DGM551 CHAPTER 2 TEST

Question 1

What are the three types of decision-making?

Answer 1

• Cognitive
• Habitual
• Affective

Question 2

Describe Cognitive decision-making

Answer 2

Deliberate, rational, sequential (Example: buying necessities)

Question 3

Describe Habitual decision-making

Answer 3

Behavioral, unconscious, automatic (Example: buying something out of habit)

Question 4

Describe Affective decision-making

Answer 4

Sentiment, emotional, instantaneous

Question 5

What are the steps in the decision-making process?

Answer 5

• Problem recognition
• information search
• evaluation of alternatives
• product choice
• outcome

Question 6

What is feature creep?

Answer 6

The complexity of features that products provide

Question 7

What is neuromarketing?

Answer 7

A brain-scanning device that tracks blood flow as we perform mental tasks to examine how our brains respond to marketing messages and product design features

Question 8

What is a cybermediary?

Answer 8

Intermediaries that act in electronic markets to bring together buyers and sellers or those with particular information. A website or app that helps to filter and organize online market information. (Example: Shopee )

Question 9

What are intelligent agents?

Answer 9

Sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases. (Example: SIRI )

Question 10

Sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases. (Example: SIRI )

Answer 10

Offerings that are in less demand compared to the actual popular product of a specific category. A long tail marketing strategy will allow you to expand your customer diversity. (Example: Netflix

Question 11

Who are organizational buyers?

Answer 11

People who purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale

Question 12

What are Accommodative Purchase Decisions?

Answer 12

Decisions for which members have different preferences or priorities and they cannot agree on a purchase to satisfy the minimum expectations of all involved

Question 12

What are Consensual Purchase Decisions?

Answer 12

Decisions for which members agree on the desired purchase, differing only in terms of how it will be achieved

Question 13

What are the two types of decisions made in families?

Answer 13

• Autonomic decision (one family member chooses)
• Syncretic decision (involve both partners)