Deck 9: Individual Decision Making

Question 1

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

Answer 1

Students can outline in detail the different stages and how they relate to purchasing a vehicle:
(1)Problem recognition: occurs when we experience a significant difference between our current state of affairs and some state we desire. We realize that to get from here to there we need to solve a problem,which may be small or large,simple or complex.
(2)Information search: the process in which the consumer surveys his or her environment for appropriate data to make a reasonable decision. Once the consumer recognizes a problem and sees it as sufficiently important to warrant some action,information search begins. This search may range from simply scanning memory to determine what's been done to resolve the problem in the past,to extensive fieldwork in which the consumer consults a variety of sources to amass as much information as possible. In many cases people engage in surprisingly little search. Instead they rely on various mental shortcuts,such as brand names or price,or may even simply imitate others' choices.
(3)Evaluation of alternatives: the product alternatives a person considers comprise his or her evoked set. Members of an evoked set usually share some characteristics; they are categorized similarly. The way people mentally group products influences the alternatives they will consider. They will usually associate some brands more strongly with these categories than others (i.e.,they will find them more prototypical).
(4)Product choice: consumers may use a variety of decision rules to make their choice. These include non-compensatory decision rules,in which a product with a low standing on one attribute cannot make up for this position by being better on another attribute. In other words,people simply eliminate all options that do not meet some basic standards. The other type of decision rules is a compensatory rule. These types of rules give a product a chance to make up for its shortcomings. Consumers who employ these rules tend to be more involved in the purchase and thus are willing to exert the effort to consider the entire picture in a more exacting way.

Question 2

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

Answer 2

B

Question 3

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

Answer 3

False

Question 4

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 5

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 6

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

Question 7

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 8

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 9

Identify three perspectives on decision making and describe them.

Question 10

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

Question 11

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 12

Identify the four steps customers go through as a part of everyday decision making.

Question 13

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 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

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

Question 16

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 17

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

Question 18

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 19

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

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

Question 20

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 21

________ 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 22

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 23

Over the last few months Katie has been acquiring information about the organizational buying process at work through incidental learning. Explain the process and how this may affect future purchasing decisions.

Question 24

Explain how habitual decision making works.

Question 25

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

Question 26

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 27

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 28

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 29

________ 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 30

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 31

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 32

What is problem recognition?

Question 33

Explain the concept of limited problem solving.

Question 34

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

Question 35

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 36

Compare and contrast internal and external search.

Question 37

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

Question 38

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 39

Fiona enjoys hunting for information and generally keeping track of developments in the marketplace. What type of information search is she making?

Question 40

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 41

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 42

Alison has been given a free ticket to a dance performance. On the night of the performance,there is the threat of a transportation strike. Would Alison be likely to attempt to go or not,and would her decision be different if she had paid a high price for her ticket? Explain.

Question 43

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 44

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 45

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 46

Dave enjoys Carlsberg lager and would say it is his favourite brand. However,sometimes he will buy another brand of beer even when his favourite is there. Why?

Question 47

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 gambler's 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 48

Define problem recognition. Show how problems can arise. Give a brief example to illustrate the problem recognition process.

Question 49

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 50

Explain prospect theory.

Question 51

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 52

Explain Herbert Simon's view of the decision making process.

Question 53

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 54

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 55

Ella's absolute favourite cereal is Love Crunch by Nature's Path. However,one day she decides to switch to a less-liked cereal,just to "mix things up." What concept does this behaviour demonstrate and why did she likely do this?

Question 56

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 57

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 58

________ 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 59

Explain how personalized product recommendations can provide customer assistance. What are the negatives for the consumer?

Question 60

How are online search engines and social media informing both consumers and marketers,as searches are made for product information?

Question 61

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 62

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 63

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 64

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 65

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 66

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 67

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 68

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 69

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

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

Question 70

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 71

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 72

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 73

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 74

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 75

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 76

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 77

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 78

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 79

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 80

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