Consumer Behavior, 10e (Schiffman/Kanuk) Chapter 15 Consumer Decision Making and Beyond 1) A is the selection of an option from two or more alternative choices A) mood B) decision C) gift D) consumer model E) Hobson's choice Answer: B Diff: Page Ref: 460 AACSB: Analytic Skills Skill: Concept Objective: 15.1: Understand what a consumer decision is 2) A no-choice decision is commonly referred to as a A) Hobson's choice B) decision-making process C) free decision D) consumer model E) Gilman's choice Answer: A Diff: Page Ref: 460 Skill: Concept Objective: 15.1: Understand what a consumer decision is 3) Jim has an ear infection and has to take the specific medication that his doctor has prescribed His selection of medications constitutes a decision A) Hobson's choice B) decision-making process C) free decision D) consumer model E) Gilman's choice Answer: A Diff: Page Ref: 460 AACSB: Reflective Thinking Skill: Application Objective: 15.1: Understand what a consumer decision is ScholarStock 4) Extensive and limited problem solving, and routinized response behavior are three specific levels of A) conjunctive decision rules B) economic problem solving C) affect referral rules D) gifting behavior E) consumer decision making Answer: E Diff: Page Ref: 460 AACSB: Analytic Skills Skill: Concept Objective: 15.2: Understand the three levels of consumer decision making 5) Of the three levels of consumer decision making, requires the greatest effort on the part of the consumer A) extensive problem solving B) economic problem solving C) limited problem solving D) passive problem solving E) routinized response behavior Answer: A Diff: Page Ref: 461 Skill: Concept Objective: 15.2: Understand the three levels of consumer decision making 6) A consumer is most likely to use when buying an expensive, important, or technically complicated product or service for the first time A) extensive problem solving B) economic problem solving C) limited problem solving D) passive problem solving E) routinized response behavior Answer: A Diff: Page Ref: 461 AACSB: Reflective Thinking Skill: Application Objective: 15.2: Understand the three levels of consumer decision making ScholarStock 7) A consumer is most likely to use when purchasing a new, updated version of something that he or she has purchased before, such as replacing an old laptop with a new one A) extensive problem solving B) economic problem solving C) limited problem solving D) passive problem solving E) routinized response behavior Answer: C Diff: Page Ref: 461 AACSB: Reflective Thinking Skill: Application Objective: 15.2: Understand the three levels of consumer decision making 8) In cases of , the consumer needs a great deal of information to establish a set of criteria on which to judge specific brands and a correspondingly large amount of information concerning each of the brands to be considered A) extensive problem solving B) economic problem solving C) limited problem solving D) passive problem solving E) routinized response behavior Answer: A Diff: Page Ref: 461 Skill: Concept Objective: 15.2: Understand the three levels of consumer decision making 9) In cases of , consumers have already established the basic criteria for evaluating the product category and the various brands in the category, but have not fully established preferences concerning a select group of brands A) extensive problem solving B) economic problem solving C) limited problem solving D) passive problem solving E) routinized response behavior Answer: C Diff: Page Ref: 461 AACSB: Analytic Skills Skill: Concept Objective: 15.2: Understand the three levels of consumer decision making ScholarStock 10) Martin needs a new hybrid-electric car that can seat people comfortably and has a trunk that will hold a set of golf clubs, but isn't sure which brand of hybrid-electric car would be best Martin's is a case of A) extensive problem solving B) economic problem solving C) limited problem solving D) passive problem solving E) routinized response behavior Answer: C Diff: Page Ref: 461 AACSB: Reflective Thinking Skill: Application Objective: 15.2: Understand the three levels of consumer decision making 11) In cases of , consumers have experience with the product category and a wellestablished set of criteria with which to evaluate the brands they are considering A) extensive problem solving B) economic problem solving C) limited problem solving D) passive problem solving E) routinized response behavior Answer: E Diff: Page Ref: 461 AACSB: Analytic Skills Skill: Concept Objective: 15.2: Understand the three levels of consumer decision making 12) Maria needs a new pair of jeans She knows that pants from American Eagle, in size 10, tend to fit her very well in the waist and hips and are long enough, so she goes to American Eagle and picks up a pair Maria's is a case of A) extensive problem solving B) economic problem solving C) limited problem solving D) passive problem solving E) routinized response behavior Answer: E Diff: Page Ref: 461 AACSB: Analytic Skills Skill: Application Objective: 15.2: Understand the three levels of consumer decision making ScholarStock 13) The portrays a world of perfect competition in which the consumer is characterized as making rational decisions A) economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: A Diff: Page Ref: 462 AACSB: Analytic Skills Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 14) The economic model of consumer decision making is often rejected as A) too idealistic B) too complex C) outdated D) irrational E) culturally inappropriate Answer: A Diff: Page Ref: 462 AACSB: Reflective Thinking Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 15) The depicts the consumer as basically submissive to the self-serving interests and promotional efforts of marketers A) economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: B Diff: Page Ref: 462 AACSB: Analytic Skills Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making ScholarStock 16) Impulsive and irrational purchasers are basically adhering to the A) economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: B Diff: Page Ref: 462 AACSB: Analytic Skills Skill: Application Objective: 15.3: Understand four different views or models of consumer decision making 17) The principal limitation of the is that it fails to recognize that the consumer plays an equal, if not dominant, role in many buying situations, seeking information about product alternatives and selecting the product that appears to offer the greatest satisfaction A) economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: B Diff: Page Ref: 462 AACSB: Reflective Thinking Skill: Application Objective: 15.3: Understand four different views or models of consumer decision making 18) The principal limitation of the is that consumers' ability to behave completely rationally is limited by their existing skills, goals, and knowledge A) economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: A Diff: Page Ref: 462 AACSB: Reflective Thinking Skill: Application Objective: 15.3: Understand four different views or models of consumer decision making ScholarStock 19) In the , consumers are pictured as either receptive to or actively searching for products and services that fulfill their needs and enrich their lives A) economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: C Diff: Page Ref: 463 Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 20) The describes a consumer who falls somewhere between the extremes of the economic and passive consumer models A) active consumer model B) perceptual consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: C Diff: Page Ref: 463 Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 21) Consumers often develop shortcut decision rules called heuristics to facilitate the decision making process and to cope with A) lack of information B) too much information C) contradicting information D) negative information E) inconsistent information Answer: B Diff: Page Ref: 462 AACSB: Analytic Skills Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 22) The cognitive view of the decision making process yields decisions A) perfect B) satisfactory C) poor D) irrational E) ideal Answer: B Diff: Page Ref: 463 Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making ScholarStock 23) In the , a consumer is likely to associate deep feelings, such as joy, fear, love, and hope with certain purchases or possessions A) economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: D Diff: Page Ref: 464 AACSB: Analytic Skills Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 24) is typically an unfocused state that is already present at the time a consumer "experiences" an advertisement, a retail environment, a brand, or a product A) Gifting behavior B) Mood C) Permission marketing D) Consumer decision-making E) Emotion Answer: B Diff: Page Ref: 464 AACSB: Analytic Skills Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 25) The component of the consumer decision-making model draws on external influences as sources of information about a particular product that influence a consumer's product-related values, attitudes, and behavior A) marketing mix B) output C) decision D) input E) emotional Answer: D Diff: Page Ref: 465 AACSB: Analytic Skills Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter ScholarStock 26) Within the context of the model of consumer decision making, the marketing mix activities of organizations and nonmarketing sociocultural influences are the chief factors A) cognitive B) output C) decision D) input E) emotional Answer: D Diff: Page Ref: 465 AACSB: Reflective Thinking Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 27) Within the context of the model of consumer decision making, a firm's activities are a direct attempt to reach, inform, and persuade consumers to buy and use its products A) marketing mix B) output C) decision D) input E) sociocultural environment Answer: A Diff: Page Ref: 465 Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 28) The consumer's experience with a product plays a major role in the stage of the model of consumer decision making A) input B) process C) trial D) output E) decision Answer: B Diff: Page Ref: 465, Figure 15.3 AACSB: Analytic Skills Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter ScholarStock 29) Within the context of the model of consumer decision making, the includes the unwritten codes of conduct that indicate which consumption behavior should be considered "right" or "wrong." A) marketing mix B) output C) decision D) input E) sociocultural environment Answer: E Diff: Page Ref: 466 Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 30) The component of the consumer decision-making model is concerned with how consumers make decisions A) process B) output C) decision D) input E) emotional Answer: A Diff: Page Ref: 466 Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 31) Within the context of the model of consumer decision making, the represents the internal influences that affect consumers' decision-making processes A) marketing mix B) prepurchase search C) decision D) evaluation of alternatives E) psychological field Answer: E Diff: Page Ref: 466 AACSB: Analytic Skills Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 10 ScholarStock 56) Kim finishes a big project for school and treats herself to a coffee and piece of cake at Starbucks This is an example of A) interpersonal gifting B) intercategory gifting C) intergroup gifting D) intrapersonal gifting E) intragroup gifting Answer: D Diff: Page Ref: 486 Table 15.14 Skill: Application Objective: 15.5: Understand the nature and scope of consumer gift giving 57) Custom Interiors, an interior design firm, sends a holiday basket of Florida citrus fruit to its accounting firm This is an example of A) interpersonal gifting B) intercategory gifting C) intergroup gifting D) intrapersonal gifting E) intragroup gifting Answer: C Diff: Page Ref: 486, Table 15.14 AACSB: Analytic Skills Skill: Application Objective: 15.5: Understand the nature and scope of consumer gift giving 58) Marge and Steve treat themselves to a Caribbean cruise for their 25th wedding anniversary This is an example of A) interpersonal gifting B) intercategory gifting C) intergroup gifting D) intrapersonal gifting E) intragroup gifting Answer: E Diff: Page Ref: 486, Table 15.14 Skill: Application Objective: 15.5: Understand the nature and scope of consumer gift giving 19 ScholarStock 59) is the "art of asking consumers if they would like to receive a targeted e-mail ad, promotion, or message before it appears in their in-box." A) Gifting behavior B) Relationship marketing C) Set evocation D) Permission marketing E) Trial purchase Answer: D Diff: Page Ref: 489 Skill: Concept Objective: 15.7: Understand the need for relationship marketing 60) stresses a firm's long-term commitment to the individual customer A) Gifting behavior B) Relationship marketing C) Set evocation D) Permission marketing E) Trial purchase Answer: B Diff: Page Ref: 489 AACSB: Reflective Thinking Skill: Concept Objective: 15.7: Understand the need for relationship marketing COLLEGE MINI CASE: Evelyn is a high-school senior from Philadelphia looking to apply to colleges She has decided to apply to the University of Pennsylvania, Cornell, and Princeton She chose not to apply to Brown, Dartmouth, or Yale because she considers them to be too far away from home A college counselor had suggested to her that Columbia has a comparable reputation to the schools Evelyn was considering, but Evelyn didn't perceive Columbia as having any particular advantage over the schools to which she had already decided to apply She is eventually accepted to, and decides to attend Cornell University Upon arriving on campus, Evelyn immediately notices a deliberate effort on the part of the college to make new students not only feel at home, but that they have absolutely made the right decision in attending Cornell 61) In the COLLEGE MINI CASE, Evenlyn's college counselor is a(n) source of prepurchase information A) impersonal B) affective C) cognitive D) inert E) personal Answer: E Diff: Page Ref: 470, Table 15.3 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 20 ScholarStock 62) In the COLLEGE MINI CASE, Cornell is part of Evelyn's A) inept set B) affective set C) cognitive set D) inert set E) evoked set Answer: E Diff: Page Ref: 470 AACSB: Analytic Skills Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 63) In the COLLEGE MINI CASE, Yale is part of Evelyn's A) inept set B) affective set C) cognitive set D) inert set E) evoked set Answer: A Diff: Page Ref: 470 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 64) In the COLLEGE MINI CASE, Columbia is part of Evelyn's A) inept set B) affective set C) cognitive set D) inert set E) evoked set Answer: D Diff: Page Ref: 470 AACSB: Analytic Skills Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 21 ScholarStock 65) In the COLLEGE MINI CASE, when Cornell tries to convince students that they have made the right decision, they are trying to encourage a positive A) need recognition B) postpurchase evaluation C) purchase behavior D) evaluation of alternatives E) prepurchase evaluation Answer: B Diff: Page Ref: 480 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter GIFT MINI CASE: Winston needs to buy his girlfriend, Vanessa, a gift for her birthday He knows she will expect the "perfect" gift He feels like boyfriends are "supposed" to get their girlfriends jewelry or perfume His older sister recommends a necklace or earrings While he's at the jewelry store, he also buys a watch for himself, rationalizing that he hardly ever buys stuff for himself and he "deserves it." 66) In the GIFT MINI CASE, when Winston gives Vanessa a gift for her birthday, this is known as A) interpersonal gifting B) intercategory gifting C) intergroup gifting D) intrapersonal gifting E) intragroup gifting Answer: A Diff: Page Ref: 486, Table 15.14 Skill: Application Objective: 15.5: Understand the nature and scope of consumer gift giving 67) In the GIFT MINI CASE, when Winston buys a watch for himself as a self-gift, this is known as A) interpersonal gifting B) intercategory gifting C) intergroup gifting D) intrapersonal gifting E) intragroup gifting Answer: D Diff: Page Ref: 486, Table 15.14 AACSB: Reflective Thinking Skill: Application Objective: 15.5: Understand the nature and scope of consumer gift giving 22 ScholarStock 68) In the GIFT MINI CASE, Vanessa's high expectations of Winston are likely to prolong the stage of the decision-making process A) need recognition B) prepurchase search C) postpurchase evaluation D) permission marketing E) relationship marketing Answer: B Diff: Page Ref: 467 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 69) In the GIFT MINI CASE, Winston's perception of what he is "supposed" to get Vanessa is the result of A) psychological field B) evaluation of alternatives C) prepurchase search D) sociocultural inputs E) need recognition Answer: D Diff: Page Ref: 466 AACSB: Reflective Thinking Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 70) In the GIFT MINI CASE, Winston's sister represents a(n) source of prepurchase information A) impersonal B) sociocultural C) personal D) evoked E) inept Answer: C Diff: Page Ref: 470, Table 15.3 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 23 ScholarStock MP3 MINI CASE: Judy wants a new MP3 player so she can listen to music while she runs She currently runs with a CD player, but is irritated with the frequency with which it skips and the limited amount of music that can be stored on a CD After reviewing several consumer reviews on various tech websites, she identifies different MP3 player models that might meet her needs She decides that she needs at least 20 gigabytes of data storage on her player, and eliminates all options with fewer than 20 GB There are now models remaining She then decides that she will only accept players with at least 15 hours of battery life She is now considering only players Player A is heavier, but has a longer battery life Player B is lighter, but has a shorter battery life Judy chooses Player A because she believes that the longer battery life more than compensates for the additional weight 71) In the MP3 MINI CASE, the online consumer reviews that Judy reads before selecting a new MP3 player are part of the component of the consumer decision making model A) output B) experience C) input D) trial E) process Answer: C Diff: Page Ref: 467 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 72) In the MP3 MINI CASE, Judy's need recognition style makes her a(n) type A) desired state B) affective state C) actual state D) aspired state E) deficiency state Answer: C Diff: Page Ref: 467 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 24 ScholarStock 73) In the MP3 MINI CASE, Judy narrows her options from to player models based on a A) compensatory decision rule B) affect referral decision rule C) lexicographic decision rule D) disjunctive decision rule E) conjunctive decision rule Answer: E Diff: Page Ref: 473 AACSB: Analytic Skills Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 74) In the MP3 MINI CASE, Judy narrows her options from to player models based on a A) compensatory decision rule B) affect referral decision rule C) lexicographic decision rule D) disjunctive decision rule E) conjunctive decision rule Answer: D Diff: Page Ref: 474 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 75) In the MP3 MINI CASE, Judy selects Player A over Player B based on a A) compensatory decision rule B) affect referral decision rule C) lexicographic decision rule D) disjunctive decision rule E) conjunctive decision rule Answer: A Diff: Page Ref: 473 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 76) No-choice purchase or consumption situations are fairly common Answer: FALSE Diff: Page Ref: 460 AACSB: Reflective Thinking Skill: Concept Objective: 15.1: Understand what a consumer decision is 25 ScholarStock 77) All consumer decision-making situations require the same degree of information search Answer: FALSE Diff: Page Ref: 461 AACSB: Reflective Thinking Skill: Concept Objective: 15.2: Understand the three levels of consumer decision making 78) When consumers have no established criteria for evaluating a product category, they engage in extensive problem solving Answer: TRUE Diff: Page Ref: 461 Skill: Application Objective: 15.2: Understand the three levels of consumer decision making 79) Consumers rarely have all the information or sufficiently accurate information or even an adequate degree of involvement or motivation to make the "perfect" decision Answer: TRUE Diff: Page Ref: 462 Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 80) Consumers operate in an imperfect world in which they not maximize their decisions in terms of economic considerations Answer: TRUE Diff: Page Ref: 462 AACSB: Reflective Thinking Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 81) The cognitive view of consumer decision making recognizes that the consumer is unlikely to even attempt to obtain all available information about every choice Answer: TRUE Diff: Page Ref: 462 Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 82) The greater the degree of "newness," the more difficult it is for the consumer to evaluate the product and relate it to his or her need Answer: TRUE Diff: Page Ref: 463 Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 26 ScholarStock 83) When consumers make an emotional purchase, more emphasis is placed on the prepurchase search for information Answer: FALSE Diff: Page Ref: 464 Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 84) Buying products that afford emotional satisfaction is a perfectly rational consumer decision Answer: TRUE Diff: Page Ref: 464 AACSB: Reflective Thinking Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 85) In general, individuals in a negative mood recall more information about a product than those in a positive mood Answer: FALSE Diff: Page Ref: 464 Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 86) Past experience is considered an external source of information The greater the relevant past experience, the less internal information the consumer is likely to need to reach a decision Answer: FALSE Diff: Page Ref: 467 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 87) In low-risk situations, consumers are likely to engage in complex and extensive information search and evaluation Answer: FALSE Diff: Page Ref: 467 AACSB: Reflective Thinking Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 88) A person is more likely to spend more time in the prepurchase search if it is a gift he is looking for Answer: TRUE Diff: Page Ref: 469, Table 15.2 Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 27 ScholarStock 89) In buying a truck, Bob will only consider American-made trucks because he believes foreign truck brands, such as Nissan and Toyota, are of inferior quality Nissan and Toyota are items in Bob's inept set Answer: TRUE Diff: Page Ref: 470 AACSB: Analytic Skills Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 90) The inert set consists of the small number of brands the consumer is familiar with, remembers, and finds acceptable Answer: FALSE Diff: Page Ref: 470 AACSB: Analytic Skills Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 91) It is essential that a product be part of a consumer's evoked set if it is to be considered at all Answer: TRUE Diff: Page Ref: 470 Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 92) A unique feature of a compensatory decision rule is that it allows a positive evaluation of a brand on one attribute to balance out a negative evaluation on some other attribute Answer: TRUE Diff: Page Ref: 473 AACSB: Analytic Skills Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 93) Sue is looking for a new car She had eliminated any car without comfortable seating for at least four people and that gets less than an average of 35 miles per gallon in fuel efficiency Sue has used a lexicographic decision rule to narrow down her choices Answer: FALSE Diff: Page Ref: 474 Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 28 ScholarStock 94) In applying the disjunctive decision rule, the consumer establishes a separate, minimally acceptable cutoff level for each attribute If an option meets or exceeds the cutoff established for any one attribute, it is accepted Answer: TRUE Diff: Page Ref: 474 AACSB: Analytic Skills Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 95) Task complexity, information organization, and time constraint are the three major contextual factors in decision tasks Answer: TRUE Diff: Page Ref: 475 Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 96) The objective of the output portion of the consumer decision-making model is to increase the consumer's satisfaction with his or her purchase Answer: TRUE Diff: Page Ref: 479 AACSB: Reflective Thinking Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 97) Repeat purchase usually signifies that the product meets with the consumer's approval and that he or she is willing to use it again and in larger quantities Answer: TRUE Diff: Page Ref: 479 AACSB: Reflective Thinking Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 98) Negative disconfirmation of expectations involves the performance of a product exceeding the consumer's expectations, leading to consumer satisfaction Answer: FALSE Diff: Page Ref: 480 Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 29 ScholarStock 99) There is a strong direct relationship between consumer satisfaction and consumer retention Answer: FALSE Diff: Page Ref: 480 Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 100) It is to a firm's advantage to develop long-term relationships with existing customers because it is harder and more expensive to make an additional sale to an existing customer than to make a new sale to a new customer Answer: FALSE Diff: Page Ref: 490 AACSB: Reflective Thinking Skill: Application Objective: 15.7: Understand the need for relationship marketing 101) What are three decision categories that require consumption decision making? Give an example of each Answer: Brand decisions: whether to purchase one's usual brand versus a new brand Channel purchase decisions: whether to purchase online or at a department store Payment purchase decisions: to pay for the purchase in cash or using a credit card Diff: Page Ref: 461, Table 15.1 AACSB: Analytic Skills Skill: Application Objective: 15.2: Understand the three levels of consumer decision making 102) What are the three levels of consumer decision making? Briefly define each Answer: ∙ Extensive problem solving: when consumers have no established criteria for evaluating a product category or specific brand in that category ∙ Limited problem solving: consumers already have established the basic criteria for evaluating the product category and the various brands in the category ∙ Routinized response behavior: at this level, consumers have experience with the product category and a well-established set of criteria with which to evaluate the brands they are considering Diff: Page Ref: 461 Skill: Concept Objective: 15.2: Understand the three levels of consumer decision making 30 ScholarStock 103) What factors determine how extensive a consumer's problem-solving task is? Answer: Just how extensive a consumers problem-solving task is depends on how well established his or her criteria for selection are, how much information he or she has about each brand being considered, and how narrow the set of brands is from which the choice will be made Extensive problem solving implies that the consumer must seek more information to make a choice, whereas routinized response behavior implies little need for additional information Diff: Page Ref: 461 AACSB: Reflective Thinking Skill: Concept Objective: 15.2: Understand the three levels of consumer decision making 104) Explain the economic view of consumer decision making Why is this model considered to be unrealistic? Answer: The economic consumer model portrays a world of perfect competition in which the consumer is characterized as making rational decisions This model has been criticized because consumers rarely have all the information, sufficiently accurate information, an adequate degree of involvement, or motivation to make the so-called "perfect decision." It has been argued that the classical economic model of an all-rational consumer is unrealistic for the following reasons: ∙ People are limited by their existing skills, habits, and reflexes ∙ People are limited by their existing values and goals ∙ People are limited by the extent of their knowledge Diff: Page Ref: 462 AACSB: Reflective Thinking Skill: Application Objective: 15.3: Understand four different views or models of consumer decision making 105) Differentiate between moods and emotions Answer: Mood can be defined as a "feeling state" or state of mind Unlike an emotion, which is a response to a particular environment, a mood is more typically an unfocused, preexisting state Compared to emotions, moods are generally lower in intensity, longer lasting, and are not as directly coupled with action tendencies and explicit actions as emotions Diff: Page Ref: 462 AACSB: Analytic Skills Skill: Concept Objective: 15.3: Understand four different views or models of consumer decision making 31 ScholarStock 106) Identify and give examples of the two different need or problem recognition styles among consumers Answer: ∙ Actual state Type: consumers perceive that they have a problem when a product fails to perform satisfactorily, e.g a cordless telephone develops constant static ∙ Desired state Type: a consumer's desire for something may trigger the decision process, e.g a cell-phone user decides to upgrade his phone to the "cool" new flip-phone, even though his existing phone works just fine Diff: Page Ref: 467 AACSB: Reflective Thinking Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 107) Name five factors that are likely to increase prepurchase search with regards to a product or service Answer: The consumer is purchasing it for the first time High price Frequent changes in product styles Purchase is a gift Product is socially visible Diff: Page Ref: 469, Table 15.2 AACSB: Analytic Skills Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 108) Identify the three factors that impact a brand's credibility Answer: ∙ the perceived quality of the brand ∙ the perceived risk associated with the brand ∙ the information costs saved with that brand (due to the time and effort saved by not having to shop around Diff: Page Ref: 472 AACSB: Analytic Skills Skill: Concept Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 32 ScholarStock 109) Consumers are frequently presented with incomplete information Identify four strategies that consumers can adopt for coping with missing information Answer: ∙ Consumers may delay the decision until the missing information is obtained ∙ Consumers may ignore missing information and decide to continue with the current decision rule using the available attribute information ∙ Consumers may change the customarily used decision strategy to one that better accommodates missing information ∙ Consumers may infer the missing information Diff: Page Ref: 478 AACSB: Reflective Thinking Skill: Application Objective: 15.4: Understand in detail the model of consumer decision making originally introduced in Chapter 110) Research indicates that consumers today are less loyal than in the past Identify the six major forces at work in this trend Answer: ∙ the abundance of choice ∙ availability of information ∙ entitlement (consumers repeatedly ask "What have you done for me lately?") ∙ commoditization (most products/services appear to be similar - nothing stands out) ∙ insecurity (consumer financial problems reduce loyalty) ∙ time scarcity (not enough time to be loyal) Diff: Page Ref: 491 AACSB: Reflective Thinking Skill: Concept Objective: 15.7: Understand the need for relationship marketing 33 ScholarStock ... which the consumer is characterized as making rational decisions A) economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer. .. appears to offer the greatest satisfaction A) economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: B... economic consumer model B) passive consumer model C) cognitive consumer model D) emotional consumer model E) routinized consumer model Answer: C Diff: Page Ref: 463 Skill: Concept Objective: 15. 3: