Question 1

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

Accepted Answer

The lexicographic rule states that the consumer prioritizes the most important attribute and chooses the brand that performs best on that attribute, disregarding other attributes. So, the statement is true.

Question 2

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 her grocery store, she decides that today is the day to experience root beer again. Claire has just conducted what is called an internal search for information.

Accepted Answer

An internal search for information is when a consumer retrieves information stored in memory to make a decision, such as Claire remembering the taste of root beer.

Question 3

Constructive processing is much like a mental budget for the effort we'll need to make different choices.

Accepted Answer

Constructive processing involves consciously considering and weighing different options before making a decision, similar to how we would budget our time, energy or resources. Therefore, the statement is true.

Question 4

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

Accepted Answer

This is correct. Heuristics refer to mental shortcuts or rules of thumb that individuals use when making decisions, especially in situations of uncertainty or limited information.

Question 5

The concepts of mental accounting, prospect theory, and perceived risk all remind a marketer that the customer's perception is more important than an objective reality when trying to understand consumer behavior.

Accepted Answer

These concepts all suggest that consumers make decisions based on their own personal perceptions and interpretations, rather than an objective reality. Therefore, it is important for marketers to consider the customer's perspective when trying to understand and influence consumer behavior.

Question 6

Sylvester is a financially poor college student. He tries to make every purchase decision a wise one because of his economic situation. Based on the types of risk mentioned in the text, Sylvester's primary risk when making decisions would appear to be a psychological risk.

Accepted Answer

Sylvester's primary risk would be financial risk, as he is concerned about the economic impact of his purchase decisions due to his limited financial resources.

Question 7

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

Accepted Answer

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Question 8

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

Accepted Answer

Cedric is recognizing that he has a problem (running out of gas) and his evaluation of the situation is negative (stupidity) indicating a downward movement in his actual state.

Question 9

What is a decision-making heuristic? Describe two typical heuristics used in consumer decision-making situations.

Accepted Answer

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Question 10

Jonesy will buy only the lowest-priced spark plug when he goes shopping for auto supplies. Because his car is very old, he really doesn't care about any other qualities. Jonesy is most likely using the noncompensatory decision rule.

Accepted Answer

The noncompensatory decision rule means that one attribute, such as price, is given more importance than any others. In this case, Jonesy only cares about price and does not consider any other qualities, indicating he is using a noncompensatory decision rule.

Question 11

Olga decided to buy a product at her grocery store because of a "surprise special." This is an illustration of the affective decision-making style.

Accepted Answer

Affective decision-making style is based on personal preferences, desires, and emotions. In this scenario, Olga was likely drawn to the surprise special because it elicited positive emotions and the desire to take advantage of a good deal.

Question 12

Briefly describe and compare the three types of decision-making emphasized in the text.

Accepted Answer

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Question 13

Hirosi ordered the expensive "heart attack special" at his local pub. It came with 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."

Accepted Answer

The sunk-cost fallacy refers to the tendency to continue a behavior or decision because of previously invested resources (in this case, money spent on the meal) even if it is no longer rational or beneficial. Hirosi's decision to continue eating despite feeling unwell would be an example of this fallacy.

Question 14

Alternatives a consumer knows about are his evoked set, and the ones that he actually considers are called his consideration set.

Accepted Answer

This is a correct definition of evoked set and consideration set in consumer behavior.

Question 15

Eun-Hee is a buyer of rugs made in Asia. She is extremely knowledgeable about her product line. One of her clients wants to purchase a rug made by a supplier with whom she has had little contact. Eun-Hee is more likely to engage in a broader search for information and gather more opinions from others about this new product than someone who was only moderately knowledgeable about the product line.

Accepted Answer

Research suggests that individuals with moderate knowledge are more likely to engage in broader searches for information compared to those with high or low levels of knowledge. Eun-Hee, being extremely knowledgeable, may rely more on her existing knowledge and less on external information.

Question 16

Unless a purchase decision is risky and/or has high involvement, it is reasonable for a customer to shorten the decision process by limiting the information search and evaluation of alternative stages rather than thoroughly undertaking each step.

Accepted Answer

This statement is true. Customers may not engage in a thorough information search and evaluation of alternatives if the purchase decision is low-risk and/or has low involvement, as the decision does not require a significant investment of time or money. In such cases, customers may rely on heuristics or habits and make a quick decision without going through each step of the decision process.

Question 17

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

Accepted Answer

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Question 18

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

Accepted Answer

Neuromarketing refers to the application of neuroscience techniques to understand consumer behavior and decision-making processes, often by measuring brain activity and physiological responses.

Question 19

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

Accepted Answer

This statement is true. Positioning strategy aims to create a distinct image or perception of a product or brand in the minds of consumers in a particular category. The success of this strategy depends on the marketer's ability to influence the consumer's perception and convince them to consider their product in that category.

Question 20

Define noncompensatory rules used in purchase decision-making. Describe the types of rules that fall under this category.

Accepted Answer

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Quiz 2: Decision-Making and Consumer Behavior