Deck 12: Decision Making I: Need Recognition and Search

Question 1

When consumers engage in extended decision making, information primarily comes from external sources.

Answer 1

False

Question 2

Brand loyalty involves deeply held commitment to rebuy a product or service regardless of situational influences that could lead to switching behaviour.

Answer 2

True

Question 3

The affective decision-making perspective assumes that consumers often make purchases and reach decisions based on the affect, or feeling, attached to the product or behaviour under consideration.

Answer 3

False

Question 4

When consumers engage in extended decision making, they tend to search diligently for information that will help them reach a satisfactory decision.

Question 5

Consumer researchers view the decision-making process from two perspectives: utilitarian and hedonic.

Question 6

The rational decision-making perspective fits very well with the concept of utilitarian value.

Question 7

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

Question 8

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

Question 9

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

Question 10

With habitual decision making, choice is often based on habit.

Question 11

Retailers use the "brand-lift index" to measure the incremental sales that occur when a product is on display.

Question 12

Decision-making approaches can be classified into three categories: extended decision making, limited decision making, and simple decision making.

Question 13

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.

Question 14

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

Question 15

With limited decision making, no comparison between brands is done.

Question 16

The decision-making approach that is used depends heavily on the amount of involvement a consumer has with a product category or purchase and the amount of purchase risk involved with the decision.

Question 17

Habitual decision making typically occurs in low-involvement, low-risk purchase situations.

Question 18

Consumer decision making always focuses on the purchase of a product or service.

Question 19

The behavioural influence decision-making perspective assumes that many decisions are actually learned responses to environmental influences.

Question 20

The rational decision-making perspective assumes that consumers diligently gather information about purchases and carefully arrive at decisions.

Question 21

Pre-purchase search activities are focused on locating information that will enable the consumer to reach a decision for a specific problem.

Question 22

Brand loyalty enables consumers to reduce searching time drastically by insisting on the brand to which they are loyal.

Question 23

External search includes gathering information from sources such as friends, family, salespeople, advertising, independent research reports, or the Internet.

Question 24

A consumer's consideration set includes the set of brands or alternatives to which a consumer is aware.

Question 25

The total collection of all possible solutions to a recognized need is referred to as the universal set.

Question 26

In today's environment, finding information is a problem.

Question 27

The decision-making process begins with information search.

Question 28

A consumer performs an ongoing search when he or she seeks information simply because he or she is interested in a particular topic.

Question 29

Initial search includes the retrieval of knowledge about products, services, and experiences that are stored in memory.

Question 30

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

Question 31

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

Question 32

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

Question 33

A consumer's actual state must change for need recognition to occur.

Question 34

Consumer search behaviour refers to the behaviours that consumers engage in as they seek information that can be used to satisfy needs.

Question 35

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

Question 36

Consumers most often perform internal searches before any other type of search begins.

Question 37

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

Question 38

Brand loyalty has benefits for both the consumer and the marketer.

Question 39

In general, consumers find that information from commercial sources is as credible as information from family and friends.

Question 40

A consumer's alternative set includes alternatives that are considered acceptable for further consideration in decision making.

Question 41

Which decision-making perspective assumes that many decisions are actually learned responses to environmental influences?

A) experiential decision-making
B) behavioural influence decision-making
C) social decision-making
D) conditioned decision-making

Question 42

A product's price is a piece of information.

Question 43

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

Question 44

A consumer's experience is really the only factor that influences his or her information search effort.

Question 45

It is difficult to measure the amount of search that a consumer performs related to decision making.

Question 46

As perceived risk increases, search effort increases.

Question 47

Which of the following is NOT a decision-making perspective?

A) rational decision-making
B) experiential decision-making
C) behavioural influence decision-making
D) limited decision-making

Question 48

Greg is considering purchasing a new truck, and he wants to purchase the best one within his budget. He has searched the Internet, asked friends, and visited dealerships to learn more about the different brands and their features. He even found one website where he can conduct direct comparisons of different brands to help him in his decision. Which decision-making perspective is Greg following?

A) experiential decision-making
B) complete decision-making
C) utilitarian decision-making
D) rational decision-making

Question 49

One reason the Internet improves consumer search activities is the fact that consumers have the ability to control information flow much more efficiently than if they were viewing product information from mass media sources.

Question 50

Which decision-making perspective 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?

A) rational decision-making
B) experiential decision-making
C) behavioural influence decision-making
D) intensive decision-making

Question 51

Search tends to decrease as a consumer's level of education and income increase.

Question 52

Cognitive dissonance refers to the negative emotions that come from failed search processes.

Question 53

What is assumed in the experiential decision-making perspective?

A) Consumers diligently gather information about purchases, carefully compare alternatives, and make informed decisions.
B) Many decisions are actually learned responses to environmental influences.
C) Consumers often make purchases and reach decisions based on the affect, or feeling, attached to the product or behaviour under consideration.
D) Consumers focus on utilitarian value rather than hedonic value.

Question 54

As a general statement, inexperienced consumers search for purchase-related information more than do either experienced or moderately experienced consumers.

Question 55

Holly is a consumer researcher who assumes that consumers often make purchases and reach decisions based on the affect, or feeling, attached to the product or behaviour under consideration. Which decision making perspective is Holly advocating?

A) rational decision-making
B) experiential decision-making
C) behavioural influence decision-making
D) social decision-making

Question 56

When does the consumer decision-making process begin?

A) when the consumer realizes that he or she has a need
B) when the consumer searches for information
C) when value is derived
D) when costs and benefits are analyzed

Question 57

Which of the following is NOT a potential activity in the decision-making process?

A) post-choice evaluation
B) search for information
C) exchange
D) need recognition

Question 58

Search tends to increase when a consumer possesses a high level of purchase involvement.

Question 59

Which type of value is often a focus in the experiential decision-making perspective?

A) immediate
B) utilitarian
C) hedonic
D) rational

Question 60

Which statement does NOT accurately describe consumer decision making?

A) The basic consumer behaviour consumption process revolves around value-seeking activities that consumers perform as they go about satisfying needs.
B) Consumers always proceed through five steps in the decision-making process.
C) Choice does not necessarily mean identifying what brand of product to buy.
D) Both utilitarian value and hedonic value are associated with consumer decision making.

Question 61

Some consumers won't purchase products online from retailers like Groupon, Buytopia, or Living Social because the products take too long to be delivered. Which type of risk is most likely influencing the decision not to purchase one of these brands?

A) financial
B) performance
C) time
D) social

Question 62

In which type of decision-making approach do consumers generally not seek information at all when a problem is recognized?

A) limited
B) habitual
C) automatic
D) repeat

Question 63

Donna's kids want hover boards but she's concerned about the safety of this product, given that a handful of the new gadgets have caught on fire. Which type of risk is Donna considering?

A) financial
B) physical
C) performance
D) social

Question 64

Which type of risk is a concern for consumers who are worried about how other consumers will view their purchases?

A) performance
B) social
C) physical
D) time

Question 65

Which of the following is NOT a decision-making approach?

A) rational decision-making
B) limited decision-making
C) extended decision-making
D) habitual decision-making

Question 66

On her weekly grocery shopping trips, Anna buys Tropicana orange juice for her family. She doesn't seek information at all when she realizes they need juice, and her choice is based on habit. Which type of decision making is Anna using for this product?

A) limited
B) habitual
C) automatic
D) family

Question 67

Which type of decision making usually occurs when there are relatively low amounts of purchase risk and product involvement?

A) limited
B) truncated
C) automatic
D) abbreviated

Question 68

Carl and his wife are considering the purchase of a new home. They are very involved with this purchase decision, particularly because of the high perceived risk associated with this purchase. Which decision-making approach are they likely to use?

A) rational
B) thorough
C) involved
D) extended

Question 69

Which type of risk is associated with the safety of the product and the likelihood that bodily harm will result from its consumption?

A) performance
B) usage
C) physical
D) actual

Question 70

Which of the following does the decision-making approach that is used by a consumer depend heavily on?

A) price and quality of the products/brands considered
B) amount of involvement a consumer has with a product category or purchase and the amount of purchase risk involved with the decision
C) amount of involvement a consumer has with a product category or purchase and the amount of social influence affecting the decision
D) age and education of the consumer making the decision

Question 71

Which term refers to risk associated with the time required to search for the product and the time necessary for the product to be serviced or maintained?

A) future
B) allotment
C) long-term
D) time

Question 72

Which type of risk is associated with the likelihood of a product working as expected?

A) financial
B) physical
C) utilitarian
D) performance

Question 73

What is the term for risk associated with the cost of the product?

A) quantitative risk
B) primary risk
C) income risk
D) financial risk

Question 74

Which type of decision-making approach is used by consumers who tend to search diligently for information that will help them reach a satisfactory decision?

A) rational
B) limited
C) extended
D) thorough

Question 75

While most young adults would like to own a Porsche automobile, which is very expensive, which type of risk is likely preventing them from purchasing one?

A) financial
B) social
C) performance
D) safety

Question 76

Which index is used by retailers to measure the incremental sales that occur when a product is on display?

A) incremental sales
B) brand-consumption
C) brand-equity
D) brand-lift

Question 77

Which term 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?

A) perceived involvement
B) perceived cognitive dissonance
C) perceived outcomes
D) perceived risk

Question 78

Hal is considering purchasing a hybrid automobile because he wants better gas mileage and to help save the environment. However, he is concerned that the car might not be as good as expected. Which type of risk is Hal considering?

A) financial
B) physical
C) performance
D) social

Question 79

Which of the following is NOT a type of risk?

A) functional
B) physical
C) time
D) performance

Question 80

A billionaire business woman wants to run for public office, but she's concerned about how voting constituents will react to her rich lifestyle. Her constituents are more frugal, and she's concerned that they might think less of her because of her background. Which type of risk is this?

A) financial
B) social
C) performance
D) physical