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1. The lexicographic rule is a noncompensatory decision rule where the option selected must surpass a minimum cutoff
across all relevant attributes.
a.
True
b.
False
ANSWER:
False
2. Subordinate product categories are abstract in nature.
a.
True
b.
False
ANSWER:
False
3. While deciding between two alternatives, if information about some attributes is not available, consumers tend to weigh
the criteria that are common to both alternatives quite heavily in the evaluation.
a.
True
b.
False
ANSWER:
True
4. Utilitarian criteria include emotional, symbolic, and subjective attributes or benefits that are associated with an
alternative.
a.
True
b.
False
ANSWER:
False
5. Hedonic criteria are largely experiential.
a.
True
b.
False
ANSWER:
True
6. The perceptual attributes of a product cannot be evaluated prior to actual purchase.
a.
True
b.
False
ANSWER:
False
7. Affect-based evaluation is an evaluative process wherein consumers evaluate alternatives across a set of attributes that
are considered relevant to the purchase situation.
a.
True
b.
False
ANSWER:
False
8. Marketers position products on the determinant criteria that apply to a specific situation.
a.
True
b.
False
ANSWER:
True
9. As a consumer’s level of knowledge increases, he or she is able to focus on criteria that are most important in making a
selection and to discount irrelevant information.
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a.
True
b.
False
ANSWER:
True
10. In the context of value and alternative evaluation, mood is influential when limited information is found about an
alternative.
a.
True
b.
False
ANSWER:
True
11. Older consumers rely more heavily on perceptual attributes than do younger consumers.
a.
True
b.
False
ANSWER:
False
12. The value that consumers believe they will receive from a product has a direct impact on their evaluation of that
product.
a.
True
b.
False
ANSWER:
True
13. The efforts by companies to improve the objective quality of their products are limited by consumer perceptions of
quality.
a.
True
b.
False
ANSWER:
True
14. The number of category levels in product categorization and details within each level is influenced by consumers’
familiarity and expertise with products.
a.
True
b.
False
ANSWER:
True
15. Consumers tend to use information about retailer reputation as a signal of quality when the purchase involvement is
low.
a.
True
b.
False
ANSWER:
True
16. The use of the lexicographic rule by consumers is very common because consumers usually know what features are
most important, and they simply select the product that offers the best performance on those features.
a.
True
b.
False
ANSWER:
True
17. In the context of product evaluation, new alternatives are compared to exemplars first and then to other brands that are
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found in the brand category.
a.
True
b.
False
ANSWER:
True
18. Hedonic criteria pertain to economic aspects associated with an alternative.
a.
True
b.
False
ANSWER:
False
19. With attribute-based evaluation, consumers evaluate products based on the overall feeling that is evoked by the
alternative.
a.
True
b.
False
ANSWER:
False
20. Studies indicate that too many varieties of products contribute to feelings of euphoria and happiness.
a.
True
b.
False
ANSWER:
False
21. Objective quality refers to the quality of a product based on consumer perceptions.
a.
True
b.
False
ANSWER:
False
22. When evaluating products, in some cases, perceptual attributes signal something about underlying attributes.
a.
True
b.
False
ANSWER:
True
23. When a product has a high price, consumers often assume it will be high quality.
a.
True
b.
False
ANSWER:
True
24. The ability of consumers to make accurate judgments when evaluating alternatives is influenced by their ability to
perceive differences in levels of stimuli between two options.
a.
True
b.
False
ANSWER:
True
25. Perceived quality refers to the quality of a product that is assessed through industry specification or expert rating.
a.
True
b.
False
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ANSWER:
False
26. Market mavens are trusted sources who can guide consumers in focusing on various product attributes.
a.
True
b.
False
ANSWER:
True
27. Whether a certain criterion is determinant or not is independent of the situation in which a product is consumed.
a.
True
b.
False
ANSWER:
False
28. The perceptual attributes of a product are not readily apparent and can only be learned through experience with the
product.
a.
True
b.
False
ANSWER:
False
29. Perceived quality, purchase intentions, and customer satisfaction can sometimes be improved by making consumers
wait.
a.
True
b.
False
ANSWER:
True
30. If a product is very different from products that are currently available, consumers avoid drawing on existing category
knowledge to guide their expectations and attitudes toward the new product.
a.
True
b.
False
ANSWER:
False
31. A consumer looking for a dress in a particular color is concerned with the perceptual attribute of the dress.
a.
True
b.
False
ANSWER:
True
32. The underlying attributes of a product are visually apparent and easily recognizable.
a.
True
b.
False
ANSWER:
False
33. Consumers display the tendency to jump to positive conclusions about service providers who promote themselves
positively on one feature but omit information on another feature.
a.
True
b.
False
ANSWER:
False
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34. In the context of the evaluation of alternatives, consumers can be relied upon to know the criteria that truly are
determinant.
a.
True
b.
False
ANSWER:
False
35. In the context of product categorization, superordinate categories are more detailed than subordinate categories.
a.
True
b.
False
ANSWER:
False
36. Which of the following is a tool that marketers use to assess consumers’ choice criteria?
a.
Attribute-based evaluation
b.
Just noticeable difference
c.
Attribute correlation
d.
Perceptual maps
ANSWER:
d
37. Hank purchases a lawn mower based on a quick price comparison. However, after using the lawn mower, he
acknowledges that the lawn mower is of superior quality. In acknowledging its superior quality, Hank is referring to its
_____.
a.
perceptual attributes
b.
underlying attributes
c.
determinant criterion
d.
hedonic criterion
ANSWER:
b
38. When Arthur decided that it was time for him to buy a new washing machine, his primary concerns were the price and
the capacity of the machine. Keeping this in mind, he compared and evaluated various brands and models. Arthur’s
primary focus was on the _____ of the washing machines.
a.
affective attributes
b.
performance attributes
c.
underlying attributes
d.
perceptual attributes
ANSWER:
d
39. In the context of product categorization, Honda Accord, a sedan, is an example of a(n) _____.
a.
abstract category
b.
subordinate category
c.
superordinate category
d.
highest-level category
ANSWER:
b
40. When Richard decided to buy a car, he chose a model with the highest safety rating that he could get in his budget.
Richard’s choice is most likely based on _____.
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a.
hedonic motivation
b.
utilitarian criterion
c.
affect-based evaluation
d.
conjoint analysis
ANSWER:
b
41. _____ is the perceived relationship between product features.
a.
Attribute correlation
b.
Underlying attribute
c.
Just noticeable difference
d.
Objective difference
ANSWER:
a
42. Jacob went to the grocery store to buy breakfast cereal. He picked up a few cereal boxes to look up their ingredients.
However, after going through a few boxes, he gave up and picked two different cereal boxes at random. He did not think
that collecting information about his options was worth his time. Jacob’s decision is an example of _____.
a.
an affect-based decision
b.
an attribute-based decision
c.
bounded rationality
d.
instrumental rationality
ANSWER:
c
43. Aaron is planning to purchase a laptop. He is assessing laptop features such as hard disk drive capacity, processor
speed, weight, and screen size, as well as the benefits associated with these features. The features and benefits that Aaron
is considering to assess whether a particular laptop will satisfy his requirements are referred to as _____.
a.
points of reference
b.
evaluative criteria
c.
ordinal variables
d.
underlying attributes
ANSWER:
b
44. Sean is planning to move to an apartment closer to the city center. He feels that staying closer to the city center will
reduce his daily commute. This is an example of a(n) _____.
a.
feature
b.
attribute
c.
benefit
d.
concept
ANSWER:
c
45. In the context of product categorization, Diet Coke, a brand of cola, is an example of a(n) _____.
a.
abstract category
b.
highest-level category
c.
subordinate category
d.
superordinate category
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ANSWER:
c
46. In the context of evaluating a car for buying, _____ is a hedonic criterion.
a.
number of seats
b.
fuel efficiency
c.
prestige
d.
safety
ANSWER:
c
47. Emotions play a big role in _____.
a.
attribute-based evaluation
b.
affect-based evaluation
c.
utilitarian evaluation
d.
function evaluation
ANSWER:
b
48. In the context of criteria selection when evaluating products, which of the following is true of consumer behavior?
a.
Consumers use information about color, feel, and brand name when they are not concerned about purchase
risks.
b.
Young and inexperienced consumers rely more heavily on perceptual attributes than do older consumers.
c.
Consumers use information about retailer reputation as signals about quality when the purchase involvement is
high.
d.
Consumers use information about brand name and price as markers of quality when they have product
expertise.
ANSWER:
b
49. Which of the following statements is true of the perceptual attributes of a product?
a.
They refer to the post-purchase performance of a product.
b.
They are not readily apparent or visible.
c.
They can be evaluated prior to actual purchase.
d.
They are referred to as experience qualities.
ANSWER:
c
50. Which of the following is true of noncompensatory rules?
a.
They do not have a guideline fixed prior to selection.
b.
They are not used in low-involvement situations.
c.
They allow consumers to simplify their thought processes.
d.
They are most likely to lead to impulsive purchases.
ANSWER:
c
51. _____ allow consumers to select products that may perform poorly on one attribute by compensating for the poor
performance by good performance on another attribute.
a.
Conjunctive rules
b.
Disjunctive rules
c.
Lexicographic rules
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d.
Compensatory rules
ANSWER:
d
52. The attitude-toward-the-object model represents a _____.
a.
noncompensatory approach
b.
disjunctive approach
c.
conjunctive approach
d.
compensatory approach
ANSWER:
d
53. _____ describes the idea that perfectly rational decisions are not always feasible because of constraints found in
information processing.
a.
Rational ignorance
b.
Rational expression
c.
Instrumental rationality
d.
Bounded rationality
ANSWER:
d
54. Marketers use _____ to assess consumers’ choice criteria.
a.
affect-based evaluation
b.
just noticeable difference
c.
conjoint analysis
d.
attribute correlation
ANSWER:
c
55. When Carla had to choose one among three vacation destinations, she chose one that scored low on an important
attribute of being tourist friendly. She chose that location because it was the least expensive and the most convenient to
travel to. In the given scenario, which of the following decision rules has Carla used to choose a vacation destination?
a.
The conjunctive rule
b.
The disjunctive rule
c.
Compensatory rules
d.
Noncompensatory rules
ANSWER:
c
56. While shopping for a new dress to wear at her high school reunion, Gemma buys an expensive designer dress because
of the prestige associated with the designer brand. She wants to convey to her old classmates that she is rich and
successful. Gemma most likely decided on the dress on the basis of _____.
a.
hedonic criteria
b.
enduring involvement
c.
conjoint analysis
d.
temporal factors
ANSWER:
a
57. Ophelia wants to buy a new hair dryer. She considers four models and assigns them belief ratings from 1 = very poor
to 10 = very good and importance ratings from 1 = least important to 10 = most important. She sets a mental cutoff of 5 as
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a selection criterion for the model. Which of the following models is Ophelia most likely to select if she employs the
elimination-by-aspects rule to make the decision?
Attribute
Importance
Model A
Model B
Model C
Model D
Belief ratings
Belief ratings
Belief ratings
Belief ratings
Low price
8
7
4
3
6
Power efficiency
6
4
6
7
8
Styling
9
8
7
6
7
a.
Model A
b.
Model B
c.
Model C
d.
Model D
ANSWER:
d
58. Carl wants to buy a video game console. He has identified two important attributes to compare: price and game
options. Carl decides that he will reject the consoles that fail to meet the minimum cutoffs he has set for both the
attributes. Which of the following decision rules is Carl employing to choose a video game console?
a.
The elimination-by-aspects rule
b.
The compensatory rule
c.
The conjunctive rule
d.
The lexicographic rule
ANSWER:
c
59. Henry wanted to buy a sectional sofa with in-built recliners. He extensively researched sofas and consulted his friends
before buying one. While making his final decision, he focused on features such as size, fabric, cushions, and padding and
ignored irrelevant information such as popularity and decorative accessories. Which of the following factors enabled
Henry to discount irrelevant information?
a.
Online social network
b.
Marketing communication
c.
Peer influence
d.
Product knowledge
ANSWER:
d
60. _____ include emotional, symbolic, and subjective attributes or benefits that are associated with an alternative.
a.
Utilitarian criteria
b.
Hedonic criteria
c.
Determinant criteria
d.
Subordinate categories
ANSWER:
b
61. Which of the following is true of determinant criteria?
a.
They do not change with circumstances.
b.
They cannot be established by statistical methods.
c.
They depend on the situation in which a product is consumed.
d.
They are easier to establish when several attributes are important.
ANSWER:
c
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62. In the context of value and alternative evaluation, which of the following statements is true of the way consumers
process information to solve a problem?
a.
Consumers almost never minimize the effort that they put into alternative evaluation and choice.
b.
Consumers do not settle for a solution just because it is good enough to solve a problem.
c.
Consumers often settle for a solution that is simply good enough to solve a problem.
d.
Consumers almost always maximize the effort that they put into alternative evaluation and choice.
ANSWER:
c
63. In a phone with a large screen size, ease of viewing is a(n) _____.
a.
feature
b.
attribute
c.
characteristic
d.
benefit
ANSWER:
d
64. Which of the following statements is true of the underlying attributes of a product?
a.
They are readily apparent and easily recognizable.
b.
They can be easily evaluated prior to actual purchase.
c.
They are often perceived only during consumption.
d.
They are also referred to as search qualities.
ANSWER:
c
65. Which of the following decision rules is most commonly used by people?
a.
The lexicographic rule
b.
The disjunctive rule
c.
The conjunctive rule
d.
The elimination-by-aspects rule
ANSWER:
a
66. Identify a true statement about noncompensatory rules.
a.
Product selection is guided by intuition rather than a methodology.
b.
The attitude-toward-the-object model is an example of a noncompensatory rule.
c.
Noncompensatory rules are often used in low-involvement situations.
d.
Noncompensatory rules are used when there are only one or two options available.
ANSWER:
c
67. Nadine wants to buy a new hair straightener to style her hair. She considers four models and assigns them belief
ratings from 1 = very poor to 10 = very good and importance ratings from 10 = most important to 1 = least important. She
sets a mental cutoff of 5 as a selection criterion for the model. According to the lexicographic rule, which of the following
models is Nadine most likely to select?
Attribute
Importance
Model A
Model B
Model C
Model D
Belief ratings
Belief ratings
Belief ratings
Belief ratings
Low price
7
7
4
3
1
Power efficiency
6
6
6
5
8
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Ease of Styling
9
6
7
8
7
a.
Model A
b.
Model B
c.
Model C
d.
Model D
ANSWER:
c
68. Which of the following is true of online retail stores?
a.
Online retailers are beginning to build physical stores.
b.
Online business seems to be declining lately.
c.
The brick and mortar store sales are much better than online sales during “Black Friday and “Cyber Monday”.
d.
Consumers feel that they have access to a wider selection of merchandise in brick-and-mortar stores.
ANSWER:
a
69. Which of the following is true of noncompensatory rules?
a.
Products with poor performance on one attribute compensate for it by good performance on another attribute.
b.
Any option that does not meet the specifications of consumers is eliminated from consideration.
c.
Noncompensatory rules are used to understand the attributes that guide preferences by having consumers
compare products across levels of evaluative criteria.
d.
Consumers usually do not use noncompensatory rules to choose products.
ANSWER:
b
70. Lisa plans to buy a sewing machine. She evaluates different brands of the product and chooses one that makes the
least noise. Which of the following is most likely to account for Lisa’s choice of sewing machine?
a.
The compensatory rule
b.
The conjunctive rule
c.
The lexicographic rule
d.
The elimination-by-aspects rule
ANSWER:
c
71. Which of the following is true of benefits?
a.
They play an important role in the value equation.
b.
They represent the performance characteristic of an object.
c.
They allow a consumer to diagnose something distinctive about an alternative.
d.
They are visually apparent and easily recognizable.
ANSWER:
a
72. When consumers need to purchase a refrigerator, they usually evaluate different models across a set of features or
characteristics such as storage capacity, freezer shelving, and energy efficiency. Such an evaluation is an example of
_____.
a.
qualitative evaluation
b.
hedonic evaluation
c.
attribute-based evaluation
d.
affect-based evaluation
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ANSWER:
c
73. _____ refers to the actual quality of a product that can be assessed through industry specification or expert rating.
a.
Attribute correlation
b.
Perceptual attribute
c.
Objective quality
d.
Retail personality
ANSWER:
c
74. John is evaluating four brands of televisions. He first compares their picture quality, and all four alternatives meet his
picture quality requirements. He then compares their HDMI options. Two of the brands do not have an HDMI input
provision, so he disregards them. Of the remaining two, the price of one exceeds his budget. He is left with only one
option, which he decides to purchase. Which of the following decision rules does John employ to arrive at his decision?
a.
The conjunctive rule
b.
The disjunctive rule
c.
The elimination-by-aspects rule
d.
The lexicographic rule
ANSWER:
c
75. Wendy generally buys tuberoses because she likes their fragrance. She purchases them even though they are not as
pretty as some other flowers. However, when she buys flowers for her friends, she chooses ornamental orchids, even
though she is not particularly fond of orchids. Which of the following factors most likely guides Wendy’s choice of
flowers for her friends?
a.
Situational influence
b.
Affect-based influence
c.
Conjoint analysis
d.
Quantitative analysis
ANSWER:
a
76. Serena is evaluating two different models of hair dryers—Model A and Model B. She assigns belief ratings from 1 =
very poor to 10 = very good and importance ratings from 10 = most important to 1 = least important. She sets a minimum
mental cutoff point of 5 for all the features. Which of the following models is most likely to be selected by Serena if she
employs the conjunctive rule to make the decision?
Attributes
Importance
Model A
Model B
Belief ratings
Belief ratings
Low price
8
7
4
Styling
9
6
7
Power efficiency
6
8
10
a.
Model A, as all the features have a rating above 5
b.
Model B, as it has the highest power efficiency of 10
c.
Model B, as it scores the highest on the styling criterion
d.
Model A, as it scores highest on the low price attribute
ANSWER:
a
77. A(n) _____ is a perceived favorable result that is derived from the presence of a particular feature.
a.
characteristic
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b.
attribute
c.
benefit
d.
touchpoint
ANSWER:
c
78. Certain characteristics of an automobile such as the navigation system, the automatic gear transmission system, and
safety air bags are relevant to how the automobile functions or operates. These characteristics are examples of the
automobile’s _____.
a.
interval variables
b.
benefits
c.
features
d.
ordinal variables
ANSWER:
c
79. Mental assessments of the presence of attributes and the benefits associated with those attributes are known as _____.
a.
intuitions
b.
judgements
c.
schemas
d.
perceptual maps
ANSWER:
b
80. Henry considered only two features to finally select the laptop he wanted to buy: the efficiency of the CPU and the
capacity of the hard disk drive. These features represent the _____.
a.
determinant criteria
b.
affect-based criteria
c.
hedonic criteria
d.
superordinate criteria
ANSWER:
a
81. The term _____ is used to describe the practice of offering essentially identical products with different model numbers
or names.
a.
brand positioning
b.
branded extensions
c.
brand equity
d.
branded variants
ANSWER:
d
82. Which of the following statements is true of the issues that affect consumer judgments?
a.
Brand names do not have a significant impact on consumer judgments.
b.
Brand names are stronger signals of quality than is price.
c.
Brand inertia is often used by consumers as a signal of quality.
d.
Unexpected brand names usually lead to decreased product preference.
ANSWER:
b
83. When John bought a phone with a camera, he chose one that could take 12-megapixel pictures over one that could
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take 8-megapixel pictures. John felt the picture resolution of the phone he bought was much better than the alternative
choice. In the given scenario, John’s perception is most likely affected by _____.
a.
the just noticeable difference
b.
brand name association
c.
the terminal threshold
d.
attribute correlation
ANSWER:
a
84. Of the various drinks available in a market, which of the following is an example of a superordinate category?
a.
Beverage
b.
Tea
c.
Milk
d.
Juice
ANSWER:
a
85. The underlying attributes of a product are referred to as _____.
a.
features
b.
search qualities
c.
experience qualities
d.
signals
ANSWER:
c
86. _____ is a decision rule where the consumer begins evaluating by first looking at the most important attribute and
ruling out any option that does not meet a minimum cut-off point for that attribute, and where subsequent evaluations
proceed in order of importance until only one option remains.
a.
The lexicographic rule
b.
The elimination-by-aspects rule
c.
The disjunctive rule
d.
The conjunctive rule
ANSWER:
b
87. In the context of the furnishings, which of the following product categories is an example of a superordinate category?
a.
Furniture
b.
Chair
c.
Sofa
d.
Dining table
ANSWER:
a
88. In the context of evaluating a house for buying, which of the following is a utilitarian criterion?
a.
Aesthetic view
b.
Proximity to work
c.
Upscale neighborhood
d.
A gazebo
ANSWER:
b
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categories of criteria when evaluating alternatives and making a final choice.
94. How do consumers deal with missing product attribute information when they are comparing two products?
89. In the context of consumer choice, which of the following statements is true?
a.
Consumers have gradually become less brand-loyal and more store-loyal.
b.
Consumers do not tend to consider the products that are carried by a particular store.
c.
Store image does not play any role in consumer choice.
d.
The location of a store does not play any role in consumer choice.
ANSWER:
a
90. When Jane wanted to buy jewelry for her wedding, she decided to purchase it from a store that her mother patronized.
She didn’t spend any time looking for jewelry in other stores. All that mattered to her was the emotion associated with
buying something closely associated with her childhood. Jane’s decision is most likely based on _____.
a.
utilitarian criteria
b.
functional criteria
c.
attribute-based evaluation
d.
affect-based evaluation
ANSWER:
d
91. Explain affect-based and attribute-based evaluations with an example of each.
ANSWER:
Answers will vary. We can distinguish between two major types of evaluation processes: affect-based and
attribute-based. With affect-based evaluation, consumers evaluate products based on the overall feeling that
is evoked by the alternative. A consumer remark like “I’m not even sure why I bought this sweater; I just
liked it” reflects an affect-based process. Emotions play a big role in affect-based evaluation, as do mood
states. With attribute-based evaluation, alternatives are evaluated across a set of attributes that are considered
relevant to the purchase situation. For example, a consumer may want to find a television that has at least a
50-inch screen, has the best picture clarity, a good warranty and surround sound. All of these features would
be considered in the selection process.
92. List the factors that influence the type of evaluative criteria that consumers use when evaluating alternatives.
ANSWER:
Answers will vary. The factors that influence the type of criteria that consumers use when evaluating
alternatives are listed below:
• Situational influences
• Product knowledge
• Expert opinions
• Social influences
• Online sources
• Marketing communications
93. Explain the difference between hedonic criteria and utilitarian criteria.
ANSWER:
Answers will vary. The criteria that consumers use when evaluating a product can often be classified as
either hedonic or utilitarian. Hedonic criteria include emotional, symbolic, and subjective attributes or
benefits that are associated with an alternative. For example, the prestige that one associates with owning a
BMW is a hedonic criterion. These criteria are largely experiential. Utilitarian criteria pertain to functional or
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ANSWER:
Answers will vary. Consumers may have a good understanding of the types of attributes that they would like
to use for alternative evaluation, but sometimes attribute information is not available. Consumers tend to
weigh the criteria that are common to both alternatives quite heavily in the evaluation. They also tend to
discount information that is missing for the option that performs better on the common criteria. Consumers
jump to all kinds of conclusions when faced with missing information. Recent research in services marketing
reveals that consumers display the tendency to jump to negative conclusions about service providers who
promote themselves positively on one feature but omit information on another feature. This is called an
“innuendo effect.“
95. Explain the impact of attribute correlation on consumer perception.
ANSWER:
Answers will vary. Consumers often make judgments about features based on their perceived relationship
with other features. For example, price is often used as a signal for quality. Here, consumers rely on attribute
correlation to describe the perceived relationship between attributes of products. Price and quality are often
assumed to be positively correlated. When a product has a high price, consumers often assume it will be high
quality. Attributes can also be negatively correlated. For example, if a consumer’s wait time at a bank is long,
he might think that the bank offers poor service. Here, the consumer assumes that as wait time goes up,
service quality goes down (hence, a negative correlation). This can be a faulty assumption, because a long
wait time may simply mean that consumers get individualized attention and really good service. Some things
are worth waiting for. In fact, perceived quality, purchase intentions, and customer satisfaction can even be
improved by making consumers wait.
96. How does quality perception of consumers affect marketing?
ANSWER:
Answers will vary. Consumer perception is critical to marketing success. Perceptions are not always in line
with reality. One issue that pertains to consumer judgments is the difference between objective quality and
perceived quality. Objective quality refers to the actual quality of a product that can be assessed through
industry specification or expert rating. Companies spend a great deal of time and money on improving the
objective quality of their products. These efforts are limited, however, by consumer perceptions of quality.
For example, a cell phone provider may advertise that its service has been proven to have the fewest dropped
calls in the industry. Perceived quality is based on consumer perceptions. Even if the cell phone has
objectively been shown to have the best coverage in the industry, consumers may still perceive poor quality
if the coverage in their immediate area is not good.
97. Describe the four types of noncompensatory decision rules that consumers use when selecting products.
ANSWER:
Answers will vary. There are four major categories of noncompensatory decision rules that consumers use
when selecting products. They include the conjunctive rule, the disjunctive rule, the lexicographic rule, and
the elimination-by-aspects (EBA) rule.
• Conjunctive rule: Following the conjunctive rule, consumers set a minimum mental cutoff point for
various features and reject any product that fails to meet or exceed this cutoff point across all
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98. Explain the concept of product categorization by consumers?
ANSWER:
Answers will vary. One of the first things that a consumer does when she receives information from the
environment is attempt to make sense of the information by placing it in the context of a familiar category.
Existing schemata allows consumers to provide meaning to objects. Product categories are mental
representations of stored knowledge about groups of products. When considering a new product, consumers
rely on the knowledge that they have regarding the relevant product category. Knowledge about the existing
category is then transferred to the novel item. For example, when consumers view a tablet for the first time,
they start to compare it with existing tablets. Even if a product is very different from products that are
currently available, consumers still draw on existing category knowledge to guide their expectations and
attitudes toward the new product.
99. Briefly explain the difference between the compensatory and noncompensatory decision rules that consumers use
when selecting products.
ANSWER:
Answers will vary. Compensatory rules allow consumers to select products that may perform poorly on one
attribute by compensating for the poor performance by good performance on another attribute. A consumer
using a compensatory rule might say something like “It’s OK that this car isn’t very stylish; it gets good gas
mileage. I’ll buy it.” Noncompensatory models do not allow for this process to take place. Rather, when
noncompensatory rules are used, strict guidelines are set prior to selection, and any option that does not meet
the specifications is eliminated from consideration. For example, a consumer might say, “I’ll only choose a
car that gets good gas mileage. I am not budging on that.”
100. Briefly discuss the concept of just noticeable difference (JND) and its implications.
ANSWER:
Answers will vary. The ability of consumers to make accurate judgments when evaluating alternatives is
influenced by their ability to perceive differences in levels of stimuli between two options. The just
noticeable difference (JND) represents how much stronger one stimulus must be compared to another if
someone is to notice that the two are not the same. For example, when judging picture quality on an HDTV,
a consumer may not be able to discern the difference between refresh rates of 120 Hz and 240 Hz. In fact,
most consumers can’t see the difference. If consumers cannot tell the difference, then their judgments about
the products may not be accurate. Sometimes, the same manufacturer offers different brands or models that
are very similar to each other. The term branded variants is used to describe the practice of offering
essentially identical products with different model numbers or names. Even if differences are perceived, the
differences might not be very meaningful. The impact of the JND on consumer judgments also applies to
how consumers react to counterfeit products. Some counterfeits are so much like the original that consumers
simply can’t perceive the difference. This is a bad situation for marketers of the original.