Chapter 12: Decision Making I: Need Recognition and Search
TRUE/FALSE
1. The basic consumer behavior consumption process revolves around value-seeking activities that
consumers perform as they go about satisfying needs.
2. The activities found in the decision-making process are referred to as steps because consumers proceed
through the activities in a sequential fashion.
3. A consumer who initiates the decision-making process always completes the process.
4. Decision-making processes always involve a tangible product.
5. Value perceptions influence the activities found in the decision-making process.
6. Decision-making perspectives guide consumers on how to approach decision making.
7. Consumer decisions can seldom be analyzed from a combination of decision-making perspectives.
8. The rational decision-making perspective 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.
9. The rational decision-making perspective focuses on the utilitarian value received from the product.
10. Experiential decision processes often focus on utilitarian value.
11. Retailers use the “brand–lift index” to measure the incremental sales that occur when a product is on
display.
12. The decision-making approach that is used depends heavily on the amount of involvement a consumer
has with a product purchase and the amount of perceived risk involved with the decision.
13. Perceived risk refers to the perception of the negative consequences that are likely to result from a
course of action and the uncertainty of which course of action is best to take.
14. Physical risk is the risk associated with how other consumers will view the purchase.
15. Performance risk is risk associated with the likelihood of a product performing as expected.
16. The perceived risk for a product or service remains the same across consumers and situations.
17. Consumers engage in extended decision making when they put off the decision making for a later time
and restrain themselves from getting involved with the product in consideration.
18. Extended decision making occurs when involvement is high and when there is a significant amount of
purchase risk involved with the decision.
19. With limited decision making, consumers search for extensive information on product prices as they
have limited amount of money to spend.
20. Limited decision making usually occurs when there are relatively low amounts of purchase risk and
product involvement.
21. With habitual decision making, consumers seek extensive information as most consumers experience
high involvement with their habits.
22. Brand loyalty involves deeply-held commitment to rebuy a product or service regardless of situational
influences that could lead to switching behavior.
23. Brand inertia is present when a consumer simply buys a product repeatedly without any real
attachment.
24. A consumer is considered loyal if she simply buys the same product habitually.
25. Brand loyalty has an impact on the value of the brand to the firm.
26. Satisficing is the practice of using decision-making shortcuts to arrive at satisfactory, rather than
optimal, decisions.
27. Need recognition occurs when a consumer’s actual state matches his/her desired state.
28. In opportunity recognition, a consumer’s actual state doesn’t change, but his or her desired state
changes in some significant way.
29. The end state is the perceived state for which the consumer strives.
30. Consumer search behavior refers to the behaviors that consumers engage in as they seek information
that can be used to satisfy needs.
31. In an ongoing search, the search effort is focused on simply staying up to date on a topic of interest.
32. Prepurchase search activities are focused on locating information that will enable the consumer to
reach a decision for a specific problem.
33. 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.
34. Information overload refers to the situation in which consumers are presented with so much
information that they cannot assimilate it all.
35. Internal search includes the retrieval of knowledge about products, services, and experiences that are
stored in memory.
36. The total collection of all possible solutions to a recognized need is referred to as the universal set of
alternatives.
37. The size of the awareness set decreases as external search proceeds.
38. The inert set includes those alternatives to which consumers are indifferent, or for which strong
feelings are not held.
39. Alternatives that are deemed to be unacceptable for further consideration in decision making comprise
a consumer’s inert set.
40. Research confirms that consumers generally consider only a small fraction of the actual number of
problem solutions that are available.
41. The term evaluative criteria is used to refer to the product attributes that consumers consider when
reviewing possible solutions to a problem.
42. Price is information signaling how much potential value may be derived from consuming something.
43. Consumers who are very sensitive to the negative role of price tend to be very bargain conscious.
44. A positive role of price exists when product price signals the desirability as well as the prestige
associated with owning the product.
45. Quality represents the perceived overall goodness or badness of a product.
46. The ability to control information flow increases the value of information and increases the
consumers’ ability to remember information that is gathered.
47. Situational factors influence the amount of search that takes place.
48. Search tends to decrease as a consumer’s level of education and income increases.
49. Regret is less likely to be experienced when consumers exert much energy and utilize unfamiliar
techniques during the search process.
50. The term search regret refers to the negative emotions that come from failed search processes.
MULTIPLE CHOICE
1. When Carl, a Cuban, migrated to England, he realized he had no suitable clothes for the winter. Carl
felt that he required some warm clothes to brace himself up for the English winter. Which of the
following activities in the decision-making process represents this perceived requirement?
a.
Need recognition
b.
Search for information
c.
Evaluation of alternatives
d.
Choice
e.
Postchoice evaluation
2. When Carl decided to migrate to England, he was preoccupied with looking up on the Internet for data
on accommodation. He also talked with his friends and relatives in England on available options for
stay on his arrival. Which of the following activities in the decision-making process best represents
Carl’s preoccupation?
a.
Need recognition
b.
Search for information
c.
Evaluation of alternatives
d.
Choice
e.
Postchoice evaluation
3. When Carl arrived in England, he compared four different options for accommodation, keeping in
mind the budget as well as the neighborhood culture that would suit him. Which of the following
activities in the decision-making process best represents Carl’s comparison?
a.
Need recognition
b.
Search for information
c.
Evaluation of alternatives
d.
Choice
e.
Postchoice evaluation
4. When Carl migrated to England, he decided to stay in a cottage in Goodwood, Leicester, even though
he had the option of staying in a better place. He opted to stay in Goodwood as the rent was reasonable
and the neighborhood culture suited him well. Which of the following activities in the decision-making
process best represents Carl’s decision to stay in Goodwood?
a.
Need recognition
b.
Search for information
c.
Evaluation of alternatives
d.
Choice
e.
Postchoice evaluation
5. It has been a month since Carl moved into a new apartment in Leicester. He spent most of his life
savings on purchasing the apartment. He now considers his decision and feels that he has made the
right selection in terms of the amount of money spent and the value received on the purchase. Which
of the following activities in the decision-making process best represents Carl’s consideration of his
decision?
a.
Need recognition
b.
Search for information
c.
Evaluation of alternatives
d.
Choice
e.
Postchoice evaluation
6. Which of the following is true about the consumer decision-making process?
a.
Consumers always proceed through the activities in the decision-making process in a
sequential fashion.
b.
Consumers always complete the decision-making process once it is initiated.
c.
Consumers’ decision–making processes don’t always involve a tangible product.
d.
Consumers’ decision-making processes operate independently of any value perceptions.
e.
Consumers’ decision making doesn’t always involve choices linked to value.
7. Which of the following decision-making perspectives 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?
a.
Rational decision-making perspective
b.
Experiential decision-making perspective
c.
Behavioral influence decision-making perspective
d.
Functional decision-making perspective
e.
Implemental decision-making perspective
8. Greg is considering the purchase of a new truck. He wants to purchase the best one within his budget.
He searches the Internet, asks friends, and visits dealerships to learn more about different brands and
their features. He even found a website where he can directly compare different brands to help him in
his decision. Which of the following decision-making perspectives would best describe Greg’s
decision-making process?
a.
Experiential decision-making perspective
b.
Behavioral influence decision-making perspective
c.
Functional decision-making perspective
d.
Implemental decision-making perspective
e.
Rational decision-making perspective
9. 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.
Rational decision-making perspective
b.
Experiential decision-making perspective
c.
Functional decision-making perspective
d.
Behavioral influence decision-making perspective
e.
Implemental decision-making perspective
10. Tina, a consumer researcher, assumes that her buying decisions are influenced majorly by the
emotions associated with the product, such as the enjoyment involved with the use of the product or
service. Which of the following decision-making perspectives does Tina demonstrate?
a.
Rational decision-making perspective
b.
Experiential decision-making perspective
c.
Behavioral influence decision-making perspective
d.
Functional decision-making perspective
e.
Implemental decision-making perspective
11. Which of the following decision-making perspectives assumes that many decisions are learned
responses to environmental influences?
a.
Rational decision-making perspective
b.
Experiential decision-making perspective
c.
Behavioral influence decision-making perspective
d.
Functional influence decision-making perspective
e.
Implemental decision-making perspective
12. Which of the following is true about behavioral influence decision-making perspective?
a.
Consumers are rational and they diligently gather information about purchases.
b.
Consumers compare various brands of products on salient attributes.
c.
Consumers’ behaviors are influenced by environmental forces.
d.
Consumers make informed decisions regarding what brand to buy.
e.
Consumers’ behaviors are influenced by cognitive decision making.
13. Which of the following is an example of behavioral influence perspective?
a.
Marcie goes window-shopping with her friends and buys a designer gown that is on
display at a store.
b.
Kate needs to buy a wedding gown. She surfs the Internet and visits all the boutiques in
Florida to compare prices and quality.
c.
Mandy loves skiing and she has signed herself up for an expensive ski training in
Switzerland.
d.
Tamara plans to spend an entire weekend relaxing at her favorite spa.
e.
Leon wants to buy a new automobile. He visits a few dealerships and test-drives quite a
few automobiles. He compares prices and features of the various models before selecting
one.
14. Tina, a consumer researcher, conducted a research on consumers’ dining behaviors. The research
findings showed that diners tend to spend more time and money when the ambience consists of dim
light and soft music being played in the background. Which of the following decision-making
perspectives best corresponds to Tina’s research findings on her research subjects?
a.
Rational decision-making perspective
b.
Experiential decision-making perspective
c.
Behavioral influence decision-making perspective
d.
Functional decision-making perspective
e.
Implemental decision-making perspective
15. Which of the following is true of the experiential decision-making perspective?
a.
It assumes that consumers follow a “think-feel-do” hierarchy in making decisions.
b.
It assumes that consumers’ decision-making involves extensive cognitive effort.
c.
It assumes that consumers’ decision-making processes merely focus on utilitarian value.
d.
It assumes that consumers’ behaviors are based largely on the sheer enjoyment involved
with consumption.
e.
It assumes that consumers derive value from the end result of their decisions and not the
experience.
16. The perception of the negative consequences that are likely to result from a course of action and the
uncertainty of which course of action is best to take is referred to as perceived _____.
a.
need
b.
stress
c.
value
d.
inertia
e.
risk
17. Risk associated with the cost of the product is known as _____ risk.
a.
social
b.
physical
c.
performance
d.
time
e.
financial
18. Most young adults would like to own a high-end luxury automobile, even though most of them could
not afford one. Which of the following types of risk is likely to prevent them from purchasing one?
a.
Financial risk
b.
Social risk
c.
Performance risk
d.
Safety risk
e.
Time risk
19. Risk associated with how other consumers will view the purchase is referred to as _____ risk.
a.
financial
b.
performance
c.
social
d.
physical
e.
time
20. Ben just got a high-paying job and wants to buy an expensive car. However, he was raised in a family
where spending on luxury is considered wasteful. Even though Ben dreams of replacing his old car
with an expensive one, he is very concerned about how his parents and relatives will react to his
purchase decision. Which of the following best reflects Ben’s concern?
a.
Financial risk
b.
Social risk
c.
Performance risk
d.
Physical risk
e.
Time risk
21. Risk associated with the likelihood of a product functioning as expected is referred to as _____ risk.
a.
financial
b.
physical
c.
social
d.
time
e.
performance
22. Hal is considering purchasing a hybrid automobile as he wants better gas mileage as well as an
environment-friendly car. However, he is concerned that the car might not function the way he is
anticipating it to. Which of the following best reflects Hal’s concern?
a.
Financial risk
b.
Physical risk
c.
Performance risk
d.
Time risk
e.
Social risk
23. Risk associated with the safety of the product as well as its consumption is referred to as _____ risk.
a.
financial
b.
performance
c.
social
d.
physical
e.
time
24. John’s kids have been pestering him to buy them shoes with wheels. However, he’s concerned whether
using such shoes would be safe for his children or make them more prone to injuries. Which of the
following best reflects John’s concern?
a.
Financial risk
b.
Physical risk
c.
Performance risk
d.
Time risk
e.
Social risk
25. Some consumers won’t purchase certain brands of automobiles because there is no dealership in their
town to provide maintenance services for their vehicles. In some cases, they would have to drive for
several hours to the closest dealership. Which of the following is most likely influencing the decision
against purchasing one of these brands?
a.
Financial risk
b.
Physical risk
c.
Performance risk
d.
Time risk
e.
Social risk
26. In which of the following types of decision-making approaches do consumers tend to search diligently
for information that will help them reach a satisfactory decision?
a.
Rational decision making
b.
Limited decision making
c.
Extended decision making
d.
Habitual decision making
e.
Routine decision making
27. Carl and Sarah, newlyweds, are considering the purchase of their first house. They are very involved
with this purchase decision, particularly because they will be spending their entire savings on this
purchase. They have been searching for information on the Internet and asking for opinions from
friends and family. Which of the following decision-making approaches are they most likely
employing?
a.
Experiential decision making
b.
Habitual decision making
c.
Routine decision making
d.
Extended decision making
e.
Limited decision making
28. Which of the following types of decision-making approaches occurs when there are relatively low
amounts of purchase risk and product involvement?
a.
Limited decision making
b.
Extended decision making
c.
Experiential decision making
d.
Involved decision making
e.
Timed decision making
29. Which of the following statements is true about habitual decision making?
a.
It occurs when a consumer believes the consumption of a specific product that they have
in mind will solve the problem and deliver value.
b.
It involves extensive evaluation of alternatives based on the potential to satisfy a particular
need.
c.
It occurs when a consumer’s involvement with the particular product category is high.
d.
It occurs when the perceived risk for the particular product is high.
e.
It involves a time-consuming process of collecting information and comparing brands.
30. When Anna goes shopping for groceries every week, she buys the same brand of orange juice that her
family has been consuming for years. She picks up the juice without looking at the product
information prior to buying it. Which of the following types of decision-making approaches is Anna is
most likely adopting while buying orange juice?
a.
Extended decision making
b.
Rational decision making