Exam 9: Decision Making

A prime is a stimulus that encourages people to focus on some specific aspect of their lives such as their financial well-being or the environment.

Explain the term "behavioral economics."

The research on loss aversion suggests that people tend to emphasize their losses more than their gains.

A consumer who falls back on "mental rules-of-thumb" when making a decision is using heuristics.

What type of cybermediaries are intelligent agents?

Which of the following occurs when a consumer uses a selected product and decides whether it merits his or her expectations?

Tomorrow, Janice will be attending a party with a buffet. In anticipation of splurging on delicious food, she is eating very little today. Janice is using a ________ to help her estimate consumption over time and regulate her behavior.

A consumer can recognize problems as either an opportunity or a need. How should promotions differ between those emphasizing opportunities and those emphasizing needs?

Differentiate between an evoked set and a consideration set. Provide examples to illustrate the two terms.

The alternatives actively measured during a consumer's choice process are the ________ set.

When using the ________ rule of decision making, a consumer evaluates brands on the most important attribute, but specific cutoffs are imposed.

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

A bucket in consumer decision making is ________.

Behavioral economics focuses on the effects of psychological and social factors on the economic decisions we make, and many of these choices are anything but "rational."

The first step in the consumer decision-making process is to conduct an information search.

Define a hybrid product and give an example.

Buying decisions that are made with little or no conscious effort are called ________.

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 gamblers' behavior?

The success of ________ hinges on the marketer's ability to convince the consumer to consider its product within a given category.

If a consumer is following the lexicographic rule in her decision making, then she would select a brand that is the best on the most important attribute.