Deck 12: Decision Making I: Need Recognition and Search

Question 1

Habitual decision making typically occurs in low-involvement, low-risk purchase situations.

Answer 1

True

Question 2

Retailers use the "brand-lift index" to measure the incremental sales that occur when a product in on display.

Answer 2

True

Question 3

The behavioral influence decision-making perspective assumes that many decisions are actually learned responses to environmental influences.

Answer 3

True

Question 4

When consumers engage in extended decision making, they tend to search diligently for information that will help them reach a satisfactory decision.

Question 5

Consumer researchers view the decision-making process from two perspectives: utilitarian and hedonic.

Question 6

The rational decision-making perspective fits very well with the concept of utilitarian value.

Question 7

Decision-making approaches can be classified into three categories: extended decision making, limited decision making, and simple decision making.

Question 8

Brand loyalty is present when a consumer simply buys a product repeatedly without any real attachment.

Question 9

The rational decision-making perspective assumes that consumers diligently gather information about purchases and carefully arrive at decisions.

Question 10

The affective decision-making perspective assumes that consumers often make purchases and reach decisions based on the affect, or feeling, attached to the product or behavior under consideration.

Question 11

With habitual decision making, choice is often based on habit.

Question 12

Perceived risk refers to the perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take.

Question 13

With limited decision making, no comparison between brands is done.

Question 14

When consumers engage in extended decision making, information primarily comes from external sources.

Question 15

Physical risk is the risk associated with how other consumers will view the purchase.

Question 16

Performance risk is risk associated with the likelihood of a product performing as expected.

Question 17

The decision-making approach that is used depends heavily on the amount of involvement a consumer has with a product category or purchase and the amount of purchase risk involved with the decision.

Question 18

Consumer decision making always focus on the purchase of a product or service.

Question 19

Brand loyalty involves deeply held commitment to rebuy a product or service regardless of situational influences that could lead to switching behavior.

Question 20

The activities found in the decision-making process are referred to as steps because consumers proceed through the activities in sequential fashion and always complete the process.

Question 21

External search includes gathering information from sources such as friends, family, salespeople, advertising, independent research reports, or the Internet.

Question 22

Consumer search behavior refers to the behaviors that consumers engage in as they seek information that can be used to satisfy needs.

Question 23

A consumer's actual state must change for need recognition to occur.

Question 24

The end state is the perceived state for which the consumer strives.

Question 25

In general, consumers find that information from commercial sources is as credible as information from family and friends.

Question 26

Alternatives that are deemed to be unacceptable for further consideration comprise a consumer's inert set.

Question 27

A consumer's consideration set includes the set of brands or alternatives to which a consumer is aware.

Question 28

Consumers most often perform internal searches before any other type of search begins.

Question 29

In today's environment, finding information is a problem.

Question 30

The term ranking criteria is used to refer to the attributes of a product that consumers consider when reviewing possible solutions to a problem.

Question 31

Initial search includes the retrieval of knowledge about products, services, and experiences that are stored in memory.

Question 32

Brand loyalty has benefits for both the consumer and the marketer.

Question 33

Prepurchase search activities are focused on locating information that will enable the consumer to reach a decision for a specific problem.

Question 34

Minimizing is the practice of using decision making shortcuts to arrive at satisfactory, rather than optimal, decisions.

Question 35

The decision-making process begins with information search.

Question 36

A consumer performs an ongoing search when he or she seeks information simply because he or she is interested in a particular topic.

Question 37

Information saturation refers to the situation in which consumers are presented with so much information that they cannot assimilate it all.

Question 38

Brand loyalty enables consumers to reduce searching time drastically by insisting on the brand to which they are loyal.

Question 39

A consumer's alternative set includes alternatives that are considered acceptable for further consideration in decision making.

Question 40

The total collection of all possible solutions to a recognized need is referred to as the universal set.

Question 41

Search tends to decrease as a consumer's level of education and income increase.

Question 42

Holly is a consumer researcher who assumes that consumers often make purchases and reach decisions based on the affect, or feeling, attached to the product or behavior under consideration. Which decision making perspective is Holly advocating?

A) rational decision making perspective
B) experiential decision making perspective
C) behavioral influence decision making perspective
D) extended decision making perspective
E) social decision making perspective

Question 43

The consumer decision-making process begins when _____.

A) exchange takes place
B) the consumer realizes that he or she has a need
C) the consumer searches for information
D) value is derived
E) costs and benefits are analyzed

Question 44

Search tends to increase when a consumer possesses a high level of purchase involvement.

Question 45

As perceived risk increases, search effort increases.

Question 46

Which decision-making perspective assumes that many decisions are actually learned responses to environmental influences?

A) rational decision-making perspective
B) experiential decision-making perspective
C) behavioral influence decision-making perspective
D) social decision-making perspective
E) conditioned decision-making perspective

Question 47

A product's price is a piece of information.

Question 48

All of the following are decision-making perspectives EXCEPT _____.

A) rational decision making perspective
B) experiential decision making perspective
C) behavioral influence decision making perspective
D) limited decision making perspective
E) all of these choices are decision making perspectives

Question 49

A consumer's experience is really the only factor that influences his or her information search effort.

Question 50

Quality represents the perceived overall goodness or badness of some product.

Question 51

It is difficult to measure the amount of search that a consumer performs related to decision making.

Question 52

Cognitive dissonance refers to the negative emotions that come from failed search processes.

Question 53

The experiential decision-making perspective assumes that _____.

A) consumers diligently gather information about purchases, carefully compare alternatives, and make informed decisions
B) many decisions are actually learned responses to environmental influences
C) consumers often make purchases and reach decisions based on the affect, or feeling, attached to the product or behavior under consideration
D) consumers focus on utilitarian value rather than hedonic value
E) consumers follow a "think-feel-do" hierarchy

Question 54

As a general statement, inexperienced consumers search for purchase-related information more than do either experienced or moderately experienced consumers.

Question 55

Greg is considering purchasing a new truck, and he wants to purchase the best one within his budget. He has searched the Internet, asked friends, and visited dealerships to learn more about the different brands and their features. He even found one website where he can conduct direct comparisons of different brands to help him in his decision. Which decision-making perspective is Greg following?

A) experiential decision making
B) behavioral decision making
C) complete decision making
D) utilitarian decision making
E) rational decision making

Question 56

The experiential decision-making perspective often focuses on which type of value?

A) immediate
B) delayed
C) utilitarian
D) hedonic
E) rational

Question 57

Which of the following statements is FALSE regarding consumer decision making?

A) The basic consumer behavior consumption process revolves around value-seeking activities that consumers perform as they go about satisfying needs.
B) Consumers always proceed through five steps in the decision making process.
C) Choice does not necessarily mean identifying what brand of product to buy.
D) Both utilitarian value and hedonic value are associated with consumer decision making.
E) Almost all consumer decisions revolve around goal-pursuit.

Question 58

One reason the Internet improves consumer search activities is the fact that consumers have the ability to control information flow much more efficiently than if they were viewing product information from mass media sources.

Question 59

All of the following are potential activities in the decision-making process EXCEPT _____.

A) postchoice evaluation
B) choice
C) search for information
D) exchange
E) need recognition

Question 60

Which decision-making perspective assumes that consumers diligently gather information about purchases, carefully compare various brands of products on salient attributes, and make informed decisions regarding what brand to buy?

A) rational decision making perspective
B) experiential decision making perspective
C) behavioral influence decision making perspective
D) extended decision making perspective
E) intensive decision making perspective

Question 61

Which of the following is used by retailers to measure the incremental sales that occur when a product is on display?

A) POP index
B) incremental sales index
C) brand-consumption index
D) brand-equity index
E) brand-lift index

Question 62

Which type of risk is associated with the safety of the product and the likelihood that physical harm will result from its consumption?

A) financial risk
B) performance risk
C) usage risk
D) physical risk
E) actual risk

Question 63

Carl and his wife are considering the purchase of a new home. They are very involved with this purchase decision, particularly because of the high-perceived risk associated with this purchase. Which decision making approach are they likely to use?

A) rational decision making
B) thorough decision making
C) involved decision making
D) extended decision making
E) family decision making

Question 64

Consumers concerned about how other consumers will view their purchases are concerned with which type of risk?

A) financial risk
B) performance risk
C) social risk
D) physical risk
E) time risk

Question 65

All of the following are decision-making approaches EXCEPT _____.

A) rational decision making
B) limited decision making
C) extended decision making
D) habitual decision making
E) all of these choices are decision making approaches

Question 66

While most young adults would like to own a Porche automobile, which is very expensive, which type of risk is likely preventing them from purchasing one?

A) financial risk
B) social risk
C) performance risk
D) safety risk
E) time risk

Question 67

Risk associated with the cost of the product is called _____ risk.

A) social risk
B) quantitative
C) primary
D) income
E) financial

Question 68

_____ refers to the perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take.

A) Perceived involvement
B) Cognitive dissonance
C) Buyer's regret
D) Perceived outcomes
E) Perceived risk

Question 69

The decision-making approach that is used by a consumer depends heavily on the _____.

A) price and quality of the products/brands considered
B) amount of involvement a consumer has with a product category or purchase and the amount of purchase risk involved with the decision
C) amount of involvement a consumer has with a product category or purchase and the amount of social influence affecting the decision
D) age and education of the consumer making the decision
E) number of family members involved in the decision process

Question 70

Consumers using which type of decision making approach tend to search diligently for information that will help them reach a satisfactory decision?

A) rational decision making
B) limited decision making
C) extended decision making
D) habitual decision making
E) thorough decision making

Question 71

All of the following are a type of risk EXCEPT_____

A) functional risk
B) physical risk
C) time risk
D) performance risk
E) financial risk

Question 72

On her weekly grocery shopping trips, Anna buys Tropicana orange juice for her family. She doesn't seek information at all when she realizes they need juice, and her choice is based on habit. Which type of decision making is Anna using for this product?

A) extended decision making
B) limited decision making
C) habitual decision making
D) automatic decision making
E) family decision making

Question 73

Risk associated with the time required to search for the product and the time necessary for the product to be serviced or maintained is known as _____.

A) financial risk
B) physical risk
C) long-term risk
D) time risk
E) social risk

Question 74

Which type of risk is associated with the likelihood of a product performing as expected?

A) financial risk
B) physical risk
C) social risk
D) utilitarian risk
E) performance risk

Question 75

Sarah wants to buy an expensive car, but she's concerned about how her relatives will react. They are more frugal, and she's concerned that they might think less of her for spending so much money. Which type of risk is this?

A) financial risk
B) social risk
C) performance risk
D) physical risk
E) time risk

Question 76

Hal is considering purchasing a hybrid automobile because he wants better gas mileage and to help save the environment. However, he is concerned that the car might not perform as expected. Which type of risk is Hal considering?

A) financial risk
B) physical risk
C) performance risk
D) time risk
E) social risk

Question 77

Donna's kids want shoes that have wheels, but she's concerned about the safety of this product. Which type of risk is Donna considering?

A) financial risk
B) physical risk
C) performance risk
D) time risk
E) social risk

Question 78

Using which type of decision-making approach do consumers generally not seek information at all when a problem is recognized?

A) limited decision making
B) habitual decision making
C) automatic decision making
D) repeat decision making
E) straight rebuy

Question 79

Which type of decision making usually occurs when there are relatively low amounts of purchase risk and product involvement?

A) limited decision making
B) truncated decision making
C) experiential decision making
D) automatic decision making
E) abbreviated decision making

Question 80

Some consumers won't purchase certain brands of automobiles, such as BMW, Mercedes, Acura, or Lexus, because there is no dealership in their town to get service for their vehicles. In some cases, they would have to drive for several hours to the closest dealership. Which type of risk is most likely influencing the decision not to purchase one of these brands?

A) financial risk
B) physical risk
C) performance risk
D) time risk
E) social risk