Lecture 5: Individual Decision Making and Post Decision Processes Flashcards
Internal searching is the process of recalling past information stored in memory.
True
External searching is the process of seeking information in the outside environment.
True
Information search is characterized by three elements; sources of information, search strategies, and amount of information (search activity).
True
An evoked set consists of brands/suppliers remembered at the time of decision making.
True
A consideration set consists of those from the evoked set after those which are unfit are eliminated.
True
Within the context of external sources of information, marketer sources consist of personal (friends, past experiences) and independent sources (consumer reports, media).
False
Within the context of external sources of information, marketer sources consist of advertising, stores, shops and websites.
True
Within the context of external sources of information, non-marketer sources consist of advertising, stores, shops and websites.
False
Within the context of external sources of information, non-marketer sources consist of personal (friends, past experiences) and independent sources (consumer reports, media).
True
Systematic search strategies are quick and convenience based and include rules of thumb such as brand name and recommendations.
False
Systematic search strategies are organized, effortful, and comprehensive.
True
Heuristic search strategies are quick and convenience based and include rules of thumb such as brand name and recommendations.
True
Heuristic search strategies are organized, effortful, and comprehensive.
False
Compensatory evaluations of alternatives is when a positive evaluation of an attribute does not compensate for a negative evaluation of the same alternative on some other attribute.
False
Compensatory evaluation of alternatives is when a consumer evaluated each alternative in terms of each attribute and then selects the one with the highest weighted score.
True
Non-compensatory evaluation of alternatives is when a positive evaluation of an attribute does not compensate for a negative evaluation of the same alternative on some other attribute.
True
Non-compensatory evaluation of alternatives is when a consumer evaluated each alternative in terms of each attribute and then selects the one with the highest weighted score.
False
Alternative processing considers one alternative at a time.
True
Attribute processing considers one alternative at a time.
False
Attribute processing processes across alternatives, one attribute at a time.
True
The additive difference rule suggests products are compared by attribute, two products at a time. Consumers evaluate differences between products on each attribute and combine them into an overall preference.
True
The additive difference rule allows trade-offs between attributes.
True
The additive difference rule does not allow trade-offs between attributes.
False
The conjunctive rule suggests consumers set a minimum standard for each attribute and if a product fails to pass any standard, it is dropped from consideration.
True
The disjunctive rule suggests consumers evaluate alternatives on the basis of one or a few attributes, ignoring their standing on other attributes.
True
The disjunctive rule suggests a consumer sets a minimum standard for each attribute and if a product fails to pass any standard, it is dropped from consideration.
False
The disjunctive rule suggests consumers set a minimum acceptable standard as the cutoff point for these attributes.
True
The lexicographic rule is when consumers order attributes in terms of importance and compare alternatives one attribute at a time, starting with the most important.
True
The lexicographic rule suggests that if after comparing the most important attributes between products one option dominates, the consumer selects it.
True
“I selected the computer that came out best when I balanced the good ratings against the bad ratings” is an example of the conjunctive rule.
False
“I selected the computer that did not have bad features.” is an example of the disjunctive rule.
False
“I picked the computer that excelled in at least one attribute.” is an example of the lexicographic rule.
False
“I looked at the feature that was most important to me and chose the computer that ranked highest on that attribute.” is an example of the compensatory rule.
False
“I looked at the feature that was most important to me and chose the computer that ranked highest on that attribute.” is an example of the lexicographic rule.
True
“I picked the computer that excelled in at least one attribute.” is an example of the disjunctive rule.
True
“I selected the computer that did not have bad features.” is an example of the conjunctive rule.
True
“I selected the computer that came out best when I balanced the good ratings against the bas ratings.” is an example of the compensatory rule.
True
Combinations between compensatory and non-compensatory decision rules are the most common.
True
Mental accounting is when consumers assign different values to equal monetary accounts due to psychological reasons.
True
Mental accounting influences how much we spend or save.
True
Sunk cost fallacy results in consumers being reluctant to waste something they have paid for.
True
Sunk cost fallacy leads us to invest more in things we have already invested in.
True
The framing effect leads consumers to react to a particular choice in different ways depending on whether it is presented as a loss or gain.
True
The endowment effect suggests that ownership of an item increases the value.
True
Routine response behaviour/habitual decision making suggests decisions are made with little or no conscious effort.
True
Limited problem-solving suggests buyers use simple decision rules.
True
The highest number of purchase decisions are limited problem-solving decisions.
True
The highest number of purchase decisions are routine response behaviour.
True
Habitual decision making is characterized by complex strategizing that requires strenuous conscious effort.
False
Habitual decision making is characterized by little or no conscious effort, use of simplifying strategies.
True
Brand loyalty occurs when consumers make a conscious evaluation that a brand or service satisfies their needs to a greater extent than others do and decide to buy the brand repeatedly for that reason.
True
Brand loyalty consists of two components: attitude and behaviour.
True
Keeping customers leads to six times higher costs than winning new customers.
False
Winning new customers leads to six times higher costs than keeping customers.
True
Brand loyalty increases the amount consumed by customers and the cross-selling potential.
True
Brand equity is the basis for brand loyalty.
False
Brand loyalty is the basis for brand equity.
True
Variety seeking results in a desire to choose new alternatives over more familiar ones.
True
The idea of variety seeking is that unpredictability can be rewarding (optimal stimulation level, sensation seeking).
True
Variety seeking is stronger when involvement is high.
False
Variety seeking is stronger when perceived risk is high.
False
Variety seeking is stronger when perceived differences between products are high.
False
Variety seeking is stronger when perceived differences between products are low.
True
Variety seeking is stronger when perceived risk is low.
True
Variety seeking is stronger when involvement is low.
True
Buying on impulse is instigated by an intense or overwhelming feeling of having to buy the product immediately.
True
Buying on impulse is triggered by consumer’s exposure to an external stimulus such as in-store displays, internet ads, TV ads with a phone number.
True
Consumer factors that lead shoppers to become buyers include time pressure and having a shopping companion.
False
Consumer factors that lead shoppers to become buyers include familiarity with a store, and customer mood.
True
Situational factors that lead shoppers to become buyers include time pressure, and having a shopping companion.
True
Store factors that lead shoppers to become buyers include special store promotions, atmospherics.
True
When a consumers’ evaluation of the outcome of a purchase decision is positive, i.e., expectations have been met, they feel satisfaction.
True
Multi-attribute approaches are defined as an expectation towards experience of performance of product attributes, and the aggregation of these evaluations.
True
Critical incidents in satisfaction measurement are defined as analysis of incidents that matter in terms of consumer satisfaction/dissatisfaction.
True
Cognitive dissonance is a feeling of post purchase regret.
True
