Chapter 5

Question 1

Need Recognition

Answer 1

the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state

Question 2

Functional Needs

Answer 2

pertain to the performance of a product or service

Question 3

Psychological Needs

Answer 3

pertain to the personal gratification consumers associate with a product or service

Question 4

Internal Search for Information

Answer 4

occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences

Question 5

External Search for Information

Answer 5

occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision

Question 6

Internal Locus of Control

Answer 6

refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities

Question 7

External Locus of Control

Answer 7

refers to when consumers believe that fate or other external factors control all outcomes

Question 8

Performance Risk

Answer 8

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

Question 9

Financial Risk

Answer 9

risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service

Question 10

Social Risk

Answer 10

the fears that consumers suffer when they worry others might not regard their purchases positively

Question 11

Physiological Risk (safety risk)

Answer 11

the fear of an actual harm should a product not perform properly

Question 12

Psychological Risk

Answer 12

associated with the way people will feel if the product or service does not convey the right image

Question 13

Universal Sets

Answer 13

includes all possible choices for a product category

Question 14

Retrieval Sets

Answer 14

includes those brands or stores that the consumer can readily bring forth from memory

Question 15

Evoked Set

Answer 15

comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision

Question 16

Evaluative Criteria

Answer 16

consist of a set of salient, or important, attributes about a particular product

Question 17

Determinant Attribute

Answer 17

product or service features that are important to the buyer and on which competing brands or stores are perceived to differ

Question 18

Consumer decision rules

Answer 18

the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives

Question 19

Compensatory decision rule

Answer 19

at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones

Question 20

Multi-attribute model

Answer 20

a compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics. The model uses a weighted average score based on the importance of various attributes and performance on those issues

Question 21

Noncompensatory Decision Rule

Answer 21

at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes

Question 22

Decision Heuristics

Answer 22

mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation

Question 23

Conversion Rate

Answer 23

percentage of consumers who buy a product after viewing it

Question 24

Post purchase Cognitive Dissonance

Answer 24

the psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyer’s remorse

Question 25

Negative Word of Mouth

Answer 25

occurs when consumers spread negative information about a product, service, or store to others