Problem Recognition & Information Search (Test 2)

Question 1

What is Extended Problem Solving?

Answer 1

An eventual purchase decision that someone perceives as a high risk and/or highly involving

Collects extensive info (Internal & External Search)

Question 2

What is Limited Problem Solving?

Answer 2

A purchase decision that is low risk/ low involvement

Uses less time to search for info

Question 3

What is Habitual Decision Making?

Answer 3

Automated Efficient decision making

Example: Going to specific section of a store because the stuff we want is there

Question 4

When does Problem Recognition occur?

Answer 4

Occurs when consumer detects differences between current and ideal state

Question 5

What is Need Recognition?

Answer 5

Actual state moves downward

Examples: Running out of product, buying a deficient product or creating new needs

Question 6

What is Opportunity Recognition?

Answer 6

Ideal state moves upward

Example: Exposed to different/better quality products (standard of comparison

Question 7

Define Internal Search

Answer 7

Scanning memory to assemble product alternative information

Question 8

Define External Search

Answer 8

Obtaining information from outside sources

Question 9

Define the Economics of Information

Answer 9

Consumers will gather as much data as needed to make a (somewhat) informed decisions

We search until costs exceed utility of info search
We collect the most valuable info first

Question 10

What is the Availability Bias?

Answer 10

Recalling info that is more accessible, but not necessarily more diagnostic

Question 11

What is Conformation Bias?

Answer 11

Find info that is consistent with attitudes

Info that proves one’s point of view