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Exam 9: Decision Making

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Question 1

Multiple Choice

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Some consumers make judgments about hidden dimensions of products from observable attributes, such as inferring that because a used car is clean and shiny, its mechanical condition is likewise of top quality. In this case, the clean and shiny exterior is a/an:

A) product signal
B) heuristic
C) warranty
D) guarantee
E) intrinsic attribute

F) A) and E)
G) All of the above

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Question 2

Multiple Choice

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Casinos make their interiors very plush and expensive looking knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains the gambler's behaviour?

A) Most people are unaware of the true risk of making certain decisions and therefore believe that a larger wager has higher odds of winning.
B) The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behaviour that is not rational.
C) In luxurious surroundings, gamblers look at lost bets as a price to pay to be in that kind of environment.
D) The functional risk of gambling is decreased in luxurious surroundings leading gamblers to wager more.
E) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.

F) None of the above
G) A) and E)

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Question 3

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Spiro is shopping at Wal- Mart, and very quickly picks up everything on his shopping list that he needs. Because it went quickly and he feels good, he keeps shopping. This is an illustration of:

Bill could not tell the Argonauts from the Stampeders during CFL Football on his tiny, antiquated black- and- white TV set! After he watched the second half of the game on his neighbour's big TV set, he realized there was a significant difference between his current state of affairs and a desired or ideal state. His perception is labelled:

The "economics- of- information approach" to search states that consumers will continue to acquire as much information as they need to make a decision so long as the benefits from searching outweigh the costs.

What is the key distinction between a social risk and a psychological risk?

Audi developed a car that can parallel park itself once its lined by the driver. This car would be classified as a:

Although Otis had always drunk, Mike's Hard Lemonade, his favourite drink, one day he surprised his friends and ordered a vodka martini. This is an example of .

When a consumer bases a purchase decision on the rule, s/he takes into account the relative importance of positively- rated attributes; that is, "brand ratings" on each attribute are intuitively multiplied by their importance weights.

Doug is looking to buy a new car, and therefore is involved in an extensive information search about automobiles. His final purchase decision will involve some level of perceived risk.

Bob was trying to decide which of two bicycles to buy. Both bicycles rated the same in terms of their shock absorbers. These attributes are termed their determinant attributes.

When shopping at the supermarket Russ always unconsciously grabs a carton of milk. This is an example of an automatic purchase.

What is an evoked set? Create an example to illustrate the term.

Criteria on which products differ carry less weight in the decision process than do attributes which are similar.

Consumers with greater "risk capital" are less affected by perceived risks associated with purchases than are those who have lower risk capital.

Choosing a product on the basis of its having the largest number of positive attributes is typically the case when a consumer is using the:

The more information we have about a product before purchasing it, the more likely we are to expect to not be happy with it.

The assumption of a price- quality relationship is one of the most pervasive market beliefs.

Wei Wei decides that the camera she buys must meet minimum standards on all of the key attributes she wants in a camera of this type or she will reject it, regardless of its performance on other attributes. Which decision rule has she decided to follow:

The inert set of brand choices consists of all those alternatives the consumer has in memory plus those prominently displayed in the store.