Consumer Choice Processes Quiz

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Questions and Answers

What type of consumer choice is driven primarily by a consumer's immediate emotional response?

  • Cognitive choice
  • Attitude-based choice
  • Affective choice (correct)
  • Attribute-based choice

Affective choice can be rationally articulated and is based on the analysis of product components.

False (B)

What is one important factor that influences attitude-based choice?

Brand recognition

The choice process that involves detailed knowledge about specific product features is called ________.

<p>attribute-based choice</p> Signup and view all the answers

Match the types of consumer choice with their characteristics:

<p>Affective Choice = Driven by emotions Attitude-based Choice = Based on general impressions Attribute-based Choice = Involves comparison of product features Judgment Models = Procedures for evaluating qualities</p> Signup and view all the answers

Which of the following is NOT a criterion for evaluating a mobile phone according to attribute-based choice?

<p>Brand familiarity (B)</p> Signup and view all the answers

Consumers use heuristic methods exclusively in attribute-based choice.

<p>False (B)</p> Signup and view all the answers

Name an example of attributes that consumers could compare when selecting a mobile phone.

<p>Price, features, design</p> Signup and view all the answers

What concept opposes the assumption that consumers are always rational in their decision-making?

<p>Bounded Rationality (B)</p> Signup and view all the answers

Consumers always seek optimal solutions in their decision-making.

<p>False (B)</p> Signup and view all the answers

What is the name of the scale developed to measure individual differences in consumer emotional intelligence?

<p>Consumer Emotional Intelligence Scale (CEIS)</p> Signup and view all the answers

The introduction of a third choice can adjust the original ______ when a consumer is deciding between two choices.

<p>anchor</p> Signup and view all the answers

Match the following researchers with their findings:

<p>Iyengar &amp; Lepper = Found greater choices can be demotivating Simon = Introduced the concept of bounded rationality Kidwell et al. = Developed the Consumer Emotional Intelligence Scale Peter &amp; Krishnakumar = Found a positive correlation between emotional intelligence and impulse buying</p> Signup and view all the answers

According to research, when consumers are faced with too many choices, they tend to:

<p>Pick or grasp choices (A)</p> Signup and view all the answers

Heuristics are used as a shortcut decision-making process when consumers are under time pressure.

<p>True (A)</p> Signup and view all the answers

What emotional factors influence consumer behavior according to recent research?

<p>Perceiving, facilitating, understanding, and managing emotions</p> Signup and view all the answers

Which decision rule evaluates a product according to all identified attributes?

<p>Compensatory decision rule (A)</p> Signup and view all the answers

Rational choice theory suggests that the optimal solution for consumers changes depending on situational factors.

<p>False (B)</p> Signup and view all the answers

What are the three assumptions of rational choice theory?

<ol> <li>Seek one optimal solution, 2) Have skills and motivation, 3) Optimal solution is constant.</li> </ol> Signup and view all the answers

The ______ effect is a cognitive bias where people react differently based on how a choice is presented.

<p>framing</p> Signup and view all the answers

Match the following decision rules with their definitions:

<p>Conjunctive Decision Rule = Establishes minimum standards for each criterion Lexicographic Decision Rule = Rank orders attributes by importance Elimination-by-Aspects = Ranks attributes and sets minimum requirements Compensatory Decision Rule = Evaluates based on all identified attributes</p> Signup and view all the answers

In prospect theory, how are losses perceived compared to gains?

<p>Losses are larger than gains (D)</p> Signup and view all the answers

The anchoring effect refers to making decisions based on a final outcome.

<p>False (B)</p> Signup and view all the answers

Which decision rule immediately drops products that do not meet the minimum standard?

<p>Conjunctive decision rule</p> Signup and view all the answers

_______ rationality proposes that there are limitations to making rational decisions.

<p>Bounded</p> Signup and view all the answers

How do scarcity frames impact consumer decision-making?

<p>Encourage trade-offs in conditions of scarcity (B)</p> Signup and view all the answers

Cognitive biases always lead individuals to make rational decisions.

<p>False (B)</p> Signup and view all the answers

What is the effect of presenting a glass of juice as two-thirds full versus one-third empty?

<p>It demonstrates the framing effect.</p> Signup and view all the answers

An example of a non-compensatory decision rule is the _________ decision rule.

<p>lexicographic</p> Signup and view all the answers

Match the following terms with their definitions:

<p>Framing effect = Influence of presentation on choices Anchoring effect = Reliance on initial information Prospect theory = Loss aversion compared to gains Bounded rationality = Limitations in decision-making capacity</p> Signup and view all the answers

Flashcards

Consumer Choice Processes

The way consumers decide which options to choose from after gathering information.

Affective Choice

Choosing based on immediate feeling and emotions without evaluating attributes.

Attitude-Based Choice

Making choices based on overall impressions, brand reputation, or simple rules of thumb.

Attribute-Based Choice

Comparing and evaluating specific features of each product.

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Evaluation Criteria

Criteria used to compare and judge product options.

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Judgment Models

Rules and methods for considering the various attributes and criteria.

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Aesthetic-Based Choice

Deciding on a product based solely on aesthetic appeal or design.

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Practical Choice

Making a choice primarily based on price, warranty, weight, and features.

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Anchoring Effect

The tendency for individuals to make decisions based on the first piece of information they encounter, often without fully considering other options.

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Framing Effect

The way in which the presentation or framing of information can influence a consumer's choice, even if the underlying options are objectively the same.

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Bounded Rationality

The idea that consumers have limited cognitive resources and cannot always make perfectly rational decisions. They often rely on heuristics or shortcuts to simplify decision-making.

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Choice Overload

When consumers are presented with an overwhelming number of choices, they may feel overwhelmed and less likely to make a decision at all.

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Heuristics

Simple rules of thumb or mental shortcuts that consumers use to make decisions quickly, without fully analyzing all available information.

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Consumer Emotional Intelligence

The ability of individuals to understand, manage, and use their own emotions to guide their decision-making processes, particularly in the context of consumer behavior.

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Consumer Emotional Intelligence Scale (CEIS)

A measure designed to assess individual differences in how consumers use emotional information to make decisions, based on the original Mayer-Salovey-Caruso Emotional Intelligence Test (MSCEIT).

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Impulse Buying

Purchases made impulsively, often without careful planning or consideration of the long-term consequences.

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Compensatory decision rule

A decision-making rule where a consumer evaluates a product based on all its attributes, weighing them against each other to find the best overall option.

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Conjunctive decision rule

A decision-making rule where a consumer sets minimum standards for each attribute and eliminates products that don't meet those standards.

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Lexicographic decision rule

A decision-making rule where a consumer ranks attributes in order of importance and chooses the product that scores highest on the most important attribute.

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Elimination-by-aspects decision rule

A decision-making rule where a consumer ranks attributes in order of importance and eliminates products that don't meet minimum standards for each attribute, progressively.

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Rational choice theory

A theory assuming consumers seek the best solution to a problem, have the skills and motivation to find it, and that this optimal choice remains consistent regardless of external factors.

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Prospect theory

A psychological theory stating people perceive losses as bigger than gains of equal value.

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Compensatory judgment model

A type of judgment model where good qualities can compensate for bad ones.

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Non-compensatory judgment model

A type of judgment model where a product is eliminated if it fails to meet minimum standards for any attribute.

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Positive framing effect

The tendency for people to prefer options presented in positive terms, even if they offer the same outcome.

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Negative framing effect

The tendency for people to avoid options presented in negative terms, even if they offer the same outcome.

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Study Notes

Consumer Choice Processes

  • Three types of consumer choice processes exist: affective, attitude-based, and attribute-based.
  • Affective choice: Driven by emotional response to a product, holistic, not always rationally articulated. Product evaluation is based on feelings during use.
  • Attitude-based choice: Uses general attitudes, impressions, intuitions, or heuristics. Brand recognition and perception are important factors.
  • Attribute-based choice: Involves attribute-by-attribute comparisons across brands, requiring detailed product knowledge. Decisions are based on comparing attributes (number, types, or importance).

Evaluation Criteria and Judgment Models

  • Evaluation criteria: Standards used by consumers to evaluate a product.
  • Judgment models: Procedures or rules for evaluating alternative product qualities (decision models/choice rules).
  • Compensatory decision rule: Evaluates a product based on all identified attributes. (battery life, sound, screen quality, memory, camera quality, compatible apps, OS, weight, etc.). Comparisons of several products are conducted.
  • Non-compensatory decision rule: A different approach to comparison. There are three main types:
    • Conjunctive decision rule: Establishes minimum required standards for each criterion; products not meeting requirements are rejected immediately.
    • Lexicographic decision rule: Ranks product attributes by importance (e.g., data storage, camera quality, battery life).
    • Elimination-by-aspects decision rule: Ranks attributes by importance and sets minimum requirements for each; if attributes do not meet minimum requirements, the product is eliminated.

Rational Choice Theory

  • Assumptions:
    • Consumers seek one optimal solution.
    • Consumers have the skills and motivation to find the optimal solution.
    • Optimal choice remains constant despite situational factors (time pressure, etc)
  • Theory assumes that sufficient product information enables informed, optimal choice.

Challenges to Rational Choice Theory

  • Framing effect: People react differently to choices based on how they are presented (e.g., "two-thirds full" vs. "one-third empty"); Prospect theory explains this, where people perceive losses as larger than gains. Examples include scarcity & limited resource framing.
  • Anchoring effect: Decisions influenced by initial information (e.g., previous phone model).
  • Bounded rationality: Consumer rationality is limited by available information, cognitive capacity, and time. Consumers may seek satisfactory instead of optimal solutions.
  • Excessive Choice: A larger number of choices can be demotivating and lead to consumers to hastily selecting options rather than choosing carefully.

Consumer Emotional Intelligence

  • CEIS (Consumer Emotional Intelligence Scale) measures individual differences in using emotional information to make consumer choices.

Additional Notes

  • Consumer behavior is often complex, emotional, and incomplete, contradicting rational choice theory assumptions.

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