SPMT 370 EXAM 3 QUESTIONS & ANSWERS
Decision-Making Process - Answers -The process of choosing between two or more
alternatives or options; most logical way to make a decision.
Extended Decision-Making - Answers -When consumers move diligently through
decision-making activities in search of the best information that will help them reach a
decision.
The Extended Decision-Making process is... - Answers -High Involvement and
Significant Risk.
The Limited Decision-Making process is... - Answers -Low involvement (e.g., time
constraints) and generally Low Risk
Habitual Decision-Making - Answers -Consumers generally do not seek information at
all when a problem is recognized and select a product based on habit.
Examples of Habitual Decision Making are... - Answers -Brand Loyalty and Brand
Inertia
Brand Loyalty - Answers -Consistent preference for one brand over all others.
Brand Inertia - Answers -Occurs when a consumer simply buys a product repeatedly
without any real attachment
What does decision-making revolve around? - Answers -Motivation
What do decision-making processes lead to? - Answers -Consumer Choice
Consumer choice is always linked to what? - Answers -Value
What are the 3 "value" related approaches to the decision-making process? - Answers
-- Rational (Utilitarian)
- Experiential (Hedonic)
- Behavioral Influence (Impulsive)
Perceived Risk - Answers -The perception of the negative consequences that are likely
to result from a course of action (a choice) and the uncertainty of which course of action
is best to take.
Financial Risk - Answers -Risk associaated with the cost of the product. (BIGGEST
RISK)
, Social Risk - Answers -Risk associated with how other consumers will view the
purchase.
Functional Risk - Answers -Risk associated with a product not performing as expected.
Physical Risk - Answers -Risk associated with the safety of a product and the likelihood
that physical harm will result from consumption.
Time Risk - Answers -Risk associated with the time required to search for the product
and the time necessary for the product to be serviced or maintained.
The decision-making process does not always guarantee _____________. - Answers -
Maximum Value
Maximizers - Answers -Consumers who work to find the best solution.
Satisficing - Answers -The practice of using decision-making shortcuts to arrive at
satisfactory, rather than optimal, decisions.
Need/Want Recognition - Answers -When consumers perceive a difference between
their actual (current) state and a desired state.
What is the primary distinction between a want and a need? - Answers -The freedom to
choose!
What are the primary elements of the evaluation stage? - Answers -Evaluation Criteria
and Alternative Evaluation
What are the considerations of alternative evaluation? - Answers -Alternative as a
Whole or Attributes of Each Alternative
Not all what is equally important? - Answers -Evaluative Criteria
Evaluation Criteria - Answers -The attributes that consumers consider when reviewing
alternatives.
Feature - Answers -A specific element or property of a product.
Benefit - Answers -The perceived favorable results derived from a particular attribute
(what you get, outcome)
Cost - Answers -The perceived (or actual) unfavorable results (what you exchange or
give up)
Determinant Criteria - Answers -The criteria that are most carefully considered and
directly related to the actual choice that is made.
Decision-Making Process - Answers -The process of choosing between two or more
alternatives or options; most logical way to make a decision.
Extended Decision-Making - Answers -When consumers move diligently through
decision-making activities in search of the best information that will help them reach a
decision.
The Extended Decision-Making process is... - Answers -High Involvement and
Significant Risk.
The Limited Decision-Making process is... - Answers -Low involvement (e.g., time
constraints) and generally Low Risk
Habitual Decision-Making - Answers -Consumers generally do not seek information at
all when a problem is recognized and select a product based on habit.
Examples of Habitual Decision Making are... - Answers -Brand Loyalty and Brand
Inertia
Brand Loyalty - Answers -Consistent preference for one brand over all others.
Brand Inertia - Answers -Occurs when a consumer simply buys a product repeatedly
without any real attachment
What does decision-making revolve around? - Answers -Motivation
What do decision-making processes lead to? - Answers -Consumer Choice
Consumer choice is always linked to what? - Answers -Value
What are the 3 "value" related approaches to the decision-making process? - Answers
-- Rational (Utilitarian)
- Experiential (Hedonic)
- Behavioral Influence (Impulsive)
Perceived Risk - Answers -The perception of the negative consequences that are likely
to result from a course of action (a choice) and the uncertainty of which course of action
is best to take.
Financial Risk - Answers -Risk associaated with the cost of the product. (BIGGEST
RISK)
, Social Risk - Answers -Risk associated with how other consumers will view the
purchase.
Functional Risk - Answers -Risk associated with a product not performing as expected.
Physical Risk - Answers -Risk associated with the safety of a product and the likelihood
that physical harm will result from consumption.
Time Risk - Answers -Risk associated with the time required to search for the product
and the time necessary for the product to be serviced or maintained.
The decision-making process does not always guarantee _____________. - Answers -
Maximum Value
Maximizers - Answers -Consumers who work to find the best solution.
Satisficing - Answers -The practice of using decision-making shortcuts to arrive at
satisfactory, rather than optimal, decisions.
Need/Want Recognition - Answers -When consumers perceive a difference between
their actual (current) state and a desired state.
What is the primary distinction between a want and a need? - Answers -The freedom to
choose!
What are the primary elements of the evaluation stage? - Answers -Evaluation Criteria
and Alternative Evaluation
What are the considerations of alternative evaluation? - Answers -Alternative as a
Whole or Attributes of Each Alternative
Not all what is equally important? - Answers -Evaluative Criteria
Evaluation Criteria - Answers -The attributes that consumers consider when reviewing
alternatives.
Feature - Answers -A specific element or property of a product.
Benefit - Answers -The perceived favorable results derived from a particular attribute
(what you get, outcome)
Cost - Answers -The perceived (or actual) unfavorable results (what you exchange or
give up)
Determinant Criteria - Answers -The criteria that are most carefully considered and
directly related to the actual choice that is made.
