Chapter 12

Question 1

rational decision making perspective

Answer 1

Consumers gather information about purchases rationally and carefully. Perfectly making informed decisions.

Question 2

Experiential decision making perspective

Answer 2

Assumes consumers often make purchases and reach decisions based on an affect feeling attached to the products.

Question 3

Variety seeking behavior

Answer 3

Seeking new brands as a response to boredom or need for change

Question 4

Behavioral influence decision making perspective

Answer 4

Consumer decisions are learned responses to environmental influences

Question 5

Perceived risk

Answer 5

Perception of negative consequences that are likely to result from a course of action.

Question 6

Extended decision making

Answer 6

Consumers move through various problem solving activities in search for the best information that will help them reach decision.

High risk
High involvement

Question 7

Limited decision making

Answer 7

Search very little for information and buy products without any attachment or beliefs.

Medium risk/involvement

Question 8

Habitual decision making

Answer 8

Consumers do not seek information at all and select a product based on habit.

Associated with:

Brand loyalty: deeply held commitment to rebuy a product

Brand inertia: buying the same product without any attachment.

Question 9

Satisficing

Answer 9

Using decision making shortcuts to arrive at satisfactory, rather than optimal decisions.

Question 10

Actual vs. desired state

Answer 10

Actual: consumer’s perceived current state

Desired: perceived state in which a consumer strives.

Question 11

Consumer search behavior

Answer 11

Behaviors that consumers engage in as they seek information that can be used to satisfy needs.

Ongoing: not focused on upcoming decision but staying up to date on the topic.

Pre purchase: aimed at finding info to solve an immediate need/problem.

Internal: retrieval of knowledge stored in memory about products, services, and experiences.

External: gathering of information from sources external to the consumer such as friends, family, sales people, and advertising.

Question 12

Information overload

Answer 12

Situation which consumers are presented with so much information.

Question 13

Consideration set / universal set / awareness set / inept set / inert set

Answer 13

Universal: every possible option of deodorant
Awareness: set of alternatives
Consideration: brands considered acceptable
Inept: unacceptable brands
Inert: acceptable brands

U > A > C > II

Question 14

Price

Answer 14

Information that signals the amount of potential value contained in a product

Question 15

Quality

Answer 15

Perceived overall goodness or badness of some product

Question 16

Search regret

Answer 16

Negative feelings from a failed search process

Question 17

5 steps of consumer decision making process

Answer 17

1 need recognition 
2 search for info
3 evaluation of alternatives 
4 choice 
5 post choice evaluation

Question 18

Types of risk factors

Answer 18

Financial 
Social 
Performance 
Physical 
Time

Question 19

Types of decision making

Answer 19

Commodity products (toilet paper) - brand laziness (LP LI) imp: price and distribution

Self-concept enhancing - brand loyalty (HI LP) - intrinsic

Panty products (different products) - variety seeking 
(LI HP) imp: product attributes 

Complicated products - problem solving (HP HL)

Question 20

Heuristics

Answer 20

Mental short cuts in decision making

Types;

Affect-based 
Bought last 
Low price-based 
Imp person 
Promotion based
Most popular 
Location

Question 21

Low vs high complexity

Answer 21

Emotion based marketing (low)

Informational displays, trials, free samples (high)