Chapter 7:

Consumer Decision Making

Multiple Choice Questions

1. The key process in consumer decision making is:

A) identification of multiple purchase alternatives.
B) acquiring information.
C) the integration/evaluation process which produces a choice.
D) making the purchase decision.
E) problem identification.
2. The choice which results from consumer decision making is best described as a(n):
A) behave oral intention.
B) purchase outcome.
C) action.
D) integrative process.
E) affective outcome.

3. The consumer’s salient beliefs about relevant consequences become a choice criteria
during which of the following stages of the consumer problem solving process?
A) Problem recognition
B) Search for alternative solutions
C) Evaluation of alternatives
D) Purchase
E) Post-purchase use/reevaluation

4. Jane decided to purchase a car that was one or two years old with low mileage. In this
regard, Jane has started visiting a few dealers, talking to salespeople, and has discussed
the purchase with her father. Jane is currently in which of the following phases of the
Generic Model of Consumer Problem Solving?
A) Purchase
B) Searching for alternative solutions
C) Evaluation of alternatives.
D) Satisfaction maximization
E) Problem recognition/definition
5. Each behavioral intention formed in the process of problem solving is a step in the
overall decision plan; this in turn produces a sequence of _____ for goal achievement.
A) multiple problems
B) multiple decisions
C) cognitive decisions
D) purposive behaviors
E) affective responses

6. All of the following statements about the consumer decision process are true
EXCEPT:

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 A) that the consumer usually progresses through the stages of the decision process in a
linear fashion.
B) that the process begins with problem recognition.
C) that the choice results from the comparison of alternatives.
D) that the consumers often reevaluate their choice after use.
E) that consumer problem solving involves a single decision.

7. Problem representation may include all of the following EXCEPT:

A) tangible and abstract end goals.
B) a set of subgoals organized into a goal hierarchy.
C) relevant product knowledge.
D) heuristics.
E) selection of a best alternative.

8. Brands that are activated directly from memory upon problem recognition make up the:
A) evoked set.
B) activation set.
C) memory set.
D) consideration set.
E) alternative set.

9. A product/brand’s position in the consumer’s consideration set may be enhanced by all of

the following EXCEPT:
A) repetitive advertising campaigns.
B) effective packaging design.
C) intensive distribution strategies.
D) considering familiarity/past use.
E) consistently offering lower prices.

10. All salient beliefs about the consequences of the choice alternatives are combined to form
a summary evaluation or attitude toward each behavioral alternative by the:
A) compensatory integration process.
B) BI integration process.
C) AI integration process.
D) noncompensatory process.
E) combination process.

11. The multiattribute attitude model is part of the:

A) noncompensatory model.
B) combination model.
C) compensatory model.
D) summation model.
E) heuristic model.

12. Alternative selection and evaluative models are NOT followed using any single strategy
since it is affected by all of the following EXCEPT:

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 A) the fact that not all models are appropriate for single alternative choices.
B) the fact that consumers may not have sufficient cognitive capacity to simultaneously
integrate several beliefs about many alternatives.
C) the fact that most decision problems are actually a complex collection of interrelated
sub-problems.
D) the fact that consumers probably do not have easily accessible decision models stored
in memory.
E) the fact that most integration processes are not subject to be ‘constructed’ at the time
they are needed.

13. In which of the following Noncompensatory Models of Information Integration Processes

must each acceptable alternative meet/exceed a minimum cutoff level established by the
consumer?
A) Elimination by aspects
B) Lexicographic
C) Disjunctive
D) Conjunctive
E) Multiattribute

14. A rank ordering of acceptance criteria, based on their importance to the consumer, is used
to select the best choice alternative under the:
A) elimination by aspects model.
B) multiattribute model.
C) conjunctive model.
D) disjunctive model.
E) lexicographic model.

15. Under the _____ model, choice alternatives that fail to meet minimum acceptance levels
for choice criteria are systematically eliminated until only one alternative remains.
A) elimination by aspects
B) lexicographic
C) disjunctive
D) conjunctive
E) multiattribute

16. Which of the following product involvement/knowledge situations is most likely to

produce an extensive problem solving activity?
A) High involvement/low knowledge
B) Low involvement/low knowledge
C) Low involvement/high knowledge
D) High involvement/high knowledge
E) Medium involvement/medium knowledge

17. The flow of the problem solving process can be interrupted by the following
environmental effects EXCEPT:

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 A) prominent environmental stimuli.
B) heuristics.
C) affective states.
D) conflicts.
E) unexpected information.
18. A consumer has to choose between two equally attractive products each of which satisfies
a desired goal; however, neither product can satisfy both goals. The consumer is
experiencing a(n):
A) approach-avoidance conflict.
B) avoidance-avoidance conflict.
C) approach-approach conflict.
D) satisfaction conflict.
E) choice conflict.

19. Keith is trying to decide on purchasing a new Microwave that is on sale for a 50%
discount; however Keith is doubtful that the quality may not meet standards. She is
experiencing a(n):
A) approach-avoidance conflict.
B) avoidance-avoidance conflict.
C) approach-approach conflict.
D) satisfaction conflict.
E) choice conflict.

20. New firms seeking to sell unfamiliar products/brands will find their task most difficult
under which of the following choice behavior condition?
A) Extensive decision making
B) Moderate decision making.
C) Impulse purchasing.
D) Limited decision making.
E) Routinized decision making.

True/False Questions

21. Consumer decision making is a goal-directed, problem-solving process.

22. The components of a problem representation often change during the decision-making
process.
23. In the problem-solving process, usually only a subset of all possible alternatives, called
the consideration set , is evaluated.
24. Top-of-mind awareness is influenced by the amount of past experience consumers have
had in purchasing and using the brand.

25. Beliefs about common or very similar consequences of the choice alternatives do not
discriminate among alternative actions.

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 26. One essential task of the integration processes involved in problem solving is to evaluate
choice criteria in terms of the choice alternatives.
27. In using the multiattribute model, a product is acceptable only if it exceeds the
minimum level on at least one criterion.

28. A compensatory strategy might be used to quickly reduce the choice alternatives to a
manageable number by rejecting those that lack a conjunctive strategy.
29. Since heuristics are applied to only a few bits and pieces of knowledge at a time,
heuristics are highly adaptive to specific environmental situations.

30. Evaluation heuristics are simple procedures for comparing evaluations of alternative
actions in order to choose one.

31. Store selection is an example of search heuristic.

32. Routinized choice behavior requires high conscious control.

33. If the dominant end goal is to optimize satisfaction, the basic purchase motivation is to
seek satisfactory balance of positive and negative consequences.

34. Consumers with a satisfaction/maintenance end goal are likely to engage in minimal
search behavior.

35. In the absence of a complete decision plan, a general goal hierarchy provides a useful
structure for developing an effective decision plan without a great deal of problem-
solving effort.

36. Marketers can try to influence less abstract end goals through promotional strategies.

37. In a consideration set where both the level of knowledge and involvement are low, very
few choice alternatives are known or considered.

38. Approach–approach conflict occurs when consumers must choose between two
alternatives with different negative consequences.

39. The effects of interrupts on consumers’ problem-solving processes depend on how

consumers comprehend the interrupting event.
40. In extensive decision making situations, marketers have minimal opportunities to
interject their brands into consumers’ consideration sets during problem solving.

Fill in the Blank Questions

41. The outcome of the integration process is a _____, represented cognitively as a

behavioral intention.

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 42. The end goal and its associated subgoals form a(n) _____.

43. A problem representation serves as a _____, through which the decision maker
views the problem and the alternatives to be evaluated.

44. _____are the alternative behaviors that consumers consider in the problem-solving
process.
45. For highly familiar decisions, consumers may not consider any brands beyond those in
the _____ set.

46. The specific consequences used to evaluate and choose among choice alternatives are
called _____.

47. Only _____ consequences can be used as choice criteria.

48. _____ are simple “if . . . , then . . . ” propositions that connect an event with an
appropriate action.

49. The process of identifying, evaluating, and choosing among alternatives during problem
solving produces a _____ made up of one or more behavioral intentions.

50. _____ choice behavior occurs relatively automatically with little or no apparent cognitive
processing.

Essay Questions
51. Why is problem representation the most important element of the problem solving
process?
Answer:
Problem representation may include (1) an end goal, (2) a set of
subgoals organized into a goal hierarchy, (3) relevant product
knowledge, and (4) a set of simple rules or heuristics by which
consumers search for, evaluate, and integrate this knowledge to make
a choice.
It serves as a decision frame through which the decision maker views the problem and the
alternatives to be evaluated. The components of a problem representation often change
during the decision making process.
Page: 165
Difficulty: Medium

52. What are choice alternatives?

Answer:
Choice alternatives are the alternative behaviors that consumers consider in the problem-
solving process. For purchase decisions, the choice alternatives are the different product
classes, product forms, brands, or models the consumer considers buying. For other types
of decisions, the choice alternatives may be different stores to visit, times of the day or

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 week to go shopping, or methods of payment. Given their limited time, energy, and
cognitive capacity, consumers seldom consider every possible choice alternative.
Page: 166
Difficulty: Easy

53. Why must a product/brand break into the consumer’s consideration set? How does this
occur? Why would the marketer desire to achieve entry into the consumers’ evoked set?
How does this occur?
Answer:
For purchase decisions, the choice alternatives are the different product classes, product
forms, brands, or models the consumer considers buying. Given their limited time,
energy, and cognitive capacity, consumers seldom consider every possible choice
alternative. The consideration set is composed of those products/brands the consumer
perceives as possible solutions to their purchase problem(s). Some brands in the
consideration set may be activated directly from memory; this group is called the evoked
set. For highly familiar decisions, consumers may not consider any brands beyond those
in the evoked set. The evoked set is a much smaller group of brands that are top-of-mind
purchase candidates for identified purchase problems. Typically, this status is earned by
past favorable outcomes. Each favorable outcome will strengthen a brand’s position in
the evoked set, eventually developing a loyal customer. Marketing strategies such as
distribution strategies , packaging design etc are designed to brief the consumer about
product benefits and include it in their evoked sets of choice alternatives.
Page: 166-167
Difficulty: Medium

54. What are heuristics?

Answer:
Heuristics are simple “if....then” propositions that connect events to appropriate actions.
Because they are applied to only a few bits and pieces of knowledge at a time, heuristic
are highly adaptive to specific environmental situations and are not likely to exceed
cognitive capacity limits. Heuristics may be stored in memory like miniature scripts that
are applied fairly automatically to information encountered in the environment. Or they
may be constructed on the spot in response to the immediate environment. There are three
types of heuristics that are particularly important in problem solving—search heuristics,
evaluation heuristics, and choice heuristics.
Page: 172
Difficulty: Medium

55. What are decision plans?

Answer:
The process of identifying, evaluating, and choosing among
alternatives during problem
solving produces a decision plan made up of one or more behavioral
intentions. Decision plans vary in their specificity and complexity.
Specific decision plans concern
intentions to perform particular behaviors in highly defined situations.

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 Having a decision plan increases the likelihood that the intended
behaviors will be performed.
Page: 172,174
Difficulty: Medium

56. Explain the effect of end goals on problem solving processes.

Answer:
The particular end goals consumers are striving to achieve have a
powerful effect on
the problem-solving process. Consumers who have an optimizing end
goal are likely to expend substantial effort searching for the best
possible alternative. In contrast, consumers with a
satisfaction/maintenance end goal are likely to engage in minimal
search behavior. In other decisions, consumers may have conflicting
end goals that must be resolved in the problem-solving process.
Page: 175-176 (Exhibit 7.6)
Difficulty: Medium

57. Explain the effect of goal hierarchies on problem solving processes.

Answer:
Consumers’ goal hierarchies for a problem have a powerful influence on problemsolving
processes. If consumers have a well-defined goal hierarchy stored in memory,
it may be activated and the associated decision plan can be carried out automatically.
Even if a complete decision plan is not available, a general goal hierarchy provides a
useful structure for developing an effective decision plan without a great deal of problem
solving effort. In contrast, consumers who have little past experience will not have well-
developed goal hierarchies. Their problem solving is likely to proceed haltingly, by trial
and error.
Page: 176
Difficulty: Medium

58. Explain the effect of involvement and knowledge on problem solving processes.
Answer:
Consumers’ problem-solving processes are greatly affected by the amount of product
knowledge they have acquired through their past experiences and by their level of
involvement with the product and/or the choice process. The activated knowledge
about goals, choice alternatives, choice criteria, and heuristics affects consumers’
ability to create an effective decision plan. Also, consumers’ involvement with the
product or decision affects their motivation to engage in the problem-solving process.
Exhibit 7.7 summarizes how different combinations of product knowledge and
involvement influence specific elements of consumers’ problem representations and the
overall problem-solving process.
Page: 176 (Exhibit 7.7)
Difficulty: Medium

59. Briefly explain how the environment affects consumer decision.

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 Answer:
Environmental factors can affect consumer decision making by disrupting the ongoing
flow of the problem solving process. The effects of interrupts on consumers’ problem-
solving processes depend on how consumers interpret (comprehend) the interrupting
event. Interrupts can occur when unexpected information (inconsistent with established
knowledge structures) is encountered in the environment. Prominent environmental
stimuli can interrupt a problem-solving process. Many marketing strategies are intended
to interrupt consumers’ ongoing problem solving as well as activate new knowledge or
goals from memory. Affective states such as moods and physiological events can
interrupt an ongoing problem-solving process. Conflicts that arise during the course of
purchase decision making can interrupt the problem solving process. Goal conflict occurs
when consumers recognize the presence of incompatible goals, and when consumers
discover that alternatives cannot be found to satisfy incompatible goals.
Page: 178-179
Difficulty: Medium

60. Briefly explain limited decision making and extensive decision making.
Answer:
Most consumer decisions involve limited problem-solving effort. Since most consumers
already have a lot of information about the product from previous experiences., the basic
marketing strategy is to make additional pieces of information available to consumers
when and where they need them. Advertisements to increase top-of-mind awareness may
help get a brand into the evoked set of choice alternatives at the beginning of the decision
process.
When consumers engage in extensive decision making, they need information about
everything—including which end goals are important, how to organize goal hierarchies,
which choice alternatives are relevant, what choice criteria are appropriate. Since
consumers intentionally seek product information during extensive decision making,
interrupting their problem-solving processes with a brand promotion is relatively easy.
Page: 178-179
Difficulty: Medium

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