Exam 12: Decision Making I: Need Recognition and Search

Information overload refers to the situation in which consumers are presented with so much information that they cannot assimilate it all.

The term evaluative criteria is used to refer to the product attributes that consumers consider when reviewing possible solutions to a problem.

The rational decision-making perspective focuses on the utilitarian value received from the product.

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

When Carl migrated to England,he decided to stay in a cottage in Goodwood,Leicester,even though he had the option of staying in a better place.He opted to stay in Goodwood as the rent was reasonable and the neighborhood culture suited him well.Which of the following activities in the decision-making process best represents Carl's decision to stay in Goodwood?

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.

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?

COFFEE-MAKER SCENARIO Jane was visiting her friend and was served a coffee drink at her friend's house that was similar to the ones she's had at coffee shops. Her friend told her that she can make such coffee drinks with her single-serve pod coffee maker. Jane decided she'd like to buy one as she wanted to enjoy similar coffee drinks at home, but she didn't know much about them. She searched the Internet and visited Bed Bath & Beyond, Sur La Table, Williams Sonoma, and even Walmart. She realized there were several brands of the product, such as Tassimo, Keurig, Brevity, Cuisinart, Bunn, Senseo, and Mr. Coffee. With prices ranging from as low as $20 to several hundreds of dollars, it was difficult for Jane to decide on a single brand. She was concerned about paying several hundred dollars for a coffee maker. In the end, she shortlisted Tassimo, Keurig, and Cuisinart over the others for further consideration, keeping in mind her budget as well as the product features she was looking for. She deliberately left out Real and Fresh Coffeez, even though it was believed to be a good brand as she had a bad experience with one of its products. She did notice that Tassimo featured Well-Fresh coffee while none of the others did, and she ended up purchasing Tassimo for $130. She bought it because that's her favorite brand of coffee and Jane strongly feels that the coffee experience at Well-Fresh coffee is found nowhere else. In buying Tassimo, Jane hoped to replicate the Well-Fresh coffee experience at home. -Refer to Coffee-Maker Scenario.Jane finally decided on buying Tassimo,which featured Well-Fresh coffee,her favorite brand of coffee.Jane strongly feels that the coffee experience at Well-Fresh coffee is found nowhere else.In buying Tassimo,Jane hoped to replicate the Well-Fresh coffee experience at home.Which of the following decision-making perspectives best describes Jane's final choice?

Experiential decision processes often focus on utilitarian value.

The ability to control information flow increases the value of information and increases the consumers' ability to remember information that is gathered.

Which of the following decision-making perspectives assumes that consumers often make purchases and reach decisions based on the affect,or feeling,attached to the product or behavior under consideration?

The situation in which consumers are presented with so much information that they cannot assimilate it all is known as information _____.

A positive role of price exists when product price signals the desirability as well as the prestige associated with owning the product.

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?

Tina,a consumer researcher,conducted a research on consumers' dining behaviors.The research findings showed that diners tend to spend more time and money when the ambience consists of dim light and soft music being played in the background.Which of the following decision-making perspectives best corresponds to Tina's research findings on her research subjects?

Which of the following is true about the consumer decision-making process?

A consumer who initiates the decision-making process always completes the process.

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

Consumer decisions can seldom be analyzed from a combination of decision-making perspectives.

Extended decision making occurs when involvement is high and when there is a significant amount of purchase risk involved with the decision.