Lecture 5: Individual Decision Making and Post Decision Processes

Question 1

Internal searching is the process of recalling past information stored in memory.

Answer 1

True

Question 2

External searching is the process of seeking information in the outside environment.

Answer 2

True

Question 3

Information search is characterized by three elements; sources of information, search strategies, and amount of information (search activity).

Answer 3

True

Question 4

An evoked set consists of brands/suppliers remembered at the time of decision making.

Answer 4

True

Question 5

A consideration set consists of those from the evoked set after those which are unfit are eliminated.

Answer 5

True

Question 6

Within the context of external sources of information, marketer sources consist of personal (friends, past experiences) and independent sources (consumer reports, media).

Answer 6

False

Question 7

Within the context of external sources of information, marketer sources consist of advertising, stores, shops and websites.

Answer 7

True

Question 8

Within the context of external sources of information, non-marketer sources consist of advertising, stores, shops and websites.

Answer 8

False

Question 9

Within the context of external sources of information, non-marketer sources consist of personal (friends, past experiences) and independent sources (consumer reports, media).

Answer 9

True

Question 10

Systematic search strategies are quick and convenience based and include rules of thumb such as brand name and recommendations.

Answer 10

False

Question 11

Systematic search strategies are organized, effortful, and comprehensive.

Answer 11

True

Question 12

Heuristic search strategies are quick and convenience based and include rules of thumb such as brand name and recommendations.

Answer 12

True

Question 13

Heuristic search strategies are organized, effortful, and comprehensive.

Answer 13

False

Question 14

Compensatory evaluations of alternatives is when a positive evaluation of an attribute does not compensate for a negative evaluation of the same alternative on some other attribute.

Answer 14

False

Question 15

Compensatory evaluation of alternatives is when a consumer evaluated each alternative in terms of each attribute and then selects the one with the highest weighted score.

Answer 15

True

Question 16

Non-compensatory evaluation of alternatives is when a positive evaluation of an attribute does not compensate for a negative evaluation of the same alternative on some other attribute.

Answer 16

True

Question 17

Non-compensatory evaluation of alternatives is when a consumer evaluated each alternative in terms of each attribute and then selects the one with the highest weighted score.

Answer 17

False

Question 18

Alternative processing considers one alternative at a time.

Answer 18

True

Question 19

Attribute processing considers one alternative at a time.

Answer 19

False

Question 20

Attribute processing processes across alternatives, one attribute at a time.

Answer 20

True

Question 21

The additive difference rule suggests products are compared by attribute, two products at a time. Consumers evaluate differences between products on each attribute and combine them into an overall preference.

Answer 21

True

Question 22

The additive difference rule allows trade-offs between attributes.

Answer 22

True

Question 23

The additive difference rule does not allow trade-offs between attributes.

Answer 23

False

Question 24

The conjunctive rule suggests consumers set a minimum standard for each attribute and if a product fails to pass any standard, it is dropped from consideration.

Answer 24

True

Question 25

The disjunctive rule suggests consumers evaluate alternatives on the basis of one or a few attributes, ignoring their standing on other attributes.

Answer 25

True

Question 26

The disjunctive rule suggests a consumer sets a minimum standard for each attribute and if a product fails to pass any standard, it is dropped from consideration.

Answer 26

False

Question 27

The disjunctive rule suggests consumers set a minimum acceptable standard as the cutoff point for these attributes.

Answer 27

True

Question 28

The lexicographic rule is when consumers order attributes in terms of importance and compare alternatives one attribute at a time, starting with the most important.

Answer 28

True

Question 29

The lexicographic rule suggests that if after comparing the most important attributes between products one option dominates, the consumer selects it.

Answer 29

True

Question 30

"I selected the computer that came out best when I balanced the good ratings against the bad ratings" is an example of the conjunctive rule.

Answer 30

False

Question 31

"I selected the computer that did not have bad features." is an example of the disjunctive rule.

Answer 31

False

Question 32

"I picked the computer that excelled in at least one attribute." is an example of the lexicographic rule.

Answer 32

False

Question 33

"I looked at the feature that was most important to me and chose the computer that ranked highest on that attribute." is an example of the compensatory rule.

Answer 33

False

Question 34

"I looked at the feature that was most important to me and chose the computer that ranked highest on that attribute." is an example of the lexicographic rule.

Answer 34

True

Question 35

"I picked the computer that excelled in at least one attribute." is an example of the disjunctive rule.

Answer 35

True

Question 36

"I selected the computer that did not have bad features." is an example of the conjunctive rule.

Answer 36

True

Question 37

"I selected the computer that came out best when I balanced the good ratings against the bas ratings." is an example of the compensatory rule.

Answer 37

True

Question 38

Combinations between compensatory and non-compensatory decision rules are the most common.

Answer 38

True

Question 39

Mental accounting is when consumers assign different values to equal monetary accounts due to psychological reasons.

Answer 39

True

Question 40

Mental accounting influences how much we spend or save.

Answer 40

True

Question 41

Sunk cost fallacy results in consumers being reluctant to waste something they have paid for.

Answer 41

True

Question 42

Sunk cost fallacy leads us to invest more in things we have already invested in.

Answer 42

True

Question 43

The framing effect leads consumers to react to a particular choice in different ways depending on whether it is presented as a loss or gain.

Answer 43

True

Question 44

The endowment effect suggests that ownership of an item increases the value.

Answer 44

True

Question 45

Routine response behaviour/habitual decision making suggests decisions are made with little or no conscious effort.

Answer 45

True

Question 46

Limited problem-solving suggests buyers use simple decision rules.

Answer 46

True

Question 47

The highest number of purchase decisions are limited problem-solving decisions.

Answer 47

True

Question 48

The highest number of purchase decisions are routine response behaviour.

Answer 48

True

Question 49

Habitual decision making is characterized by complex strategizing that requires strenuous conscious effort.

Answer 49

False

Question 50

Habitual decision making is characterized by little or no conscious effort, use of simplifying strategies.

Answer 50

True

Question 51

Brand loyalty occurs when consumers make a conscious evaluation that a brand or service satisfies their needs to a greater extent than others do and decide to buy the brand repeatedly for that reason.

Answer 51

True

Question 52

Brand loyalty consists of two components: attitude and behaviour.

Answer 52

True

Question 53

Keeping customers leads to six times higher costs than winning new customers.

Answer 53

False

Question 54

Winning new customers leads to six times higher costs than keeping customers.

Answer 54

True

Question 55

Brand loyalty increases the amount consumed by customers and the cross-selling potential.

Answer 55

True

Question 56

Brand equity is the basis for brand loyalty.

Answer 56

False

Question 57

Brand loyalty is the basis for brand equity.

Answer 57

True

Question 58

Variety seeking results in a desire to choose new alternatives over more familiar ones.

Answer 58

True

Question 59

The idea of variety seeking is that unpredictability can be rewarding (optimal stimulation level, sensation seeking).

Answer 59

True

Question 60

Variety seeking is stronger when involvement is high.

Answer 60

False

Question 61

Variety seeking is stronger when perceived risk is high.

Answer 61

False

Question 62

Variety seeking is stronger when perceived differences between products are high.

Answer 62

False

Question 63

Variety seeking is stronger when perceived differences between products are low.

Answer 63

True

Question 64

Variety seeking is stronger when perceived risk is low.

Answer 64

True

Question 65

Variety seeking is stronger when involvement is low.

Answer 65

True

Question 66

Buying on impulse is instigated by an intense or overwhelming feeling of having to buy the product immediately.

Answer 66

True

Question 67

Buying on impulse is triggered by consumer's exposure to an external stimulus such as in-store displays, internet ads, TV ads with a phone number.

Answer 67

True

Question 68

Consumer factors that lead shoppers to become buyers include time pressure and having a shopping companion.

Answer 68

False

Question 69

Consumer factors that lead shoppers to become buyers include familiarity with a store, and customer mood.

Answer 69

True

Question 70

Situational factors that lead shoppers to become buyers include time pressure, and having a shopping companion.

Answer 70

True

Question 71

Store factors that lead shoppers to become buyers include special store promotions, atmospherics.

Answer 71

True

Question 72

When a consumers' evaluation of the outcome of a purchase decision is positive, i.e., expectations have been met, they feel satisfaction.

Answer 72

True

Question 73

Multi-attribute approaches are defined as an expectation towards experience of performance of product attributes, and the aggregation of these evaluations.

Answer 73

True

Question 74

Critical incidents in satisfaction measurement are defined as analysis of incidents that matter in terms of consumer satisfaction/dissatisfaction.

Answer 74

True

Question 75

Cognitive dissonance is a feeling of post purchase regret.

Answer 75

True