Exam 12: Decision Making I: Need Recognition and Search

Ben just got a high-paying job and wants to buy an expensive car.However,he was raised in a family where spending on luxury is considered wasteful.Even though Ben dreams of replacing his old car with an expensive one,he is very concerned about how his parents and relatives will react to his purchase decision.Which of the following best reflects Ben's concern?

Decision-making perspectives guide consumers on how to approach decision making.

Tina,a consumer researcher,assumes that her buying decisions are influenced majorly by the emotions associated with the product,such as the enjoyment involved with the use of the product or service.Which of the following decision-making perspectives does Tina demonstrate?

Perceived risk refers to the perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take.

Many consumers shop at discount stores,even though they don't really like shopping there.Most of the consumers don't feel any connection with the store;it's just that they don't want to pay higher prices elsewhere.Which of the following best describes this phenomenon of shopping repeatedly at discount stores without a commitment or feeling of connectedness to the store?

Hal is considering purchasing a hybrid automobile as he wants better gas mileage as well as an environment-friendly car.However,he is concerned that the car might not function the way he is anticipating it to.Which of the following best reflects Hal's concern?

Quality represents the perceived overall goodness or badness of a product.

Performance risk is risk associated with the likelihood of a product performing as expected.

Limited decision making usually occurs when there are relatively low amounts of purchase risk and product involvement.

The activities found in the decision-making process are referred to as steps because consumers proceed through the activities in a sequential fashion.

Risk associated with how other consumers will view the purchase is referred to as _____ risk.

Regret is less likely to be experienced when consumers exert much energy and utilize unfamiliar techniques during the search process.

Which of the following statements is true about the amount of search performed by consumers during decision making?

REAL ESTATE BROKER SCENARIO Jane, a consumer researcher, worked with a real estate broker as part of her research on consumer decision-making behavior. During the course of her research, she found that young couples, mostly professionals, look out for a space they can call their own. Although young, they seldom make spontaneous and impulsive decisions while buying a house. All of them arrive at a decision after an exhaustive effort of finding more information, talking to different people, and checking out neighborhoods through various sources. This strengthens Jane's hypothesis that people tend to make wise and informed decisions while buying a house. In her experience of working with the real estate broker, Jane has had a successful run, except for the time when an elderly man left disappointed after weeks of continuous search. After his retirement, he had wanted to invest in a "dream house," but sadly he could not find what he was looking for. Whatever he liked exceeded his budget. Jane also met a young couple who spent most of their weekends house hunting. After being out with them week after week, they finally admitted that they never intended to buy a house and that they were mostly interested in gathering information and being updated about the real estate industry. -Refer to Real Estate Broker Scenario.During the course of her research,Jane found that young couples,mostly professionals,look out for a space they can call their own.Which of the following activities in the decision-making process best represents this perceived requirement?

When Anna goes shopping for groceries every week,she buys the same brand of orange juice that her family has been consuming for years.She picks up the juice without looking at the product information prior to buying it.Which of the following types of decision-making approaches is Anna is most likely adopting while buying orange juice?

When Joanna decided to buy a laptop,she was overwhelmed by the amount of information available on helping one to decide on the right laptop.Even though she tried to assimilate all the information and make use of it,she was exhausted from trying to understand all the technical jargons.She finally decided to use product price as an indicator of quality.Which of the following best describes Joanna's method of decision making?

John will never purchase Sunshine Cereals because of a previous bad experience he has had with the brand.For John,Sunshine Cereals corresponds to a(n)_____ set of alternatives within his awareness set.

Brand inertia is present when a consumer simply buys a product repeatedly without any real attachment.

Which of the following statements is true about habitual decision making?

The rational decision-making perspective centers on the assumption that human beings are rational creatures who carefully consider their decisions and that they can identify the expected value associated with a purchase.