Exam 12: Decision Making I: Need Recognition and Search

As perceived risk increases, search effort increases.

The end state is the perceived state for which the consumer strives.

COFFEE MAKER SCENARIO Jane was visiting her friend and was served a coffee drink similar to one she's had at coffee shops like Starbucks and Seattle's Best. Her friend told her that she can make coffee drinks like that with her single-serve pod coffee maker. Jane decided she'd like to buy one because she wanted to enjoy similar coffee drinks at home, but she didn't know much about them. She searched the Internet and went to Bed Bath & Beyond, Sur La Table, Williams Sonoma, and even Walmart. She realized there are several brands of this machine, such as Tassimo, Keurig, Breville, Cuisinart, Bunn, Senseo, and Mr. Coffee. They ranged in price from as low as $20 to several hundreds of dollars, making it difficult for her to decide which one to purchase. She was concerned about paying several hundred dollars for a coffee maker. She did notice that one brand, Tassimo, featured Starbucks coffee while none of the others did, and she ended up purchasing that one for $130 because that's her favorite brand of coffee. -Refer to Coffee Maker Scenario. Jane's concern over the cost of the coffee maker reflects which type of perceived risk?

One reason the Internet improves consumer search activities is the fact that consumers have the ability to control information flow much more efficiently than if they were viewing product information from mass media sources.

It is difficult to measure the amount of search that a consumer performs related to decision making.

Name and describe the types of risk consumers face when making decisions, and discuss how a marketer can reduce each type of risk for consumers.

Search tends to decrease as a consumer's level of education and income increase.

Alternatives that are deemed to be unacceptable for further consideration comprise a consumer's inert set.

Don is visiting stores and searching the Internet to learn about high-definition DVD players because he's considering buying one. Which type of search is this called?

All of the following are potential activities in the decision-making process EXCEPT _____.

Prepurchase search activities are focused on locating information that will enable the consumer to reach a decision for a specific problem.

The affective 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.

Minimizing is the practice of using decision making shortcuts to arrive at satisfactory, rather than optimal, decisions.

Frank only knows about five brands of cell phones. This set of brands represents Frank's _____ of alternatives.

The experiential decision-making perspective often focuses on which type of value?

Some consumers won't purchase certain brands of automobiles, such as BMW, Mercedes, Acura, or Lexus, because there is no dealership in their town to get service for their vehicles. In some cases, they would have to drive for several hours to the closest dealership. Which type of risk is most likely influencing the decision not to purchase one of these brands?

In today's environment, finding information is a problem.

The experiential decision-making perspective assumes that _____.

Greg is considering purchasing a new truck, and he wants to purchase the best one within his budget. He has searched the Internet, asked friends, and visited dealerships to learn more about the different brands and their features. He even found one website where he can conduct direct comparisons of different brands to help him in his decision. Which decision-making perspective is Greg following?

The rational decision-making perspective assumes that consumers diligently gather information about purchases and carefully arrive at decisions.