Lecture 3

Question 1

Non-Rational

Answer 1

Decision-making based on feelings, habit, values, prejudices, guesswork, or intuition.

Question 2

Rational

Answer 2

Decision-making, based on logic, objectivity, and analysis.

Question 3

Management Problem Definition

Answer 3

The problem that is facing the Marketer can be an opportunity or a threat. In defining or understanding the problem the Marketing Researcher must have discussions with the Marketer, or other managers

Question 4

Rational Decision Process

Answer 4

1. Define the decision alternatives.
2. Formulate objective criterion/ criteria.
3. Gather information on the criteria.
4. Evaluate alternatives based on the information.
5. Select the best option based on the criteria.

Question 5

What is the Broad Decision Problem

Answer 5

The Broad Decision Problem is a statement or question that summarizes the decision the marketer has to make.

Question 6

Decision Alternatives

Answer 6

Alternatives are the different courses of action that could be taken to address a problem or take advantage of an opportunity.

Question 7

Specific Decision Criteria

Answer 7

Criteria are conditions, standards, guides, or factors on which management will base the decision.

Question 8

Criteria Measures

Answer 8

Criteria measures are the quantitive dimensions of measurement management will apply to the decision criteria .

Question 9

Decision Rules

Answer 9

A decision rule is a conditional statement based on one or several decision criteria.

Question 10

Simple Decision Rules

Answer 10

A simple decision rule is one that considers ONE decision criterion at a time.

Question 11

Complex Decision Rules

Answer 11

A complex decision rule is one where the decision is based on two or more criteria simultaneously.