Question 1

A prime is a stimulus that encourages people to focus on some specific aspect of their lives such as their financial well-being or the environment.

Accepted Answer

A) True 
 B)False  True

Question 2

Explain the term "behavioral economics."

Accepted Answer

Behavioral economics focuses on the effects of psychological and social factors on economic decisions we make, and many of the choices are anything but rational.

Question 3

The research on loss aversion suggests that people tend to emphasize their losses more than their gains.

Accepted Answer

A) True 
 B)False  True

Question 4

A consumer who falls back on "mental rules-of-thumb" when making a decision is using heuristics.

Accepted Answer

A) True 
 B)False

Question 5

What type of cybermediaries are intelligent agents?

Accepted Answer

A)   They are travel agents who answer questions online.
B)   They are people who can help computer users with problems they encounter when trying to shop online.
C)   They are computer programs that recommend products based on past purchasing patterns.
D)   They are search engines specifically designed for marketing online.

Question 6

Which of the following occurs when a consumer uses a selected product and decides whether it merits his or her expectations?

Accepted Answer

A)   feature creep
B)   inertia
C)   framing
D)   post-purchase evaluation

Question 7

Tomorrow, Janice will be attending a party with a buffet. In anticipation of splurging on delicious food, she is eating very little today. Janice is using a ________ to help her estimate consumption over time and regulate her behavior.

Accepted Answer

A)   constructive process
B)   mental budget
C)   diet
D)   cognitive process

Question 8

A consumer can recognize problems as either an opportunity or a need. How should promotions differ between those emphasizing opportunities and those emphasizing needs?

Accepted Answer

A)   Promotions emphasizing needs should attempt to increase a consumer's ideal state, while promotions emphasizing opportunities should simply give locations where the products can be found for purchase.
B)   Promotions emphasizing opportunities should attempt to increase the ideal state, while promotions emphasizing needs should give locations where the products can be purchased.
C)   Promotions emphasizing needs should increase the ideal state, while opportunity promotions should attempt to decrease the ideal state.
D)   Promotions emphasizing needs should decrease the ideal state, while promotions emphasizing opportunities should provide buying locations.

Question 9

Differentiate between an evoked set and a consideration set. Provide examples to illustrate the two terms.

Accepted Answer

The answer of Differentiate between an evoked set and a...

Question 10

The alternatives actively measured during a consumer's choice process are the ________ set.

Accepted Answer

A)   inert
B)   evoked
C)   evaluate
D)   consideration

Question 11

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

Accepted Answer

A)   lexicographic
B)   elimination-by-aspects
C)   conjunctive
D)   compensatory

Question 12

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

Accepted Answer

A)   the cost of the product
B)   the social risk of the product
C)   whether the purchase is made after a compensatory or noncompensatory decision process
D)   whether the customers hold a very positive or weak attitude toward the product

Question 13

A bucket in consumer decision making is ________.

Accepted Answer

A)   cognitive
B)   habitual
C)   affective
D)   all of the above

Question 14

Behavioral economics focuses on the effects of psychological and social factors on the economic decisions we make, and many of these choices are anything but "rational."

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Define a hybrid product and give an example.

Accepted Answer

The answer of Define a hybrid product and give an...

Question 17

Buying decisions that are made with little or no conscious effort are called ________.

Accepted Answer

A)   close minded
B)   habitual
C)   satisficing
D)   extended

Question 18

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 gamblers' behavior?

Accepted Answer

A)   Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.
B)   Most people are unaware of the true risk of making certain decisions and believe that a larger wager has higher odds of winning.
C)   The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behavior that is not rational.
D)   The functional risk of gambling is decreased in luxurious surroundings, leading gamblers to wager more.

Question 19

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

Accepted Answer

A)   identifying competitors
B)   positioning strategy
C)   exemplar products
D)   product locations

Question 20

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.

Accepted Answer

A) True 
 B)False

Exam 9: Decision Making

A prime is a stimulus that encourages people to focus on some specific aspect of their lives such as their financial well-being or the environment.

Explain the term "behavioral economics."

The research on loss aversion suggests that people tend to emphasize their losses more than their gains.

A consumer who falls back on "mental rules-of-thumb" when making a decision is using heuristics.

What type of cybermediaries are intelligent agents?

Which of the following occurs when a consumer uses a selected product and decides whether it merits his or her expectations?

Tomorrow, Janice will be attending a party with a buffet. In anticipation of splurging on delicious food, she is eating very little today. Janice is using a ________ to help her estimate consumption over time and regulate her behavior.

A consumer can recognize problems as either an opportunity or a need. How should promotions differ between those emphasizing opportunities and those emphasizing needs?

Differentiate between an evoked set and a consideration set. Provide examples to illustrate the two terms.

The alternatives actively measured during a consumer's choice process are the ________ set.

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

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

A bucket in consumer decision making is ________.

Behavioral economics focuses on the effects of psychological and social factors on the economic decisions we make, and many of these choices are anything but "rational."

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

Define a hybrid product and give an example.

Buying decisions that are made with little or no conscious effort are called ________.

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 gamblers' behavior?

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

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.