Question 1

When outcomes are framed in terms of losses, people are risk-seeking.

Accepted Answer

A) True 
 B)False

Question 2

Simplifying strategies are ineffective in reducing the amount of cognitive effort required to reach a judgment.

Accepted Answer

A) True 
 B)False

Question 3

Concrete information has less impact on our decisions than abstract information.

Accepted Answer

A) True 
 B)False

Question 4

The availability heuristic is based on similarity judgments.

Accepted Answer

A) True 
 B)False

Question 5

A _____ is a shift in judgment away from a contextual reference point.

Accepted Answer

A)  assimilation effect 
B)  framing effect 
C)  accommodation effect 
D)  contrast effect 
E)  availability heuristic 
A)  assimilation effect 
B)  framing effect 
C)  accommodation effect 
D)  contrast effect 
E)  availability heuristic

Question 6

Managers tend to focus most on information relevant to a decision, except that which is:

Accepted Answer

A)  interesting 
B)  complex 
C)  easy to understand 
D)  attention drawing 
E)  well-written 
A)  interesting 
B)  complex 
C)  easy to understand 
D)  attention drawing 
E)  well-written

Question 7

The assimilation effect occurs when very different objects or issues are compared and judgments of the target object is displaced away from the reference point.

Accepted Answer

A) True 
 B)False

Question 8

Group polarization is the opposite of groupthink.

Accepted Answer

A) True 
 B)False

Question 9

A manager who helped develop a new product that looks like it would be successful predicted a 90% chance of success for the new product. However, historical data indicate that of all new products introduced, only about 50% succeed. This suggests that the manager's prediction was guided primarily by the:

Accepted Answer

A)  representativeness heuristic 
B)  availability heuristic 
C)  simulation heuristic 
D)  anchoring-and-adjustment heuristic 
E)  contrast effect 
A)  representativeness heuristic 
B)  availability heuristic 
C)  simulation heuristic 
D)  anchoring-and-adjustment heuristic 
E)  contrast effect

Question 10

When two similar objects or issues are compared, and they are judged to be very similar, this is an example of what context effect?

Accepted Answer

A)  Assimilation effect 
B)  Framing effect 
C)  Correspondence bias effect 
D)  Contrast effect 
E)  Availability heuristic 
A)  Assimilation effect 
B)  Framing effect 
C)  Correspondence bias effect 
D)  Contrast effect 
E)  Availability heuristic

Question 11

Diagnosticity depends on the extent to which information implies one hypothesis over another hypothesis.

Accepted Answer

A) True 
 B)False

Question 12

_____ is a shift toward a contextual reference point.

Accepted Answer

A)  Assimilation effect 
B)  Dilution effect 
C)  Correspondence bias effect 
D)  Contrast effect 
E)  Simulation heuristic 
A)  Assimilation effect 
B)  Dilution effect 
C)  Correspondence bias effect 
D)  Contrast effect 
E)  Simulation heuristic

Question 13

Information that doesn't fluctuate is said to be reliable.

Accepted Answer

A) True 
 B)False

Question 14

_____ is the tendency to focus on one possibility at a time and ignore other possibilities.

Accepted Answer

A)  Groupthink 
B)  Correspondence bias 
C)  Pseudodiagnosticity effect 
D)  Assimilation effect 
E)  Selective hypothesis testing 
A)  Groupthink 
B)  Correspondence bias 
C)  Pseudodiagnosticity effect 
D)  Assimilation effect 
E)  Selective hypothesis testing

Question 15

Intuitive judgments made on the basis of the representativeness heuristic tends to be non-regressive.

Accepted Answer

A) True 
 B)False

Question 16

_____ occurs when a decision maker continues to perceive a belief as true even when the basis for the belief is disproved.

Accepted Answer

A)  A contrast effect 
B)  The simulation heuristic 
C)  Pseudodiagnosticity 
D)  The perseverance effect 
E)  None of the above is correct. 
A)  A contrast effect 
B)  The simulation heuristic 
C)  Pseudodiagnosticity 
D)  The perseverance effect 
E)  None of the above is correct.

Question 17

Information quality is determined by two factors: reliability and recentcy.

Accepted Answer

A) True 
 B)False

Question 18

Busy decision makers tend to focus on:

Accepted Answer

A)  all the possibilities 
B)  one interpretation 
C)  two to three categories 
D)  no hypotheses 
E)  only relevant information 
A)  all the possibilities 
B)  one interpretation 
C)  two to three categories 
D)  no hypotheses 
E)  only relevant information

Question 19

The representativeness heuristic influences causal judgments as well as judgments of category membership.

Accepted Answer

A) True 
 B)False

Question 20

Information that is emotionally interesting (vs. uninteresting) is more likely to be vivid for the decision maker.

Accepted Answer

A) True 
 B)False

When outcomes are framed in terms of losses, people are risk-seeking.

Simplifying strategies are ineffective in reducing the amount of cognitive effort required to reach a judgment.

Concrete information has less impact on our decisions than abstract information.

The availability heuristic is based on similarity judgments.

A _____ is a shift in judgment away from a contextual reference point.

Managers tend to focus most on information relevant to a decision, except that which is:

The assimilation effect occurs when very different objects or issues are compared and judgments of the target object is displaced away from the reference point.

Group polarization is the opposite of groupthink.

When two similar objects or issues are compared, and they are judged to be very similar, this is an example of what context effect?

Diagnosticity depends on the extent to which information implies one hypothesis over another hypothesis.

_____ is a shift toward a contextual reference point.

Information that doesn't fluctuate is said to be reliable.

_____ is the tendency to focus on one possibility at a time and ignore other possibilities.

Intuitive judgments made on the basis of the representativeness heuristic tends to be non-regressive.

_____ occurs when a decision maker continues to perceive a belief as true even when the basis for the belief is disproved.

Information quality is determined by two factors: reliability and recentcy.

Busy decision makers tend to focus on:

The representativeness heuristic influences causal judgments as well as judgments of category membership.

Information that is emotionally interesting (vs. uninteresting) is more likely to be vivid for the decision maker.

The Study of Consumer Behavior

Consumer Segmentation and Positioning

Overview of Consumer Decision Making

Consumer Evaluation and Choice

Risk and Consumer Decision Making

Consumer Perception and Attention

Persuasion: Attitudes and Judgment

Affect and Motivation

The Role of Learning and Memory

Automatic Information Processing

The Role of Personality and Self-Concept

The Role of Values and Culture

Persuasion Through Social Influence

Contemporary Marketing Strategies

Consumer Behavior Online

Consumer Behavior and Branding Strategy

Strategies for Improving Managerial Decision Making

Filters

Exam 17: Biases in Managerial Decision Making

When outcomes are framed in terms of losses, people are risk-seeking.

Simplifying strategies are ineffective in reducing the amount of cognitive effort required to reach a judgment.

Concrete information has less impact on our decisions than abstract information.

The availability heuristic is based on similarity judgments.

A _____ is a shift in judgment away from a contextual reference point.

Managers tend to focus most on information relevant to a decision, except that which is:

The assimilation effect occurs when very different objects or issues are compared and judgments of the target object is displaced away from the reference point.

Group polarization is the opposite of groupthink.

When two similar objects or issues are compared, and they are judged to be very similar, this is an example of what context effect?

Diagnosticity depends on the extent to which information implies one hypothesis over another hypothesis.

_____ is a shift toward a contextual reference point.

Information that doesn't fluctuate is said to be reliable.

_____ is the tendency to focus on one possibility at a time and ignore other possibilities.

Intuitive judgments made on the basis of the representativeness heuristic tends to be non-regressive.

_____ occurs when a decision maker continues to perceive a belief as true even when the basis for the belief is disproved.

Information quality is determined by two factors: reliability and recentcy.

Busy decision makers tend to focus on:

The representativeness heuristic influences causal judgments as well as judgments of category membership.

Information that is emotionally interesting (vs. uninteresting) is more likely to be vivid for the decision maker.

The Study of Consumer Behavior

Consumer Segmentation and Positioning

Overview of Consumer Decision Making

Consumer Evaluation and Choice

Risk and Consumer Decision Making

Consumer Perception and Attention

Persuasion: Attitudes and Judgment

Affect and Motivation

The Role of Learning and Memory

Automatic Information Processing

The Role of Personality and Self-Concept

The Role of Values and Culture

Persuasion Through Social Influence

Contemporary Marketing Strategies

Consumer Behavior Online

Consumer Behavior and Branding Strategy

Strategies for Improving Managerial Decision Making

Filters