Deck 3: Overview of Consumer Decision Making

Question 1

Microeconomics deals primarily with aggregates such as the total amount of products produced by society and the absolute levels of prices.

Answer 1

False

Question 2

In a command system, a central government agency ascertains collective or governmental ownership and administration of the means of production and distribution of goods.

Answer 2

True

Question 3

Most modern economies in democratic nations are free market economies.

Answer 3

False

Question 4

Consumer sovereignty is the notion that people are only as rational as their limited resources, knowledge, and time will permit.

Question 5

It is not rational to purchase a product or service based on emotions, or feelings that are not physically controllable.

Question 6

Needs originate from either psychological makeup or from the consumer's sociocultural environment, and therefore it is doubtful that marketers can create needs or desires.

Question 7

An extended warrantee is an example of improving relationship marketing and focusing on post-purchase behavior.

Question 8

Physical activity, sensory stimulation, and social experiences are examples of nonfunctional shopping motives.

Question 9

When there is a high level of affective involvement, consumers wish to make a rational, informed decision and put lots of thought into their decision process.

Question 10

Newspapers, magazines, direct mail, and mobile media tend to be high involvement media.

Question 11

The key assumption that underlies microeconomics is ________.

A) Consumption
B) Rationality
C) Maximizing profit
D) Elasticity
E) Production

Question 12

In which economic system is the means of production and distribution privately owned?

A) Command System
B) Statism
C) Mixed Economy
D) Market Economy
E) Centrally Planned Economy

Question 13

What is the name of the state in which a consumer experiences a discrepancy between her desired state of affairs and her actual state of affairs, resulting in an unsatisfied need or want or an unsolved problem?

A) Problem recognition
B) Problem-solution advertising
C) Covert problem
D) Internal search
E) Environmental search

Question 14

You are about to rent a car for your one-week family vacation in Toronto. You have used car rental services from Avis, Alamo, Enterprise, and Budget in the past and you were unsatisfied with the customer service provided by Budget. When you used Avis, you thought that the rates were much too high. Which brands are in your evoked set?

A) Budget
B) Avis
C) Budget and Avis
D) Alamo and Enterprise
E) Avis, Alamo, Enterprise, and Budget

Question 15

You are about to rent a car for your one-week family vacation in Toronto. You have used car rental services from Avis, Alamo, Enterprise, and Budget in the past and you were unsatisfied with the customer service provided by Budget. When you used Avis, you thought that the rates were much too high. Which brands are in your evoked set?

A) Budget
B) Avis
C) Budget and Avis
D) Alamo and Enterprise
E) Avis, Alamo, Enterprise, and Budget

Question 16

The extent to which the purchase decision has perceived personal importance and relevance for the buyer is __________.

A) Value-expressive products
B) Involvement
C) Semantic differential scales
D) Search time
E) Environmental involvement

Question 17

Which type of consumer involvement is related to utilitarian needs?

A) Affective involvement
B) Ego involvement
C) Cognitive involvement
D) Purchase situation involvement
E) Product involvement

Question 18

What is a sticky Web site?

A) A website that attracts repeat visitors that are engaged enough to stay for extended periods of time
B) A website that spreads rapidly in popularity due to word-of-mouth.
C) A website that has a regular repeat audience that stays for short time periods but visits often
D) A website that provides more sales revenue for a product than its retail outlets
E) A website that is constantly being updated with new sales promotions generating a new audience daily

Question 19

Items for which consumers have very strong brand preferences are __________.

A) Shopping goods
B) Convenience goods
C) Credence goods
D) Specialty goods
E) Experience goods

Question 20

Utilization of loyalty marketing, affinity marketing, and club marketing programs are examples of strategies for __________.

A) Building a consumer brand franchise
B) Building brand attribute awareness
C) Building consumer involvement
D) Responding to hedonic needs
E) Responding to ego risk

Question 21

Cite three key assumptions underlying the microeconomic theory of the utilitarian consumer, each of which modern marketers would disagree with to some extent. What do marketers believe regarding each assumption?

Question 22

"A consumer's preferred brand-the one toward which she has the most positive attitude-will become the one she buys." Cite three general reasons why this could be a false statement.

Question 23

Cite four major disadvantages of Internet shopping for consumers.

Question 24

There are often nonbuying motives for going shopping in traditional bricks-and-mortar retail stores. Explain what these are and how their existence suggests we won't see the replacement of traditional stores and shopping malls with online e-tailing.

Question 25

What is the relationship between ego involvement and self-concept?

Question 26

Cite and explain the three contingency variables which determine involvement.

Question 27

Does routine/nominal decision making involve any kind of purchase decision process? Explain and describe the nature of this consumer decision making.

Question 28

Cite and define the two general situations of nominal decision making using the correct terminology.

Question 29

Cite three reasons why customers become brand loyal.

Question 30

The ultimate goal for marketers is to gain brand loyal customers. Cite four beneficial characteristics that a brand loyal customer possesses.