Quiz 9: Decision Making

Tomorrow, Janice will be attending a party with a buffet. In anticipation of splurging on delicious food, she is eating very little today. Janice is using a ________ to help her estimate consumption over time and regulate her behavior. A) constructive process B) mental budget C) diet D) cognitive process

According to ________, we evaluate the effort we'll need to make a particular choice and then we tailor the amount of cognitive "effort" we expend to make that choice. A) cognitive processing B) mental processing C) constructive processing D) behavioral processing

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in ________ decision making. A) cognitive B) limited C) habitual D) affective

The first stage in the consumer decision-making process is ________. A) information search B) evaluation of alternatives C) problem recognition D) product choice

Evaluating the effort when we need to make a particular choice is called the ________. A) want B) constructive process C) need D) routine process

A bucket in consumer decision making is ________. A) cognitive B) habitual C) affective D) all of the above

The success of ________ hinges on the marketer's ability to convince the consumer to consider its product within a given category. A) identifying competitors B) positioning strategy C) exemplar products D) product locations

A hot and thirsty customer buys a cool drink and finds it very satisfying. He then buys another drink even though he had not initially planned on buying two and even though he is no longer thirsty. This is an example of ________. A) purchase momentum B) rational decision making C) behaviorally influenced purchase D) inertia

Decisions driven by our emotional responses to a product are called ________. A) affective B) habitual C) cognitive D) compensatory

Self-regulation refers to a person's efforts to change or maintain his actions over time.

The first step in the consumer decision-making process is to conduct an information search.

Evaluative criteria are the dimensions used to judge the merits of competing options.

Shortcuts are considered heuristics, or "mental rules-of-thumb" in decision making.

List and describe the three "buckets" of consumer decision making.

What is an evoked set?

The first step in consumer decision making is ________, when the consumer realizes he or she must take some action. A) problem recognition B) evaluation of alternatives C) constructive perspective D) behavioral influence perspective

________ occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired state. A) Information search B) Evaluating alternatives C) Evaluating of evoked set D) Problem recognition

If a consumer's ideal state is very near or identical to his or her actual state, which of the following best describes the type of problem recognition the consumer would most likely have? A) opportunity recognition B) need recognition C) search recognition D) no problem recognition

________ is the process by which the consumer surveys the environment for appropriate data to make a reasonable decision. A) Problem recognition B) Evaluation of alternatives C) Information search D) Product choice

The first step in the cognitive decision-making process is ________. A) information search B) evaluate alternatives C) problem recognition D) per purchase search

Features actually used to differentiate among choices are called ________ attributes. A) evaluation B) search C) determinant D) segmentation

Dimensions we use to judge the merits of competing options are called ________. A) rational factors B) attributes C) evaluative criteria D) emotional factors

According to ________, a company can make money if it sells small amounts of items that only a few people want, if the company sells enough different items. A) feature creep B) the long tail C) Zipf's Law D) neuromarketing

Which of the following best describes intelligent agents? A) cookies used to track IP addresses of computer users B) people who can help computer users with problems they encounter when trying to shop online C) sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases D) search engines specifically designed for online marketing and other forms of e-commerce

Which of the following occurs when a consumer uses a selected product and decides whether it merits his or her expectations? A) feature creep B) inertia C) framing D) post-purchase evaluation

Latrell finds that every time he goes to select athletic shoes he always buys the same brand. In fact, he doesn't even remember trying on any of the other competitive brands even though some of these brands have attractive styles and prices. Latrell's purchase decision process has become one of less and less effort. Latrell's decision process in an example of ________. A) cognitive dissonance B) brand loyalty C) ineptness D) inertia

Tanya type scans the newspaper ads every day for new information about current fashion styles and trends, even though she isn't thinking about buying clothes anytime soon. Tanya is engaging in a(n) ________ search. A) pre-purchase B) ongoing C) internal D) delayed

According to this view, people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weigh the pluses and minuses of each alternative, and arrive at a satisfactory decision. A) problem recognition B) rational perspective C) evoked set D) consideration set

A consumer can recognize problems as either an opportunity or a need. How should promotions differ between those emphasizing opportunities and those emphasizing needs? A) Promotions emphasizing needs should attempt to increase a consumer's ideal state, while promotions emphasizing opportunities should simply give locations where the products can be found for purchase. B) Promotions emphasizing opportunities should attempt to increase the ideal state, while promotions emphasizing needs should give locations where the products can be purchased. C) Promotions emphasizing needs should increase the ideal state, while opportunity promotions should attempt to decrease the ideal state. D) Promotions emphasizing needs should decrease the ideal state, while promotions emphasizing opportunities should provide buying locations.

Directories and portals, Web site evaluators, forums, fan clubs, and user groups are all forms of which of the following? A) web retailers B) cybercash C) design groups D) cybermediaries

Evaluative criteria are the dimensions we use to judge the merits of competing options.

Needs are created when the actual state of a customer declines.

Habitual decision making describes the choices we make with little or no conscious effort.

The evaluation of alternatives is the third stage of the consumer decision-making process.

Cedric runs out of gas on the way to work. He thinks to himself-"How stupid I am!" Cedric has experienced a form of a problem recognition that is being dominated by a downward movement in his actual state.

Hirosi ordered the expensive "heart attack special" at the local pub. It came with a one-pound 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 likely continue until he has finished the "special."

Neuromarketing uses functional magnetic resonance imaging (or fMRI), a brain-scanning device that tracks blood flow as we perform mental tasks to take an up-close look at how our brains respond to marketing messages and product design features.

Cybermediaries describes a website or app that helps to filter and organize online market information so that customers can identify and evaluate alternatives more efficiently.

List and define the five stages of the consumer decision-making process.

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

What are determinant attributes?

Differentiate between an evoked set and a consideration set. Provide examples to illustrate the two terms.

How can marketers help people organize information on the internet?

Demonstrate how a marketer could use neuromarketing to advance the cause of his product. You may use any example you choose for your demonstration.

What is cybermediary? Provide an example to illustrate the function of cybermediaries.

Define framing.

Explain the term "behavioral economics."

________ describes consumption at the low end product involvement by the consumer. A) Routine buying B) Complex buying C) Inertia D) Utilitarian

People often make decisions on the basis of mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________. A) framing B) the sum-cost fallacy C) loss aversion D) positioning

According to ________, utility is defined in terms of gains and losses. A) prospect theory B) heuristics C) hyperopia D) Zipf's law

A decision strategy that seeks to deliver an adequate solution rather than the best possible solution is referred to as ________. A) inertia B) rationalizing C) satisficing D) anchoring

The alternatives actively measured during a consumer's choice process are the ________ set. A) inert B) evoked C) evaluate D) consideration

A mental or problem-solving shortcut to make a decision is called a(n) ________. A) determinant B) detail rule C) heuristic D) experience rule

People often make decisions on the basis of a mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________. A) framing B) the sum-cost fallacy C) loss aversion D) positioning

According to the ________ rule, a product with a low standing on one attribute cannot make up for this position by being better on another attribute. A) noncompensatory B) lexicographic C) elimination-by-aspects D) conjunctive

Buying decisions that are made with little or no conscious effort are called ________. A) close minded B) habitual C) satisficing D) extended

When using the ________ rule of decision making, a consumer evaluates brands on the most important attribute, but specific cutoffs are imposed. A) lexicographic B) elimination-by-aspects C) conjunctive D) compensatory

The "good enough" perspective on decision making is known as ________. A) bounded rationality B) framing C) a nudge D) default bias

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 gamblers' behavior? 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 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 behavior that is not rational. D) The functional risk of gambling is decreased in luxurious surroundings, leading gamblers to wager more.

Within a given store, higher prices generally indicate higher quality.

Habitual decision making is the lowest order of buying decision making.

Decisions are influenced by the way a problem is posed. This is called framing.

The research on loss aversion suggests that people tend to emphasize their losses more than their gains.

A consumer who falls back on "mental rules-of-thumb" when making a decision is using heuristics.

If a consumer is following the lexicographic rule in her decision making, then she would select a brand that is the best on the most important attribute.

What are noncompensatory rules? When are they used? Briefly describe the three types of noncompensatory rules.

Explain how higher prices impact the consumer buying process.

A consumer who buys the same brand over and over again exhibits ________. A) staple purchasing B) rational purchase C) customization D) brand loyalty

What type of cybermediaries are intelligent agents? A) They are travel agents who answer questions online. B) They are people who can help computer users with problems they encounter when trying to shop online. C) They are computer programs that recommend products based on past purchasing patterns. D) They are search engines specifically designed for marketing online.

Chen Lo uses a decision rule that says "Only buy well-known brand names" when selecting a set of golf clubs. He does not look at price, the store, or even discounts when purchasing clubs. Chen Lo's purchasing pattern is an example of a consumer using a ________. A) habit decision rule B) compensatory rule C) noncompensatory rule D) conjunctive rule

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia? A) the cost of the product B) the social risk of the product C) whether the purchase is made after a compensatory or noncompensatory decision process D) whether the customers hold a very positive or weak attitude toward the product

Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comments, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it, and I am not going to waste one drop of it." Les's behavior best illustrates ________. A) loss aversion B) hyperopia C) risk positioning D) the sunk-cost fallacy

The success of a positioning strategy depends on the marketer's ability to convince the consumer to consider its product within a given category.

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 the grocery store, she decides that today is the day to experience her root beer again. Claire has just conducted what is called an informational search.

Behavioral economics focuses on the effects of psychological and social factors on the economic decisions we make, and many of these choices are anything but "rational."

A prime is a stimulus that encourages people to focus on some specific aspect of their lives such as their financial well-being or the environment.

A nudge is deliberate change by an organization that intends to modify behavior-can result in dramatic effects.

Priming and nudging tactics are increasingly rare.

A positioning strategy relies on the marketer's ability to convince the consumer to consider its product within a given category.

A consumer's overall reaction to a product after it was purchased is called feature creep.

When people are more likely to save for retirement if their employers automatically deduct a set amount from their paychecks than if they have to set up this process themselves is an example of a default bias.

Define a hybrid product and give an example.

Describe the loss aversion tendency and provide an example from your own experience.

Pepsi A.M. was positioned as a coffee substitute. In one test market, Pepsi A.M. was introduced onto a university campus. It was both an immense hit and a total failure. The product always sold out in vending machines, but the consumption of coffee stayed the same and the sale of other Pepsi products declined. In terms of levels of categorization, discuss what created the problem in the test market.