Exam 9: Individual Decision Making

Claire remembers that uniquely wonderful taste that can only come from a "frosty mug" of root beer. As she heads to the soft drink aisle in her grocery store, she decides that today is the day to experience root beer again. Claire has just conducted what is called an internal search for information.

Consumers realize they face risks in buying products, of which some factors are objective (unsafe products) and some subjective (embarrassment). Which type of perceived risk is inherent in the purchase of either visible or symbolic goods that are visible to others?

As a customer's product knowledge continually increases, what typically happens to the amount of search conducted by the consumer?

Wendy is in the market to purchase a new vehicle. She has several attributes she is using to evaluate the potential options including price, styling, fuel efficiency, and handling. Using Wendy's case as an example, explain the notion of evaluative criteria and determinant attributes.

Albert wants to sell his condo. His realtor advises him to ensure he leaves the place spotless every day prior to going to work. Doing so will ensure any clients she brings by to see the place will offer top dollar. This is due to which heuristic?

Explain what is meant by the term "consumer hyperchoice."

Since consumers rarely have the resources, especially time, to weigh every possible factor into a decision, they often happily settle for a solution that is just good enough. This is known as:

High-ticket items that require substantial expenditures are most subject to which form of purchase risk?

When consumers use more than a mere rational assessment when making decisions, what are they doing? Give an example of a product category where consumers commonly use such an approach.

A consumer selects a brand that performs best on the most important attribute for that product. This is the result of which decision rule?

Explain Herbert Simon's view of the decision making process.

Jamie is considering ordering a dessert for lunch. Before she ever decides on the kind she prefers, she decides whether to get a fattening or nonfattening dessert. This decision relates to which of the following levels of abstraction of dessert categories?

The assumption of a price-quality relationship is one of the most pervasive market beliefs.

Pierre is out shopping for a very sophisticated watch. After reviewing various websites, visiting some jewellers, and speaking with people whose opinion matters to Pierre, he has narrowed his choices down so that he is now only considering TAG Heuer and Rolex. This is an example of ________ problem solving.

Chet decides to buy a new hedge trimmer to care for his bushes and shrubs. Because Chet is familiar with the local lawn and garden shop and the brands that are carried there, he uses a few simple decision rules to arrive at a purchase option. Chet is following which of the following buying decision behaviour continuum alternatives to make his decision?

Dave enjoys Carlsberg lager and would say it is his favourite brand. However, sometimes he will buy another brand of beer even when his favourite is there. Why?

Traditionally consumer researchers have approached decision making from a rational perspective.

Fred and Karen are both considering purchasing a new stereo. Fred knows nothing about stereos, while Karen has a fair amount of knowledge about them, but is hardly an expert. Who will seek more information during the decision process and why? What type of product attributes will Fred consider?

One form of framing called ________ describes people who are so obsessed with preparing for the future that they can't enjoy the present.

Hirosi ordered the expensive "heart attack special" at his local pub. It came with a full pound of hamburger and a full bucket of fries. Halfway through the meal, Hirosi was not feeling well. Yet according to the sunk-cost fallacy, Hirosi will continue until he has finished the "special."