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MGMT 1006: Intro to Marketing Chapter 6: Consumer Decision Making Textbook: MKTG, 4th Edition, Charles W. Lamb, Joe F. Hair, Carl McDanniel, Marc Boivin, Davis Gaudet, Janice Shearer. Question review

101. Refer to the scenario. What is the term for Fiona’s uncertainty about whether she made the correct decision and the feelings that go along with this uncertainty? a. selective retention b. perceptual distortion c. postpurchase action d. cognitive dissonance ANSWER: d 102. Refer to the scenario. Fiona spent a significant amount of time and effort in selecting the daycare centre for Kate. What sort of product is the centre for Fiona? a. impulse response b. low involvement c. routine response d. high involvement ANSWER: d 103. Refer to the scenario. Fiona’s selection of a daycare facility represents which type of consumer buying decision? a. routine buying b. limited decision making c. extensive decision making d. impulse buying ANSWER: c 104. Refer to the scenario. Shannon, Fiona’s best friend, recommended PerfectCare because she takes her daughter there. What was Shannon acting as? a. a family member b. an opinion leader c. a dissociative reference d. an influencer ANSWER: b

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MGMT 1006: Intro to Marketing 105. If consumer behaviour is not well understood, a marketer will have difficulty creating an appropriate marketing mix. a. True b. False ANSWER: True 106. A restaurant gourmet who enjoyed eating sushi, veal, and snails would likely experience a need recognition for Whole Foods–brand vegetarian cookies when he realized the cookies were made without any milk or eggs. a. True b. False ANSWER: False 107. A stimulus is a unit of input from either an external or internal source that can affect sight, smell, taste, touch, or hearing. a. True b. False ANSWER: True 108. Once an individual’s evoked set has been established, evaluation of those alternatives will determine what information must be obtained during the information search. a. True b. False ANSWER: False 109. When Alan buys rock-climbing equipment, he will buy only Black Diamond, Petzl, Edelweiss, or Wild Country brands, even though other brands exist. These listed brands make up Alan’s consideration set. a. True b. False ANSWER: True 110. There are several tools marketing managers can use to mitigate the effects of cognitive dissonance. a. True b. False ANSWER: True 111. The purchase of products like soft drinks, cleaning products, and gasoline generally exemplify routine response behaviour. a. True 2

MGMT 1006: Intro to Marketing b. False ANSWER: True 112. Sunny has been a vegetarian for more than 10 years and would like her husband to enjoy the vegetarian lifestyle, but he will not give up ice cream, cake, and candy, which contain milk and eggs. She has found a new line of soy-based ice cream that promises to be better than milk-based ice cream and is thinking about buying it, even though it costs three times more than regular ice cream does. Sunny has engaged in extensive decision making. a. True b. False ANSWER: False 113. Noah perceives obtaining a tattoo to be a socially risky decision because he thinks people will judge him unfairly if he has a tattoo. Hayley, however, does not perceive getting a tattoo as particularly risky behaviour. As far as social risk is concerned, getting a tattoo will be a higher-involvement activity for Noah than for Hayley. a. True b. False ANSWER: True 114. In general, detailed, informative advertisements are most effective for high-involvement products because consumers actively search for additional information prior to making their decisions. a. True b. False ANSWER: True 115. Unlike some other countries, Canada does not have a status structure or social class system. a. True b. False ANSWER: False 116. A newly hired employee at an advertising agency chose the clothes she purchased for work by observing the clothes she saw worn in Dragon’s Den, a popular television reality show. In this example, the women hoping to work with one of the dragons served as primary reference groups. a. True b. False ANSWER: False 117. Opinion leaders are often the first to try new products and services. a. True 3

MGMT 1006: Intro to Marketing b. False ANSWER: True 118. The socialization process involves adopting the values of the culture in which a person was raised and is usually strongly influenced by the family. a. True b. False ANSWER: True 119. Hata perceives herself as shy, socially awkward, and unpopular. This would be considered her real self-image. a. True b. False ANSWER: True 120. While lifestyle research is useful for describing individual consumers, it is not useful for segmenting consumer groups. a. True b. False ANSWER: False 121. Selective exposure occurs when consumers change information that conflicts with their feelings or beliefs. a. True b. False ANSWER: False 122. Maslow’s hierarchy of needs categorizes human needs into five levels: physiological needs, safety needs, social needs, esteem needs, and self-actualization. a. True b. False ANSWER: True 123. Listening to someone describe how boring it was to be a movie extra is an example of experiential learning. a. True b. False ANSWER: False

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MGMT 1006: Intro to Marketing 124. If the product element of the four P’s provides no reinforcement (positive or negative), activity in some other aspect of the marketing mix may be required to encourage further consumption. a. True b. False ANSWER: True 125. Why do marketers study consumer behaviour? ANSWER: A marketer must understand consumer behaviour to develop a proper marketing mix. A thorough knowledge of consumer behaviour can assist the marketer in selecting the proper target market according to values, lifestyles, and demographic and social characteristics. Furthermore, an understanding of culture and personality variables can also reduce uncertainty when creating a marketing mix. 126. Assume you have decided to purchase a new flat-screen television with surround sound. Describe your internal information search. Then name the two types of external information sources. For each source, give two specific examples of information sources you might use. ANSWER: An internal information search is the process of recalling past information stored in memory. This stored information would come from previous experience with television sets. By searching your memory, you could remember good and bad features—such as weight, sound quality, picture quality, etc.—you have seen on other sets. Marketing-controlled information sources could include mass-media advertising about flat-screen televisions (radio, television, newspaper, or direct-mail); sales promotion (contests, sweepstakes, displays, premiums, etc.); salespeople at electronics stores; and finally, product labels and warranties for televisions. Nonmarketing-controlled information sources could include personal experience (trying out or observing television sets); personal sources (family, friends, acquaintances, and coworkers); and public sources (Underwriters Laboratories, Consumer Reports, or other consumer-rating organizations).

127. Assume that your current small television set (for which you paid $369.99 several years ago) has developed wavy lines across the screen and makes the people in your favourite programs sound as though they are using cheap walkie-talkies. Therefore, you have decided to work all summer to save money for the ultimate $1,800 high-definition television with surround sound. Trace the steps of your decision process for purchasing your new television. ANSWER: For this high-involvement decision process, you would use extensive decision making and go through the following steps: 1. Need recognition: Your present television has wavy lines and poor sound quality, and you desire a new television set. 2. Information search: You check both internal and external sources of information such as your own knowledge, opinions of peers, information from magazines, and the advice of television sales personnel. 3. Evaluation of alternatives: You consider product attributes of various television brands and models in an evoked set. These attributes might include sound quality, looks, price, warranty, brand name reputation, components, and so on. 5

MGMT 1006: Intro to Marketing

4. Purchase: You buy the hi-def television after judging alternatives. Postpurchase behaviour: You are satisfied with your purchase, which was the result of extensive decision making. Alternatively, you are dissatisfied with your purchase, return the television, and begin the process again. 128. How can marketers and consumers reduce cognitive dissonance? ANSWER: Cognitive dissonance can be reduced by both consumers and marketers. Consumers can take steps to reduce dissonance by obtaining new information that reinforces their positive ideas about the product and by avoiding information that contradicts the purchase decision. Finally, consumers can choose to return the product. Marketers can help consumers reduce dissonance by communicating with them. Postpurchase letters, dissonance-reducing statements in instructions, and advertising that displays superiority over competing brands can all relieve dissonance. 129. Assume you and some of your fellow students have decided to dine at a five-star restaurant upon successfully completing this marketing class. What type of consumer decision making regarding the restaurant will take place? Why did you choose the five-star type of restaurant? ANSWER: Acquiring information about an unfamiliar brand in a familiar product category is called limited decision making. In this case, limited decision making will take place for the following reasons: • The student will seek information about alternative restaurants. • The student may rely on the advice of other students to help decide on the restaurants, which may take more time. • An extensive amount of effort in terms of information seeking is not reasonably possible. • The costs and risks involved are moderate. 130. Assume you have gone to the corner convenience store to pick up a bar of your usual brand of deodorant soap. What type of decision making will take place? How would this differ from the decision making that would take place if the store was out of your regular brand? ANSWER: With a low-involvement product such as bars of soap, routine-response behaviour would take place, because the product is low priced and the same brand is frequently purchased. The purchase would be habitual. If the store was out of the regular brand, limited decision making would take place. Acquiring information about an unfamiliar brand in a familiar product category (such as soap) is called limited decision making. Some effort would have to be expended on evaluating alternatives or comparing prices if the consumer was price sensitive. 131. What is extensive decision making? When would a person use extensive decision making? Name two products that would require extensive decision making when purchased for the first time and would require limited decision making in subsequent purchases. ANSWER: A consumer practises extensive decision making when purchasing an unfamiliar, expensive 6

MGMT 1006: Intro to Marketing product or an infrequently bought item. This process is the most complex type of decision making because the buyer uses many criteria for evaluating alternative brands and spends much time seeking information. Buying a car, an appliance, a stereo system, or other expensive, durable item would require extensive decision making for the first purchase. However, as the purchase is repeated, the buyer may feel experienced in decision making and may step back to limited decision making. For example, a person who has bought several cars may resort to the heuristic, “I have always bought Fords and have been satisfied, so my next car will be a Ford.” 132. Assume you have been invited to join a social club whose members typically wear leather jackets. You have never bought or worn a leather jacket before. List and briefly describe four factors that could influence your level of involvement in the purchase of the leather jacket. How involved will you be in this purchase and why? ANSWER: The factors that affect involvement level are previous experience, interest, perceived risk of negative consequences, situation, and social visibility. Previous experience: Because there is no previous experience with the product, level of involvement will be higher because of unfamiliarity with the product. Interest: Areas of interest vary by individual. The student may or may not be interested in leather jackets. However, purchasing the leather jacket indicates an interest in the social group and probably a high level of involvement. Perceived risk of negative consequences: Several types of risks are involved in the purchase. With an expensive jacket, loss of purchasing power and opportunity costs result in financial risk. A social risk is taken, because wearing a leather jacket may cause a positive or negative reaction from other peer groups. For example, animal rights activists might criticize the purchase of a leather jacket, or other peer groups might view the purchase as frivolous. Finally, there is a psychological risk involved in the form of anxiety or concern about whether the “right” jacket has been purchased and is acceptable to other members of the social club. Situation: The circumstances of the social club make the leather jacket a high-involvement purchase. Social visibility: Because a leather jacket is a social and public display, wearing the jacket makes a statement about the individual. This would also make the purchase a high-involvement one.

133. Assume you have decided to purchase a mobile telephone and calling plan. List and briefly describe three factors that may affect the extent of your information search. ANSWER: Students will determine numerous factors that will affect the extent of an information search. Some possible examples follow: Perceived risk: Because the decision to purchase a mobile phone and calling plan may be relatively risky due to high cost, the consumer may spend more time searching for alternatives or gathering information. Social risks may also cause the consumer to be more careful in the search because the mobile telephone is an example of “conspicuous consumption” and is socially visible. Also, it takes effort and time to gather information. At a certain point, the consumer may decide the value of additional information about mobile phones and a calling plan is not worth the effort to obtain the information. Knowledge: If the consumer knows little about the product, a more extensive information search would

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MGMT 1006: Intro to Marketing be necessary to give the consumer enough knowledge to feel confident about making a decision. People lacking confidence about information will continue an information search even if they are extremely knowledgeable. Prior experience with the product: If the consumer has already had experience with a certain brand of mobile telephone or calling plan, the information search will be limited because brand preferences may have already been established, and the perceived risk will be lower. Interest: How important is the mobile telephone and calling plan in solving a problem or satisfying needs and wants? If the mobile phone is simply “neat to have” and the consumer has other phones, the information search might not be as extensive as the one for a consumer who finds a mobile phone vital to his or her job. More interested consumers spend more time searching for information and alternatives. Involvement level: A mobile telephone and calling plan may be a high-involvement product for a student and a low-involvement product for an executive. The higher the level of involvement, the more extensive the information search is likely to be. Other items students might mention include confidence in one’s decision-making abilities, prior experience with the product class, and influence of reference groups and other motivations.

134. Most consumer decision making is in a low-involvement setting; therefore, a consumer is often not seeking many of the products marketers are trying to sell. What tactics can a marketer use to increase sales of a low-involvement product? Explain your logic. ANSWER: Because problem recognition for low-involvement purchases rarely occurs until the consumer is in the store, the marketer must use attention-getting devices in the store. These include attractive packaging and in-store displays. Marketers can also provide incentives in the form of sales promotions, including coupons, cents-off deals, rebates, and two-for-one offers. Finally, marketers can link a product to a higher-involvement issue. For example, toothpaste can be promoted as a product that fights plaque and cavities. Breakfast cereal can be promoted as a health food that reduces the risk of cancer. 135. What is the difference between culture and subculture? Why do marketing managers need to understand culture and subculture? ANSWER: Culture is the set of values, norms, attitudes, and other meaningful symbols that shape human behaviour and the products of that behaviour as they are transmitted from one generation to the next. Culture is environmentally oriented and dynamic. It also gives order to society by establishing common expectations. Subcultures are subdivisions of culture on the basis of such things as demographic characteristics, geographic regions, political beliefs, religious beliefs, and national and ethnic backgrounds. Subcultures are homogeneous groups that share elements of the overall culture as well as unique elements. Within subcultures there are even greater similarities in people’s attitudes, values, and actions than within the broader culture. Without understanding culture, a firm has little chance of effectively penetrating the market. 8

MGMT 1006: Intro to Marketing As more companies expand their operations globally, the need to understand the cultures of foreign countries becomes more important. Marketers should become familiar with the culture and adapt to it, or marketers can attempt to bring their own culture to other countries. Marketers should also identify subcultures and then design special marketing programs to serve their needs. 136. The activities, values, and goals of reference groups directly influence consumer behaviour. What are reference groups? What are the three important implications reference groups have for marketers? ANSWER: Reference groups are groups in society that influence an individual’s purchasing behaviour. Reference group implications are that (1) they serve as information sources and influence perceptions, (2) they affect an individual’s aspiration levels, and (3) their norms either constrain or stimulate consumer behaviour. 137. List and briefly describe the five different roles various family members can play to influence the purchase decision-making process for a new houseboat. ANSWER: The initiator initiates or suggests the purchase process. The influencer is a person whose opinion is valued in the decision-making process. The decision maker actually makes the decision to buy. The purchaser actually exchanges money for the product. The consumer is the user of the houseboat, either as a passenger or as captain. 138. Define self-concept. Choose a product (i.e., a good, service, or idea), and use that product to illustrate how a marketer would apply the idea of self-concept to market the product. ANSWER: Self-concept is how an individual perceives him- or herself in terms of attitudes, perceptions, beliefs, and self-evaluations. Through self-concepts, consumers define their identity, which in turn provides for consistent behaviour. Self-concept is a combination of the ideal self-image and the real self-image. For any product chosen, the marketer would promote the product as a match to real selfimage or a support for attaining the ideal self-image. The concept of self is important to marketers because it helps explain the relationship between individuals’ perceptions of themselves and their consumer behaviour as expressed through their personalities. For examples, marketers of deodorant develop promotional a...