Question 1

Limited decision making usually occurs when there are relatively low amounts of purchase risk and product involvement.

Accepted Answer

Limited decision making is a type of consumer decision-making process that occurs when a consumer is faced with a relatively low level of purchase risk and product involvement. In this type of decision making, consumers may spend a limited amount of time and effort searching for information before making a purchase decision.

Question 2

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

Accepted Answer

Physical risk is the risk associated with the safety of the product and the likelihood that physical harm will result from its consumption.Social risk is the risk associated with how other consumers will view the purchase.

Question 3

A consumer who initiates the decision-making process always completes the process.

Accepted Answer

Consumers do not always proceed through the decision-making process in a sequential fashion,nor do they always complete the process.

Question 4

Decision-making perspectives guide consumers on how to approach decision making.

Accepted Answer

Decision-making perspectives pertain to how consumer researchers view the decision-making process,and they are not consumer decision-making approaches.

Question 5

Consumer decisions can seldom be analyzed from a combination of decision-making perspectives.

Accepted Answer

Most consumer decisions can be analyzed from a combination of decision-making perspectives.

Question 6

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

Accepted Answer

The statement is true. The level of consumer involvement and perceived risk are two important factors that impact the decision-making approach used by consumers. High involvement purchases and purchases involving high levels of perceived risk generally entail more complex decision-making processes, while low involvement purchases and purchases involving low levels of perceived risk often involve less complex decision-making processes.

Question 7

The perceived risk for a product or service remains the same across consumers and situations.

Accepted Answer

Risk varies across consumers and situations.

Question 8

Value perceptions influence the activities found in the decision-making process.

Accepted Answer

Value perceptions can play a critical role in the decision-making process as they shape how individuals evaluate options and make choices. People's value perceptions can affect what they consider to be important in a decision, how they weigh different options, and how they ultimately make a choice. Therefore, understanding value perceptions is essential when trying to understand decision-making behavior.

Question 9

The basic consumer behavior consumption process revolves around value-seeking activities that consumers perform as they go about satisfying needs.

Accepted Answer

The statement is true, as the consumption process involves the consumer seeking value in order to satisfy their needs.

Question 10

The rational decision-making perspective focuses on the utilitarian value received from the product.

Accepted Answer

The rational decision-making perspective is all about making decisions that maximize utility or value. Therefore, it focuses on the utilitarian value received from the product, making option A true.

Question 11

Consumers engage in extended decision making when they put off the decision making for a later time and restrain themselves from getting involved with the product in consideration.

Accepted Answer

When consumers engage in extended decision making,they tend to search diligently for information that will help them reach a satisfactory decision.Extended decision making occurs when involvement is high and when there is a significant amount of purchase risk involved with the decision.

Question 12

Experiential decision processes often focus on utilitarian value.

Accepted Answer

Experiential decision processes often focus on hedonic value.

Question 13

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

Accepted Answer

Performance risk is indeed the risk associated with the possibility of a product, service or investment not meeting the expectations of the investor or customer in terms of performance, quality, efficiency or durability. This may result in financial loss, negative impact on reputation or customer satisfaction.

Question 14

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.

Accepted Answer

Perceived risk is exactly what its name suggests - it's the perception or subjective evaluation of the negative consequences of a particular choice or action, along with the level of uncertainty involved.

Question 15

Decision-making processes always involve a tangible product.

Accepted Answer

Decision-making processes don't always involve a tangible product.

Question 16

With limited decision making,consumers search for extensive information on product prices as they have limited amount of money to spend.

Accepted Answer

With limited decision making,consumers search very little for information and often reach decisions based on prior beliefs about products and their attributes.

Question 17

Extended decision making occurs when involvement is high and when there is a significant amount of purchase risk involved with the decision.

Accepted Answer

Extended decision making involves a high level of involvement and significant purchase risk. This means that consumers take a lot of time to gather information, evaluate alternatives, and make a decision.

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

The activities found in the decision-making process are not referred to as steps because consumers do not always proceed through the activities in sequential fashion.

Question 20

The rational decision-making perspective centers on the assumption that human beings are rational creatures who carefully consider their decisions and that they can identify the expected value associated with a purchase.

Accepted Answer

The rational decision-making perspective does indeed center on the assumption that humans are rational and can identify the expected value of a purchase.

Quiz 12: Decision Making I: Need Recognition and Search