Exam 8: Decision Making

Briefly describe and compare the three perspectives on decision-making emphasized in the text.

Jeff is tired of the numerous breakdowns and peeling paint on his old car. When Jeff begins to actively think about his car in this way, which of the following consumer decision-making process steps is Jeff going through?

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in what type of problem solving?

Ellen stated that she would marry a millionaire. She applied a heuristic in judging men. They must wear expensive shoes and have an expensive automobile. What type of decision rule was Ellen applying in her search for a millionaire husband?

The tendency for people to prefer products from their own culture rather than those of another culture is called ________.

Why would customers with a moderate knowledge of a product seek more information than either someone with no information or someone with extensive knowledge?

What is a decision-making heuristic? Describe two typical heuristics used in consumer decision-making situations.

Lindsay is a buyer of rugs made in Asia. She is extremely knowledgeable about her product line. One of her clients wants to purchase a rug made by a supplier with whom she has had little contact. Lindsay is more likely to engage in a broader search for information and gather more opinions from others about this new product than someone who was only moderately knowledgeable about the product line.

Purchase decisions that involve extensive search also entail some kind of perceived risk (a belief that the purchase potentially could have negative consequences). Name five perceived risks, indicate the kinds of consumers most vulnerable to each risk, and indicate the types of purchases most sensitive to each.

Compare limited versus extended problem solving.

Mel Howard is determined to make his used car lot a successful business venture. One of the cornerstones of his sales strategy is to make every used car appear as if it just rolled off the assembly line. His cars are clean, clean, clean! Mr. Howard is relying on which of the following signal forms to send a "signal of quality" to his customers?

What would be the categorization level for a taco sold in a fast-food restaurant?

Decisions are influenced by the way a problem is posed. This is called framing.

Casinos make their interiors very plush and expensive looking, knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains the gamblers' behavior?

When using the ________ rule of decision-making, a consumer evaluates brands on the most important attribute, but specific cutoffs are imposed.

A consumer who moves his or her ideal state upward is experiencing ________.

Unless a purchase decision is risky and/or has high involvement, it is reasonable for a customer to shorten the decision process by limiting the information search and evaluation of alternative stages rather than thoroughly undertaking each step.

Alternatives a consumer knows about are his evoked set and the ones that he actually considers are called his consideration set.

Traditionally, consumer researchers have approached the study of decision making from a rational perspective.

The first step in the consumer decision-making process is to conduct an information search.