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1. Brand loyalty occurs when a consumer simply buys a product repeatedly without any real attachment.
a.
True
b.
False
ANSWER:
False
2. Experiential decision processes often focus on utilitarian value.
a.
True
b.
False
ANSWER:
False
3. Extended decision making occurs when there is a significant amount of purchase risk involved with the decision.
a.
True
b.
False
ANSWER:
True
4. Consumers often make purchases and satisfy needs with very little cognitive effort.
a.
True
b.
False
ANSWER:
True
5. It costs much less for a firm to retain current customers than to attract new ones.
a.
True
b.
False
ANSWER:
True
6. Consumers generally consider only a small fraction of the actual number of problem solutions that are available.
a.
True
b.
False
ANSWER:
True
7. The rational decision-making perspective is a recent approach to studying consumer decision making that sheds light on
the reasons behind the irrational behavior of consumers.
a.
True
b.
False
ANSWER:
False
8. In the context of external search, search regret is more likely to be experienced when consumers utilize unfamiliar
techniques during the search process.
a.
True
b.
False
ANSWER:
True
9. Consumers who are more sensitive to the positive role of price tend to desire things with low prices.
a.
True
b.
False
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ANSWER:
False
10. The rational decision-making perspective helps to explain how consumers react to store layout, store design, and POP
(point-of-purchase) displays.
a.
True
b.
False
ANSWER:
False
11. The rational decision-making perspective fits well within the concept of hedonic value.
a.
True
b.
False
ANSWER:
False
12. The Internet has made the search process more enjoyable by delivering hedonic value to consumers.
a.
True
b.
False
ANSWER:
True
13. When a purchase is imminent, consumers tend to view price as a strong indicator of quality.
a.
True
b.
False
ANSWER:
False
14. Value perceptions influence consumer decision-making activities.
a.
True
b.
False
ANSWER:
True
15. Once a consumer initiates the decision-making process, he or she always completes the process.
a.
True
b.
False
ANSWER:
False
16. Consumers are not always motivated to make the best decision.
a.
True
b.
False
ANSWER:
True
17. In habitual decision making, consumers select a product of any brand that offers the feature they are looking for.
a.
True
b.
False
ANSWER:
False
18. The amount of search tends to decrease as a consumer’s level of income increases.
a.
True
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b.
False
ANSWER:
False
19. In the context of the consideration set, the awareness set is the total collection of all possible solutions to a recognized
need.
a.
True
b.
False
ANSWER:
False
20. In the context of consumer search behavior, the size of the awareness set increases as external search proceeds.
a.
True
b.
False
ANSWER:
True
21. The amount of involvement a consumer has with a product category has no bearing on the decision-making approach
that is used by the consumer.
a.
True
b.
False
ANSWER:
False
22. When consumers view a purchase as coming in the distant future, they are more sensitive to the negative role of price.
a.
True
b.
False
ANSWER:
False
23. Reward cards can be a successful method of rewarding loyalty even if consumers do not particularly value the
product.
a.
True
b.
False
ANSWER:
False
24. In the context of consumer behavior, internal search includes the retrieval of knowledge about products, services, and
experiences that is stored in memory.
a.
True
b.
False
ANSWER:
True
25. The perceived risk for a product or service remains the same across consumers and situations.
a.
True
b.
False
ANSWER:
False
26. Consumers do not always proceed through the activities found in the decision-making process in sequential fashion.
a.
True
b.
False
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ANSWER:
True
27. Retailers use the brand-lift index to measure the incremental sales that occur when a product is on display.
a.
True
b.
False
ANSWER:
True
28. The recognition of a need invariably triggers the other activities found in the decision-making process.
a.
True
b.
False
ANSWER:
False
29. Quality perceptions take place both before and after purchase.
a.
True
b.
False
ANSWER:
True
30. Brand loyalty has an impact on the value of the brand to the firm.
a.
True
b.
False
ANSWER:
True
31. Consumers do not settle for alternatives they are unsure of.
a.
True
b.
False
ANSWER:
False
32. The amount of search tends to decrease as consumers become older.
a.
True
b.
False
ANSWER:
True
33. In selecting the best information source, consumers do not consider the speed with which the information can be
obtained.
a.
True
b.
False
ANSWER:
False
34. Consumers who perform ongoing searches are usually highly involved with the product category and seek information
simply for enjoyment.
a.
True
b.
False
ANSWER:
True
35. With limited decision making, consumers search for reviews about products and their attributes on the Internet to
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avoid making a choice based on their prior beliefs about those products.
a.
True
b.
False
ANSWER:
False
36. The risk associated with the likelihood of a product functioning as expected is referred to as _____.
a.
physical risk
b.
social risk
c.
performance risk
d.
financial risk
ANSWER:
c
37. In habitual decision making, _____.
a.
consumers generally pick any brand that is available
b.
consumers tend to search multiple external sources of information to reach a satisfactory decision
c.
consumers arrive at a decision based on compromise and intuition
d.
consumers believe that the consumption of a specific a product of a specific brand will deliver value
ANSWER:
d
38. Which of the following decision-making perspectives assumes that consumers often make purchases and reach
decisions based on the affect, or feeling, attached to the product or behavior under consideration?
a.
The behavioral influence decision-making perspective
b.
The rational decision-making perspective
c.
The experiential decision-making perspective
d.
The attribute-based decision-making perspective
ANSWER:
c
39. Dean goes to the local grocery store, Needs ‘n’ Necessities, every week to buy groceries. The store is small, but it
offers more choices than the other stores in the neighborhood. Dean does not particularly like the store as it does not have
a parking facility. However, he shops there regularly as it is conveniently located. In the given scenario, Dean’s shopping
behavior is driven by:
a.
brand inertia.
b.
brand loyalty.
c.
brand positioning.
d.
brand extension.
ANSWER:
a
40. Nina is passionate about cars. She does not have any intention of buying a car as she lives in Manhattan and prefers
taking the subway rather than driving in the city. Nevertheless, she subscribes to automobile magazines and often visits
dealerships to test drive new car models. In the given scenario, Nina’s search behavior represents a(n) _____.
a.
utilitarian search
b.
postpurchase search
c.
internal search
d.
ongoing search
ANSWER:
d
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41. Maurine has been swamped with work for a while. She decides to treat herself to a spa on the weekend. She merely
wants to relax and enjoy her day at the spa. Which of the following decision-making perspectives does Maurine’s decision
illustrate?
a.
The behavioral influence decision-making perspective
b.
The rational decision-making perspective
c.
The experiential decision-making perspective
d.
The attribute-based decision-making perspective
ANSWER:
c
42. Which of the following statements is true in the context of decision-making approaches?
a.
Consumers do not generally settle for alternatives that they are unsure of.
b.
Most purchases are made with a lot of prepurchase decision effort.
c.
Consumers are not always motivated to make the best decision.
d.
Consumers with low self-esteem favor personal sources of information.
ANSWER:
c
43. Which of the following is true of limited decision making?
a.
It is often based on prior beliefs about products and their attributes.
b.
It often involves extensive comparison between various brands.
c.
It occurs when product involvement is high.
d.
It occurs infrequently.
ANSWER:
a
44. Tom wants to buy a dishwasher. He consults his friends and looks online for good offers and sales. In the context of
the activities included in the consumer decision-making process, Tom is engaged in _____.
a.
need recognition
b.
search for information
c.
postchoice evaluation
d.
choice
ANSWER:
b
45. Treyvon recently secured a promotion and a raise at work. He starts thinking about buying a house but wonders
whether he can truly afford it. In this case, Treyvon is primarily considering the _____ associated with the purchase.
a.
financial risk
b.
social risk
c.
time risk
d.
performance risk
ANSWER:
a
46. Which of the following is true of the rational decision-making perspective?
a.
It assumes that consumers can identify the expected value associated with a purchase.
b.
It assumes that consumers often purchase a product based on the feeling attached to it.
c.
It assumes that consumers sometimes do not follow a well-planned decision-making process.
d.
It takes into account that consumers do not always pursue utilitarian value.
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ANSWER:
a
47. Which of the following statements is true of the technologies used by consumers to search for product or service-
related information?
a.
Augmented reality apps help consumers find information related to location.
b.
GPS-based technologies allow consumers to quickly address specific needs that they have while they are
traveling.
c.
QR codes allow consumers to simply take a photo of an object or scan it into their screen and quickly receive
information about it.
d.
Mobile visual search augments reality with computer simulated information.
ANSWER:
b
48. Don is browsing the Internet to gather information about high-definition DVD players. He wants to gift one to his
mother on her birthday. Don’s search is an example of a(n) _____.
a.
internal search
b.
postpurchase search
c.
ongoing search
d.
prepurchase search
ANSWER:
d
49. Soft music and dim lighting in a restaurant generally lead consumers to slow down, stay in the restaurant for a longer
time, and buy more drinks and dessert. In this case, the tendency of the diners to spend more time and money can be best
explained by the _____.
a.
rational decision-making perspective
b.
experiential decision-making perspective
c.
attribute-based decision-making perspective
d.
behavioral influence decision-making perspective
ANSWER:
d
50. The total collection of all possible solutions to a recognized need is referred to as the _____ of alternatives.
a.
awareness set
b.
universal set
c.
inert set
d.
evoked set
ANSWER:
b
51. Anna buys the same brand of orange juice that her family has been consuming for years. She has never thought of
trying any other brand. In the given scenario, Anna’s purchase decision is an example of _____.
a.
experiential decision making
b.
extended decision making
c.
habitual decision making
d.
behavioral influence decision making
ANSWER:
c
52. Which of the following statements is true in the context of need recognition?
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a.
Cognitive thought processes do not change the desired state.
b.
Opportunity recognition involves changing the actual state.
c.
Need recognition invariably triggers all the other activities found in the decision-making process.
d.
Consumers do not satisfy all the needs as soon as they are recognized.
ANSWER:
d
53. Which of the following statements is true of consumer decision making?
a.
Consumers do not engage in decision-making processes in pursuit of hedonic value.
b.
Consumers invariably complete the decision-making process once they start evaluating alternatives.
c.
Consumer decision-making processes are independent of value perceptions.
d.
Consumer decision-making processes do not always involve a tangible product.
ANSWER:
d
54. Which of the following statements is true of the amount of search performed by consumers during the decision-
making process?
a.
Moderately experienced consumers search for more purchase-related information than inexperienced
consumers do.
b.
Even when searching costs are greater than the benefits of the search process, consumers go on searching for
information.
c.
Consumers who do not have a positive attitude toward shopping tend to spend more time searching for product
information.
d.
Though situational factors affect actual purchase, they do not affect the amount of search that takes place.
ANSWER:
a
55. The experiential decision-making perspective assumes that:
a.
consumers diligently gather information about purchases, compare various brands, and make an informed
decision.
b.
many consumer decisions are learned responses to environmental influences.
c.
consumers’ decision-making processes invariably focus on utilitarian value.
d.
consumers’ behaviors are based on the sheer enjoyment involved with consumption.
ANSWER:
d
56. The risk associated with the safety of a product as well as the harm from its consumption is referred to as _____.
a.
financial risk
b.
performance risk
c.
time risk
d.
physical risk
ANSWER:
d
57. After a bad experience with Sunshine Cereals, John decides to never purchase that product. In this case, John has
assigned Sunshine Cereals to the _____ within his awareness set.
a.
hidden set
b.
inept set
c.
inert set
d.
camouflaged set
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ANSWER:
b
58. Which of the following types of decision-making approaches occurs when there are relatively low amounts of
purchase risk and product involvement?
a.
Informed decision making
b.
Experiential decision making
c.
Extended decision making
d.
Limited decision making
ANSWER:
d
59. Isabella is considering buying an electric car, but she is concerned about the safety features of electric cars. She
remembers reading that electric cars are unsafe. Therefore, she invests a lot of time reading reviews about electric cars on
the Internet. Which of the following external search factors is influencing Isabella’s search time?
a.
Product experience
b.
Situational influencers
c.
Personal Factors
d.
Perceived risk
ANSWER:
d
60. Laurie owns a Pluto X20 convertible. She has owned several other Pluto cars over the years. She has even convinced
several family members and friends to buy Pluto automobiles. Recently, however, she had a bad service experience at a
Pluto dealership. Nevertheless, she decides to purchase a Pluto Y20 for her daughter. In the given scenario, Laurie’s
engagement with Pluto automobiles best illustrates _____.
a.
brand loyalty
b.
brand inertia
c.
brand equity
d.
brand extension
ANSWER:
a
61. John wants to buy roller blades for his daughter. However, he is concerned that she is too young for roller blades and
that she might get injured. In the given scenario, John is concerned about the _____ associated with the purchase.
a.
performance risk
b.
physical risk
c.
financial risk
d.
time risk
ANSWER:
b
62. In the context of internal search, the _____ consists of the alternatives in a consumer’s awareness set that are deemed
to be unacceptable for further consideration.
a.
inept set
b.
universal set
c.
inert set
d.
evoked set
ANSWER:
a
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63. Bill is a member of the Conway City Council. He wants to run for the position of mayor of Conway in the upcoming
elections. The perceived state for which Bill aspires is called his _____.
a.
desired state
b.
hypothetical state
c.
actual state
d.
ideal state
ANSWER:
a
64. Sylvia wants to buy a car, and she has narrowed down her options to four brands. She is currently comparing the
features of the four cars. In the context of the activities included in the consumer decision-making process, Sylvia is
engaged in _____.
a.
evaluation of alternatives
b.
search for information
c.
need recognition
d.
postchoice evaluation
ANSWER:
a
65. George wants to buy the latest smartphone. When he searches the Internet for information on smartphones, he is
swamped with the information that is available. He decides to ignore most of the details as he is unable to comprehend
them. George’s behavior is a result of _____.
a.
information incongruity
b.
information bias
c.
information overload
d.
information asymmetry
ANSWER:
c
66. When Mathew decided to buy a laptop, he searched the Internet for information. However, he could not understand
the technical language used in the websites he visited and decided to use product price as an indicator of quality. Which of
the following terms best describes Mathew’s decision-making process?
a.
Habitual decision making
b.
Extended decision making
c.
Rationalizing
d.
Satisficing
ANSWER:
d
67. Fatima wants to purchase a house and has been viewing residential properties for the past two months. She has been
searching for information on the Internet and consulting friends and family in order to arrive at a satisfactory decision.
Which of the following decision-making approaches is Fatimah employing?
a.
The extended decision-making approach
b.
The limited decision-making approach
c.
The routine decision-making approach
d.
The habitual decision-making approach
ANSWER:
a
68. _____ is the risk associated with how other consumers will view a purchase.
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a.
Performance risk
b.
Social risk
c.
Financial risk
d.
Physical risk
ANSWER:
b
69. Which of the following is true of the effect of the Internet on consumer search behavior?
a.
Consumers no longer have the ability to control information flow efficiently, and they get mired in
information overload.
b.
The ability to control information flow increases consumers’ ability to remember information that is gathered.
c.
The search process has become less enjoyable for consumers.
d.
The search process has become more expensive and less productive for consumers.
ANSWER:
b
70. A consumer’s perceived current state is also known as his or her _____.
a.
desired state
b.
ideal state
c.
actual state
d.
hypothetical state
ANSWER:
c
71. Daniel wanted to buy a Renata car. However, when he learned that the nearest service center was about 50 miles from
his residence, he decided to consider other brands. He did not want to drive that far every time he needed to get the car
serviced or repaired. In this case, Daniel’s decision was primarily influenced by the _____ associated with the product.
a.
social risk
b.
time risk
c.
performance risk
d.
physical risk
ANSWER:
b
72. Ben has a high-paying job, and he wants to buy an expensive car. However, he was raised in a family where spending
on luxury is considered wasteful. Even though Ben wants to replace his old car with an expensive one, he is concerned
about his parents’ reaction to his purchase decision. In this case, Ben is concerned about the _____ associated with the
purchase.
a.
time risk
b.
performance risk
c.
social risk
d.
financial risk
ANSWER:
c
73. Jake has been driving his hatchback for ten years now. He wants to buy a sedan. Jake’s want for a sedan can be
described as his _____.
a.
hypothetical state
b.
ideal state
c.
actual state
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d.
desired state
ANSWER:
d
74. Which of the following is an example of an internal search?
a.
Using the Internet to find out details of a product
b.
Recalling the features of a friend’s television while making a buying decision
c.
Asking a salesman of a retail store to explain the features of a coffee machine
d.
Reading a review about the quality of a product
ANSWER:
b
75. Which of the following is true of QR codes?
a.
They were unpopular because they provided irrelevant product information to consumers.
b.
They were a type of visual recognition technology.
c.
They were used to augment reality with simulations and voiceovers.
d.
They were used by marketers to improve promotional conversion rates.
ANSWER:
d
76. Irene has been saving up and searching for the right house to buy. However, she feels disappointed because after
spending an entire month researching and looking at a number of houses, she did not find the right one. The
disappointment that Irene is experiencing can be best described by the term _____.
a.
bounded rationality
b.
search regret
c.
perceived risk
d.
absolute threshold
ANSWER:
b
77. Greg is planning to purchase a new truck. He wants to purchase the best one within his budget. He searches the
Internet, consults his friends, and visits dealerships to learn more about different brands of trucks. He compares the
features and the prices of the different trucks on a comparison shopping website. Which of the following decision-making
perspectives best describes Greg’s decision-making process?
a.
The experiential decision-making perspective
b.
The rational decision-making perspective
c.
The behavioral influence decision-making perspective
d.
The affect-based decision-making perspective
ANSWER:
b
78. Which of the following decision-making perspectives primarily assumes that many decisions are learned responses to
environmental influences?
a.
The behavioral influence decision-making perspective
b.
The rational decision-making perspective
c.
The experiential decision-making perspective
d.
The attribute-based decision-making perspective
ANSWER:
a
79. Hal is considering purchasing a hybrid car as he wants a car with good mileage. He does extensive research online to
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gather information about the fuel efficiency of hybrid cars as he is worried that they may not stay fuel efficient for long. In
this case, Hal is concerned about the _____ associated with the purchase.
a.
financial risk
b.
performance risk
c.
time risk
d.
physical risk
ANSWER:
b
80. Which of the following is true of quality perceptions?
a.
Consumers’ perception that higher prices mean higher quality can alter because of other variables.
b.
Consumers are sensitive to the positive role of price when a purchase is imminent.
c.
Consumers’ perception that higher prices mean higher quality does not alter because of other variables.
d.
Consumers are sensitive to the negative role of price when a purchase is in distant future.
ANSWER:
a
81. Consumers who are sensitive to the negative role of price:
a.
collect and redeem coupons.
b.
use price to convey prestige.
c.
are not very bargain conscious.
d.
desire things with high prices.
ANSWER:
a
82. When consumers engage in _____, they tend to search diligently for information that will help them reach a
satisfactory decision.
a.
routine decision making
b.
limited decision making
c.
extended decision making
d.
habitual decision making
ANSWER:
c
83. Viman, an Indian, has been assigned to his company’s London office. He realizes that he does not have suitable
clothes for London’s harsh winter. Which of the following activities in the consumer decision-making process does the
given scenario illustrate?
a.
Search for information
b.
Need recognition
c.
Evaluation of alternatives
d.
Postchoice evaluation
ANSWER:
b
84. Dave has been invited to dinner by his friend. On his way to the dinner, he decides to buy a bottle of wine for his host.
As he does not know much about wines, he chooses the brand that he had in the past. Which of the following decision-
making approaches best describes Dave’s choice of wine?
a.
Limited decision making
b.
Extended decision making
c.
Routine decision making
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d.
Habitual decision making
ANSWER:
a
85. The risk associated with the cost of a product is known as _____.
a.
physical risk
b.
financial risk
c.
social risk
d.
performance risk
ANSWER:
b
86. The situation in which consumers are presented with so many details and facts that they cannot assimilate them all is
referred to as _____.
a.
augmented reality
b.
information overload
c.
brand inertia
d.
search regret
ANSWER:
b
87. Which of the following is true of prepurchase search?
a.
It enables a consumer to reach a decision for a specific problem.
b.
It is not necessarily focused on an upcoming decision.
c.
It is the practice of using decision-making shortcuts to arrive at satisfactory, rather than optimal, decisions.
d.
It is the practice of reaching decisions based on prior beliefs about products and their attributes.
ANSWER:
a
88. Which of the following illustrates the behavioral influence decision-making perspective?
a.
Kate browsing the Internet and visiting all the well-known dealers in the city to compare prices and quality to
find the perfect sound system
b.
Marcie visiting a department store to shop for casualwear and deciding to buy a beautifully displayed evening
gown
c.
Tamara and her friend planning to spend an entire weekend relaxing at their favorite spa
d.
Leona visiting different dealerships and test-driving many cars before deciding which car to buy
ANSWER:
b
89. In selecting the best information source, consumers:
a.
consider the ease of obtaining information from the source.
b.
rely on the sources they know to be biased in favor of the product under consideration.
c.
with high self-esteem favor impersonal sources of information such as the Internet.
d.
do not consider the speed with which information can be obtained.
ANSWER:
a
90. In opportunity recognition, a consumer’s:
a.
desired state does not change.
b.
actual state does not change.
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95. Briefly describe five types of perceived risk that consumers face while making a buying decision.
c.
desired state changes to the actual state.
d.
actual state changes to the desired state.
ANSWER:
b
91. Explain search regret.
ANSWER:
Answers will vary. The term search regret refers to the negative emotions that come from failed search
processes. Many times, consumers are simply not able to find an acceptable solution to their problems. As a
result, the decision-making process stops. In these situations, consumers may feel as if the entire search
process was a waste of time, and they will start to feel search regret. Regret is related to the amount of search
effort, the emotions felt during the process, and the use of unfamiliar search techniques. Regret is more likely
to be experienced when consumers exert much energy, experience more emotion, and utilize unfamiliar
techniques during the search process.
92. Describe the three categories of alternatives found in the awareness set.
ANSWER:
Answers will vary. The awareness set includes the set of brands or alternatives of which a consumer is
aware. Alternatives that have been previously selected are included in this set, and the size of the awareness
set increases as external search proceeds. Within the awareness set, the following three categories of
alternatives are found:
• The consideration set: It includes the brands or alternatives that are considered acceptable for further
consideration in decision making.
• The inept set: It includes the alternatives in the awareness set that are deemed to be unacceptable for
further consideration.
• The inert set: It includes those alternatives to which consumers are indifferent, or for which strong
feelings are not held.
93. Differentiate between ongoing searches and prepurchase search activities.
ANSWER:
Answers will vary. In an ongoing search, the search effort is not necessarily focused on an upcoming
purchase or decision; rather, the effort is focused on simply staying up to date on a topic of interest.
Consumers who perform ongoing searches are usually highly involved with the product category and seek
information simply for enjoyment.Prepurchase search activities are focused on locating information that will
enable the consumer to reach a decision for a specific problem. These searches are purchase-specific.The
difference between ongoing searches and browsing behavior is that an ongoing search is performed when
consumers have an enduring interest or involvement with the product, not simply when information is being
gathered for a specific purchase.
94. Briefly discuss the rational decision-making perspective.
ANSWER:
Answers will vary. The rational decision-making perspective assumes that consumers diligently gather
information about purchases, carefully compare various brands of products on salient attributes, and make
informed decisions regarding what brand to buy. This approach centers on the assumption that human beings
are rational creatures who carefully consider their decisions and that they can identify the expected value
associated with a purchase. The act of selecting a cell-phone plan often follows a rational process.
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based on feeling—not on a drawn-out decision-making process. Value comes from the experience, not
necessarily from an end result. Variety-seeking behavior often results from feelings of boredom or a
perceived need for change. Consumers will sometimes switch brands or look for new products simply
ANSWER:
Answers will vary. Consumers make buying decisions in a number of different ways. The decision-making
approach that is used depends heavily on the amount of involvement a consumer has with a product category
or purchase and the amount of perceived risk involved with the decision. Following are five types of
perceived risk that consumers face while making a buying decision:
• Financial risk: It is the risk associated with the cost of the product.
• Social risk: It is the risk associated with how other consumers will view the purchase.
• Performance risk. It is the risk associated with the likelihood of a product performing as expected.
• Physical risk. It is the risk associated with the safety of the product and the likelihood that physical
harm will result from its consumption.
• Time risk: It is the risk associated with the time required to search for the product and the time
necessary for the product to be serviced or maintained
96. Briefly discuss the impact of the Internet on consumer search behavior.
ANSWER:
Answers will vary. Due to the popularity of search engines, social networking sites, and smartphone apps,
consumers can find solutions to all sorts of problems at their fingertips. The Internet has dramatically
affected search behavior. First, it lowers the costs associated with search and can make the process more
productive. Second, the search process itself has become more enjoyable by delivering hedonic value to the
consumer. Third, consumers now have the ability to control information flow much more efficiently than if
they are viewing product information from a television commercial. The ability to control information flow
increases informational value and increases the consumers’ ability to remember information that is gathered.
97. Explain the role of value perceptions in the consumer decision-making process.
ANSWER:
Answers will vary. Value perceptions influence decision-making activities. Consumers generally continue
searching for information about products only as long as the perceived benefits that come from searching
exceed the perceived costs associated with the process. In today’s smartphone world, it is easier than ever to
obtain information very quickly and easily, thereby making it beneficial for consumers to extend the search
process. Smartphone apps, including visual search and augmented reality-based applications, have made
search much easier.
98. Briefly discuss the effect of prior experience with a product on consumer search behavior.
ANSWER:
Answers will vary. Prior experience with a product has been shown to influence how much a consumer
searches. Evidence shows that moderately experienced consumers search for purchase-related information
more than do either experienced or inexperienced consumers. One explanation for the finding that
moderately experienced consumers search more than other consumers is that individuals with little
experience are unable to make fine distinctions between product differences and will likely see product
alternatives as being similar. As such, they find little value in extensive information search. Highly
experienced consumers can make fine distinctions between products and may know so much about products
that they do not need to search at all. Moderately experienced consumers, on the other hand, perceive some
differences among brands and are more likely to value information about these distinctions.
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