Deck 9: Individual Decision Making

Question 1

Information searches usually happen before we are aware of a problem.

Answer 1

False

Question 2

Chet decides to buy a new hedge trimmer to care for his bushes and shrubs. Because Chet is familiar with the local lawn and garden shop and the brands that are carried there, he uses a few simple decision rules to arrive at a purchase option. Chet is following which of the following buying decision behaviour continuum alternatives to make his decision?

A) routine response behaviour
B) limited problem solving
C) graduated response behaviour
D) basic problem solving

Answer 2

B

Question 3

The decision-making continuum is anchored at one end by limited problem solving, and by extended problem solving at the other end.

Answer 3

False

Question 4

Elena is in the toothpaste section of the grocery store, and picks up a box of $0.99 Colgate as she quickly passes through. This is an example of ________ decision making.

A) habitual
B) uncluttered
C) associative
D) peripheral

Question 5

When Bill asked friends which TV set to buy, they warned him against certain ones but praised others. He went to a huge new "electronics supermarket" where he checked out features of the 27-inch HD flat screen. He saw two he liked overall, but one of them had a feature he really liked: 4K. The process by which Bill sought appropriate guidelines to use in making a purchase decision is:

A) information search.
B) browsing.
C) research.
D) window shopping.

Question 6

Spiro is shopping at Walmart and very quickly picks up everything on his shopping list that he needs. Because it went quickly and he feels good, he keeps shopping. This is an illustration of:

A) conspicuous consumption.
B) compulsive behaviour.
C) purchase momentum.
D) selection acceptance.

Question 7

Some researchers characterize the consumer decision-making process as a continuum according to how much effort goes into the decision. They say it is anchored at each end by ________ and ________.

A) habitual decision making; limited problem solving
B) habitual decision making; extended problem solving
C) limited problem solving; extended problem solving
D) habitual decision making; unlimited problem solving

Question 8

Store managers realize that under conditions of low involvement, consumers are affected by product placement and other cues in the shopping environment such as surprise specials. Managers with the behavioural influence perspective try to facilitate "impulse" buying decisions.

Question 9

Explain what is meant by the term "consumer hyperchoice."

Question 10

Traditionally consumer researchers have approached decision making from a rational perspective.

Question 11

Having too many choices in the marketplace is referred to as:

A) purchase momentum.
B) consumer hyperchoice.
C) pseudo-choice.
D) maximizing.

Question 12

When purchase decisions are made under conditions of low involvement, often the consumer's decision results from cues in the shopping environment, such as surprise sales, the way products are displayed, etc. This view of what affects consumer decisions is known as the:

A) rational perspective.
B) experiential perspective.
C) behavioural influence perspective.
D) interpretivist perspective.

Question 13

Low-involvement decisions mean that marketers must constantly be assessing the physical surroundings and product placement. This is called the:

A) economics of information.
B) purchase momentum.
C) constructive processing.
D) behavioural influence perspective.

Question 14

When Jenny goes to the supermarket to purchase cereal, she is overwhelmed by the sheer number of brands, flavours, and options. This is called consumer:

A) hyperchoice.
B) overload.
C) wearout.
D) adaptation.

Question 15

Susan is trying to select a tour. She is going to Scotland but can't make up her mind what she wants to do when she gets there. There are so many variables including the cost, the weather, and Susan's desire to see the village her grandmother called home. Susan's problem emphasizes the importance of the ________ in hospitality marketing.

A) rational perspective
B) behavioural influence perspective
C) psychological perspective
D) experiential perspective

Question 16

Pierre is out shopping for a very sophisticated watch. After reviewing various websites, visiting some jewellers, and speaking with people whose opinion matters to Pierre, he has narrowed his choices down so that he is now only considering TAG Heuer and Rolex. This is an example of ________ problem solving.

A) configured
B) limited
C) complex
D) extensive

Question 17

When shopping at the supermarket, Russ always unconsciously grabs a carton of milk. This is an example of an automatic purchase.

Question 18

Sometimes purchase decisions characterized by ________ are so routinized that consumers make them with minimal effort and without conscious control.

A) active information processing
B) choice parameters
C) decision habit strength
D) automaticity

Question 19

The view that consumers carefully gather, integrate, and weigh all the information available about a product before making a purchase decision is known as the:

A) rational perspective.
B) experiential perspective.
C) interpretative perspective.
D) behavioural influence perspective.

Question 20

The economics of information approach to search states that consumers will continue to acquire as much information as they need to make a decision so long as the benefits from searching outweigh the costs.

Question 21

When consumers use more than a mere rational assessment when making decisions, what are they doing? Give an example of a product category where consumers commonly use such an approach.

Question 22

One form of framing called ________ describes people who are so obsessed with preparing for the future that they can't enjoy the present.

A) mental accounting
B) hyperopia
C) myopia
D) loss aversion

Question 23

Explain how habitual decision making works.

Question 24

There is a snowstorm tonight, and the Toronto Maple Leafs game is going ahead as scheduled. Your roommate, Alexi, obtained a free ticket from a work associate and is staying home. You, however, paid $75 (non-refundable) and feel like you have to go. This is an example of:

A) cost-benefit dichotomy.
B) value perception.
C) brand loyalty.
D) sunk-cost fallacy.

Question 25

Explain the concept of limited problem solving.

Question 26

________ shoppers, who have more to lose when they make a bad purchase, actually search less before they buy than do ________ shoppers.

A) Affluent; lower-income
B) Younger; more senior
C) Rational; irrational
D) Lower-income; affluent

Question 27

Louisa has wanted a Louis Vuitton handbag ever since she saw one on the television show Sex and the City. She could never imagine adjusting her household budget in order to save up the money to buy such an item as it was an outrageous amount to spend on a purse. This year she received a large bonus at work and went directly to the Louis Vuitton website and ordered the handbag. What bias does this behaviour reflect?

A) loss aversion
B) the house money effect
C) reference point movement
D) brand generalization

Question 28

________ occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired or ideal state.

A) Information search
B) Evaluation of alternatives
C) Evaluation of the evoked set
D) Problem recognition

Question 29

John happened to stop by a showroom and test drive a new Acura LX and then decided he should replace his 2001 clunker before starting his new job. What has occurred?

A) impulse shopping
B) marketing benefit
C) need recognition
D) opportunity recognition

Question 30

Since consumers rarely have the resources, especially time, to weigh every possible factor into a decision, they often happily settle for a solution that is just good enough. This is known as:

A) bounded rationality.
B) reality.
C) incidental shopping.
D) sufficiency theory.

Question 31

Allison is in the market to purchase a new computer. She uses a decision strategy whereby she evaluates all of the available options to come up with the best possible decision. This is an example of:

A) maximizing.
B) a heuristic.
C) a prepurchase solution.
D) satisficing.

Question 32

Which of the following is a key part to the elements of prospect theory?

A) People think of gains and losses with respect to some reference point.
B) People are loss averse, meaning that losses count half as much as equivalent gains.
C) People are risk seeking concerning gains and risk averse concerning losses.
D) People tend to undervalue small probabilities.

Question 33

Casinos make their interiors very plush and expensive looking, knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains the gamblers' behaviour?

A) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.
B) Most people are unaware of the true risk of making certain decisions and therefore believe that a larger wager has higher odds of winning.
C) The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behaviour that is not rational.
D) The functional risk of gambling is decreased in luxurious surroundings leading gamblers to wager more.

Question 34

A consumer's existing knowledge of a product may be the result of ________, wherein on a previous occasion the consumer had already searched for relevant information or experienced some of the alternatives.

A) directed learning
B) actual state-need recognition
C) marketing promotions
D) the Internet

Question 35

Tracy would like to make a purchase decision regarding a new baby stroller from a rational perspective. What would this process look like?

Question 36

Andrea goes shopping for some pants for her son at a clothing store. While she is there, after getting the pants she sees a number of other items. Before she knows it she has accumulated a shopping cart full of clothing to buy. What process is happening here?

Question 37

________ is the process by which the consumer surveys his or her environment for appropriate data to make a reasonable decision.

A) Problem recognition
B) Evaluation of alternatives
C) Information search
D) Product choice

Question 38

Rachael would like to shop around comprehensively for her car insurance this year. However she is overwhelmed at work, so instead of searching more extensively she simply does a quick check on three well-known options and chooses one. According to Herbert Simon, this is known as a ________ solution.

A) maximized
B) rational
C) satisficing
D) general search

Question 39

Identify three perspectives on decision making and describe them.

Question 40

Kent is a loyal Coca-Cola drinker. As a college student, he averages about four Cokes a day. He even prefers Coke to water. However, today when he passes a vending machine in his dorm, he buys a new drink called Big Red. Which of the following most appropriately explains his behaviour, given the facts about Kent's previous behaviour?

A) Kent is merely variety seeking.
B) Kent is experiencing sensory-specific satiety.
C) Kent has hyperopia.
D) Kent is influenced by mental accounting.

Question 41

Coca-Cola would be an example of a(n) ________ product because it has come to characterize an entire category of soft drinks.

A) exemplar
B) criteria
C) heuristic
D) evoked

Question 42

Over a period of time, many of us acquire product information just by being exposed to advertising, store promotions, or by observing what other people use. This acquisition is termed:

A) unconditioned response.
B) directed exposure.
C) non-conditioned response.
D) incidental learning.

Question 43

When consumers anticipate having to use a product in front of others, they tend to prefer ________ products.

A) feature-rich
B) feature-poor
C) highly visible
D) symbolic

Question 44

Yasser has expert knowledge about computers. He is now in the market for a new model. He will make a(n):

A) top-down search.
B) subordinate search.
C) extended search.
D) selective search.

Question 45

Shawna believes she is a practical consumer. She is always on the lookout for better ways to obtain order in her life and make housework easier. New products that promise to help with these work tasks catch her eye. However, she sometimes makes mistakes by buying products that do not deliver on their promises to do the work required. Considering the above description, Shawna could be prone to which of the following types of perceived risk?

A) functional
B) physical
C) social
D) consumptive

Question 46

Which buyers are most sensitive to psychological risks in purchase decisions?

A) those who are elderly, frail, or in ill health
B) those with little income and wealth
C) those who are insecure and uncertain
D) those lacking respect or attractiveness to peers

Question 47

Although Greg had considered numerous factors when looking at several models of ten-speed bikes, the critical or deciding factors that led to an actual purchase are called:

A) alternative weights.
B) differential factors.
C) preference rules.
D) determinant attributes.

Question 48

When Jacob first thought of buying a new vehicle, he could name at least eight SUV models. His friend Emily could think of only four. Jacob spent several weeks researching SUVs and rejected five of the models. His evoked set is now smaller than Emily's. Why?

A) The evoked set contains only the products that can be remembered at any given time.
B) The evoked set is gender specific in that women remember products better than men.
C) A product is not likely to be in the evoked set once it has been considered and then rejected.
D) Functional risk creates a cognitive dissonance that makes certain products difficult to consciously remember.

Question 49

Jamie is considering ordering a dessert for lunch. Before she ever decides on the kind she prefers, she decides whether to get a fattening or nonfattening dessert. This decision relates to which of the following levels of abstraction of dessert categories?

A) superordinate level
B) ordinate level
C) normal level
D) basic level

Question 50

Mona feels that she is moderately knowledgeable about foreign films. Her friend Kim admits to knowing almost nothing about these films, while her other friend Wanda has just finished a course in foreign films with the highest grade in the class. Of the three friends, who is most likely to seek the most information about a new foreign film being shown on campus before deciding to see the film?

A) Wanda
B) Kim
C) Mona
D) Both Mona and Kim will seek more information than Wanda.

Question 51

Product designers making items such as smartphones and tablets have a tendency to maximize the features included. What is this called?

A) feature creep
B) product loading
C) high selection optioning
D) product enriching

Question 52

Jill's purchase of the Miracle Diet pills was most sensitive to which kind of perceived purchase risk?

A) functional
B) physical
C) social
D) physiological

Question 53

What is the key distinction between a social risk and a psychological risk?

A) the cost of the product
B) the physical danger that the product may have to the user
C) whether the risk is public or private
D) whether the product is considered to be a high- or a low-involvement purchase

Question 54

High-ticket items that require substantial expenditures are most subject to which form of purchase risk?

A) monetary
B) functional
C) physical
D) social

Question 55

As a rule, decisions that involve some kind of ________ are more likely to result in the consumer's engaging in a more extensive search.

A) need recognition
B) need opportunity
C) perceived risk
D) term payment

Question 56

Consumers realize they face risks in buying products, of which some factors are objective (unsafe products) and some subjective (embarrassment). Which type of perceived risk is inherent in the purchase of either visible or symbolic goods that are visible to others?

A) functional
B) physical
C) social
D) consumptive

Question 57

The dimensions or qualities a consumer uses when judging the merits of competing purchase options are called:

A) purchase options.
B) alternative rules.
C) evaluative criteria.
D) functional categories.

Question 58

Bill could not tell the Argonauts from the Stampeders during CFL Football on his tiny, antiquated black-and-white TV set! After he watched the second half of the game on his neighbour's big TV set, he realized there was a significant difference between his current state of affairs and a desired or ideal state. His perception is labelled:

A) fantasy aspiration.
B) problem recognition.
C) latent response syndrome.
D) hemispheric communication.

Question 59

A small company, Graig Inventions, produced a pill that had the nutrient value of a healthy breakfast. They put it on the market as a substitute for breakfast for busy people. The product failed. Graig Inventions then marketed the pill as a diet product and it became very successful. What does the example best demonstrate?

A) The company did not position the product well. It was difficult to convince consumers that a pill was a breakfast on the superordinate level, but it did appear to fit within the category of diet pills.
B) The company confused a subordinate level with a basic level of categorization.
C) The company confused a normal level with a basic level of categorization.
D) The determinant attributes between diet pills and breakfast was not sufficiently strong.

Question 60

Craig had heard stories about toaster disasters from his friends. This brand blew up, that one shorted out, another had not lasted even a year, and so on. He knew he should not consider those brands. They were Craig's:

A) retrieval set.
B) inert set.
C) expanded set.
D) inept set.

Question 61

Hirosi ordered the expensive "heart attack special" at his local pub. It came with a full pound of hamburger and a full bucket of fries. Halfway through the meal, Hirosi was not feeling well. Yet according to the sunk-cost fallacy, Hirosi will continue until he has finished the "special."

Question 62

When a consumer becomes satiated with a favourite product, he or she may trade enjoyment just to try a different product. This is termed variety seeking.

Question 63

Directories and portals, website evaluators, forums, fan clubs, and user groups are all forms of which of the following?

A) cybercash
B) design groups
C) cybermediaries
D) focus groups

Question 64

Justin has always had an intense interest in steam engines. He has one of the largest collections of pictures and facts about the engines in the United States. He decides to share his interest with others by being a cybermediary. Of the following, which is the best description of what Justin will do as a cybermediary?

A) Justin will provide his services to help others organize their own computer programs related to steam engines.
B) Justin will market software featuring steam engines.
C) Justin will organize a user group online for steam engine enthusiasts.
D) Justin will join a user group created by others to get more information about steam engines.

Question 65

The basic idea behind the long tail is that:

A) marketers should pay more attention to its top 20% of customers.
B) marketers no longer need to rely on big hit items to make a profit.
C) only a small percentage of people use online recommendation programs, therefore, marketers need to be cautious when implementing them.
D) consumers' evoked sets are becoming eroded because of too much choice.

Question 66

The basic idea of feature creep is that a competitor starts to steal product features from another company.

Question 67

The inert set of brand choices consists of all those alternatives the consumer has in memory plus those prominently displayed in the store.

Question 68

Claire remembers that uniquely wonderful taste that can only come from a "frosty mug" of root beer. As she heads to the soft drink aisle in her grocery store, she decides that today is the day to experience root beer again. Claire has just conducted what is called an internal search for information.

Question 69

Describe the stages Neil, a 22-year-old college student, could go through for purchasing a car.

Question 70

Ian discovers the apartment has run out of toilet paper. This is an example of necessity recognition.

Question 71

What is problem recognition?

Question 72

Consumers expert in product knowledge are more likely than other groups of consumers to engage in an information search because they have a better sense of what information they need.

Question 73

A new organic milk product has a long shelf life without being refrigerated. The product did not sell. When the marketing team convinced stores to make space for it with other milk containers in the refrigerators, they couldn't keep it in stock. It was a huge success. Putting it in the fridge allowed consumers:

A) to add it to their evoked set.
B) to find it in the store.
C) to remove it from the inept set.
D) to change their heuristic.

Question 74

Generally, search activity is greater when the purchase is important.

Question 75

Sylvester is a financially poor college student. He tries to make every purchase decision a wise one because of his economic situation. Based on the types of risk mentioned in the text, Sylvester's primary risk when making decisions would appear to be a psychological risk.

Question 76

Shelly makes an excellent salary as a production manager for a large company. John has lost his job and has been having a difficult time making ends meet. If Shelly and John were looking to buy the same product, we would expect John to expend more effort than Shelly in gathering information and looking at alternatives.

Question 77

Criteria on which products differ carry less weight in the decision process than do criteria that are similar.

Question 78

Products that customers put on the subordinate level always have at least one thing in common.

Question 79

As a customer's product knowledge continually increases, what typically happens to the amount of search conducted by the consumer?

A) It will continually increase.
B) It will continually decrease.
C) It will increase, and then decrease as the customer reaches a very high level of knowledge.
D) It stays the same.

Question 80

The practice of monitoring blood flow while we are exposed to various marketing stimuli illustrates the practice of:

A) hypermarketing.
B) hemomarketing.
C) cybermarketing.
D) neuromarketing.