c.
Habitual decision making
d.
Involved decision making
e.
Timed decision making
31. When Dane was invited for dinner by his friend who is a self-confessed cheese lover, Dane felt
obligated to buy cheese for him. However, Dane has very little knowledge of cheese and seldom buys
it. On the day of the dinner, he was stalled at work with some business meetings and did not have the
time to decide on which cheese to buy. He grabbed the first block of cheese he saw at the store for his
friend. Which of the following decision-making approaches best reflects Dane’s final choice of
cheese?
a.
Limited decision making
b.
Extended decision making
c.
Habitual decision making
d.
Routine decision making
e.
Involved decision making
32. Which of the following is a deeply-held commitment to rebuy a product or service regardless of
situational influences that could lead to switching behavior?
a.
Brand equity
b.
Brand inertia
c.
Brand longevity
d.
Brand preference
e.
Brand loyalty
33. Laurie owns a Pluto X20 convertible. She and her husband have owned several other Pluto
automobiles 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 the Pluto dealership in the city
she just moved to. Nevertheless, she still decides to purchase a Pluto Y20 this year for her daughter
and another Z20 when she needs a new car in a few years. Which of the following best illustrates
Laurie’s engagement with Pluto automobiles?
a.
Brand loyalty
b.
Brand inertia
c.
Brand longevity
d.
Brand consistency
e.
Brand equity
34. When a consumer simply buys a product repeatedly without any real attachment, it is referred to as
brand _____.
a.
loyalty
b.
inertia
c.
longevity
d.
consistency
e.
persistence
35. Many consumers shop at discount stores, even though they don’t really like shopping there. Most of
the consumers don’t feel any connection with the store; it’s just that they don’t want to pay higher
prices elsewhere. Which of the following best describes this phenomenon of shopping repeatedly at
discount stores without a commitment or feeling of connectedness to the store?
a.
Brand loyalty
b.
Brand inertia
c.
Brand equity
d.
Brand consistency
e.
Brand longevity
36. The practice of using decision-making shortcuts to arrive at satisfactory, rather than optimal, decisions
is called _____.
a.
modeling
b.
satisficing
c.
shilling
d.
shaping
e.
renquing
37. When Joanna decided to buy a laptop, she was overwhelmed by the amount of information available
on helping one to decide on the right laptop. Even though she tried to assimilate all the information
and make use of it, she was exhausted from trying to understand all the technical jargons. She finally
decided to use product price as an indicator of quality. Which of the following best describes Joanna’s
method of decision making?
a.
Shilling
b.
Renquing
c.
Modeling
d.
Infiltrating
e.
Satisficing
38. A consumer’s perceived current state is also known as his or her _____ state.
a.
desired
b.
ideal
c.
actual
d.
social
e.
compatible
39. Jake has been driving the same car for ten years now, and he thinks it’s getting old. This describes
Jake’s _____ state with respect to his car.
a.
ideal
b.
compatible
c.
social
d.
desired
e.
actual
40. Bill wants to be elected as the mayor of his town. This perceived state for which he aspires is called his
_____ state.
a.
actual
b.
desired
c.
social
d.
current
e.
temporary
41. In opportunity recognition, _____.
a.
a consumer’s desired state doesn’t change
b.
a consumer’s actual state doesn’t change
c.
a consumer’s ideal state doesn’t change
d.
a consumer’s other state changes in some significant way
e.
a consumer’s current state changes in some significant way
42. When the search effort is not necessarily focused on an upcoming purchase; rather the effort is focused
on staying up to date on a topic of interest, it is called a(n) _____ search.
a.
ongoing
b.
postpurchase
c.
binary
d.
passive
e.
prepurchase
43. Vince harbors a passion for cars. He constantly seeks out information on new automobile models
without any intention of buying them. Which type of consumer search behavior does this represent?
a.
Postpurchase search
b.
Passive search
c.
Binary search
d.
Prepurchase search
e.
Ongoing search
44. Which of the following consumer search behaviors focuses on locating information that will enable the
consumer to reach a decision for a specific problem?
a.
Prepurchase search
b.
Postpurchase search
c.
Ongoing search
d.
Binary search
e.
Passive search
45. Don is visiting digital stores and searching the Internet to learn about high-definition DVD players as
he is planning to buy one. This is an example of a _____ search.
a.
postpurchase
b.
preemptive
c.
prepurchase
d.
passive
e.
binary
46. The situation in which consumers are presented with so much information that they cannot assimilate
it all is known as information _____.
a.
bias
b.
asymmetry
c.
bottleneck
d.
overload
e.
exposure
47. George was planning to buy the latest smartphone. However, when he started searching for related
information on the Internet, he was overwhelmed by the amount of information that was available on
smartphones. George decided to ignore all the details as he was unable to comprehend most of it. This
is an example of information _____.
a.
bias
b.
overload
c.
asymmetry
d.
bottleneck
e.
entropy
48. The total collection of all possible solutions to a recognized need is referred to as the _____ set of
alternatives.
a.
awareness
b.
universal
c.
consideration
d.
inert
e.
inept
49. Alternatives in a consumer’s awareness set that are deemed to be unacceptable for further
consideration are referred to as the _____ set.
a.
inept
b.
inert
c.
indifferent
d.
passive
e.
dormant
50. John will never purchase Sunshine Cereals because of a previous bad experience he has had with the
brand. For John, Sunshine Cereals corresponds to a(n) _____ set of alternatives within his awareness
set.
a.
inert
b.
indifferent
c.
passive
d.
dormant
e.
inept
51. Which of the following includes alternatives in the awareness set to which consumers are indifferent?
a.
Active set
b.
Inept set
c.
Inert set
d.
Consideration set
e.
Dormant set
52. Which of the following terms is used to refer to the product attributes that consumers consider when
reviewing possible solutions to a problem?
a.
Evaluative criteria
b.
Hedonic criteria
c.
Informative criteria
d.
Predictive criteria
e.
Constructive criteria
53. The rate at which a promotion is transitioned into a sale is known as promotional _____ rate.
a.
consolidation
b.
evolution
c.
transition
d.
optimization
e.
conversion
54. Which of the following represents the perceived overall goodness or badness of some product from a
consumer perspective?
a.
Product warranty
b.
Usability
c.
Availability
d.
Quality
e.
Price
55. Which of the following statements is true about the technologies used by consumers to search for
product or service-related information?
a.
QR codes are customer identification numbers through which consumers can make online
transactions or purchases.
b.
GPS-based technologies allow consumers to quickly address specific needs that they have
while they are traveling.
c.
QR codes are generally not preferred by consumers as they are very time-consuming.
d.
Visual search refers to a consumer searching for a particular product over the Internet.
e.
Internal search allows consumers to simply take a photo of an object or scan it into their
screen and quickly receive information about it.
56. Which of the following technologies enable consumers to gain easy access to all types of product-
related information and thus facilitate consumer search?
a.
Morse codes
b.
Wabun codes
c.
Baudot codes
d.
Quick response codes
e.
ASCII codes
57. Which of the following statements is true about the amount of search performed by consumers during
decision making?
a.
Search tends to decrease as a consumer’s level of education and income increases.
b.
When searching costs are greater than the benefits of the search process, consumers no
longer value the activity and search stops.
c.
Consumers who possess negative attitudes toward shopping generally spend more time
searching for product information.
d.
Search tends to decrease when a consumer possesses a high level of purchase
involvement.
e.
As perceived risk decreases, search effort increases.
58. Negative emotions that come from failed search processes are referred to as search _____.
a.
dissonance
b.
regret
c.
error
d.
overload
e.
inertia
59. Irene has been saving up and searching for the right house to buy. She was ecstatic when a friend told
her of a website that deals with real estate promotion and purchase. Irene, who confesses to be not so
proficient with the use of the Internet, visited the site for information. However, she was disappointed
since her laptop did not have all the necessary software to download information and images from the
site. The disappointment that Irene experienced can best be described as search _____.
a.
overdrive
b.
regret
c.
bias
d.
dissonance
e.
insurance
REAL ESTATE BROKER SCENARIO
Jane, a consumer researcher, worked with a real estate broker as part of her research on consumer
decision-making behavior. During the course of her research, she found that young couples, mostly
professionals, look out for a space they can call their own. Although young, they seldom make
spontaneous and impulsive decisions while buying a house. All of them arrive at a decision after an
exhaustive effort of finding more information, talking to different people, and checking out
neighborhoods through various sources. This strengthens Jane’s hypothesis that people tend to make
wise and informed decisions while buying a house. In her experience of working with the real estate
broker, Jane has had a successful run, except for the time when an elderly man left disappointed after
weeks of continuous search. After his retirement, he had wanted to invest in a “dream house,” but
sadly he could not find what he was looking for. Whatever he liked exceeded his budget. Jane also met
a young couple who spent most of their weekends house hunting. After being out with them week after
week, they finally admitted that they never intended to buy a house and that they were mostly
interested in gathering information and being updated about the real estate industry.
60. Refer to Real Estate Broker Scenario. During the course of her research, Jane found that young
couples, mostly professionals, look out for a space they can call their own. Which of the following
activities in the decision-making process best represents this perceived requirement?
a.
Need recognition
b.
Search for information
c.
Evaluation of alternatives
d.
Choice
e.
Postchoice evaluation
61. Refer to Real Estate Broker Scenario. Jane’s observation on the job working with the real estate broker
strengthens her hypothesis that people tend to make wise and informed decisions while buying a
house. According to Jane, which of the following decision-making perspectives most likely contributes
to consumers’ decisions?
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
62. Refer to Real-Estate Broker Scenario. Young couples seldom make spontaneous, impulsive decisions
while buying a house. All of them arrive at a decision after an exhaustive effort of finding more
information, talking to different people, and checking out neighborhoods through various sources.
Which of the following decision-making approaches are they most likely to employ?
a.
Experiential decision making
b.
Habitual decision making
c.
Routine decision making
d.
Extended decision making
e.
Limited decision making
63. Refer to Real-Estate Broker Scenario. Jane met a young couple who spent most of their weekends
house hunting. After being out with them week after week, they finally admitted that they never
intended to buy a house and that they were mostly interested in gathering information and being
updated about the real estate industry. Which of the following types of search does this represent?
a.
Postpurchase search
b.
Passive search
c.
Binary search
d.
Prepurchase search
e.
Ongoing search
64. Refer to Real-Estate Broker Scenario. In her experience of working with the real estate broker, Jane
has had a successful run, except for the time when an elderly man left disappointed after weeks of
continuous search. After his retirement, he had wanted to invest in a “dream house,” but sadly he could
not find what he was looking for. Whatever he liked exceeded his budget. The disappointment
experienced by the man can be best described as search _____.
a.
overdrive
b.
regret
c.
bias
d.
dissonance
e.
overload
COFFEE-MAKER SCENARIO
Jane was visiting her friend and was served a coffee drink at her friend’s house that was similar to the
ones she’s had at coffee shops. Her friend told her that she can make such coffee drinks with her
single-serve pod coffee maker. Jane decided she’d like to buy one as she wanted to enjoy similar
coffee drinks at home, but she didn’t know much about them. She searched the Internet and visited
Bed Bath & Beyond, Sur La Table, Williams Sonoma, and even Walmart. She realized there were
several brands of the product, such as Tassimo, Keurig, Brevity, Cuisinart, Bunn, Senseo, and Mr.
Coffee. With prices ranging from as low as $20 to several hundreds of dollars, it was difficult for Jane
to decide on a single brand. She was concerned about paying several hundred dollars for a coffee
maker. In the end, she shortlisted Tassimo, Keurig, and Cuisinart over the others for further
consideration, keeping in mind her budget as well as the product features she was looking for. She
deliberately left out Real and Fresh Coffeez, even though it was believed to be a good brand as she had
a bad experience with one of its products. She did notice that Tassimo featured Well-Fresh coffee
while none of the others did, and she ended up purchasing Tassimo for $130. She bought it because
that’s her favorite brand of coffee and Jane strongly feels that the coffee experience at Well-Fresh
coffee is found nowhere else. In buying Tassimo, Jane hoped to replicate the Well-Fresh coffee
experience at home.
65. Refer to Coffee-Maker Scenario. Jane realized there were several brands of the product, but in the end,
she shortlisted Tassimo, Keurig, and Cuisinart over the others for further consideration, keeping in
mind her budget as well as the product features she was looking for. Which of the following activities
in the decision-making process best reflects Jane’s choice of these three brands?
a.
Need recognition
b.
Search for information
c.
Evaluation of alternatives
d.
Choice
e.
Postchoice evaluation
66. Refer to Coffee-Maker Scenario. Jane finally decided on buying Tassimo, which featured Well-Fresh
coffee, her favorite brand of coffee. Jane strongly feels that the coffee experience at Well-Fresh coffee
is found nowhere else. In buying Tassimo, Jane hoped to replicate the Well-Fresh coffee experience at
home. Which of the following decision-making perspectives best describes Jane’s final choice?
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
67. Refer to Coffee-Maker Scenario. Jane didn’t know much about coffee-makers. Therefore, she searched
the Internet and visited different stores. She realized there were several brands of the product with
prices ranging from as low as $20 to several hundreds of dollars. Which of the following decision-
making approaches best reflects Jane’s method of finding information prior to the purchase?
a.
Experiential decision making
b.
Habitual decision making
c.
Routine decision making
d.
Extended decision making
e.
Limited decision making
68. Refer to Coffee-Maker Scenario. Jane was concerned about paying several hundred dollars for a coffee
maker. Which of the following best reflects Jane’s concern?
a.
Financial risk
b.
Physical risk
c.
Performance risk
d.
Time risk
e.
Social risk
69. Refer to Coffee-Maker Scenario. Jane deliberately left out Real and Fresh Coffeez, even though it was
believed to be a good brand as she had a bad experience with one of its products. For Jane, Real and
Fresh Coffeez corresponds to the _____ set of alternatives in her awareness set.
a.
inert
b.
indifferent
c.
passive
d.
dormant
e.
inept
ESSAY
1. List the five activities in the consumer decision-making process with examples for each.
2. Describe the three major decision-making perspectives. Describe a purchase decision you or your
family made that illustrates a combination of these perspectives.
3. Describe the types of risk consumers face when making decisions. Discuss how a marketer can reduce
each type of risk for consumers.
4. Compare and contrast the three decision-making approaches. Describe which one you used while
making a recent purchase.
5. Define universal set of alternatives. Describe the three categories of alternatives found in the
awareness set.
6. Explain the types of consumer search behavior with an example each.
7. Explain the significance of QR codes and GPS-based technologies in consumer search.
8. Discuss five factors that influence the amount of search performed by consumers.