Deck 8: Judgment and Decision Making Based on High Effort

Question 1

Present-oriented consumers want to develop themselves and select life-enriching vacations and books.

Answer 1

False

Question 2

Bud wants to buy a car, but is not willing to consider any car that gets a mileage of less than 37 miles per gallon. This scenario illustrates that Bud has set a cutoff level in his mind.

Answer 2

True

Question 3

In the context of decisions based on gains and losses, consumers have a much stronger reaction to price decreases than to price increases.

Answer 3

False

Question 4

Although most consumers prefer attribute processing because it is easier than brand processing, they cannot always find information available in a manner that facilitates it.

Question 5

Repetition of a brand name and messages in marketing communications prevents the brand name from being retained in the consumer's memory.

Question 6

Len wants to purchase a car and visits a car showroom to have a look at all the new models. In the showroom, Len assesses the cars' key features, such as the quality, comfort, and performance of the engines. In this scenario, he is _____.

A) making dissonant decisions
B) making judgments
C) retrieving information from short-term memory
D) retrieving information from long-term memory
E) formulating a body feedback

Question 7

When the outcome of a decision will be realized far in the future, consumers may consider the rational aspects of the decision to be more important than the hedonic aspects of the decision.

Question 8

Judgments of goodness and badness are not only affected by the attributes of a product but also affected by how we feel.

Question 9

Promotion-focused consumers, whose goal is to maximize gains and positive outcomes, will put more emphasis on the effectiveness of a product and put less emphasis on whether they think they have the skills and capacity to use the product.

Question 10

Decision-making is judging how likely it is that something will occur.

Question 11

Consumers using a disjunctive model set up acceptable cutoffs to find options that are good.

Question 12

Metacognitive experiences affect decisions beyond formal knowledge by influencing retrieval ease, inferences, and biases.

Question 13

Adding information actually makes imagery processing complicated because more information makes it difficult for consumers to form an accurate image.

Question 14

When consumers' motivation, ability, and opportunity (MAO) to process information relevant to a decision are low, consumers put a lot of effort into making these decisions.

Question 15

In the context of cognitive decision-making, noncompensatory models require more cognitive effort than compensatory models do.

Question 16

Imagery may lead consumers to overestimate how satisfied they will be with a product or service.

Question 17

Judgment is a(n) _____ the decision-making process.

A) major outcome of
B) critical input into
C) minor outcome of
D) affective feed into
E) estimate of the success of

Question 18

Money received under negative circumstances is more likely to be spent on a hedonic purchase than on a utilitarian purchase.

Question 19

In the context of consideration sets, the attraction effect occurs because adding superior brands to a set increases the attractiveness of a dominant brand, making decisions easier for consumers.

Question 20

When the option to see pricing information is presented with the higher price first, consumers are more likely to choose the lower priced option.

Question 21

Which of the following statements is true of decision framing?

A) Consumers react more positively when marketers frame the cost of a product as a large one-time expense instead of as a series of small payments.
B) Consumers are more likely to choose a brand with negatively framed claims about a competitor when elaboration is high than when it is low.
C) Consumers are more willing to take risks with products when a choice is framed as avoiding a loss than one framed as acquiring a gain.
D) A product framed in the context of higher-priced options will be judged as being more expensive than one framed in the context of lower-priced options.
E) When the outcomes are equally positive, sellers feel better about not losing money while buyers feel better about achieving gains.

Question 22

A consideration set, which contains options that consumers want to choose among, consists of a leading brand's perfume, handbag, and designer footwear. To make this brand look even better, marketers decide to add accessories from an inferior brand to the consideration set. This act by the marketers is an instance of the _____.

A) biased effect
B) retrieval effect
C) feedback effect
D) attraction effect
E) differential effect

Question 23

Nathan goes to a store to purchase laundry detergents. When Nathan looks around to make a brand selection, he realizes that he loves the brands Deit and Dolen, hates the brands Duss and Tone Out, and does not have much of an opinion about the brand Little Alls. In this scenario, Little Alls is clearly in Nathan's _____.

A) conditioned set
B) convoluted set
C) inept set
D) inert set
E) illusory set

Question 24

Which of the following strategies can help a company get its brand into the consumer's consideration set?

A) Maximizing the attraction effect resulting in a more positive evaluation of the brand
B) Limiting repetition of the brand name and messages in marketing communications
C) Trying to decrease consumer's short-term memory for the product's attributes
D) Promoting comparisons of the brand with superior competitors
E) Increasing sales of high-margin items simply by offering a low-priced option

Question 25

When brands in consumers' consideration set are similar in attractiveness, they must put more effort into making a decision and will more likely use a(n) _____.

A) high-elaboration model
B) compensatory model
C) associative model
D) cutoff model
E) low-elaboration model

Question 26

Georgia wishes to rent a convertible car during her upcoming vacation in Hawaii. She imagines the view of the ocean, the smell of tropical flowers, and the wind in her hair. However, when reaches Hawaii, it is raining heavily and her rental car has engine problems. Georgia's expectation before she started her trip is an instance of a(n) _____.

A) incidental effect
B) mood congruent bias
C) attraction effect
D) self-positivity bias
E) resonance effect

Question 27

Which of the following is one of the drawbacks of compensatory models?

A) They cannot help consumers in weighing the goodness of an attribute.
B) They cannot be used when brands in consumers' consideration set are similar in attractiveness.
C) They form an analysis where a negative evaluation of one brand cannot be made up by the positive features on others.
D) They require a significant amount of effort.
E) They do not fit with most decision-making situations.

Question 28

In the context of making judgments about likelihood and goodness and badness, starting with an initial evaluation and adjusting it with additional information is referred to as _____.

A) an accounting of mental judgment
B) an anchoring and adjustment process
C) an adjustable and precise cycle
D) an evaluation of emotional accounts
E) an estimation of likelihood

Question 29

In a(n) _____, a negative rating on a key attribute leads to immediate rejection of the brand from the consideration set.

A) evolutionary model
B) expectancy-value model
C) compensatory model
D) noncompensatory model
E) incremental model

Question 30

_____ is the process by which consumers combine items of information about attributes to reach a decision.

A) Conjunctive decision-making model
B) Intuitive decision-making model
C) Cognitive decision-making model
D) Emotional decision-making model
E) Differential decision-making model

Question 31

In a _____, the brand that has the best overall score, attribute goodness times importance summed across all of the brand's attributes, is the one consumers choose.

A) brand-equivalent model
B) resistive model
C) compensatory model
D) noncompensatory model
E) brand-compliant model

Question 32

The initial reference point or anchor in the decision process is referred to as _____.

A) a referral decision
B) a sustainable anchor
C) decision framing
D) affective modeling
E) attribute processing

Question 33

In the process of deciding which criteria are relevant to a choice, which of the following statements is true of consumers' goals during a decision process?

A) If the goal is to simplify a choice, the consumer will seek out a large assortment of choices.
B) Consumers' goals remain constant during the decision process.
C) Promotion-focused consumers highly emphasize on the effectiveness of a product.
D) Prevention-focused consumers, who are more risk-averse, emphasize a product's efficacy.
E) If the goal is flexibility in choice, the consumer will seek out a small assortment of choices.

Question 34

For each attribute, the point at which a brand is rejected with a noncompensatory model is referred to as the _____.

A) end note
B) margin point
C) cutoff level
D) threshold
E) benchmark

Question 35

Danny is interested in purchasing a new car. He sees an ad of a new car model manufactured by Jadeon, which is Danny's favorite car company. Danny's interest in the new model increases when he finds out through the ad that this model is affordable and also has a high engine power. In this scenario, Danny's method of making a judgment about the new car model is an example of _____.

A) mental accounting
B) an anchoring and adjustment process
C) consumer resentment
D) emotional accounting
E) an estimation of likelihood

Question 36

Judging how probable it is that something will occur is referred to as a(n) _____.

A) affective response
B) conjunctive process
C) evaluation of randomization
D) motivational insight
E) estimation of likelihood

Question 37

Making a selection among options or courses of action is referred to as _____.

A) recourse equalization
B) meta-analysis
C) affective response
D) data tuning
E) decision-making

Question 38

When deciding which brands to consider, a(n) _____ refers to those options that consumers want to choose among.

A) inept set
B) maximized set
C) consideration set
D) equivalent set
E) inert set

Question 39

Linda wants to purchase a new smartphone and assessing one brand at a time. She first collects information about Kiarane smartphones, which are marketed as top of the line. She decides to make a judgment on Kiarane smartphones before moving on to the next brand. This act of Linda is an example of _____.

A) attribute enhancement
B) a brand-expectancy model
C) a brand-decision delay
D) an appraisal theory
E) brand processing

Question 40

Which of the following statements is true of judgments?

A) They do not require retrieval of information.
B) They do not require information processing.
C) They do not require a decision.
D) They do not require evaluations.
E) They do not require estimations.

Question 41

The difference between a conjunctive model and a disjunctive model is that a disjunctive model puts the weight on _____.

A) negative information
B) positive information
C) attribute information
D) attribute evaluations
E) consumer evaluations

Question 42

Consumers' predictions of what they will feel in the future is referred to as _____.

A) prospective theory
B) spatial analogy
C) affective forecasting
D) prospective occurrences
E) heuristic planning

Question 43

Clarke is moving out of town and wishes to sell his Legone motorbike. Patrick, Clarke's friend, is ready to purchase the motorbike. However, Clarke wants to charge a price that is much higher than Patrick is willing to pay. This scenario is an example of the _____.

A) attribute framing effect
B) eliminatory effect
C) goal framing effect
D) value-recognition effect
E) endowment effect

Question 44

Barbara loves to visit the mountains during this time in the summer. It is December and she has already started planning ahead for summer. In this scenario, Barbara's prediction of her summer holidays is an example of _____.

A) prospective theory
B) spatial analogy
C) affective forecasting
D) cognitive impulsion
E) heuristic planning

Question 45

A _____ is best when a customer wishes to rule out unsuitable options as soon as possible.

A) brand awareness state
B) self-affirmation strategy
C) subjunctive model
D) conjunctive model
E) compensatory strategy

Question 46

According to prospect theory, _____.

A) losses loom larger than gains for consumers even when the outcomes of decision models are of the same magnitude
B) gains are more important to consumers than losses though both have the same value
C) when asked to set a price for an item to be exchanged, sellers typically ask for a much lesser price than buyers are willing to pay
D) sellers perceive selling an item that they own as a self-gain
E) ownership of a product decreases the value associated with it

Question 47

Imagery plays a key role in _____.

A) societal decision-making
B) emotional decision-making
C) disjointive decision-making
D) attributive decision-making
E) financial decision-making

Question 48

Which of the following statements is true of prospect theory?

A) Consumers are not risk-averse.
B) Consumers are willing to buy a product even when the decision involves losses.
C) When an item is exchanged, sellers ask for a much lower price than expected by the buyers.
D) As part of their defense mechanism, sellers respond to self-threat by diminishing the value of a self-associated object.
E) Consumers have strong negative reactions to price increases.

Question 49

Rene wants to purchase a laptop. She compares the laptops of Finneco and Twissare, two of the leading laptop brands in the market, to decide which of the two brands would suit her requirements perfectly. She finds that both the laptop brands tie on the most important feature "processing speed." She then moves on to compare the next feature "graphics" and selects Finneco because it is ranked higher. This scenario exemplifies the use of the _____ by Rene to make the selection.

A) subjunctive model
B) evolutionary model
C) brute-force model
D) incremental model
E) lexicographic model

Question 50

Price comparison shopping in which consumers compare each brand on price and select the one with the desired price is an example of _____.

A) attribute processing
B) brand classification
C) exploratory modeling
D) price stratification
E) brand processing

Question 51

With the _____, consumers order the attributes in terms of importance and compare the options one attribute at a time, starting with the most important attribute.

A) subjunctive model
B) spiral model
C) exploratory model
D) evolutionary model
E) lexicographic model

Question 52

Nancy plans to purchase a new car. She has planned a holiday and hence wants to buy the car at the earliest. To make a quick decision, she first dismisses all the cars that do not have a rear-view camera. In this scenario, Nancy's attitude toward the car purchase exemplifies the _____.

A) spiral model
B) conjunctive model
C) expectancy model
D) value-based model
E) intractable model

Question 53

In the context of decisions based on gains and losses, which of the following statements is true of prevention-focused consumers?

A) They make a decision that will result in a change.
B) They emphasize their own skills to use a product.
C) They tend to preserve the status quo.
D) They tend to be less risk-averse.
E) They are willing to try new things.

Question 54

Maureen hates shopping for clothes and is easily confused if provided with plenty of choices. She has an upcoming office party for which she needs to purchase a dress. The night before the party, she reluctantly goes to a nearby mall to buy a dress that would be apt for the occasion. Which of the following consumer tendencies is illustrated by Maureen in this scenario?

A) Lack of expertise
B) Source inconsistency
C) Regret minimization
D) Imagery phobia
E) Decision delay

Question 55

Using a conjunctive model, consumers set up:

A) minimum cutoffs for each attribute that represent the absolute lowest value they are willing to accept.
B) evaluations that put the weight on positive information rather than on negative information.
C) evaluations based on several of the most important attributes rather than on all of them.
D) acceptable levels for the cutoffs that are desirable to find the good ones.
E) evaluations to immediately eliminate brands that are inadequate on any one or more important attributes.

Question 56

When asked to set a price for an item to be exchanged, sellers typically ask for a much higher price than buyers are willing to pay. This is referred to as the _____.

A) attribute framing effect
B) power effect
C) eliminatory effect
D) goal framing effect
E) endowment effect

Question 57

Which of the following statements is true of a lexicographic model?

A) If one attribute of an option dominates, the consumer selects that option.
B) Consumers stop comparing brands in case there is a tie between two attributes.
C) It is a type of a compensatory selection strategy.
D) A weak attribute results in immediate rejection of the brand from the consideration set.
E) It evaluates one brand at a time.

Question 58

The _____ is a compensatory model in which brands are compared by attribute, two brands at a time.

A) dual attribute model
B) additive difference model
C) value-based model
D) consumer-specific model
E) elimination-by-aspects model

Question 59

In the _____, the consumer bases evaluations on several of the most important attributes rather than on all of them.

A) intractable model
B) spiral model
C) disjunctive model
D) value-based model
E) exploratory model

Question 60

The elimination-by-aspects model is similar to the lexicographic model except that it:

A) includes only positive attribute information.
B) incorporates the notion of an acceptable cutoff.
C) includes only negative attribute information.
D) compares the attributes of two or more brands.
E) eliminates brand associations.

Question 61

Describe framing and give an example of decision framing in consumer decision-making.

Question 62

Briefly explain the additive difference model.

Question 63

Linda and her friend, Cindy, meet to plan an exciting Saturday evening. Linda wants to go for a movie, whereas Cindy wants to go to a basketball game. However, the movie and the game begin at the same time. Hence, they need to decide on one of the activities. In this scenario, making the choice between the movie and the game exemplifies a situation of _____.

A) lexicographic processing
B) symbolic decisions
C) noncomparable decisions
D) judgmental decisions
E) evaluative processing

Question 64

In the context of making decisions in a group, which of the following statements is true of self-presentation?

A) Consumers use unique choices to express their individuality.
B) Uniformity at the group level is of utmost priority.
C) Information gathering within the group is of utmost priority.
D) Consumers identify difference in choices by interacting within the group.
E) Consumers tend to make choices that are similar to those made by the rest of the group.

Question 65

Explain with an example how judgments of goodness and badness reflect a consumer's evaluation of the desirability of an offering's features.

Question 66

Briefly explain brand-based compensatory models with an example.

Question 67

When consumers tend to exhibit _____, they often find moderately priced options more attractive than options that are either very expensive or very inexpensive.

A) imagery dominance
B) schematic inferiority
C) branding efficiency
D) extremeness aversion
E) attribute moderation

Question 68

Describe the different types of noncompensatory models.

Question 69

Briefly explain how marketers are benefitted when consumers switch from a compensatory strategy to a noncompensatory strategy.

Question 70

Describe how consumers' goals affect the decision criteria that they use in making a choice.

Question 71

Briefly explain mental and emotional accounting.

Question 72

Briefly explain endowment effect with an example.

Question 73

In the context of time pressure, _____ want to improve their current well-being and prefer products that help them to do so.

A) attribute-oriented consumers
B) sustainable consumers
C) brand-oriented consumers
D) risk averse consumers
E) present-oriented consumers

Question 74

Explain how visualization plays a major role in judgments of likelihood and goodness and badness.

Question 75

In the context of cognitive models, briefly discuss the difference between a compensatory model and a noncompensatory model.

Question 76

In the context of biases in judgment processes, briefly explain difficulty of mental calculations.

Question 77

In the context of noncomparable decisions, which of the following statements is true of alternative-based strategy?

A) It uses choices based on individual evaluation of all the options.
B) It is also referred to as bottom-up processing.
C) It allows the choice to be constructed or built up.
D) It develops an overall evaluation of each option.
E) It involves formation of abstract representations of comparable attributes.

Question 78

In the context of affective decision-making, briefly explain appraisal theory.

Question 79

In the context of judgments about likelihood and goodness and badness, briefly explain the anchoring and adjustment process.

Question 80

In the context of decisions based on gains and losses, describe prospect theory.