Question 1

Joss wants to buy a T-shirt.He prefers branded T-shirts to nonbranded ones.Though the Calvin Klein T-shirt is very expensive, Joss decides to purchase it as he believes he is buying a higher quality item.This is an example of:
A)a compensatory decision rule.
B)postpurchase dissonance.
C)a determinant attribute.
D)decision heuristics.
E)a noncompensatory decision rule.

Accepted Answer

The answer of Joss wants to buy a T-shirt.He prefers...

Question 2

Fiola buys a new car.After having bought the car, she sees an advertisement of another car listing all its benefits.She questions whether she made the right choice.She regrets purchasing her car without checking the other option.This is an example of:
A)habitual decision making.
B)an internal search for information.
C)postpurchase dissonance.
D)impulse buying.
E)an external search for information.

Accepted Answer

Postpurchase dissonance is when a consumer experiences regret or anxiety after making a purchase, especially when they see other options or advertisements for similar products. In this case, Fiola regrets not checking out the other car before making her purchase.

Question 3

Customers are more likely to use "decision heuristics" for which category of products?
A)Shopping
B)Specialty
C)Convenience
D)Luxury
E)Credence-based

Accepted Answer

Customers are more likely to use decision heuristics for products that are easily available and frequently purchased, which characterizes convenience products. These products are typically low-priced and require minimal effort to purchase, so consumers tend to rely on heuristics like brand recognition or previous experience rather than conducting extensive research or considering a wide range of options.

Question 4

Which type of risk is less likely to be an influential risk factor when a consumer buy an expensive suits?
A)Performance risk
B)Financial risk
C)Social risk
D)Physiological risk
E)Physiological risk is also called safety risk.Compared to performance, financial, and social risk, physiological risk is less likely to be an issue with apparel.

Accepted Answer

Physiological risk, also known as safety risk, is less likely to be an issue with purchasing an expensive suit compared to the other types of risks such as performance, financial, and social risks. The quality of the suit's material and construction is typically high, minimizing the risk of any harm to the consumer's health or well-being.

Question 5

After having eaten an expensive Indian meal at a fine dining restaurant, Shane realized that he could have eaten more at another restaurant for a lesser price.Which of the following is being illustrated in this scenario?
A)Habitual decision making
B)An external search for information
C)Ritual consumption
D)An internal search for information
E)Postpurchase dissonance

Accepted Answer

The scenario illustrates postpurchase dissonance, which occurs when a consumer doubts the decision after a purchase, often due to realizing there might have been a better option available.

Question 6

Which of the following statements best defines psychological risk?
A)It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively.
B)It is the risk that involves the perceived danger inherent in a poorly performing product or service.
C)It is the risk associated with the fear of an actual harm should a product not perform properly.
D)It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service.
E)It is the risk associated with the way people will feel if a product or service does not convey the right image.

Accepted Answer

Psychological risk refers to the concern about how a product or service will affect one's self-image or how it will be perceived by others, impacting the consumer's emotional well-being.

Question 7

Jim wants to buy a new smart phone.He considers several factors, such as camera quality, processor, style, operation system, battery life and price.He selected the most recent Samsung Galaxy even though it was priced a little higher than the budget he has set aside, he feels the superb camera quality and battery life will compensate for the higher price.Which of the following is being illustrated in this scenario?
A)A compensatory decision rule
B)Postpurchase dissonance
C)A determinant attribute
D)Decision heuristics
E)An external locus of control

Accepted Answer

The scenario illustrates the use of a compensatory decision rule, where Jim weighs the different factors and chooses a product with strong attributes in certain areas (camera and battery life) that make up for higher price.

Question 8

Which of the following statements best defines postpurchase dissonance?
A)It refers to an internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behaviour.
B)It refers to a buying decision made by customers on the spot when they see the merchandise.
C)It refers to a purchase decision process in which consumers engage with little conscious effort.
D)It refers to a purchase decision process during which consumers devote, at most, a moderate amount of effort and time.
E)It refers to a purchase decision process during which consumers devote considerable time and effort to analyzing alternatives.

Accepted Answer

Postpurchase dissonance is a form of cognitive dissonance that occurs when a consumer doubts their purchase decision, often due to the inconsistency between their beliefs and the action of purchasing.

Question 9

Alpha-techtronics, Inc.buys gifts for Christmas from a particular toy manufacturing company.Alpha then distributes these gifts to several juvenile detention centres every year as part of its social responsibility program.The company delivers beautifully wrapped gifts and stockings filled with other goodies on Christmas Eve.This is an example of:
A)an external locus of control.
B)limited problem solving.
C)an internal locus of control.
D)ritual consumption.
E)extended problem solving.

Accepted Answer

This scenario describes ritual consumption, as it involves an annual tradition of giving gifts and treats to those in need as part of a social responsibility program. This is not an example of problem solving or locus of control.

Question 10

A pattern of behaviours tied to life events that affect what and how people consume is called:
A)an external locus of control.
B)ritual consumption.
C)impulse buying.
D)an internal locus of control.
E)an internal search for information.

Accepted Answer

Ritual consumption refers to a pattern of behaviors tied to life events or cultural traditions that dictate what and how people consume. This can include things like buying specific types of food for holidays or wearing certain clothing for special occasions.

Question 11

Which of the following statements is true of the noncompensatory decision rule?
A)It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another, such that good characteristics compensate for bad ones.
B)It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
C)It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live.
D)It refers to the mental shortcuts that help consumers narrow down choices such as price, brand, and product presentation.
E)It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.

Accepted Answer

The noncompensatory decision rule refers to the use of a subset of a product's characteristics to make a decision, disregarding the values of its other attributes. The other options do not accurately describe the noncompensatory decision rule.

Question 12

Which of the following holds true for the term "compensatory decision rule"?
A)It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another.
B)It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
C)It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live.
D)It refers to the mental shortcuts that help consumers narrow down choices.
E)It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.

Accepted Answer

A compensatory decision rule refers to the process by which consumers evaluate alternatives and trade off one characteristic against another. This means that consumers may consider multiple attributes or characteristics of a product or service before making a decision, and may be willing to accept trade-offs between different attributes. For example, a consumer may consider both the price and quality of a product before making a decision, and may be willing to pay more for a higher quality product or accept a lower quality product if it is less expensive. This process allows consumers to make more informed and rational decisions based on their values and priorities.

Question 13

Which of the following statements holds true for the term "decision heuristics"?
A)It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another, such that good characteristics compensate for bad ones.
B)It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
C)It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live.
D)It refers to the mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation.
E)It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.

Accepted Answer

Decision heuristics refer to mental shortcuts used by consumers to simplify the decision-making process. Examples of decision heuristics include price, brand, and product presentation. Option A describes compensatory decision-making, option B describes attribute-based decision-making, option C describes life satisfaction, and option E describes key buying criterion.

Question 14

Which of the following statements is true of determinant attributes?
A)It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another, such that good characteristics compensate for bad ones.
B)It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
C)It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live.
D)It refers to the mental shortcuts that help consumers narrow down their choices during purchase.
E)It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.

Accepted Answer

Determinant attributes refer to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ. Option A describes the concept of compensatory decision making, while option B refers to the concept of non-compensatory decision making. Option C describes the concept of life satisfaction, and option D refers to the concept of heuristics.

Question 15

Which of the following statements holds true for the term negative word-of-mouth?
A)It refers to sellers using the bait-and-switch method of selling products or services to customers.
B)It refers to manufacturers using retailers to promote their products in order to decrease competition.
C)It refers to salespeople using misleading information in order to increase sales.
D)It refers to consumers spreading negative information about a product, service, or store to others.
E)It refers to customers compromising certain characteristics in order to obtain the positive features of a product or service.

Accepted Answer

Negative word-of-mouth refers to consumers spreading negative information about a product, service, or store to others.

Question 16

Mia goes to the local bakery every morning to have her breakfast, which consists of a bagel with cream cheese and a freshly brewed cup of coffee.She has been doing this for the last 10 years.This is an example of:
A)impulse buying.
B)limited problem solving.
C)postpurchase dissonance.
D)ritual consumption.
E)extended problem solving.

Accepted Answer

This is an example of ritual consumption, as Mia has established a daily routine of having breakfast at the same place for the last 10 years. Ritual consumption refers to a repeated pattern of behavior that becomes a part of one's daily life.

Question 17

In Toronto, a retail food store dropped its prices by 12 percent, which led to an increase in its market share from 30 to 45 percent.Because the lower price was the reason why shoppers wanted to buy at that particular store and not at the other competitor retail stores, this is an example of:
A)a compensatory decision rule.
B)postpurchase dissonance.
C)a determinant attribute.
D)decision heuristics.
E)a noncompensatory decision rule.

Accepted Answer

The drop in price was a determinant attribute, meaning it was the deciding factor that caused consumers to choose this particular store over its competitors.

Question 18

Which risk factor motivate some customers to buy extended warranty for a set of TV?
A)Social risk
B)Performance risk
C)Physiological risk
D)Financial risk
E)Perceived risk

Accepted Answer

Financial risk refers to the risk of a financial loss, and buying an extended warranty can provide customers with a sense of financial security, knowing that they will not have to incur additional expenses in case the TV fails or malfunctions. This factor motivates customers to buy extended warranties.

Question 19

Tom wants to buy a new bike.He considers several factors, such as mileage, style, and price.Tom finds the perfect bike, but it is priced quite high.Although the mileage is superb, Tom rejects the bike because it is priced higher than what he is willing to pay.Instead, he buys a bike that is priced lower than the one he initially decided to purchase.Which of the following is being illustrated in this scenario?
A)An external locus of control
B)Postpurchase dissonance
C)A determinant attribute
D)Decision heuristics
E)A noncompensatory decision rule

Accepted Answer

This scenario illustrates a noncompensatory decision rule, where Tom is not willing to compromise on the price even though the other factors, such as mileage, are favorable. He chooses a lower-priced bike instead of the one that has higher mileage but is priced higher.

Question 20

Which of the following statements best describes performance risk?
A)It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively.
B)It is the risk that involves the perceived danger inherent in a poorly working product or service.
C)It is the risk associated with the fear of an actual harm should a product not perform properly.
D)It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service.
E)It is the risk associated with the way people will feel if a product or service does not convey the right image.

Accepted Answer

Performance risk refers to the concern that a product or service may not function as expected or advertised, leading to dissatisfaction or the need for repairs or replacements.

Quiz 4: Consumer Behaviour

Joss wants to buy a T-shirt.He prefers branded T-shirts to nonbranded ones.Though the Calvin Klein T-shirt is very expensive, Joss decides to purchase it as he believes he is buying a higher quality item.This is an example of:

Fiola buys a new car.After having bought the car, she sees an advertisement of another car listing all its benefits.She questions whether she made the right choice.She regrets purchasing her car without checking the other option.This is an example of:

Customers are more likely to use "decision heuristics" for which category of products?

Which type of risk is less likely to be an influential risk factor when a consumer buy an expensive suits?

After having eaten an expensive Indian meal at a fine dining restaurant, Shane realized that he could have eaten more at another restaurant for a lesser price.Which of the following is being illustrated in this scenario?

Which of the following statements best defines psychological risk?

Which of the following statements best defines postpurchase dissonance?

A pattern of behaviours tied to life events that affect what and how people consume is called:

Which of the following statements is true of the noncompensatory decision rule?

Which of the following holds true for the term "compensatory decision rule"?

Which of the following statements holds true for the term "decision heuristics"?

Which of the following statements is true of determinant attributes?

Which of the following statements holds true for the term negative word-of-mouth?

Mia goes to the local bakery every morning to have her breakfast, which consists of a bagel with cream cheese and a freshly brewed cup of coffee.She has been doing this for the last 10 years.This is an example of:

In Toronto, a retail food store dropped its prices by 12 percent, which led to an increase in its market share from 30 to 45 percent.Because the lower price was the reason why shoppers wanted to buy at that particular store and not at the other competitor retail stores, this is an example of:

Which risk factor motivate some customers to buy extended warranty for a set of TV?

Which of the following statements best describes performance risk?