Question 1

The two dimensional model of decision making discussed in your readings considers processing effort and involvement. What four types/categories of consumer decision making make up this model?
A) Brand laziness; brand loyalty; variety seeking; problem solving
B) High involvement; low involvement; high risk; low risk
C) High information processing; low information processing; brand laziness; brand loyalty
D) Variety seeking; problem solving; routine choice; functional risk
E) Routine choice, intermediate problem solving; high risk; high information processing

Accepted Answer

The two-dimensional model of decision making includes brand laziness, brand loyalty, variety seeking, and problem solving as the four types/categories. These categories are based on the level of processing effort and involvement a consumer exhibits when making a decision.

Question 2

Utility describes the amount of happiness and satisfaction a consumer gains from a product or service.

Accepted Answer

Utility is indeed the amount of happiness and satisfaction a consumer gains from a product or service.

Question 3

The cluster frontier can be likened to a person's perceived ideal brand.

Accepted Answer

Just as an individual may have a certain perception of their ideal brand, the cluster frontier represents the hypothetical ideal cluster that a company aims to reach through its marketing and product offerings.

Question 4

Every time you go to the store, you purchase Charmin toilet paper. You don't really think about why you purchase Charmin because you purchase it out of habit. What type of purchase decision making is this?
A) Intermediate problem solving
B) Routine choice
C) Bounded rationality
D) Extensive problem solving
E) Neutral decision making

Accepted Answer

This is a routine choice because the decision to purchase Charmin toilet paper is made out of habit and without much thought.

Question 5

External uncertainty is really about uncertainty about brand information, whereas, internal uncertainty is really about uncertainty about brand utility.

Accepted Answer

External uncertainty refers to uncertainty about the information customers have about a brand, such as its reputation or quality, while internal uncertainty refers to uncertainty about how well the brand will meet their needs or expectations.

Question 6

Research has shown that highly satisfied consumers tend to be brand loyal.

Accepted Answer

Research has shown that highly satisfied consumers are more likely to become repeat customers and recommend the brand to others, leading to brand loyalty.

Question 7

Cognitive dissonance tends to occur less for higher priced items.

Accepted Answer

Cognitive dissonance tends to occur more for higher priced items because the financial and emotional investment is greater, leading individuals to experience more discomfort when their beliefs or behaviors do not align with their purchase decisions.

Question 8

When a purchase involves product options that are very different in terms of product attributes and overall attractiveness, post-purchase dissonance is more likely to occur.

Accepted Answer

The answer of When a purchase involves product options that...

Question 9

Cognitive dissonance occurs when consumers second-guess their purchase decisions.

Accepted Answer

Cognitive dissonance is a psychological phenomenon where individuals experience discomfort or a sense of imbalance when their beliefs, attitudes, or behaviors conflict with each other. In the context of consumer behavior, it occurs when a person buys a product or service but starts to have doubts or worries about their decision, leading to feelings of discomfort or regret.

Question 10

In brand clusters, the degree to which brands within a single cluster are dissimilar from each other is called the cluster frontier.

Accepted Answer

The degree to which brands within a single cluster are dissimilar from each other is called the cluster dispersion, not the cluster frontier.

Question 11

Research shows that in general, women enjoy shopping more than men.

Accepted Answer

Studies have shown that women tend to spend more time and money on shopping than men, indicating that they generally enjoy the activity more than men do. However, it's important to note that this is a generalization and there are certainly many individuals who defy these gender norms.

Question 12

Clustering brands in one's perceived product market makes decision making easier.

Accepted Answer

Clustering brands helps to simplify the decision-making process by categorizing products and reducing the number of options to consider. This can save time and effort in making a decision.

Question 13

Purchases like engagement rings, new cars, and houses involve _____ consumer decision making.
A) intermediate problem solving
B) routine choice
C) variety seeking problem solving
D) extensive problem solving
E) neutral decision making

Accepted Answer

Purchases like engagement rings, new cars, and houses involve extensive consumer decision making because they are high involvement and high-cost products that require extensive research, evaluation of alternatives, and decision making before purchase.

Question 14

Moderately (medium) experienced customers are more likely to engage in extensive information search during consumer decision making than those with low levels of expertise or experience.

Accepted Answer

Moderately experienced customers have more knowledge and understanding of the product or service they are considering, which makes them more likely to engage in extensive information search to make a well-informed decision. On the other hand, customers with low levels of expertise may rely more on simple decision heuristics or external cues.

Question 15

Low cluster variance increases the likelihood of a consumer making a bad purchase decision.

Accepted Answer

Low cluster variance means that the data points within a cluster are tightly grouped together, indicating a high similarity between them. This should actually increase the likelihood of a consumer making a good purchase decision as the products within the same cluster are closely related and have similar qualities or characteristics. Higher cluster variance, on the other hand, means that the products in the same cluster are more diverse and may not have many similarities, making it harder for the consumer to make a good decision.

Question 16

Consumers often infer the level of demand for brands in a product cluster from the cluster size, such that a larger cluster size implies more demand.

Accepted Answer

This statement is true as consumers often use the size of a product cluster as an indicator of the popularity and demand for the brands within it. For example, a larger display of a particular brand of cereal on a supermarket shelf may lead consumers to believe that it is a popular and highly demanded product.

Question 17

The expectancy disconfirmation model suggests that as expectancies increase, satisfaction increases.

Accepted Answer

The expectancy disconfirmation model suggests that satisfaction is determined by the difference between expectations and actual performance. If performance exceeds expectations, satisfaction increases; if it falls short, satisfaction decreases.

Question 18

Research shows that in general, very few consumers enjoy shopping for the sake of shopping.

Accepted Answer

Research indicates that a significant number of consumers do enjoy the experience of shopping itself, not just for the purpose of acquiring items but also for the pleasure and entertainment it provides. This is often referred to as recreational shopping or shopping for pleasure.

Question 19

A consumer's perceived utility function for a product rarely differs from his/her true utility function. When this occurs, a satisfaction paradox is created.

Accepted Answer

The statement is false. A consumer's perceived utility function for a product can differ from his/her true utility function. This can lead to a satisfaction paradox where a consumer may continue to purchase a product even though it does not provide the maximum level of satisfaction.

Question 20

People who tend to engage in high levels of ongoing search (vs. those that don't) tend to impulse shop less.

Accepted Answer

The answer of People who tend to engage in high...

Quiz 3: Overview of Consumer Decision Making

The two dimensional model of decision making discussed in your readings considers processing effort and involvement. What four types/categories of consumer decision making make up this model?