Question 1

A consumer could recognise a problem as either an opportunity or a need.How would promotions differ between those emphasising opportunities and those emphasising needs?
A)Promotions emphasising needs should attempt to increase the consumer's ideal state, while promotions emphasising opportunities should simply give locations where the products can be found for purchase.
B)Promotions emphasising opportunities should attempt to increase the ideal state, while promotions emphasising needs should give locations where the products can be purchased.
C)Promotions emphasising needs should increase the ideal state, while opportunity promotions should attempt to decrease the ideal state.
D)Promotions emphasising needs should decrease the ideal state, while promotions emphasising opportunities should provide buying locations.

Accepted Answer

Promotions emphasising opportunities should aim to persuade the consumer that purchasing the product will increase their ideal state (i.e., improve their life or make it more enjoyable). On the other hand, promotions emphasising needs should focus on increasing the consumer's ideal state by highlighting the product's ability to fulfil their basic needs or solve a problem they are facing. Both types of promotions should provide information about where the product can be purchased, but the emphasis will differ.

Question 2

Use of simple decision rules to arrive at a purchase decision is known as extended problem solving.

Accepted Answer

Extended problem solving involves a high level of involvement and effort in the purchase decision, with a search for information and evaluation of alternatives. Simple decision rules are used in limited problem solving, where there is some involvement but not extensive information search or evaluation of options.

Question 3

What type of information search is a female customer engaged in when she scans the newspaper ads every day for new information on fashions, even though she isn't thinking of buying anything anytime soon?
A)Pre-purchase search
B)Ongoing search
C)Internal search
D)Delayed search

Accepted Answer

The female customer is engaged in ongoing search, which refers to the process of gathering information on products or services without a specific purchase intention. The fact that she regularly scans the newspaper ads for new information on fashions suggests that she is interested in keeping up-to-date and informed about the latest trends, even if she is not currently in the market for new clothing items. As such, her search behavior is ongoing rather than pre-purchase or delayed, and she does not appear to be relying on internal sources of information.

Question 4

Les just bought a jug of ginger beer.As he drinks from the jug, he eventually becomes full.One of his friends comments, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it and I am not going to waste one drop of it." Les's behaviour could best be described by which of the following mental biases?
A)Loss aversion
B)Hyperopia
C)Risk positioning
D)The sunk-cost fallacy

Accepted Answer

Les's behavior is exhibiting the sunk-cost fallacy, which refers to the tendency of individuals to continue investing time, money, or effort into something even if it may no longer be rational, simply because they have already invested in it. In this case, Les has already purchased the ginger beer, and therefore feels compelled to finish drinking it even though he is feeling full and his friend is warning him of potential negative consequences.

Question 5

Jeff is tired of the numerous breakdowns and peeling paint on his old car.When Jeff begins to actively think about his car in this way, which of the following consumer decision-making process steps is Jeff going through?
A)Information search
B)Evaluation of alternatives
C)Problem recognition
D)Product choice

Accepted Answer

Jeff is going through the problem recognition step, where he notices that there is a problem with his car that needs to be addressed. He has recognized that his car has numerous breakdowns and peeling paint, which is causing him inconvenience and dissatisfaction. He has not yet started looking for information or evaluating alternatives, so options A and B are not applicable. Option D is also not applicable as Jeff has not yet made a product choice.

Question 6

Attributes actually used to differentiate among choices are called ________ attributes.
A)evaluation
B)search
C)determinant
D)segmentation

Accepted Answer

Determinant attributes are the attributes that consumers use to differentiate among choices and make a final purchasing decision. These attributes are considered crucial and decisive in determining the consumer's preference for one product over others. Evaluation attributes are used to judge the performance of products, while search attributes are easily observable and can be compared across products. Segmentation attributes are used to segment the market or identify consumer groups, but they may not necessarily be used as decision-making criteria.

Question 7

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

Accepted Answer

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

Question 8

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 gamblers' behaviour?
A)Mental accounting emphasises the extraneous characteristics of the choice environment even if the results are not rational.
B)Most people are unaware of the true risk of making certain decisions and believe that a larger wager has higher odds of winning.
C)The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behaviour that is not rational.
D)The functional risk of gambling is decreased in luxurious surroundings, leading gamblers to wager more.

Accepted Answer

Mental accounting refers to the tendency of individuals to categorize and treat money differently depending on its source or intended use. In this case, the plush surroundings influence gamblers' perception of the environment, making them more willing to spend money irrationally.

Question 9

A mental or problem-solving shortcut to make a purchase decision is called a(n) ________.
A)determinant
B)detail rule
C)heuristic
D)experience rule

Accepted Answer

A heuristic is a mental shortcut or rule of thumb that consumers use to make purchasing decisions. This can be based on previous experience, social cues, or other factors. Determinants and detail rules are not commonly used terms in consumer decision-making. An experience rule may be a type of heuristic but it is not a commonly recognized term.

Question 10

Of the following products, which one would typically carry high psychological risk for the average consumer?
A)A lawn mower
B)A kitchen blender
C)An expensive mink coat
D)A family vacation to a theme park

Accepted Answer

An expensive mink coat is a luxury item that can come with a high price tag, and purchasing it can carry a significant psychological risk for the average consumer due to the fear of making an expensive mistake. The purchase of a luxury item like a mink coat can be heavily influenced by social pressures and personal values, making it a product with high psychological risk. The other options, such as a lawn mower, kitchen blender, or family vacation, are more common and less emotionally charged purchases that typically carry less psychological risk.

Question 11

Howard is determined to make his used car yard a successful business venture.One of the cornerstones of his sales strategy is to make every used car appear as if it just rolled off the assembly line.His cars are clean, clean, clean! Howard is relying on which of the following signal forms to send a 'signal of quality' to his customers?
A)Demonstration signal
B)Product signal
C)Promotional signal
D)Design signal

Accepted Answer

Howard is using product signals to send a 'signal of quality' to his customers. He is emphasizing the appearance and cleanliness of his used cars as a way to indicate to customers that they are of high quality.

Question 12

Which of the following most accurately describes one of linguist George Kingsley Zipf's findings in the 1930s?
A)People prefer English titles on products ten-to-one over other titles.
B)The word 'the' occurs about twice as often as the word 'of' in the English language.
C)People prefer short words over long words in advertising.
D)The word 'sex' should be left out of marketing promotions.

Accepted Answer

Linguist George Kingsley Zipf found that the word 'the' occurs about twice as often as the word 'of' in the English language, which is an example of Zipf's Law.

Question 13

A small company, Craig Inventions, produced a pill that had the nutrient value of a healthy breakfast.The company put the product on the market as a substitute for breakfast for busy people.The product failed.Craig Inventions then marketed the pill as a diet product and it became very successful.What does this example best demonstrate?
A)The company did not position the product well.It was difficult to convince consumers that a pill was a breakfast on the superordinate level; however, it did appear to fit appropriately within the superordinate category of diet pills.
B)The company confused a subordinate level with a basic level of categorisation, which led to the company's failure to identify the product's most important competitors.
C)The company confused a superordinate level with a subordinate level of categorisation.
D)The determinant attributes between diet pills and breakfast were not sufficiently strong.

Accepted Answer

The example demonstrates that the company did not position the product well. It was difficult to convince consumers that a pill was a breakfast on the superordinate level; however, it did appear to fit appropriately within the superordinate category of diet pills.

Question 14

The Smiths are considering what to have for dinner.Jack wants an unhealthy, greasy cheeseburger, whereas his wife, Carla, wants a healthy salad.In this example, what would be the categorisation level for a cheeseburger and a salad?
A)Superordinate level
B)Medium level
C)Basic level
D)Subordinate level

Accepted Answer

The answer of The Smiths are considering what to have...

Question 15

Under ________, utility is defined in terms of gains and losses.
A)prospect theory
B)heuristics
C)hyperopia
D)Zipf's law

Accepted Answer

Prospect theory is a behavioral economics theory that suggests people's decision-making is based on the potential value of losses and gains rather than the final outcome. Therefore, utility is defined in terms of gains and losses, making it the correct answer. Heuristics refer to mental shortcuts, hyperopia is a vision disorder, and Zipf's law is a statistical distribution law.

Question 16

Habitual decision making is the lowest order of buying decision making.

Accepted Answer

Habitual decision making is a low involvement buying decision making where the consumer chooses a product based on past behavior or habits without much conscious thought or effort.

Question 17

Lionel finds that every time he goes to select athletic shoes, he always buys the same brand.In fact, he doesn't even remember trying on any of the other competitive brands even though some of these brands have attractive styles and prices.Lionel's purchase decision process has become one of less and less effort.Lionel's decision process is an example of ________.
A)cognitive dissonance
B)information discrimination
C)ineptness
D)inertia

Accepted Answer

Lionel's purchase decision process has become one of less and less effort, and he keeps buying the same brand without even trying other competitive brands. This behavior is an example of inertia, which means people tend to stick with their current behavior or decisions even if new alternatives are available.

Question 18

Kent, a university student, is a loyal Coca-Cola drinker.He averages about six Cokes a day.He even prefers Coke to water.However, today when he passed a vending machine in a lecture hall, he bought a new flavour of soft drink called Big Red.Which of the following most accurately explains his behaviour, given the facts about Kent's previous behaviour?
A)Kent is variety seeking.
B)Kent is brand switching.
C)Kent is involved in extended problem solving.
D)Kent is influenced by peer pressure.

Accepted Answer

Kent's purchase of a new soft drink flavor indicates that he is seeking variety and trying something new, instead of sticking to his usual Coca-Cola preference.

Question 19

Susan is trying to select the right tour.She is going to Scotland but can't make up her mind what she wants to do when she gets there.There are so many variables including cost, the weather and Susan's desire to see the village her grandmother called home.Susan's problem emphasises the importance of the ________ in designing an effective hospitality-marketing program for the tourism industry.
A)experiential perspective
B)behavioural influence perspective
C)purchase momentum phenomenon
D)rational perspective

Accepted Answer

Susan's problem highlights the importance of understanding the experiential perspective of potential customers. This perspective takes into account customers' emotions, desires, and motivations, which play a crucial role in their decision-making process when it comes to selecting a tour or destination. Understanding this perspective can help marketers design and promote tours and experiences that resonate with customers on a deeper level.

Question 20

People often make decisions on the basis of mental accounting.One facet of this accounting is making a decision based on the way a problem was posed.This is called ________.
A)framing
B)the sum-cost fallacy
C)loss aversion
D)positioning

Accepted Answer

Framing refers to the way a problem or situation is presented, and people often make decisions based on this framing. For example, people may be more likely to choose a product described as "90% lean" compared to one described as "10% fat," even though these descriptions are equivalent. This is an example of how framing can influence decision making. The other options mentioned, such as the sum-cost fallacy, loss aversion, and positioning, are all related to decision making biases but do not refer specifically to the way a problem is framed.

Quiz 9: Individual Decision-Making

A consumer could recognise a problem as either an opportunity or a need.How would promotions differ between those emphasising opportunities and those emphasising needs?

Use of simple decision rules to arrive at a purchase decision is known as extended problem solving.

What type of information search is a female customer engaged in when she scans the newspaper ads every day for new information on fashions, even though she isn't thinking of buying anything anytime soon?

Jeff is tired of the numerous breakdowns and peeling paint on his old car.When Jeff begins to actively think about his car in this way, which of the following consumer decision-making process steps is Jeff going through?

Attributes actually used to differentiate among choices are called ________ attributes.

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

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 gamblers' behaviour?

A mental or problem-solving shortcut to make a purchase decision is called a(n) ________.

Of the following products, which one would typically carry high psychological risk for the average consumer?

Which of the following most accurately describes one of linguist George Kingsley Zipf's findings in the 1930s?

The Smiths are considering what to have for dinner.Jack wants an unhealthy, greasy cheeseburger, whereas his wife, Carla, wants a healthy salad.In this example, what would be the categorisation level for a cheeseburger and a salad?

Under ________, utility is defined in terms of gains and losses.

Habitual decision making is the lowest order of buying decision making.

People often make decisions on the basis of mental accounting.One facet of this accounting is making a decision based on the way a problem was posed.This is called ________.