Exam 9: Decision Making

Doug is looking to buy a new car, and therefore is involved in an extensive information search about automobiles. His final purchase decision will involve some level of perceived risk.

When shopping at the supermarket Russ always unconsciously grabs a carton of milk. This is an example of an automatic purchase.

Spiro is shopping at Wal- Mart, and very quickly picks up everything on his shopping list that he needs. Because it went quickly and he feels good, he keeps shopping. This is an illustration of:

Audi developed a car that can parallel park itself once its lined by the driver. This car would be classified as a:

The "economics- of- information approach" to search states that consumers will continue to acquire as much information as they need to make a decision so long as the benefits from searching outweigh the costs.

Consumers with greater "risk capital" are less affected by perceived risks associated with purchases than are those who have lower risk capital.

What is the key distinction between a social risk and a psychological risk?

The assumption of a price- quality relationship is one of the most pervasive market beliefs.

What is an evoked set? Create an example to illustrate the term.

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?

Bill could not tell the Argonauts from the Stampeders during CFL Football on his tiny, antiquated black- and- white TV set! After he watched the second half of the game on his neighbour's big TV set, he realized there was a significant difference between his current state of affairs and a desired or ideal state. His perception is labelled:

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.

Bob was trying to decide which of two bicycles to buy. Both bicycles rated the same in terms of their shock absorbers. These attributes are termed their determinant attributes.

Although Otis had always drunk, Mike's Hard Lemonade, his favourite drink, one day he surprised his friends and ordered a vodka martini. This is an example of .

The more information we have about a product before purchasing it, the more likely we are to expect to not be happy with it.

Some consumers make judgments about hidden dimensions of products from observable attributes, such as inferring that because a used car is clean and shiny, its mechanical condition is likewise of top quality. In this case, the clean and shiny exterior is a/an:

Criteria on which products differ carry less weight in the decision process than do attributes which are similar.

The inert set of brand choices consists of all those alternatives the consumer has in memory plus those prominently displayed in the store.

Choosing a product on the basis of its having the largest number of positive attributes is typically the case when a consumer is using the:

Wei Wei decides that the camera she buys must meet minimum standards on all of the key attributes she wants in a camera of this type or she will reject it, regardless of its performance on other attributes. Which decision rule has she decided to follow: