Exam 8: Decision Making

Define problem recognition. Show how problems can arise. Give a brief example to illustrate the problem recognition process.

Which of the following describes the visual nature of a social game?

Sylvester is a financially poor college student. He tries to make every purchase decision a wise one because of his economic situation. Based on the types of risk mentioned in the text, Sylvester's primary risk when making decisions would appear to be a psychological risk.

Neuromarketing refers to the use of software tools that try to understand and then apply a human decision maker's multiattribute preferences for a product category.

A consumer who uses a few simple decision rules to arrive at a purchase decision is using which of the following?

People often make decisions on the basis of mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________.

A customer searching for an SUV is trying to decide what to buy. She decides to limit her options by using the following strategy. First, the car must be a Honda or a Toyota because the customer believes that they have the highest quality. Second, the vehicle cannot cost more than $30,000 or get less than 10 miles per gallon. Third, the remaining vehicles' interiors, comfort, and instrument placing will be judged by giving each a score and summing them. The SUVs that are left, with the highest summed scores, will be selected for an intensive test drive. What type of decision rules was this customer proposing to use? There will be more than one rule used.

A decision strategy that seeks to deliver an adequate solution rather than the best possible solution is referred to as ________.

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 likely continue until he has finished the "special."

The alternatives actively considered during a consumer's choice process are his or her ________ set.

The experiential perspective stresses the importance of learning in decision-making.

Under ________, utility is defined in terms of gains and losses.

Olga decided to buy a product at her grocery store because of a "surprise special." This is an illustration of the behavioral influence perspective at work in the decision-making process.

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia?

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

Which of the following most accurately describes one of linguist George Kingsley Zipf's findings in the 1930s?

Habitual decision-making is the lowest order of buying decision-making.

Kent, a college student, is a loyal Coca-Cola drinker. He averages about six Cokes a day. He even prefers Coke to water. However, today when he passed a vending machine in his dorm, he bought a new flavor of soft drink called Big Red. Which of the following most accurately explains his behavior, given the facts about Kent's previous behavior?

The success of a positioning strategy hinges on the marketer's ability to convince the consumer to consider its product within a given category.

Describe the four forms of bias that might be present in the information search portion of the decision-making process. Be sure to specifically identify and examine these biases.