Question 1

Casinos make their interiors very plush and expensive looking knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains the gambler's behaviour?
A) Most people are unaware of the true risk of making certain decisions and therefore believe that a larger wager has higher odds of winning.
B) The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behaviour that is not rational.
C) In luxurious surroundings, gamblers look at lost bets as a price to pay to be in that kind of environment.
D) The functional risk of gambling is decreased in luxurious surroundings leading gamblers to wager more.
E) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.

Accepted Answer

Mental accounting influences decision-making by emphasizing the context or environment, leading gamblers to make larger wagers in luxurious settings despite the irrationality of the decision.

Question 2

Justin has always had an intense interest in steam engines. He has one of the largest collections of pictures and facts about the engines in the Unites States. He decides to share his interest with others by being a cybermediary. Of the following, which is the best description of what Justin will do as a cybermediary?
A) Justin will join a user group created by others to get more information about steam engines.
B) Justin will sell his services to help others organize their own computer programs related to steam engines.
C) Justin will organize a user group online for steam engine enthusiasts.
D) Justin will market software featuring steam engines.
E) Justin will optimize other people's web sites for search engines

Accepted Answer

The answer of Justin has always had an intense interest...

Question 3

If John happens to test drive a new Acura Legend and then decides he should replace his 1978 clunker before starting his new job, what has occurred:
A) impulse shopping
B) marketing benefit
C) need recognition
D) opportunity recognition
E) marketing potentiality

Accepted Answer

The answer of If John happens to test drive a...

Question 4

is the process by which the consumer surveys his or her environment for appropriate data to make a reasonable decision.
A) problem recognition
B) lead generation
C) information search
D) product choice
E) evaluation of alternatives

Accepted Answer

Information search is the process where consumers gather data from their environment to make informed decisions.

Question 5

Ariel is looking over the used cars on the lot. He gives high marks to a car which has a rebuilt engine. In his mind that outweighs or "makes up for" relatively lower marks he gave on its fenders and interior appearance. He is using which decision rule:
A) balance
B) compensatory
C) elimination- by- aspects
D) average mean
E) prototypicality

Accepted Answer

Ariel is using the compensatory decision rule, where he allows a high score in one attribute (rebuilt engine) to compensate for lower scores in other attributes (fenders and interior appearance).

Question 6

There is a snowstorm tonight, and the Toronto Maple Leafs game is going ahead as scheduled. Your roommate, Alexei, got a free ticket from a work associate and is staying home. You, however, paid $75. (non- refundable) and feel like you have to go. This is an example of:
A) cost- benefit dichotomy
B) brand loyalty
C) event priority
D) sunk- cost fallacy
E) value perception

Accepted Answer

This is an example of the sunk-cost fallacy, where you feel compelled to go to the game because you've already spent money on the ticket, even though the cost is non-refundable and should not affect your decision.

Question 7

All of the following, EXCEPT, concern the behavioural influence perspective.
A) buy on impulse
B) reaction to environmental cues
C) low involvement
D) high involvement
E) learned response

Accepted Answer

The behavioral influence perspective typically involves low involvement, impulse buying, and reactions to environmental cues, rather than high involvement which requires more deliberate decision-making.

Question 8

Over a period of time, many of us acquire product information just by being exposed to advertising, store promotions, or by observing what other people use. This acquisition is termed:
A) directed learning
B) unconditioned response
C) non- conditioned response
D) incidental learning
E) directed exposure

Accepted Answer

Incidental learning refers to the unintentional or passive acquisition of knowledge, such as learning about products through exposure to advertising or observing others.

Question 9

When purchase decisions are made under conditions of low involvement, often the consumer's decision results from cues in the shopping environment, such as surprise sales, the way products are displayed, etc. This view of what affects consumer decisions is known as the:
A) behavioural influence perspective
B) interpretivist perspective
C) integrated perspective
D) rational perspective
E) experiential perspective

Accepted Answer

The behavioral influence perspective suggests that consumer decisions are influenced by environmental cues and situational factors, such as product displays and sales promotions, especially under low involvement conditions.

Question 10

Coca- Cola would be an example of a(n) because it has come to characterize an entire category of soft drinks.
A) exemplar product
B) evoked product
C) heuristic product
D) inert product
E) criteria product

Accepted Answer

Coca-Cola is an example of an exemplar product because it is a leading brand that represents and characterizes the entire category of soft drinks.

Question 11

A marketer tries to convince consumers that his brand of dishwasher is better at solving their problem than others in the category. The marketer is said to be trying to create:
A) secondary demand
B) needs
C) primary demand
D) category awareness
E) aided recognition

Accepted Answer

Secondary demand refers to the demand for a specific brand within a product category, as opposed to primary demand, which is the demand for the product category itself. The marketer is focusing on differentiating his brand from others in the same category.

Question 12

Pierre is out shopping for expensive watches, and he has narrowed his choices down so that he is now only considering TAG Heuer and Rolex. This is an example of problem solving.
A) limited
B) complex
C) extensive
D) low involvement
E) configured

Accepted Answer

The answer of Pierre is out shopping for expensive watches,...

Question 13

Sometimes purchase decisions characterized by are so routinized that consumers make them with minimal effort and without conscious control.
A) decision habit strength
B) emotional affect
C) choice parameters
D) automaticity
E) active information processing

Accepted Answer

Automaticity refers to the process where decisions are made with minimal effort and without conscious control, often due to habits or routine behaviors.

Question 14

The basic idea behind the long tail is that:
A) Consumers' evoked sets are becoming eroded because of too much choice.
B) Marketers no longer need to rely on popular selling items to make a profit. Instead, they should offer more choices to consumers.
C) Marketers should pay more attention to its top 20% of customers.
D) Only a small percentage of people use online recommendation programs, therefore, marketers need to be cautious when implementing them.
E) Consumers are becoming less loyal to marketers and it's becoming more difficult to find consumers with loyal personalities..

Accepted Answer

The long tail concept suggests that businesses can achieve significant profits by selling a large number of niche products, rather than relying solely on a small number of popular items.

Question 15

Which buyers are most sensitive to psychological risks in purchase decisions:
A) those lacking respect or attractiveness to peers
B) those who are practical
C) those with little income and wealth
D) those who are elderly, frail, or in ill health
E) those who are insecure and uncertain

Accepted Answer

E  Buyers who lack respect or attractiveness to peers (A) and those who are insecure and uncertain (E) are more sensitive to psychological risks because they are more concerned about how their purchase decisions might affect their social standing or self-esteem.

Question 16

If a consumer selects a brand that performs best on the most important attribute for that product, which decision rule is s/he using:
A) elimination- by- aspects rule
B) conjunctive rule
C) lexicographic rule
D) weighted additive rule
E) attribute preference rule

Accepted Answer

The lexicographic rule involves choosing the brand that performs best on the most important attribute.

Question 17

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia?
A) whether the purchase is made after a compensatory or noncompensatory decision process
B) the cost of the product
C) the functional benefits of the product
D) the social risk of the product
E) whether the customers hold a very positive or weak attitude toward the product

Accepted Answer

Brand loyal customers hold a very positive attitude towards the product, while those purchasing by inertia have a weak attitude and buy out of habit without strong attachment.

Question 18

When a consumer bases a purchase decision on the rule, s/he takes into account the relative importance of positively- rated attributes; that is, "brand ratings" on each attribute are intuitively multiplied by their importance weights.
A) weighted additive rule
B) noncompensatory rule
C) simple additive rule
D) attribute preference rule
E) conjunctive rule

Accepted Answer

The weighted additive rule involves multiplying brand ratings by their importance weights to make a decision, considering the relative importance of each attribute.

Question 19

Elena is in the toothpaste section of the grocery store, and picks up a box of .99 Colgate as she quickly passes through. This is an example of decision making.
A) habitual
B) category
C) uncluttered
D) associative
E) peripheral

Accepted Answer

Elena's quick decision to pick up a familiar brand like Colgate without much thought indicates habitual decision making, where choices are made out of routine or habit.

Question 20

As a rule, decisions which involve some kind of are more likely to result in the consumer's engaging in a more extensive search.
A) perceived risk
B) need opportunity
C) effort
D) need recognition
E) term payment

Accepted Answer

Perceived risk in a decision often prompts consumers to conduct a more extensive search to mitigate potential negative outcomes.

Quiz 9: Decision Making

Casinos make their interiors very plush and expensive looking knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains the gambler's behaviour?

If John happens to test drive a new Acura Legend and then decides he should replace his 1978 clunker before starting his new job, what has occurred:

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

Ariel is looking over the used cars on the lot. He gives high marks to a car which has a rebuilt engine. In his mind that outweighs or "makes up for" relatively lower marks he gave on its fenders and interior appearance. He is using which decision rule:

There is a snowstorm tonight, and the Toronto Maple Leafs game is going ahead as scheduled. Your roommate, Alexei, got a free ticket from a work associate and is staying home. You, however, paid $75. (non- refundable) and feel like you have to go. This is an example of:

All of the following, EXCEPT, concern the behavioural influence perspective.

Over a period of time, many of us acquire product information just by being exposed to advertising, store promotions, or by observing what other people use. This acquisition is termed:

When purchase decisions are made under conditions of low involvement, often the consumer's decision results from cues in the shopping environment, such as surprise sales, the way products are displayed, etc. This view of what affects consumer decisions is known as the:

Coca- Cola would be an example of a(n) because it has come to characterize an entire category of soft drinks.

A marketer tries to convince consumers that his brand of dishwasher is better at solving their problem than others in the category. The marketer is said to be trying to create:

Pierre is out shopping for expensive watches, and he has narrowed his choices down so that he is now only considering TAG Heuer and Rolex. This is an example of problem solving.

Sometimes purchase decisions characterized by are so routinized that consumers make them with minimal effort and without conscious control.

The basic idea behind the long tail is that:

Which buyers are most sensitive to psychological risks in purchase decisions:

If a consumer selects a brand that performs best on the most important attribute for that product, which decision rule is s/he using:

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia?

When a consumer bases a purchase decision on the rule, s/he takes into account the relative importance of positively- rated attributes; that is, "brand ratings" on each attribute are intuitively multiplied by their importance weights.

Elena is in the toothpaste section of the grocery store, and picks up a box of .99 Colgate as she quickly passes through. This is an example of decision making.

As a rule, decisions which involve some kind of are more likely to result in the consumer's engaging in a more extensive search.