Question 1

The amount of search tends to decrease as consumers become older.

Accepted Answer

Studies have shown that as consumers age, their search behavior tends to become more selective and focused, resulting in a decrease in the overall amount of search they conduct. This could be due to a variety of factors, including increased knowledge and experience, a better understanding of personal preferences and needs, and a reduced need to explore new options.

Question 2

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

Accepted Answer

The statement is true. The brand-lift index is used to measure the impact of in-store displays on brand awareness and incremental sales. It involves conducting surveys to determine how much a consumer's opinion or likelihood to purchase a product changes after seeing it displayed in-store.

Question 3

In habitual decision making, _____.
A) consumers generally pick any brand that is available
B) consumers tend to search multiple external sources of information to reach a satisfactory decision
C) consumers arrive at a decision based on compromise and intuition
D) consumers believe that the consumption of a specific a product of a specific brand will deliver value

Accepted Answer

Habitual decision making is the process where consumers often choose a particular brand without much conscious thinking or external search for information. They believe that the consumption of a specific product from a particular brand will deliver value. Therefore, option D is the best choice. Option A is incorrect as habitual decision making involves choosing a particular brand repeatedly. Option B is not relevant to habitual decision making because consumers do not search for external information. Option C is not suitable because habitual decisions are made without compromise or intuition.

Question 4

The perceived risk for a product or service remains the same across consumers and situations.

Accepted Answer

The perceived risk for a product or service may vary across different consumers and situations. It depends on factors such as the consumer's prior experience, the complexity of the product, the level of information available, and the perceived consequences of a wrong decision.

Question 5

The risk associated with the likelihood of a product functioning as expected is referred to as _____.
A) physical risk
B) social risk
C) performance risk
D) financial risk

Accepted Answer

Performance risk refers to the risk that a product will not perform as expected. This can include issues with functionality, reliability, or durability. Physical risk refers to the risk of physical harm or injury, social risk refers to the risk of social embarrassment or humiliation, and financial risk refers to the risk of monetary loss or insufficient return on investment.

Question 6

In the context of consumer behavior, internal search includes the retrieval of knowledge about products, services, and experiences that is stored in memory.

Accepted Answer

Internal search refers to the process of retrieving information from memory about products or services that a consumer is interested in. This information can include prior experiences, personal knowledge, and attitudes towards the product or brand.

Question 7

Brand loyalty has an impact on the value of the brand to the firm.

Accepted Answer

Brand loyalty refers to the extent to which customers consistently choose a particular brand over other options. This loyalty can have a positive impact on the value of the brand to the firm, as it can lead to increased sales, higher profits, and a more favorable reputation. Customers who are loyal to a brand are also more likely to recommend it to others, which can further increase its value. Therefore, brand loyalty is an important factor to consider when assessing the value of a brand to a firm.

Question 8

When consumers view a purchase as coming in the distant future, they are more sensitive to the negative role of price.

Accepted Answer

When consumers view a purchase as coming in the distant future, they tend to be less sensitive to price and more sensitive to the benefits of the product. This is because the psychological impact of spending money is diminished when the purchase is perceived to be far off in time.

Question 9

In selecting the best information source, consumers do not consider the speed with which the information can be obtained.

Accepted Answer

Consumers often consider the speed at which information can be obtained when selecting the best information source as it can impact their decision-making process.

Question 10

Consumers do not always proceed through the activities found in the decision-making process in sequential fashion.

Accepted Answer

Consumers may skip or repeat certain steps in the decision-making process depending on their individual needs and circumstances.

Question 11

The amount of involvement a consumer has with a product category has no bearing on the decision-making approach that is used by the consumer.

Accepted Answer

The level of consumer involvement plays a significant role in determining the decision-making approach they use. High involvement products typically involve more extensive decision-making processes, while low involvement products may use routine or habit-based decision-making.

Question 12

Nina is passionate about cars. She does not have any intention of buying a car as she lives in Manhattan and prefers taking the subway rather than driving in the city. Nevertheless, she subscribes to automobile magazines and often visits dealerships to test drive new car models. In the given scenario, Nina's search behavior represents a(n) _____.
A) utilitarian search
B) postpurchase search
C) internal search
D) ongoing search

Accepted Answer

Nina's search behavior is ongoing as she continues to engage in it despite not having any immediate intention to buy a car. Ongoing search is common among individuals who have a strong interest in a product category or who enjoy learning about new products even if they do not plan to buy them.

Question 13

Consumers do not settle for alternatives they are unsure of.

Accepted Answer

Consumers often settle for alternatives when faced with uncertainty, especially if the alternatives are perceived as satisfactory or if the decision is not considered high-stakes. This behavior is influenced by factors such as limited time, information, or resources.

Question 14

With limited decision making, consumers search for reviews about products and their attributes on the Internet to avoid making a choice based on their prior beliefs about those products.

Accepted Answer

The answer of With limited decision making, consumers search for...

Question 15

Reward cards can be a successful method of rewarding loyalty even if consumers do not particularly value the product.

Accepted Answer

The answer of Reward cards can be a successful method...

Question 16

The recognition of a need invariably triggers the other activities found in the decision-making process.

Accepted Answer

The answer of The recognition of a need invariably triggers...

Question 17

Which of the following decision-making perspectives assumes that consumers often make purchases and reach decisions based on the affect, or feeling, attached to the product or behavior under consideration?
A) The behavioral influence decision-making perspective
B) The rational decision-making perspective
C) The experiential decision-making perspective
D) The attribute-based decision-making perspective

Accepted Answer

The experiential 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. This perspective emphasizes the role of emotions, feelings, and sensory experiences in influencing consumer decisions, rather than purely rational or attribute-based considerations.

Question 18

Consumers who perform ongoing searches are usually highly involved with the product category and seek information simply for enjoyment.

Accepted Answer

Ongoing search behavior is often exhibited by consumers who have a high level of involvement and interest in a product category. They enjoy staying informed and up-to-date, even when they are not actively looking to make a purchase. This behavior is driven by their intrinsic enjoyment of and interest in the product category.

Question 19

Dean goes to the local grocery store, Needs 'n' Necessities, every week to buy groceries. The store is small, but it offers more choices than the other stores in the neighborhood. Dean does not particularly like the store as it does not have a parking facility. However, he shops there regularly as it is conveniently located. In the given scenario, Dean's shopping behavior is driven by:
A) brand inertia.
B) brand loyalty.
C) brand positioning.
D) brand extension.

Accepted Answer

Dean's shopping behavior is driven by brand inertia, as he continues to shop at the store out of convenience despite not particularly liking it.

Question 20

Quality perceptions take place both before and after purchase.

Accepted Answer

Quality perceptions can occur both before the purchase, based on factors such as brand reputation, advertising, and recommendations, as well as after the purchase, based on the actual experience with the product or service.

Quiz 12: Decision Making I: Need Recognition and Search