Chapter 8

Question 1

Consumer Decisions Making Process

Answer 1

1. Problem Recognition
2. Information Search
3. Evaluation of Alternatives
4. Product Choice
5. Outcomes

Question 2

Problem Recognition

Answer 2

Curent state is different than your desired or needed state.

Question 3

Hierarchy of Buying Decision Behavior

Answer 3

Routine Response Behavior
Limited Problem Solving
Extensive Problem Solving

Question 4

Information Search

Answer 4

The process by which we survey the environment for appropriate data to make a reasonable decision

Question 5

Directed Learning

Answer 5

existing product knowledge obtained from previous information search or experience of alternates

Question 6

Incidental learning

Answer 6

Pavlov

Question 7

Mental accounting

Answer 7

framing a problem in terms of gains/losses influences our decisions

Question 8

Sunk-cost fallacy

Answer 8

We are reluctant to waste something we have paid for

Question 9

Loss aversion

Answer 9

We emphasize losses than gains

Question 10

Prospect theory

Answer 10

risk differs when we face gains versus losses

Question 11

5 Types of Perceived Risk

Answer 11

Monetary, Functional, Physical, Social, Psychological

Question 12

Evoked Set

Answer 12

All the alternatives out there

Question 13

Consideration Set

Answer 13

The alternatives you’re actually considering

Question 14

Heuristiscs

Answer 14

mental rules-of-thumb for efficient decisions