Exam 8: Decision Making

Of the following products, which one would typically carry high psychological risk for the average consumer?

The examples of mental accounting, prospect theory, and perceived risk all remind a marketer that the customer's perception is more important than an objective reality when trying to understand consumer behavior.

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.

If a consumer is following the lexicographic rule in her decision making, then she would select a brand that is the best on the most important attribute.

Pepsi A.M. was positioned as a coffee substitute. In one test market, Pepsi A.M. was introduced onto a university campus. It was both an immense hit and a total failure. The product always sold out of the vending machines, but the consumption of coffee stayed the same and the sale of other Pepsi products declined. In terms of levels of categorization, discuss what created the problem in the test market.

Which of the following perspectives on consumer decision making is most closely associated with the economics of information approach to the search process, assuming that consumers collect just as much data as needed to make an informed decision?

Susan is trying to select the right tour. She is going to Scotland but can't make up her mind what she wants to do when she gets there. There are so many variables including cost, the weather, and Susan's desire to see the village her grandmother called home. Susan's problem emphasizes the importance of the ________ in designing an effective hospitality-marketing program for the tourism industry.

A ________ rule means that a product with a low standing on one attribute cannot make up for this position by being better on another attribute.

Jonesy will buy only the lowest-priced spark plug when he goes shopping for auto supplies. Because his car is very old, he really doesn't care about any other qualities. Jonesy is using the noncompensatory decision rule.

When is a consumer most likely to engage in extended problem solving?