Question 1

Selecting a brand by systematically rejecting all brands that do not have the key feature you want, attribute by attribute until one brand remains is known as which choice heuristic?
A) Lexicographic heuristic
B) Additive-difference heuristic
C) Conjunctive heuristic
D) Elimination-by-aspects heuristic
E) Price-quality heuristic

Accepted Answer

The described choice heuristic of systematically rejecting brands based on missing key attributes until one brand remains is known as the elimination-by-aspects heuristic.

Question 2

Why would a moderately priced camera probably be selected over a low priced or a high priced camera?

Accepted Answer

The answer of Why would a moderately priced camera probably...

Question 3

How can a manager use the attraction effect?

Accepted Answer

The answer of How can a manager use the attraction...

Question 4

Which of the following heuristics is similarity based?
A) Representativeness heuristic
B) Availability heuristic
C) Simulation heuristic
D) Anchoring-and-adjustment heuristic
E) Miller's rule

Accepted Answer

The representativeness heuristic is similarity based as it involves judging the probability of an event based on how similar it is to a typical example or prototype.

Question 5

Suppose an insurance salesman in Southern California is trying to predict the likelihood of a client's house being damaged by an earthquake in order to estimate insurance premium costs. Within the last several weeks, there were three moderate earthquakes that received lots of media coverage and several stories in the news related to earthquakes. In what cognitive heuristic is the salesman most likely to engage?
A) Representativeness heuristic
B) Availability Heuristic
C) Lexicographic Heuristic
D) The Price/Quality Heuristic
E) The Anchoring-and-Adjustment Heuristic

Accepted Answer

The salesman is most likely to engage in the Availability Heuristic because he is relying on the recent media coverage and news stories related to earthquakes as a readily available source of information to predict the likelihood of his client's house being damaged by an earthquake, rather than relying on objective statistical data.

Question 6

Why do consumers rarely have very large consideration sets?

Accepted Answer

The answer of Why do consumers rarely have very large...

Question 7

When Jim flies home from school for break, he always chooses the cheapest flight possible. He feels this is the most important attribute of ticket purchase. (He doesn't care about carrier or flight time.) This is an example of what type of heuristic thinking?
A) The lexicographic heuristic
B) A disjunctive heuristic
C) The attitude heuristic
D) A elimination-by-aspects heuristic
E) A peripheral cue heuristic

Accepted Answer

The lexicographic heuristic involves choosing an option based on the most important attribute, which in this case is the price of the flight.

Question 8

Suggestive selling in stores, such as signs that read: "6 apples for $1.99" and "Limit 12 bottles per customer" and "Buy 2 for the price of 1" take advantage of what prediction heuristic?
A) Frequency of good and bad features heuristic
B) Price -Quality heuristic
C) Simulation heuristic
D) Representativeness heuristic
E) Anchoring-and-Adjustment heuristic

Accepted Answer

The Anchoring-and-Adjustment heuristic refers to the tendency for people to rely on the first piece of information (the anchor) offered when making decisions, and then make adjustments from that starting point. The pricing and quantity information provided in the examples given in the question act as anchors, influencing consumers to make a purchase based on a perceived deal or reference point. This is an example of the Anchoring-and-Adjustment heuristic in action.

Question 9

If a consumer believe that Sony televisions are high quality, he/she may conclude that Sony DVD players are similarly high in quality. This is most clearly an example of what type of heuristic?
A) Additive-difference heuristic
B) Attraction effect
C) Representativeness heuristic
D) Price-quality heuristic
E) Simulation heuristic

Accepted Answer

This is an example of the representativeness heuristic, as the consumer is assuming that products from the same brand will have similar qualities.

Question 10

Buying the first brand that is satisfactory on all attributes in an example of which choice heuristic?
A) Lexicographic heuristic
B) Additive-difference heuristic
C) Conjunctive heuristic
D) Elimination-by-aspects heuristic
E) Price-quality heuristic

Accepted Answer

Conjunctive heuristic involves setting a minimum acceptable level for each attribute and selecting the first brand that meets the criteria for all attributes. This is demonstrated in the scenario where the first brand that is satisfactory on all attributes is chosen, indicating that all attributes met the minimum acceptable level.

Question 11

Which of the following heuristics is most clearly memory based?.
A) Representativeness heuristic
B) Availability heuristic
C) Simulation heuristic
D) Framing effect
E) Anchoring-and-adjustment heuristic

Accepted Answer

The availability heuristic involves making judgments based on the ease with which examples come to mind from memory. Therefore, it is most clearly memory-based.

Question 12

Identify the ways in which to influence the consideration set discussed in your readings.

Accepted Answer

The answer of Identify the ways in which to influence...

Question 13

Fill in the blanks: _____ choice models are attitude-choice based. But, _____ choice models attribute-choice based."
A) Mixed-based; stimulus-based
B) Noncompensatory; compensatory
C) Attitude heuristic; mixed choice
D) Memory-based; stimulus-based
E) Compensatory; noncompensatory

Accepted Answer

The first blank refers to noncompensatory choice models, which are based on specific attribute evaluations rather than an overall attitude towards the product. The second blank refers to compensatory choice models, which weigh and balance different attributes in making a decision.

Question 14

The first time Mark flew Rover Airlines, he had a terrible customer service experience. Thus, he was very surprised that his next two flights were quite average in terms of service. Mark's is experiencing what bias?
A) The law of large numbers
B) The gambler's fallacy
C) The base rate effect
D) Regression to the mean
E) None of the above are correct.

Accepted Answer

Mark is experiencing regression to the mean, which is the tendency for extreme events or unusual results to be followed by more typical or average results. After the initial terrible experience, it is expected that subsequent experiences would be less extreme and closer to the mean.

Question 15

Define stimulus-based, memory-based, and mixed choice.

Accepted Answer

The answer of Define stimulus-based, memory-based, and mixed choice....

Question 16

Which of the following is not an attribute-based heuristic?
A) Disjunctive heuristic
B) Lexicographic heuristic
C) Elimination-by-aspects heuristic
D) Additive-difference heuristic
E) All of the above are attribute-based heuristics.

Accepted Answer

All of the given options are attribute-based heuristics.

Question 17

In a _____ choice strategy, good attributes can make up for bad attributes. The "Frequency of Good and Bad Features Heuristic" is an example of this type of choice strategy.
A) attribute-based
B) conjunctive heuristic
C) compensatory
D) non-compensatory
E) None of the above is correct.

Accepted Answer

Compensatory choice strategy allows consumers to trade off positive and negative attributes of a product. In this strategy, a product can still be chosen even if it has some negative attributes as long as it also has some strong positive attributes. The "Frequency of Good and Bad Features Heuristic" is an example of this type of strategy, where consumers count the number of good and bad features of a product and choose the one with the highest ratio of good to bad features.

Question 18

Which heuristic involves forming predictions based on the ease with which a situation can be imagined?
A) Representativeness heuristic
B) Availability heuristic
C) Simulation heuristic
D) Framing effect
E) Anchoring-and-adjustment heuristic

Accepted Answer

The simulation heuristic involves forming predictions based on the ease with which a situation can be imagined. This heuristic relies on our ability to mentally simulate or envision different scenarios or outcomes, and the easier it is to imagine a particular outcome, the more likely we are to believe that it will occur.

Question 19

You hear a small group of people talking about a movie at a party. Everyone in the group seems to have liked the movie. You assume the movie must be good. This assumption is based on what bias?
A) The law of large numbers
B) The representativeness heuristic
C) Anchoring-and-adjustment heuristic
D) The compromise effect
E) The base rate effect

Accepted Answer

The answer of You hear a small group of people...

Question 20

Joe is trying to decide where to eat dinner tonight. He considers the local restaurant around the corner from his apartment, and recalls that the last time he ate there, the service was poor and the food was cold when it arrived. He figures the chances of bad service again tonight are high so he decides to go somewhere else. What heuristic is Joe engaging in?
A) Representativeness heuristic
B) Availability Heuristic
C) Lexicographic Heuristic
D) The Price/Quality Heuristic
E) The Anchoring-and-Adjustment Heuristic

Accepted Answer

Joe is using the availability heuristic, where he is basing his decision on the most easily available information he has, which in this case is the negative experience he had previously at the local restaurant. He is assuming that the probability of a similar bad experience is high, rather than considering other factors such as the restaurant's efforts to improve their service and food quality.

Quiz 4: Consumer Evaluation and Choice

Selecting a brand by systematically rejecting all brands that do not have the key feature you want, attribute by attribute until one brand remains is known as which choice heuristic?

Why would a moderately priced camera probably be selected over a low priced or a high priced camera?

How can a manager use the attraction effect?

Which of the following heuristics is similarity based?

Why do consumers rarely have very large consideration sets?

When Jim flies home from school for break, he always chooses the cheapest flight possible. He feels this is the most important attribute of ticket purchase. (He doesn't care about carrier or flight time.) This is an example of what type of heuristic thinking?

Suggestive selling in stores, such as signs that read: "6 apples for $1.99" and "Limit 12 bottles per customer" and "Buy 2 for the price of 1" take advantage of what prediction heuristic?

If a consumer believe that Sony televisions are high quality, he/she may conclude that Sony DVD players are similarly high in quality. This is most clearly an example of what type of heuristic?

Buying the first brand that is satisfactory on all attributes in an example of which choice heuristic?

Which of the following heuristics is most clearly memory based?.

Identify the ways in which to influence the consideration set discussed in your readings.

Fill in the blanks: _ choice models are attitude-choice based. But, _ choice models attribute-choice based."

The first time Mark flew Rover Airlines, he had a terrible customer service experience. Thus, he was very surprised that his next two flights were quite average in terms of service. Mark's is experiencing what bias?

Define stimulus-based, memory-based, and mixed choice.

Which of the following is not an attribute-based heuristic?

In a _____ choice strategy, good attributes can make up for bad attributes. The "Frequency of Good and Bad Features Heuristic" is an example of this type of choice strategy.

Which heuristic involves forming predictions based on the ease with which a situation can be imagined?

You hear a small group of people talking about a movie at a party. Everyone in the group seems to have liked the movie. You assume the movie must be good. This assumption is based on what bias?