within the consumer's evoked set.
D) This decision mode is most common when the decision is related to products that are considered to have low self-concept involvement.

Accepted Answer

Cognitive decision-making is most likely to occur when the decision involves the consumer's self-concept and has a high risk, as the consumer is likely to engage in extensive information processing in order to make a decision that aligns with their values and reflects positively on their self-concept.

Question 7

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

Accepted Answer

Framing refers to the way a problem or decision is presented, which can greatly influence people's decisions.

Question 8

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 recognized

Accepted Answer

If a consumer's ideal state is very near or identical to his or her actual state, then he or she would not recognize any problem, indicating the absence of problem recognition. Therefore, option D is the correct answer.

Question 9

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in what type of decision-making?
A) cognitive decision-making
B) limited decision-making
C) habitual decision-making
D) affective decision-making

Accepted Answer

When a customer is buying an unfamiliar product that carries a fair degree of risk, they are likely to engage in cognitive decision-making, which involves gathering all available information, considering alternatives, weighing pros and cons, and making a deliberate, rational decision. This type of decision-making is more common for high-involvement purchases, where the consumer is highly motivated to carefully evaluate the options. Limited decision-making and habitual decision-making are more appropriate for low-involvement purchases where the consumer does not invest much time or effort in choosing among alternatives. Affective decision-making refers to emotional or impulsive decision-making, which may be less appropriate for products that carry a fair degree of risk.

Question 10

Jamie is considering ordering a dessert for lunch. Before she decides on the kind she prefers, she must decide whether to get a fattening or nonfattening dessert. This decision relates to which of the following levels of abstraction of dessert categories?
A) superordinate level
B) ordinate level
C) subordinate level
D) basic level

Accepted Answer

The answer of Jamie is considering ordering a dessert for...

Question 11

In a thought process called ________, 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) utility processing
B) experiential processing
C) constructive processing
D) behavioral processing

Accepted Answer

Constructive processing involves weighing the effort needed to make a decision and tailoring the cognitive effort we expend accordingly. This process allows us to make decisions that are more efficient and more reflective of our goals and desires. The other options (utility processing, experiential processing, and behavioral processing) do not involve evaluating the effort needed to make a choice as a central aspect of the decision-making process.

Question 12

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

Accepted Answer

Satisficing is a decision-making strategy that involves selecting the first option that meets a certain set of criteria, rather than trying to find the optimal solution. This approach is often used when there are time or resource constraints, and the decision-maker must make a decision quickly or with limited information. In contrast, an individual who is rationalizing would be attempting to justify or explain their decision after it has already been made, while anchoring refers to the influence that a reference point (or "anchor") can have on subsequent decisions. Inertia is a term used to describe a tendency to maintain the status quo and avoid making changes.

Question 13

Under ________, utility is defined in terms of gains and losses.
A) prospect theory
B) heuristics
C) hyperopia
D) Zipf's law

Accepted Answer

Prospect theory is a behavioral economic theory that describes how people make decisions under risk and uncertainty. According to the theory, individuals evaluate potential gains and losses relative to a reference point (such as their current state or a past experience) and that utility is defined in terms of gains and losses. This is in contrast to traditional economic theory, which assumes that utility is a function of absolute levels of wealth or consumption. Thus, option A is the correct answer. Options B, C, and D are not relevant to the definition of utility in terms of gains and losses.

Question 14

A(n) ________ refers to a set of beliefs and the way we organize those beliefs in our minds.
A) mental accounting
B) knowledge structure
C) rational perspective
D) influence perspective

Accepted Answer

A knowledge structure, also known as a schema, is a cognitive framework that contains a person's beliefs, perceptions, and expectations about a particular topic or concept. This framework helps individuals to organize and interpret information in their environment. Mental accounting refers to the tendency for individuals to compartmentalize their finances, while rational and influence perspectives refer to different approaches to decision making.

Question 15

A consumer who moves his or her ideal state upward is experiencing ________ recognition.
A) opportunity
B) search
C) habitual
D) need

Accepted Answer

When a consumer moves their ideal state upward, they recognize an opportunity for improvement or enhancement, which is known as opportunity recognition.

Question 16

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

Accepted Answer

Janice is using a mental budget, which is a cognitive process of estimating consumption over time and regulating behavior, in this case regulating her food intake. A diet refers to a specific meal plan or set of eating guidelines, which Janice may or may not be following. A constructive process is a broader term that refers to any mental activity that involves generating or creating something new, and is not specific to regulating behavior in this way.

Question 17

________ occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired state.
A) Information search
B) Evaluation of alternatives
C) Evaluation of the evoked set
D) Problem recognition

Accepted Answer

Problem recognition occurs when a consumer realizes there is a significant difference between their current state and a desired state, which leads them to begin the decision-making process.

Question 18

________ 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

Accepted Answer

Information search is the process by which consumers gather information from the environment to make a reasonable decision. Problem recognition refers to the consumer recognizing a need, Evaluation of alternatives is when a consumer weighs the pros and cons, and Product choice refers to the final decision-making process.

Question 19

The alternatives actively considered during a consumer's choice process are the ________ set.
A) inert
B) evoked
C) evaluative
D) consideration

Accepted Answer

The alternatives actively considered during a consumer's choice process are the consideration set. The other options (inert, evoked, evaluative) refer to different stages in the consumer decision-making process.

Question 20

Jack isn't motivated to spend time thinking about what his mom's birthday present could be so he just orders her flowers yet again. Jack is experiencing ________.
A) boredom
B) emotional decision making
C) inertia
D) mental budgeting

Accepted Answer

Jack is experiencing inertia, which is the tendency to stick with familiar choices even when better options are available. He is not motivated to think about a more creative or unique gift for his mom's birthday and instead falls back on the default option of ordering flowers.

Quiz 2: Decision-Making and Consumer Behavior

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

A consumer is most likely to engage in ________ when she is in a good mood or when she is uninvolved in other activities.

As a customer's product knowledge increases, what typically happens to the amount of search conducted by the consumer?

Which of the following views on decision making is most closely associated with the economics of information approach to the search process, assuming that consumers collect just as much data as needed to make an informed decision?

A consumer who uses a few simple decision rules to arrive at a purchase decision is using which of the following?

When is a consumer most likely to engage in cognitive decision-making?

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 ________.

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 customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in what type of decision-making?

Jamie is considering ordering a dessert for lunch. Before she decides on the kind she prefers, she must decide whether to get a fattening or nonfattening dessert. This decision relates to which of the following levels of abstraction of dessert categories?

In a thought process called ________, 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 decision strategy that seeks to deliver an adequate solution rather than the best possible solution is referred to as ________.

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

A(n) ________ refers to a set of beliefs and the way we organize those beliefs in our minds.

A consumer who moves his or her ideal state upward is experiencing ________ recognition.

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.

________ occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired state.

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

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

Jack isn't motivated to spend time thinking about what his mom's birthday present could be so he just orders her flowers yet again. Jack is experiencing ________.