Question 1

Performance risk involves the perceived danger inherent in a poorly performing product or service.

Accepted Answer

A) True 
 B)False

Question 2

Mark wants to go to a good fast-food restaurant for dinner.He recalls all the fast-food restaurants that he has visited.He then decides on his favourite,a restaurant that he has been visiting since childhood.This is an example of:

Accepted Answer

A)  habitual decision making. 
B)  an external search for information. 
C)  impulse buying. 
D)  an internal search for information. 
E)  postpurchase dissonance.

Question 3

Jesse believes that Ross is honest and generous.In this case,which of the following components of Jesse's attitude is reflected?

Accepted Answer

A)  The affective component 
B)  The cognitive component 
C)  The behavioural component 
D)  The physiological component 
E)  The emotive component

Question 4

The purchase of highly expressive products that carry greater risks and that are more important to consumers involve more evaluation than the purchase of products that are less expressive or that have lower perceived risks.

Accepted Answer

A) True 
 B)False

Question 5

An image representing Maslow's hierarchy of needs in the form of a pyramid 
-Marvin desires steady employment and extended health insurance.He also wants to live in a neighbourhood that is free of danger.In this case,Marvin is seeking fulfillment of his:

Accepted Answer

A)  self-actualization needs. 
B)  esteem needs. 
C)  safety needs. 
D)  physiological needs. 
E)  social needs.

Question 6

Which of the following holds true for the term "compensatory decision rule"?

Accepted Answer

A)  It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another. 
B)  It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics,regardless of the values of its other attributes. 
C)  It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live. 
D)  It refers to the mental shortcuts that help consumers narrow down choices. 
E)  It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.

Question 7

Jim wants to buy a new bike.He considers several factors,such as mileage,style,and price.Although the bike he has chosen is priced a little higher than the budget he has set aside,he feels the superb mileage will compensate for the higher price.Which of the following is being illustrated in this scenario?

Accepted Answer

A)  A compensatory decision rule 
B)  Postpurchase dissonance 
C)  A determinant attribute 
D)  Decision heuristics 
E)  An external locus of control

Question 8

Mary,a 25-year-old administrator,enjoys going out every weekend.One afternoon,while window shopping at a mall,Mary spots a sale at her favourite retail store.Despite making a strict resolution not to buy unnecessary goods,Mary weakens and buys a purse,a pair of jeans,and a pair of shoes.This is an example of:

Accepted Answer

A)  habitual decision making. 
B)  an internal search for information. 
C)  postpurchase dissonance. 
D)  impulse buying. 
E)  an external search for information.

Question 9

Which of the following statements is true of social risk?

Accepted Answer

A)  It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively. 
B)  It is the risk that involves the perceived danger inherent in a poorly performing product or service. 
C)  It is the risk associated with the fear of an actual harm should a product not perform properly. 
D)  It is the risk that includes the initial cost of a purchase,as well as the costs of using the item or service. 
E)  It is the risk associated with the way people will feel if the product or service does not convey the right image.

Question 10

Most shoppers believe that Walmart has the lowest price on every product it sells.This belief is a result of the message used in Walmart's advertising and the opinions expressed by its customers.Which of the following psychological factors is affecting the decision-making process of these customers?

Accepted Answer

A)  Their purchase situation 
B)  Their ritual consumption 
C)  Their culture 
D)  Their peers 
E)  Their attitude

Question 11

When consumers believe they have some control over the outcomes of their actions,they generally engage in more search activities.This is called a(n):

Accepted Answer

A)  external locus of control. 
B)  ritual-based pattern. 
C)  external search for information. 
D)  internal locus of control. 
E)  internal search for information.

Question 12

Which of the following statements holds true for the term "decision heuristics"?

Accepted Answer

A)  It refers to the set of criteria that consumers use consciously or subconsciously to evaluate alternatives and trade off one characteristic against another,such that good characteristics compensate for bad ones. 
B)  It refers to the set of criteria that consumers use consciously or subconsciously to choose a product or service on the basis of a subset of its characteristics,regardless of the values of its other attributes. 
C)  It refers to the mental state that occurs when individuals feel completely satisfied with their lives and how they live. 
D)  It refers to the mental shortcuts that help consumers narrow down choices; examples include price,brand,and product presentation. 
E)  It refers to the product or service features that are important to buyers and on which competing brands or stores are perceived to differ.

Question 13

Selective comprehension occurs when consumers interpret a marketing message in a way that is different from what the marketer intends.

Accepted Answer

A) True 
 B)False

Question 14

Coraline wants to buy a new house.She is a great believer in destiny and fate.She feels that regardless of what information she has,she can do little to influence the outcome of the deal and therefore does not engage in extensive research.This is an example of:

Accepted Answer

A)  an external locus of control. 
B)  limited problem solving. 
C)  an internal locus of control. 
D)  ritual consumption. 
E)  extended problem solving.

Question 15

Raheem wants to purchase a new laptop.He believes that no matter how hard he looks at other alternatives and other brands available in the market,he will end up compromising some of the features that he would want in his laptop.He feels that he has no restraint over the outcome of his purchase.This belief is most indicative of a(n):

Accepted Answer

A)  need for self-actualization. 
B)  internal locus of control. 
C)  postpurchase dissonance. 
D)  external locus of control. 
E)  social need.

Question 16

Alexandra is so scared of spiders that she screams loudly every time she sees one.The act of screaming aloud is an example of:

Accepted Answer

A)  the affective component of attitude. 
B)  the cognitive component of attitude. 
C)  the behavioural component of attitude. 
D)  the intangible component of attitude. 
E)  the emotional component of attitude.

Question 17

A Toyota car has higher mileage compared to a Honda car.But its weaknesses are style and price.Gina feels that Toyota's excellent mileage is outweighed by its weaknesses in price and style.She therefore chooses a Honda car.Gina's choice represents:

Accepted Answer

A)  the compensatory decision rule. 
B)  an external locus of control. 
C)  decision heuristics. 
D)  a determinant attribute. 
E)  the noncompensatory decision rule.

Question 18

Which of the following holds true for the term "affective component"?

Accepted Answer

A)  It refers to the part of attitude that reflects what a person feels about the issue at hand-his or her like or dislike of something. 
B)  It refers to one or more persons an individual uses as a basis for comparison regarding beliefs,feelings,and behaviours. 
C)  It refers to the part of attitude that reflects what a person believes to be true. 
D)  It refers to consumers spreading negative information about a product,service,or store to others. 
E)  It refers to the part of attitude that comprises the actions a person takes with regard to the issue at hand.

Question 19

Postpurchase dissonance is especially likely for products that are expensive and infrequently purchased.

Accepted Answer

A) True 
 B)False

Question 20

Ramsey wants to buy a car.The Nissan receives a low mileage rating when compared to cars by Honda and Toyota,but it scores higher than those cars when it comes to price.Ramsey feels that the price of a Nissan car makes it favourable compared to the others even though it has a lower mileage rating.Which of the following is Ramsey exercising in his decision-making process?

Accepted Answer

A)  A compensatory decision rule 
B)  An external locus of control 
C)  Decision heuristics 
D)  Determinant attributes 
E)  A noncompensatory decision rule

Exam 4: Analyzing the Market Environment

Performance risk involves the perceived danger inherent in a poorly performing product or service.

Mark wants to go to a good fast-food restaurant for dinner.He recalls all the fast-food restaurants that he has visited.He then decides on his favourite,a restaurant that he has been visiting since childhood.This is an example of:

Jesse believes that Ross is honest and generous.In this case,which of the following components of Jesse's attitude is reflected?

The purchase of highly expressive products that carry greater risks and that are more important to consumers involve more evaluation than the purchase of products that are less expressive or that have lower perceived risks.

An image representing Maslow's hierarchy of needs in the form of a pyramid -Marvin desires steady employment and extended health insurance.He also wants to live in a neighbourhood that is free of danger.In this case,Marvin is seeking fulfillment of his:

Which of the following holds true for the term "compensatory decision rule"?

Which of the following statements is true of social risk?

Most shoppers believe that Walmart has the lowest price on every product it sells.This belief is a result of the message used in Walmart's advertising and the opinions expressed by its customers.Which of the following psychological factors is affecting the decision-making process of these customers?

When consumers believe they have some control over the outcomes of their actions,they generally engage in more search activities.This is called a(n) :

Which of the following statements holds true for the term "decision heuristics"?

Selective comprehension occurs when consumers interpret a marketing message in a way that is different from what the marketer intends.

Coraline wants to buy a new house.She is a great believer in destiny and fate.She feels that regardless of what information she has,she can do little to influence the outcome of the deal and therefore does not engage in extensive research.This is an example of:

Alexandra is so scared of spiders that she screams loudly every time she sees one.The act of screaming aloud is an example of:

A Toyota car has higher mileage compared to a Honda car.But its weaknesses are style and price.Gina feels that Toyota's excellent mileage is outweighed by its weaknesses in price and style.She therefore chooses a Honda car.Gina's choice represents:

Which of the following holds true for the term "affective component"?

Postpurchase dissonance is especially likely for products that are expensive and infrequently purchased.