Exam 12: Decision Making I: Need Recognition and Search

In which of the following types of decision-making approaches do consumers tend to search diligently for information that will help them reach a satisfactory decision?

Consumers who are very sensitive to the negative role of price tend to be very bargain conscious.

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

In opportunity recognition,_____.

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 didn't know much about coffee-makers.Therefore,she searched the Internet and visited different stores.She realized there were several brands of the product with prices ranging from as low as $20 to several hundreds of dollars.Which of the following decision-making approaches best reflects Jane's method of finding information prior to the purchase?

Need recognition occurs when a consumer's actual state matches his/her desired state.

Which of the following decision-making perspectives assumes that many decisions are learned responses to environmental influences?

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 was concerned about paying several hundred dollars for a coffee maker.Which of the following best reflects Jane'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 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.For Jane,Real and Fresh Coffeez corresponds to the _____ set of alternatives in her awareness set.

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

Physical risk is the risk associated with how other consumers will view the purchase.

Define universal set of alternatives.Describe the three categories of alternatives found in the awareness set.

Which of the following decision-making perspectives assumes that consumers diligently gather information about purchases,carefully compare various brands of products on salient attributes,and make informed decisions regarding what brand to buy?

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.Jane's observation on the job working with the real estate broker strengthens her hypothesis that people tend to make wise and informed decisions while buying a house.According to Jane,which of the following decision-making perspectives most likely contributes to consumers' decisions?

The size of the awareness set decreases as external search proceeds.

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

The basic consumer behavior consumption process revolves around value-seeking activities that consumers perform as they go about satisfying needs.

Greg is considering the purchase of a new truck.He wants to purchase the best one within his budget.He searches the Internet,asks friends,and visits dealerships to learn more about different brands and their features.He even found a website where he can directly compare different brands to help him in his decision.Which of the following decision-making perspectives would best describe Greg's decision-making process?

A consumer is considered loyal if she simply buys the same product habitually.

Value perceptions influence the activities found in the decision-making process.