CONSUMER BEHAVIOUR

TUTORIAL TWO – DECISION MAKINGAND CONSUMER BEHAVIOR

Learning Objectives:

By the end of this session, students should be able:

1. The three categories of consumer decision-making are cognitive, habitual, and

affective.
2. A cognitive purchase decision is the outcome of a series of stages that results in the
selection of one product over competing options.
3. We often rely upon “rules-of-thumb” or cues in the environment to make routine
decisions.
4. We make some decisions on the basis of an emotional reaction rather than as the outcome
of a rational thought process.

SECTION A: MCQ

1) Tomorrow, Janice will be attending a party with a buffet. In anticipation of splurging on

delicious food, she is eating very little today. Janice is using a ________ to help her estimate
consumption over time and regulate her behavior.
A) constructive process
B) mental budget
C) diet
D) cognitive process

2) A customer buying an unfamiliar product that carries a fair degree of risk would most
likely engage in what type of decision-making?
A) cognitive decision-making
B) limited decision-making
C) habitual decision-making
D) affective decision-making

3) Jack isn't motivated to spend time thinking about what his mom's birthday present could be
so he just orders her flowers yet again. Jack is experiencing ________.
A) boredom
B) emotional decision making
C) inertia
D) mental budgeting

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4) A consumer who moves his or her ideal state upward is experiencing ________
recognition.
A) opportunity
B) search
C) habitual
D) need

5) If a consumer's ideal state is very near or identical to his or her actual state, which of the
following best describes the type of problem recognition the consumer would most likely
have?
A) opportunity recognition
B) need recognition
C) search recognition
D) no problem recognized

6) ________ is a low-involvement medium because the role of the audience is passive, while
________ is a high-involvement medium because the role of the audience is active.
A) Television, print
B) Print, television
C) Internet, television
D) Billboard, broadcast

7) A hot and thirsty customer buys a cool drink and finds it very satisfying. He then buys
another drink even though he had not initially planned on buying two and even though he is
no longer thirsty. This is an example of ________.
A) purchase momentum
B) rational decision making
C) feature creep
D) inertia

8) A hot and thirsty customer buys a cool drink and finds it very satisfying. He then buys
another drink even though he had not initially planned on buying two and even though he is
no longer thirsty. This is an example of ________.
A) purchase momentum
B) rational decision making
C) feature creep
D) inertia

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9) A consumer can recognize a problem as either an opportunity or a need. How should
promotions differ between those emphasizing opportunities and those emphasizing needs?
A) Promotions emphasizing needs should attempt to increase the consumer's ideal state,
while promotions emphasizing opportunities should simply give locations where the products
can be found for purchase.
B) Promotions emphasizing opportunities should attempt to increase the ideal state, while
promotions emphasizing needs should give locations where the products can be purchased.
C) Promotions emphasizing needs should increase the ideal state, while opportunity
promotions should attempt to decrease the ideal state.
D) Promotions emphasizing needs should decrease the ideal state, while promotions
emphasizing opportunities should provide buying locations.

10) Ellen stated that she would marry a millionaire. She applied a heuristic in judging men.
They must wear expensive shoes and have an expensive automobile. What type of decision
rule was Ellen most likely applying in her search for a millionaire husband?
A) lexicographic rule
B) elimination-by-aspects
C) conjunctive rule
D) weighted additive rule

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SECTION B: SHORT QUESTIONS

1) List and define the five stages of the cognitive decision-making process.

2) Purchase decisions that involve extensive search also entail some kind of perceived risk (a
belief that the purchase potentially could have negative consequences). Name five perceived
risks, indicate the kinds of consumers most vulnerable to each risk, and indicate the types of
purchases most sensitive to each.

3) Pepsi A.M. was positioned as a coffee substitute. In one test market, Pepsi A.M. was
introduced onto a university campus. It was both an immense hit and a total failure. The
product always sold out of the vending machines, but the consumption of coffee stayed the
same and the sale of other Pepsi products declined. In terms of levels of categorization,
discuss what created the problem in the test market.

4) Anonymous product endorsement postings and reviews can be seen across the Internet, on
social networking sites, blogs, and even product review Web sites. It is becoming
increasingly clear that many of these are generated by the business providing the products
and services. Is this an ethical means of marketing products and services? Is this a practice
that is common in your country or region?